The construction industry like many other industries has changed and evolved with time. It is the fourth largest contributor to Australia’s GDP and has played a major role in determining economic growth of the country. In terms of employment, the industry has employed 9% of the Australian workforce making it the fourth largest industry (ABS data).
Procurement intends to explore supply market opportunities and to implement resourcing strategies that deliver the best possible supply outcome to the organization, its stakeholders and clients (Kidd, 2005). Therefore, construction procurement exists to purchase a construction project as requirement of firms or organizational entities to achieve its goals. However, the choice to use external resources is the part of firms’ decision-making
The Construction Industry in India is the second largest employer of the country after agriculture, accounting for 11% of India’s GDP. It employs more than 3.5 crores people & its total market size is estimated at Rs. 2,48,000 crores. The level of a country’s development is reflected by its infrastructure & the desperate need for infrastructure development has increased the demand of the construction industry in India.
The economy of Brazil is rapidly growing making its presence felt in the international markets. Brazil boasts of efficiently functioning mining, manufacturing, agricultural industry and service segments. In Brazil, the agriculture sector makes up 11% of the gross domestic product or the GDP.
Construction industry plays an important part as a stimulant in Malaysia’s economy. The Construction Industry Development Board (CIDB) was established as a government agency to facilitate and act as a catalyst to the development, is generally representing the construction industry to the government and the public. (Chan, 2009). According to Hiap (2012), the CIDB published a ten year Construction Industry Master Plan (CIMP) towards the end of year 2007, the aim is to refocus the strategic position and charting the future direction of the industry.
A mega-event can be broadly defined in terms of Volume, e.g. a certain minimum number of visitors attracted over a period of time; Value, e.g. a certain minimum amount of revenue generated in a locality over a period of time or minimum capital cost of constructing facilities and in terms of psychological effect, e.g. the worldwide reputation of the event generates ‘must see’ feelings in potential tourists. It is a proven fact that successfully organizing major mega-sports events will bring tremendous tangible and intangible value for the host city and the state.
The fall in construction output since 2008 has generally increased levels of competition and the ‘buying’ of turnover through the submission of low bids. This is especially relevant in capital intensive and high overhead businesses. These price pressures have flowed back up the supply chain, where price reviews have often been worse than the capacity to reduce cost from operations. In fact, there has been inflation exceeding cost increases in areas such as energy, which is a key cost line of some construction products manufacturers. Over the past five years (2007 to 2012) average industrial electricity prices have risen by 35 per cent (19 per cent in real terms), with an increase of 6 per cent (4 per cent in real
A 2013 survey Corruption in the UK Construction Industry conducted by the Charted Institute of Builders (CIOB, 2013), which surveyed 701 construction professionals, the majority of whom described themselves as being of ‘senior management level’, although this survey involved mainly senior management, it is important to note that corruption can occur at any level within an organisation. The results of the survey presented a number of important findings about the state of the industry; first and most significantly that 49% of respondents believed that corruption is common (fairly or extremely) within the UK construction industry, this represents almost half of those surveyed and provides a damning insight into the prevalence of corruption.
Risks are an inherent part of everything in life, but it is how we plan and prepare for them that determines the ultimate effect they have on us. We invest money in health insurance plans for when we get sick and invest time in preparing for exams should we encounter any difficult problems, so it definitely makes since to account for risk when it comes to construction projects. It is our endeavor to examine the topic of risk management from the construction viewpoint to gain a better understanding of its significance and what it encompasses.
Conclusion: Based on the analysis of the data, regardless of which of the forecasting methods were used, it was found that the construction industry growth rate is declining. Further it can be said that, Exponential smoothing is the relatively accurate method of forecasting as compared to two/three years moving average and the trend adjusted exponential smoothing.
To meet the aim of this dissertation, data that represents the awareness and knowledge of people employed within the construction industry; especially involved in procurement is required. Three different data collection approaches can be taken to meet this aim, a case study, quantitative approach, or a qualitative approach.
The construction industry much like other industries is dependant with the distribution of “scarce resources” (Drake,1994). Many of its resources known as the factors or production i.e. labour, capital, land etc. are limited (Gregory-Mankiw, 2008), however, wants and desires within the industry are infinite (Myers, 2013). Kishtainy notes that this creates two problems; at any given time, there will be a fixed number of resource, against numerous wants. Sloman 2003 adds that in an effort to rectify this, he argues that we must make choices, in terms of choices within the construction industry Myers suggested that firms need to considered their investments made, how they construct and for whom they construct for.
Lim, E. And Alum, J. (1995) conducted a survey in Singapore. The survey was targeted to the top civil engineering and building contractors in to identify the bottlenecks that could affect construction productivity. They found that the most important issues affecting productivity are:
There however are challenges in the industry occasioned by uncertainty on future spending on construction projects by the government. Moreover, the cost of doing business and the ability to increasingly make revenue have created a challenging environment for the construction firms. Therefore stakeholders in the construction industry are concerned with whether the government would increase its spending and whether the public construction projects will be available in the future since less than 10 percent are currently financing their clients.
The purpose of this report is to summarize and analyze the various construction procurement methods used in the construction industry. This report was commissioned by SMRC medical research corporation. This report will identify a recommended method to the commissioner for the development of their new research facility.