Assessment of strengths in the UK international construction sector

The background to international production theory is presented with a view to relating the eclectic approach to a part of the international construction industry. This sector includes a number of industry participants: consulting engineers, architects, surveyors, contractors and capital goods manufaturers etc. It can be observed that the sector has adapted to changing client requirements, partly triggered by competitive pressures. The nature of these can be predicted to some extent from the brief reviews of some theoretical and empirical work; the latter is drawn mostly from the contracting sector, but it is widened here to include other sector groups. Fieldwork has thus been carried out to interview a total of 20 firms comprising the different parties to the sector. Although consultants were of primary interest, it was considered that a wider selection of parties should be interviewed in order to determine some of the aspects common to each group. There is also a measure of interrelating across each group in carrying out international projects although this is more the case in competitor nations. Questions were framed on their own strengths and weaknesses, and that of their competitors, as well as the opportunities and threats faced. The findings of the survey and that of the earlier review are brought together in order to summarize where the main ‘advantages’ of the firms lie.     

Clients’ needs,wants and expectations from contractors and approach to the concept of repetitive works in the Northern Cyprus construction market

Intense competition existing in the construction market creates an industry that is dominated by the client groups. This paper provides insights into private clients’ needs, wants and expectations from contractor firms in the Northern Cyprus building construction market, by presenting survey findings of 91 clients regarding this issue. Moreover, it presents their perspective related to doing repetitive works with the same contractors in possible future works. The study has clearly confirmed the fact that the clients in the specified market place high emphasis on a wide variety of factors. The importance assigned to these factors varies according to the categories or characteristics of the clients within the private building construction sector. Another striking finding was the responding clients’ willingness to do possible repetitive works with the same contractors assuming that they are fully satisfied with the existing or past projects. This opportunity, if used properly by the contractor firms in this market, may be the key to beating the competition and lead to the easy path to increase a contractor firm's market share. Furthermore, it was found that the responding clients expect much more than quality, finishing on time and within budget for full satisfaction and continuing to do repetitive works. The importance and hence the contribution of a set of criteria related to achieving full client satisfaction, and leading to possible repetitive works is presented. Although it would not be reasonable to determine general strategies on just a single study, the contractor firms in the Northern Cyprus construction market will benefit from the framework given within this paper by recognizing what is important and essential to private building construction clients in particular situations and hence present the capabilities of the contracting or potential contracting organizations in ways that meet this to best advantage. Although the results given are based on input from the Northern Cyprus construction market, we believe that the contractor firms in other countries, who specialize in building works for private sector may also benefit from the findings or at least the approach of this research as well.     

The changing role of builders merchants in the construction supply chain

Builders merchants are an integral part of the construction industry, yet rarely are they consulted when discussions take place on the future of the construction industry. Throughout history, builders merchants have played a dominant role in the construction industry, initially as an intermediary between the artisan and the buyer, and more recently as a source of working capital for contracting firms. The merchanting industry currently is undergoing considerable change. The depressed construction market and the failure of the housing repair and maintenance sector to recover in the first half of the 1990's as activity in the private non-housing repair and maintenance sector has increased, has raised competition between merchants. The major building merchants are becoming larger by acquisition and merger, the smaller merchants are seeking niche areas, and the medium-size firms are under serious threat from acquisition by the larger merchanting firms. The trend towards consolidation in the sector, driven by the need to reduce costs, has meant that the large merchanting firms now control around 60% of the building materials market sales. Factoring is a growing trend, particularly with smaller companies sourcing goods from the cheapest source. The larger merchants have to respond by sourcing goods from the lowest cost base, irrespective of whether they buy from overseas markets. This paper analyses the UK builders merchants sector and evaluates the important role played in the supply chain.     

建筑业与制造业企业组织沟通有效性的比较研究

基于用先进的制造业改造传统建筑业的现实需求,在对影响组织沟通的核心要素分析的基础上,设计问卷及测量问题,并进行了数据收集及其信度、效度检验,应用数理统计方法对建筑业和制造业企业的组织沟通有效性进行了比较研究。研究结果表明:制造业企业信息交流的准确性、及时性和充分性均明显好于建筑业企业;而制造业企业的信息交换量虽大于建筑业企业,但差异并不显著。该研究有助于建筑业企业借鉴制造业的先进经验,通过组织沟通有效性水平的提升促进与其他联盟企业的合作。     

Antecedents of construction project coalitions: a study of the Spanish construction industry

Research into the formation of alliances, relevant in the field of strategic management and especially, in the construction industry, is often explained in terms of interdependency and complementarities (exogenous factors). In contrast, the influence of a firm’s social relations networks (endogenous factors) has hardly been studied at all. Thus, a model is needed that includes both exogenous and endogenous factors as antecedents to the formation of strategic alliances in the construction industry. Cooperation in the construction sector is especially frequent, above all in public works programmes, as their scale requires coalitions of different‐sized firms. Accordingly, to explore how both exogenous and endogenous factors influence the formation of alliances, a social network analytical method—Multiple Regression Quadratic Assignment Procedure (MRQAP)—was applied to cooperative project coalitions in the Spanish public works construction sector from 2001–2007. Empirical findings confirm that construction companies form coalitions, principally on the basis of past alliances. Membership of business associations and groups is also a key factor, though the influence of geographic proximity is the most debatable result. In the construction industry, the formation of alliances is conditioned, among other factors, by previous social and economic relations that can generate the necessary information and trust for the selection of whichever partner is considered the most suitable for the development of the joint project.     

Fit for the task: the future of the small scale domestic repair and maintenance industry in the UK

The poor condition of much of the UK's older housing stock is an important policy issue. Some disrepair arises because owners cannot afford work, because they are not aware of the need for it or because they do not know how to go about organizing it. However, the poor reputation of that sector of the building industry dealing with small scale domestic repair and maintenance is also a deterrent. If anything, the problems of this sector have worsened during the recession as the supply of unskilled ‘cowboy’ operators has increased. This paper reviews the factors leading to underinvestment and poor quality work in the privately owned housing stock and examines the extent to which the shortcomings of the building industry contribute to this phenomenon. It describes the results of a survey of firms operating in the domestic repair and maintenance sector of the UK building industry, the majority of which were very small. The survey examined the size and composition of firms, their organization and working practices, the types of work they carried out, how they went about obtaining business, the extent to which their work-force was trained and the problems they faced in competing with one another and with the cowboy sector. On the basis of the survey conclusions and discussions with a wide range of organisations representing the industry, consumers, local authorities and government, a series of options for reform are discussed with the aim of stimulating debate on the future of this sector of the construction industry. It is argued that the problems of the UK industry cannot be solved by tighter controls on builders alone, but by a range of measures designed to provide more support and training to reputable builders, measures to exert greater controls over building techniques and safety provision to reduce unfair competition and programmes to educate the consumer to demand better standards and to be willing to pay for them. Ultimately only compulsory measures may succeed in improving standards, but much could be achieved by voluntary licensing or registration schemes backed up by incentives to use qualifying firms such as guarantees. This is more likely to work if backed up for an initial period by government or local authority funding. In the long run, however, the improvements to building quality could save public money.     

Market concentration in the Spanish turbot aquaculture sector: A regional analysis

This paper analyses the regional evolution of the market structure in the Spanish turbot industry, which is the leading turbot producer in Europe, using different concentration rates. The analysis is performed considering several factors that have influenced the evolution of the sector, the most important being the application of technology, business strategies and the institutional framework. The results confirm a process of concentration. Starting from an initial phase in which the sector was composed of a considerable number of small companies, this industry has evolved towards a situation in which only two large firms dominate the market.     

工程咨询公司全过程造价控制及效果评价研究

通过分析工程咨询公司在全过程造价管理模式下存在的问题,构建工程咨询公司全过程造价控制模式,包括决策阶段项目建议书和可行性研究报告中的投资估算、设计阶段的方案设计和初步设计概算以及实施阶段的工程招投标中的标底和合同价、施工过程中的动态造价及竣工结算中的造价审核监督和控制等。通过建立咨询服务效果评价指标体系,确定评价指标权向量,建立综合评价模型,探讨工程咨询公司全过程造价控制效果评价方法。并指出全过程造价控制效果评价应注意的事项。分析结果表明,工程咨询公司应在项目建设周期的全过程中采取有效措施,进行工程造价有效控制及控制效果评价,节约成本,合理利用资源。     

Guidelines for effective workplace HIV/AIDS intervention management by construction firms

Construction firms have an important role in combating HIV/AIDS in the South African construction industry. The HIV/AIDS intervention management practices of 12 construction firms in Cape Town are examined through interviews and documents. From thematic analysis, five themes emerged: construction firms’ perceptions of HIV/AIDS as a threat to the firm; construction firm interventions; barriers to the success of interventions; the role of service providers; and state-led interventions. A tension exists in managing HIV/AIDS interventions as firms are concerned with productivity and profit maximization, but are becoming more engaged with corporate social responsibility and a higher duty of care towards employees. Interventions should extend beyond awareness and prevention campaigns to include testing and treatment programmes. A guideline checklist for such interventions is proposed. Partnering with specialized service providers is recommended, as well as engaging closely with public sector services. Firms successfully managing their HIV/AIDS response should share their experience with others struggling to respond. Employee issues of stigma and reluctance to disclose need to be addressed. Attention should be paid to the employment structure of the construction industry and to the needs of the informal sector.     

Improving the design and production data flow of a complex curvilinear geometric Glass Reinforced Concrete façade

Many architectural firms and precast companies find it difficult to design and produce complex-shaped surfaces. Most Spanish architects use 2D-based drawing information systems, which are inappropriate for irregular building skins, instead of using 3D or 6D software tools based on Building Information Modeling (BIM). Although there are software tools capable of paneling complex geometries, their complexity and cost are serious drawbacks when architects consider using them. This article shows the results from developing and using a new software tool to design and generate documents for the construction of a complex GRC façade. The main objective has been to simplify the design and document development processes for curvilinear façades. This new software has been optimized by learning from the experience and knowledge gained by architectural firms and prefabricated companies. This research concludes that this software will be useful for both architects and GRC plants, yet there is room for improvement.     

旁压试验在某高层建筑场地原位测试中的应用

回顾了旁压试验的发展历程,详细介绍了旁压试验的原理及典型旁压曲线,简述某高层建筑场地的工程地质概况,分析了基床反力系数随着深度及土类的变化规律,为工程设计提供了科学的勘测数据。     

Editorial

Though the British and Dutch approaches to disability in the construction sector exhibit common features, Britain tends towards a capabilities model compared with the Netherlands which is closer to a social model. The construction sector is considerably more regulated in the Netherlands but is in both countries highly disabling and exclusive. Sector‐specific disabling and enabling factors and policy measures were investigated in the two countries with a view to identifying which policies might facilitate labour market participation. The investigation was based on interviews using similar questionnaires with key stakeholders, firms and disabled employees and a focus group. Policy in each country addresses the nature of exclusion in different ways. The conclusion drawn is that a sector‐specific approach is needed if disability policy in Britain is to be more in tune with the social model—as apparent from the comparison with the Netherlands.     

Motives for acquisitions among engineering consulting firms

Many empirical studies across various industry sectors show a high failure rate of mergers and acquisitions (M&A), suggesting that this instrument of corporate development is rather risky. Since engineering consulting firms usually have a low tangible asset base as well as good educated and highly mobile professionals, carrying out an M&A transaction in this particular service sector creates an even higher risk. It is evident from the relevant construction and engineering literature that a large number of engineering consulting firms engage in M&A for their corporate development. Owing to the uniqueness of that service sector combined with the high failure rate of M&A, a survey among the top 100 engineering consulting firms in Europe was conducted to investigate the motives behind M&A transactions. Findings suggest that diversification into new service/client markets as well as the penetration into new geographic markets were the most important motives. Further, increasing the firm's market share and the acceleration of growth were the next most popularly rated motives, while tax reasons or spending the firm's excess cash were both seen as relatively unimportant motives. The results show that - compared to other industry sectors - engineering consulting firms had some very different motives or another emphasis was placed on those motives when conducting an M&A transaction. Results also show that some motives were just as important for engineering consulting firms as for firms of other industry sectors, for example the increase of market share or the acceleration of firm growth.     

Marketing foreign interior design services in China

With China's accession to the World Trade Organization and rapid development of the country's economy, foreign design firms are seeking timely opportunities for market entry. However, unique features of the Chinese business environment and their impact on the design services sector remain unclear to many of these potential new entrants. The objective of this paper is to survey the interior design services sector and provide guidance for foreign firms that wish to enter this market. Several systemic problems pertaining to this sector are identified from interviews, which include two different standards for design fees, short design cycles and an inappropriate design proposal review system. Several transnational marketing strategies are proposed: establishing alliances with Chinese private design firms, and establishing long-term cooperative relationships with developers and contractors to provide focused services. However, a more competitive pricing policy is not regarded as a sustainable strategy for foreign interior design firms.

Avec l'adhésion de la Chine à l'Organisation Mondiale du Commerce et le développement rapide de l'économie de ce pays, les bureaux d'étude étrangers cherchent des possibilités d'entrer sur le marché. Toutefois, les spécificités de l'environnement commercial chinois et leur impact sur le secteur des services d'étude restent flous pour bon nombre de ces nouveaux entrants potentiels. L'objectif de cet article est de passer en revue le secteur des services de décoration intérieure et de fournir des conseils aux sociétés étrangères qui souhaitent pénétrer sur ce marché. Des interviews ont permis de recenser plusieurs problèmes systémiques propres à ce secteur: existence de deux normes différentes pour le calcul des honoraires dans ce secteur, cycles courts, un système inapproprié d'examen des propositions, etc. Plusieurs stratégies de marketing transnationales sont proposées: établir des alliances avec des sociétés privées chinoises spécialisées dans la décoration intérieure et établir des relations de coopération à long terme avec des promoteurs et des contractants pour fournir des services ciblés. Toutefois, une politique de prix plus compétitive n'est pas considérée comme une stratégie durable pour les sociétés étrangères de décoration intérieure.

systèmes commerciaux, culture de la construction, marchés de la construction, services d'étude, décoration intérieure, internationalisation, entrée sur le marché, marketing, Chine     

Making sense of supply chain management: a comparative study of aerospace and construction

Current recipes for learning across business sectors too often fail to recognize the embedded and contextual nature of management practice. The existing literature gives little emphasis to the symbiotic relationship between supply chain management and the broader dynamics of context. The aerospace and construction sectors are selected for comparison on the basis that they are so different. The UK aerospace sector has undergone extensive consolidation as a result of the imperatives of global competitive pressures. In contrast, the construction industry has experienced decades of fragmentation and remains highly localized. An increasing proportion of output in the aerospace sector occurs within a small number of large, globally orientated firms. In contrast, construction output is dominated by a plethora of small firms with high levels of subcontracting and a widespread reliance on self‐employment. These differences have fundamental implications for the way that supply chain management is understood and implemented in the two sectors. Semi‐structured interviews with practitioners from both sectors support the contention that supply chain management is more established in aerospace than construction. The introduction of prime contracting and the increasing use of framework agreements within the construction sector potentially provide a much more supportive climate for supply chain management than has traditionally prevailed. However, progress depends upon an improved continuity of workload under such arrangements.     

Microeconomic impacts of investments in high speed trains in Spain

In this paper, we analyze the effects of new high-speed trains (HST) on passengers’ mobility in Spain. The construction of several new HST lines is planned in the Transport Infrastructure Masterplan of the Spanish Ministry of Transport and Public Works (MOTPW) for the period 2000–2010, and they are expected to cause a major change in the transport sector. Our objectives are twofold: firstly, we estimate the modal split (market shares of air, rail, bus and private car) in the equilibria induced by the new high speed lines; and secondly we calculate the number of passengers for these new HST services, in order to evaluate the revitalization of railways in the horizon 2010. Data stem from a mobility survey carried out by the MOTPW. A gravity model is estimated to forecast passenger flows between Spanish provinces in 2010, and we also estimate a multinomial logit model to calibrate passengers’ choice of transport mode. Results indicate that the impacts of new HST services will vary across routes, and they depend on the spatial location of the new routes.     

Business definition and performance implications: the case of the Belgian construction sector

Business definition (either explicitly or implicitly defined) matters in the construction sector in Belgium. A business is a three‐dimensional ‘strategic space’ within an industry, defined by the buyer types targeted, product types sold and geographical reach. The research setting is one of family owned small non‐diversified firms in the construction industry. The sample consists of 61 firms. Data on these firms were gathered for the year 2006. Firms with a similar business definition within the construction sector were clustered. Three clusters could be delineated: residential, non‐residential and a civil engineering business. Performance differs between the three businesses. Performance was measured with perceptions on sales, sales growth, gross sales margin and return on invested capital. Perceived performance correlated with financial performance. Competitive forces differ according to the business. Firms in the civil engineering sector working for government agencies performed best.     

Predicting construction firm performance: an empirical assessment of the differential impact between industry‐ and firm‐specific factors

It is obvious that the performance of firms hinges upon the dynamics of both industry‐ and firm‐specific factors. A less obvious, and perhaps a more important, line of inquiry is that to the extent that they have a bearing on firm performance, how much do these two groups of factors respectively predict firm performance? To date, performance differences among construction firms that stem from industry‐ and firm‐specific differential effect has remained largely unexplored. Using a dataset comprising 526 firms across various construction‐related sectors, the sector‐by‐sector firm performance variation that is attributable to the heterogeneity of both industry‐ and firm‐specific characteristics was empirically examined. That statistically significant results of different effect sizes are found indicates that although these factors are often assumed to be intertwined it is possible to study their respective impact on firm performance. Future studies could usefully replicate and extend this study to construction firms in other countries to further investigate what drives firm performance under different national, industry and firm contexts.     

Use of information and communication technologies by small and medium‐sized enterprises (SMEs) in building construction

Scholars usually agree that small and medium‐sized enterprises (SMEs) active in construction are not very innovative when compared with large‐size construction enterprises. This is particularly evident in the case of adoption and diffusion of innovation associated with information and communication technologies (ICTs). Although ICTs are powerful instruments for the rapid and broader diffusion of technical knowledge, few SMEs are fully able to exploit their benefits. There is little evidence of how SMEs perceive ICTs and of the extent to which these technologies are actually used in the construction industry. There is a relationship between organizational size and the use of ICTs within the SMEs in the building construction sector in Turkey. A set of ICT variables comprising the perception, investment, usage and the software preferences of SMEs were analysed by making use of the data collected in a survey of a randomly selected sample of 227 building construction firms in Turkey. In contrast to the common approaches that consider SMEs as part of a homogeneous set of firms with similar characteristics, this study seeks the differences in ICT‐related attitudes between SMEs of different sizes. Rather than using arbitrarily pre‐defined intervals to classify firms by size, cluster analysis was used in this study. Although what emerges as a whole is the common under‐utilization of ICTs by SMEs in building construction, ‘organizational size’ appears to explain some of the ICT‐related attitude differences within these SMEs. Policy makers can consider using the findings of this study as inputs in their activities, as these findings represent a generic overview of the diffusion of new technologies and can assist in identifying future research directions.     

Design issues of using prefabrication in Hong Kong building construction

Prefabrication techniques have been adopted for the last two decades in public housing projects in Hong Kong, but the use of prefabrication in the private sector was encouraged only after the implementation of the Joint Practices Notes which promote its use. Although previous studies acknowledge the environmental benefits of using prefabrication, only a few studies have addressed sustainable design concepts (closed‐loop) in the adoption of precast construction. A questionnaire survey was administered to experienced Hong Kong construction professionals, and case studies of recently completed building projects were compiled to ascertain the use of prefabrication with reference to life cycle approach. The findings revealed that prefabrication, combined with modular design and standard components, saved time and construction/design costs, as buildings systems were used across projects. However, in some projects, specific site conditions restricted the use of similar prefabricated building systems across projects. Surprisingly only a few participants addressed life cycle design concepts such as design for deconstruction when adopting precast construction. Also, although it is common knowledge that flexible and demountable prefabricated building systems would result in efficient use of resources, their use is seldom practised in Hong Kong.