Pan 2019

Download as pdf or txt
Download as pdf or txt
You are on page 1of 15

Case Study

PESTEL Analysis of Construction Productivity Enhancement


Strategies: A Case Study of Three Economies
Wei Pan, Ph.D.1; Le Chen, Ph.D.2; and Wenting Zhan, S.M.ASCE3

Abstract: Previous construction productivity research focused on developing productivity measurement methods and quantifying the impact
of influencing factors. However, the development of holistic strategies for productivity enhancement of a construction industry has received
Downloaded from ascelibrary.org by Newcastle University on 10/03/18. Copyright ASCE. For personal use only; all rights reserved.

limited attention. This paper examines the nature of the constraints on productivity advancement and explores the rationale underpinning the
productivity enhancement strategies at the industry level. The exploration was based on a systemic perspective taking contingency factors in
the broad business environment into consideration. A comprehensive literature review used a political, economic, social, technological, envi-
ronmental, and legal (PESTEL) framework to reveal the major strategic themes of construction productivity enhancement. Building on the lit-
erature review, a multiple exploratory case study design was adopted to investigate the constraints and strategies within the construction
industries of Singapore, Hong Kong, and the UK. The research design combines documentation, semistructured stakeholder interviews, and
project site visits. The case study analyses led to a theoretical framework that conceptualizes the underlying structure of construction produc-
tivity enhancement strategies (CPESs) within the dynamic business environment of the industry. The findings contribute to a better theoretical
understanding of the systemic nature of CPESs and provide specific guidance for formulating holistic strategies to enhance construction pro-
ductivity. DOI: 10.1061/(ASCE)ME.1943-5479.0000662. © 2018 American Society of Civil Engineers.
Author keywords: Construction productivity; Strategy evolution; Industry development; Political, economic, social, technological, envi-
ronmental, legal (PESTEL) analysis; Singapore; Hong Kong; UK.

Introduction indices across several economies (Vogl and Abdel-Wahab 2015).


Although such studies had improved productivity measurement
Construction productivity research has received considerable atten- methods and quantified the impact of influencing factors, there is
tion in the construction and engineering management literature due still a pressing need to explore the strategies for enhancing construc-
to the significant impact of construction productivity on the wide tion productivity at the industry level (Pan 2018; Yi and Chan
economy (Barbosa et al. 2017; Choi and Lee 2016; Pan 2018). 2014).
Productivity is defined as the ratio of product output to input resour- A wealth of industry and government reports recommended a
ces (Chia et al. 2014). Pertaining to the project-based nature of con- holistic approach when seeking to develop the built environment
struction operations, research on construction productivity concerns that makes a positive contribution to the overall productivity of an
three levels: activity, project, and industry (Yi and Chan 2014). economy by means of more productive construction processes
Studies at the activity level inquired about productivity of perform- (Barbosa et al. 2017). Consulting studies usually analyzed the con-
ing construction tasks, especially through quantitative approaches straints on, and proposed strategies for, productivity enhancement
(Shan et al. 2016). Studies at the project level quantified and of a particular construction industry (Green 2016). Hence the key
assessed the productivity of construction projects (Zhao and issues, such as technologies, procurement, and workforce, were
Dungan 2014). Studies at the industry level focused on productivity reflected in the specific political, economic, social, and industrial
measurement (Vogl and Abdel-Wahab 2015) and long-term pro- concerns of an economy, whereas the present literature lacks evi-
ductivity trends (Borg and Song 2015). Most studies measured total dence on commonalities of the constraints and strategies shared by
(Hu and Liu 2017) or partial/single factor productivity, in particular, contemporary construction and built environments concerning pro-
labor productivity (Choi and Lee 2016), and revealed the evolution ductivity enhancement. Furthermore, productivity is indicative of
of productivity indices over time. Cross-country productivity inqui- regional and national competitiveness, and its growth is driven by a
ries were mainly performed by comparing construction productivity system formed by broad attributes of production factors; demand
conditions; supporting industries; and firm strategies, structure, and
1
Associate Professor, Dept. of Civil Engineering, Univ. of Hong Kong, rivalry (Porter 1998). Nevertheless, current literature presents a lim-
Pokfulam Rd., Hong Kong SAR, China. Email: [email protected] ited understanding of the complexity underpinning construction
2
Postdoctoral Research Fellow, Dept. of Civil Engineering, Univ. of productivity enhancement strategies (CPESs). Often, the strategies
Hong Kong, Pokfulam Rd., Hong Kong SAR, China (corresponding were proposed from a mechanistic perspective (Farjoun 2002)
author). Email: [email protected] assuming a stable and predictable environment, taking a synchronic
3
Ph.D. Candidate, Dept. of Civil Engineering, Univ. of Hong Kong, view of time, and paying less attention to interaction and multiple
Pokfulam Rd., Hong Kong SAR, China. Email: zhanwt11@connect influences. Many strategies were formulated based on cross-
.hku.hk
Note. This manuscript was submitted on February 21, 2018; approved
sectional data sets collected at a particular time to address specific
on June 19, 2018; published online on October 2, 2018. Discussion period issues that affect productivity growth, e.g., labor shortage (Ho
open until March 2, 2019; separate discussions must be submitted for indi- 2016). Hence, the implementation of such strategies is likely to ex-
vidual papers. This paper is part of the Journal of Management in perience resistance through feedback loops from unforeseeable fac-
Engineering, © ASCE, ISSN 0742-597X. tors (Sterman 2004). For example, the strategy of using migrant

© ASCE 05018013-1 J. Manage. Eng.

J. Manage. Eng., 2019, 35(1): 05018013


workers helped to ease a labor shortage. However, communication The strategic management literature posits that the crux of strat-
problems caused by the cultural diversity of the on-site workforce egies for sustaining superior performance over the long run is to
could lead to low productivity (Ling et al. 2013), and the multi- organize rare and imperfectly imitable productive resources
cultural factors were insufficiently considered when the strategy (Barney 2006) to purposefully respond and create changes in a
was proposed. The limited understanding in the literature about dynamic business environment (Helfat et al. 2007). Strategies are
the constraints commonly faced by contemporary construction underpinned by distinct patterns of decisions, which emerge and
and built environments on productivity enhancement and the sys- evolve depending on the complexity, turbulence, and resource
temic CPESs to deal with such constraints make it difficult for the availability of such an environment (Helfat et al. 2007). Strategies
stakeholders to formulate holistic strategies for productivity are usually difficult to imitate if they are based on complex social
enhancement. phenomena (i.e., social complexity), and decision makers have an
To address the knowledge gaps, this paper seeks to explore the incomplete understanding of the causal connections between
nature of the constraints on productivity enhancement and to iden- actions and performance results (i.e., causal ambiguity) (Barney
tify the major themes of CPESs and how these strategies were 2006). Therefore, factors of social complexity and causal ambiguity
developed within the construction industries of multiple economies could help to sustain superior performance (Ryall 2009). In this
Downloaded from ascelibrary.org by Newcastle University on 10/03/18. Copyright ASCE. For personal use only; all rights reserved.

through executing an exploratory case study design. Given that the vein, the systemic perspective of strategies (Farjoun 2002; Sterman
strategic management literature is vital in understanding economic 2004) asserts that the entities of the business environment, strat-
growth (Huggins and Izushi 2015), this paper draws on recent litera- egies, and performance outcomes constitute a dynamic system;
ture on competitive advantage and strategies (Barney 2006; Helfat strategy evolution is driven by the interactions and multiple and re-
et al. 2007) to conceptualize CPESs. Accordingly, CPESs are ciprocal influences among these entities. Prior events and develop-
defined as the mechanisms that are developed by the stakeholders ments condition current choices, and social processes are central to
of a construction industry to enhance productivity by aligning strategic decision-making (Farjoun 2002). Although these theoreti-
resource configurations of the industry with the needs of its cal positions have been applied intensively to explain performance
dynamic business environment. Furthermore, this paper adopts a differences between firms (Teece 2007), their suitability to analyze
systemic perspective on strategies (Farjoun 2002; Sterman 2004), regional competitive advantages has been endorsed (Windsperger
which asserts that strategy development should take a dynamic and 2006).
holistic view, and consider the interactive flow of contextual factors The relevance of the theoretical lenses to study strategy evolu-
of a macro business environment. In this vein, the major strategic tion within the construction context is evident in the literature
themes of construction productivity enhancement are revealed by (Green et al. 2008). Previous studies observed that both construc-
applying the “PESTEL” framework (Rothaermel 2014) considering tion firms (Green et al. 2008) and public clients (Hartmann et al.
six macro business environmental aspects: political, economic, 2010) responded to changing business environments through
social, technological, environmental, and legal. renewing and modifying strategies, and their strategic choices were
The research design covers the three economies of Singapore, often path dependent. Strategy configurations, such as the intricate
Hong Kong, and the UK, and it uses the triangulation of the meth- balance between entrepreneurial behavior and centralized control,
ods including documentation, semistructured stakeholder inter- are shaped by the factors, such as regulatory requirements and
views, and project site visits. The case study findings lead to the de- social norms, within the business environment (Hartmann et al.
velopment of a theoretical framework that conceptualizes CPESs 2010; Kao et al. 2009). A recent study found that construction pro-
from the systemic perspective for the first time. The framework rec- ductivity could be enhanced or hindered by multiple factors within
ognizes the potential to explain productivity heterogeneity within the business environment, implying the complexity of CPESs
the dynamic construction business environment by studying the (Javed et al. 2018). However, there is a lack of evidence in the litera-
complexity of the strategies, making a significant contribution to ture about the systemic structure and evolutionary nature of CPESs.
the construction productivity literature. The five themes of CPESs It is, therefore, necessary to reflect the major strategic themes of
identified by the study also provide specific guidance for the con- CPESs within the macro business environment of the industry and
struction industry to develop holistic productivity enhancement to reveal how synergies could be formed between these strategies
strategies. over time.

Themes of Construction Productivity Enhancement


CPESs
Construction engineering and management literature are reviewed
to identify the constraints on and strategies for productivity
Complex and Evolutionary Natures of Strategy
enhancement at the construction industry level. The review also
Productivity enhancement is perceived as the essence of achieving pays attention to the interactive and evolutionary nature of the strat-
superior construction performance, which is a necessity to ensure egies in dealing with the constraints. SWOT (strengths, weakness,
the competitiveness of a regional economy (Barbosa et al. 2017). opportunities, threats) and PESTEL analyses are the two frame-
However, the development of CPESs remains a challenging task works that are extensively applied in the strategic management pro-
due to the increasingly dynamic business environment within the cess (Rothaermel 2014). SWOT is an acronym for the analysis that
construction context (Green 2016). Driven by sustainable develop- identifies the strengths and weaknesses internal to a firm as well as
ment, technology advancement, and industrialization, the construc- the opportunities and threats presented by its external environment
tion supply chain is undergoing fundamental changes, which is, in (Pearce and Robinson 2011); whereas a SWOT analysis could over-
turn, reshaping building and infrastructure markets (Goodrum et al. emphasize internal strength, downplay external threats, and ignore
2011; O’Connor et al. 2016; Pan et al. 2012; Pan and Ning 2014). the changing environment (Pearce and Robinson 2011). Because
Therefore, the conceptualization of CPESs should reflect their com- the PESTEL framework is used for analyzing the macro business
plex and evolutionary nature, which is required for effective environment external to a firm (Rothaermel 2014), this paper adopts
response to the fast-changing business environment. the six PESTEL aspects to guide the literature review.

© ASCE 05018013-2 J. Manage. Eng.

J. Manage. Eng., 2019, 35(1): 05018013


Political Perspective et al. 2016). However, sustainable practices, such as green build-
Public administration manages government activities dealing with ing and prefabrication, might incur higher cost compared with
the implementation of laws, regulations, and decisions related to the conventional methods (Chan et al. 2017; Pan et al. 2008).
provision of public services (Committee of Experts on Public Therefore, rating systems and regulatory standards are required to
Administration 2006). Within the context of this study, the political support efficiency improvement (O’Connor et al. 2016; Shealy
perspective concerns government intervention on construction et al. 2016). Meanwhile, productivity measurement should reflect
through policies and institutional environment (Parham 2008). the benefits of sustainable construction in reducing lifecycle cost
Productivity enhancement policies are particularly important for and carbon emissions (Hu and Liu 2016; Teng et al. 2018).
reshaping regulation, rewiring contractual frameworks, reviewing
the design and engineering processes, reforming procurement, Legal Perspective
infusing new technologies and materials, and reskilling the work- Regulatory frameworks have been modified across economies to
force (Barbosa et al. 2017). Continuity of policies facilitates long- ensure safe and sustainable construction with high quality (Borg
term resource planning of industry stakeholders, benefiting produc- and Song 2015). Meanwhile, the negative effect of stricter regula-
tivity (Green 2016). However, slow local authorities’ approval was tory requirements on productivity growth has been reported
Downloaded from ascelibrary.org by Newcastle University on 10/03/18. Copyright ASCE. For personal use only; all rights reserved.

perceived in the literature as a key constraint on productivity (Sveikauskas et al. 2016). Such requirements could increase con-
enhancement (Kadir et al. 2005). struction cost and slow down productivity improvement (Borg and
Song 2015; Chang and Ibbs 2006). Better coordination among gov-
Economic Perspective ernment agencies and streamlined approval processes were recom-
Construction productivity is positively associated with economic mended to sustain productivity (Green 2016). Furthermore, collabo-
fluctuations (Chia et al. 2014). The problems, such as manpower rative procurement is applied to create better value for the money of
shortage, have a negative effect on productivity growth (Javed et al. complex capital projects due to the superior performance of collab-
2018). Employment increase during booms diminishes the marginal orative project delivery compared with conventional approaches
productivity of labor (Chia et al. 2014). Long-term planning of pub- (Hanna 2016).
lic asset development and transparent public sector procurement are The PESTEL analysis from the literature reveals six themes of
imperative for sustaining the capability of a construction industry construction productivity enhancement: (1) stable and transparent
during the “boom–bust” business cycle (Chia et al. 2014). government policies; (2) new construction technologies and meth-
ods; (3) design standardization, constructability, and off-site prefab-
Social Perspective rication; (4) collaborative procurement; (5) sustainable construction
Social factors such as cultural aspects, population growth rate, and workforce; and (6) economic and market influence. Each theme is
career attitudes have a strong impact on construction workforce (Ho associated with more than one PESTEL aspect. For example, the
2016). The labor shortage has been a major constraint on productiv- theme of new construction technologies and methods concerns both
ity across multiple economies, and the problem is aggravated by an technological and environmental aspects of the PESTEL frame-
aging population (Ho 2016; Karimi et al. 2017). The industry image work. The strategies associated with the first five themes are applied
associated with dirty, dangerous, and difficult working conditions by the industry to construct a sustainable built environment. The
makes construction a less attractive choice of career by youngsters business environment imposes economic and market influence.
(Barrett et al. 2014). A concrete ladder of career progression is
essential for recruiting, training, and retaining young skilled work- Systemic Perspective of CPESs
ers (Loosemore 2014).
The review of the complex and evolutionary nature of strategy, as
Technological Perspective well as the themes of construction productivity enhancement, led to
Construction technologies can be leveraged to enhance productivity five propositions about the systemic perspective of CPESs, which
(Goodrum et al. 2011). New technologies, in particular, building in- guide the case study reported in this paper. First, the development
formation modeling (BIM) (Ahn et al. 2016), off-site prefabrication of CPESs requires active involvement from industry stakeholders
(Pan et al. 2008), and automated and robotic construction (Pan et al. including government agencies, clients, professional and educa-
2018), are revolutionizing conventional practices and industrializ- tional institutions, consultants, contractors, suppliers, and so forth.
ing the construction supply chain. BIM is a productivity-enabling Second, the strategies create and reconfigure valuable resources,
technology because of its capacity for integrating various disci- such as green buildings and off-site technologies (Pan 2014; Pan
plines and reducing design inconsistencies and costly reworks et al. 2008; Pan and Ning 2014), which not only respond to but also
downstream (Ahn et al. 2016). Standardized design, off-site prefab- create changes in the supply chain and building market. Third, the
rication, automated construction processes, and labor substitution strategies of the first five themes support each other in addressing
methods have a great potential to eliminate waste and inefficiencies the constraints on productivity enhancement. The strategies of mul-
(Chiang et al. 2006; Pan and Sidwell 2011); whereas insufficient tiple themes could jointly address each constraint. For example, the
government regulations and incentives, high initial cost, and reli- constraint of labor shortage could be jointly overcome by reducing
ance on traditional construction procurement are primary con- labor intensiveness through applying new construction technologies
straints on the application of such innovative technologies (Goodrum et al. 2011) (Theme 2) and prefabrication (Pan et al.
(Oduyemi et al. 2017; Pan et al. 2008). Incentives should thus be 2008) (Theme 3), and by increasing labor supply through training
provided by statutory authorities (Chiang et al. 2006). (Loosemore 2014) (Theme 5). Fourth, under the influence of re-
gional history, the PESTEL factors, which are uniquely associated
Environmental Perspective with different regions, shape the evolutionary paths of the strat-
Construction sustainability concerns not only the decisions for the egies, resulting in heterogeneous strategy combinations for produc-
construction of capital projects that enhance current and future tivity enhancement (Green 2016; Hwang et al. 2017). Fifth, produc-
social, economic, and environmental needs (O’Connor et al. 2016) tivity indicates how the macro business environment rewards the
but also the processes for the maintenance of existing buildings to strategies as well as the heritage underpinning the strategy evolution
maximize social, economic, or environmental benefits (Chiang in a particular region (Porter 1998).

© ASCE 05018013-3 J. Manage. Eng.

J. Manage. Eng., 2019, 35(1): 05018013


Methods engineering and management studies (Pan 2014). According to the
suggestions of Yin (2009), the six themes of construction productiv-
A multiple exploratory case study design was adopted to investigate ity enhancement and the five propositions about the systemic per-
the constraints on and strategies for productivity enhancement spective of CPESs derived by the review were used to develop case
within the real-life context of construction industries according to study protocols in which data were collected from the interviews
the principles set by Yin (2009). The adoption of this design was and the site visits. The use of case study protocols also sought to
also based on the understanding that case study research has been ensure the reliability of the findings (Yin 2009).
undertaken extensively in investigating the contemporary phenom- During the case study, industry and government reports and aca-
ena of construction industries (Taylor et al. 2011). The units of anal- demic papers were reviewed to analyze the macro business environ-
ysis were the constraints and strategies associated with construction ments as well as the constraints and strategies within the three case
productivity enhancement at the industry level. The construction industries. Semistructured interviews were undertaken to reveal the
industries of Singapore, Hong Kong, and the UK were selected as major constraints faced by the case industries and identify the corre-
the cases for comparison and learning. The case selection consid- sponding strategies reflected by the representatives of the industry
ered the significant contribution of construction to the local econo- stakeholders. In total face-to-face semistructured interviews were
Downloaded from ascelibrary.org by Newcastle University on 10/03/18. Copyright ASCE. For personal use only; all rights reserved.

mies, challenges of labor shortage and high construction cost faced conducted with 65 established professionals in the construction
by the case industries, and their varying paths of strategy develop- industries of Singapore, Hong Kong, and the UK. The interviewees
ment (Green 2016; Hwang et al. 2017; Javed et al. 2018). In the represented different stakeholder groups including government
case study, data were collected through documentation, semistruc- agencies, clients, consultants, contractors, and academics (Table 1).
tured interviews, and project site visits. The three sources of evi- Holding senior positions in their organizations, 90% of the inter-
dence enabled the triangulation of data and ensured “construct va- viewees had more than 20 years of working experience in the
lidity,” i.e., identification of correct operational measures for the construction industry. This profile ensured sufficient knowledge of
concepts being studied (Yin 2009). the interviewees for addressing the phenomena under investigation.
A comprehensive literature review was conducted to identify the To enable in-depth discussion, each interview lasted for 1 h. The
constraints on and strategies for productivity enhancement of interviews were audio-recorded with prior permission of the inter-
the construction industry. The six PESTEL aspects were adopted viewees and then transcribed using the NCH Express Scribe
as the initial coding categories to ensure that the constraints and Transcription Software. Based on the analyses of the documents
strategies reported by the construction engineering and manage- and interview responses, three construction projects within each
ment literature were comprehensively included. The constraints and case industry were selected for site visits seeking to contextualize
strategies identified under the PESTEL aspects were reclassified the results in real-life business environments in which project-based
into themes pertaining to the construction business environment fol- operations prevail. The projects, respectively, represented the stra-
lowing the analytical approach widely adopted by the construction tegic foci of the case industries for productivity enhancement

Table 1. Profile of interviewees

Interviewees
Case industry Stakeholder group of interviewees Number Percentage Visited projects
Singapore Contractor/developer 6 37.5 1. A 13-story student residence building project adopting
Government 5 31.3 steel-framed PPVC technology
Institution 5 31.3 2. A 13-story social housing building project adopting con-
Total 16 100.0 crete PPVC technology for 10 floors of residential units
on top of an in situ concrete podium
3. A key workers residence building project adopting steel-
framed PPVC on top of seven floors in an situ concrete
structure
Hong Kong Client 3 8.8 1. A 40-story public housing building project adopting pre-
Consultant 7 20.6 cast concrete building components including façades,
Contractor 11 32.4 staircases, semiprecast floors, and BIM as well as inte-
Government 10 29.4 grated project delivery procurement
Institution 3 8.8 2. An infrastructure project for the construction of a railway
Total 34 100.0 station as part of a major mass transit railway
development
3. A 26-story private office building project adopting BIM
for design and construction
UK Contractor/developer 5 33.3 1. A 28-story steel-framed modular building for student
Government 5 33.3 residence on top of an in situ concrete podium in subur-
Consultant/institution 5 33.3 ban London
Total 15 100.0 2. A 17-story steel-framed modular building for a student
and social key workers residence on top of a steel struc-
tured podium in central London
3. A 6-story steel-framed modular building for a hotel chain
in central London with international procurement
Note: PPVC = prefabricated prefinished volumetric construction.

© ASCE 05018013-4 J. Manage. Eng.

J. Manage. Eng., 2019, 35(1): 05018013


(Table 1). Both the interviewed industry stakeholders and project recognized that the ePSS increased the accuracy of labor produc-
team were engaged in the discussions during the visits. Each site tivity assessment.
visit took around 2 h.
Under the guidance of the themes and propositions derived from Productivity Assessment
the literature review, the collected data were analyzed by cross-case The public sector interviewees emphasized that by linking produc-
synthesis techniques (Yin 2009). Following the case study research tivity evaluation with tender assessment could encourage construc-
methods literature (Barratt et al. 2011; Yin 2009), within- and tion firms to improve constructability, apply new technologies, and
cross-case analyses were conducted. The “within-case analysis” improve workforce quality. Since January 2016, productivity has
revealed strategic foci and major constraints concerning productiv- been incorporated into the price quality method (PQM), which is a
ity enhancement within each case industry, categorized constraints, construction tender evaluation framework applied to all construc-
and strategies under the themes derived from the literature review, tion tenders with an estimated procurement value (EPV) of S$3mil-
and they analyzed how and when the strategies were proposed and lion and above. The PQM score was constructed by the sum of the
implemented under the guidance of the five propositions. The notes price, productivity, and quality scores, in which the productivity
taken during the interviews and the project visits, as well as the score included indices of the attributes of constructability, technol-
Downloaded from ascelibrary.org by Newcastle University on 10/03/18. Copyright ASCE. For personal use only; all rights reserved.

interview transcripts, were analyzed to yield meaningful themes ogy adoption, and workforce development (BCA 2016). The private
and insights. The analysis specifically paid attention to how the con- sector interviewees voiced their concerns about the insufficient
straints negatively influenced construction productivity, and how assessment of PQM on the productivity of subcontractors. They
productivity decline or stagnation trigged the strategy development also opined that collaborative procurement would help to shift the
focus of the industry from price to value for money. This finding
and deployment for reducing the negative impact of the constraints
echoes those of recent research on Singapore’s public projects
on productivity, driving productivity enhancement. The “cross-case
(Ling et al. 2015).
analysis” compared the constraints and strategies of the cases, and
revealed those commonly shared among them, and unveiled the fac- Buildability and Constructability
tors that influence the genesis and evolution of the strategies. Mandatory buildability and constructability framework, buildable
Analytical generalization was applied in this study, and the “replica- design score, and constructability score have been introduced (BCA
tion logic” in the three cases ensured the external validity of the 2016). A public sector interviewee suggested that the minimum
findings (Yin 2009). scores for all new projects were gradually increasing. The private
sector interviewees, however, commented on insufficient industrial
Within-Case Analysis consultation during the development of regulatory requirements. It
was reflected by the discussions during the project visits that project
The within-case analysis revealed that the government agencies cat- schedules could be stressed by long approval processes, and a bal-
alyzed many strategies. In practice, multiple themes of strategies ance between buildability, constructability, and sustainability could
be hard to achieve due to the fragmented regulatory requirements
intertwined together to reduce the negative impact of the con-
about design concerning these three aspects.
straints. The findings of the constraints and strategies within each
case industry are discussed in this paper with support from the evi- Prefabrication
dence derived from the documentation, interviews, and project site The BCA championed the application of “prefabricated prefinished
visits. The discussion first highlights the major constraints and stra- volumetric construction” (PPVC) and worked with the other gov-
tegic foci within each case and then presents the insights into the ernment agencies to plan for the development of a multistory and
strategies and constraints under the six themes identified through higher density “integrated construction and prefabrication hub”
the literature review. (ICPH) (BCA 2016). Land constraints and very high land price
were perceived by the interviewees as the primary challenge, which
Singapore Construction Industry demotivated local contractors to set up PPVC factories. The project
visits revealed concerns about a high carbon footprint caused by the
Major Constraints and Strategic Foci
transportation of prefabricated building materials and elements
In Singapore, the Construction Productivity Road Map issued by
from overseas.
the Building and Construction Authority (BCA) highlighted three
strategic foci for productivity enhancement, i.e., workforce quality, New Construction Technologies
prefabrication, and BIM (BCA 2016), which indeed could help The BCA developed BIM guidelines, set up a BIM fund, and man-
address the constraints identified through the interviews and project dated BIM submission for public works projects; established a
visits. The case study analysis revealed a persistent skilled labor Center for Lean and Virtual Construction, the Construction
shortage and prevalent traditional construction practices. The diffi- Productivity Center, and the Centre of Construction IT; and held an
culty with recruiting local skilled workers led to the dependence on annual event of the Singapore Construction Productivity Week to
low-cost transient immigrant labor. High labor and material cost, promote new technologies including robotics, BIM, virtual design,
long working hours, and hot and humid weather conditions were and so forth (BCA 2016). Interviews reflected that the National
key productivity concerns. Robotics Program supported the development of construction auto-
mation technologies. Meanwhile, the interviewees reflected on the
Government’s Strategic Guidance difficulties with BIM application at the early stages. Practitioners
The public sector interviewees pointed out that construction pro- were still largely entrenched in the two-dimensional (2D) drafting
ductivity was on top of the government’s agenda, in particular, that practices, and there was a shortage of BIM experts.
of the BCA. The BCA published trade-level productivity measure-
ment guidelines and developed the “electronic productivity sub- Sustainable Workforce
mission system” (ePSS), which is a biometric system to monitor The analysis showed that labor issues were of primary concern in
on-site manpower data (BCA 2016). The other interviewees the industry. In general, the interviewees appreciated the measures,

© ASCE 05018013-5 J. Manage. Eng.

J. Manage. Eng., 2019, 35(1): 05018013


such as man-year entitlement (MYE) and foreign worker levy New Construction Technologies
(FWL), which were introduced by the government to reduce the The Works Departments piloted BIM applications in some public
industry’s reliance on low-skilled imported labor and increase the works projects as early as 2009 (CIC 2014). The Construction
applications of prefabrication and new technologies. Public sector Industry Council (CIC) established a BIM Center and formulated a
interviewees explained that the MYE was a work permit allocation roadmap for BIM application in the industry (CIC 2014). The gov-
system that specified the total number of work permit holders a ernment announced in the Policy Address 2017 an application of
main contractor was entitled to employ based on project or contract BIM in the design of major government capital works projects from
values. Further, the government also sought to improve manpower 2018 onward (Office of the Chief Executive 2017). Despite the
quality through a skilled worker training and registration scheme active promotion of the government, interviewees pointed out that
and incentivizing manpower development, technology adoption, the application of new technologies, such as BIM, robotics, and mo-
and capability building. However, cost increase caused by the bile technologies, was in an early stage and constrained by high ini-
reduction of MYE and the increase of FWL concerned the private tial cost. AutoCAD was still used as the primary design language,
sector interviewees. and 2D drawing submissions were required by government agen-
cies. BIM awareness was low in small and medium-sized contrac-
Downloaded from ascelibrary.org by Newcastle University on 10/03/18. Copyright ASCE. For personal use only; all rights reserved.

tors (SMCs). The interviewees urged clients to adopt BIM for the
Hong Kong Construction Industry
entire project lifecycle management and the government to enable
Major Constraints and Strategic Foci BIM submission and support SMCs in BIM application.
In Hong Kong, technologies and innovative construction methods,
in particular, prefabrication and BIM, together with workforce de- Collaborative Procurement
velopment were focused on dealing with the severe challenges of The DEVB promulgated a policy to extend the application of the
high construction cost and labor shortage (CIC 2015; Office of the New Engineering Contract (NEC) in public works projects since
Chief Executive 2017). According to the literature, high cost was 2016. The interviewees pointed out that due to a risk-averse culture
partially attributed to institutional issues and slow momentum in the and a lack of trust in practice, conventional contract clauses were of-
adaption of collaborative procurement (Rowlinson 2014). Material ten added to NEC contracts for project delivery. They opined the
cost escalation was driven by market forces beyond the control of necessity of increasing the competence of practitioners in applying
local industry stakeholders (Rowlinson 2014). The aging workforce collaborative procurement models.
was coupled with a lack of new entrants, and a shortage of skilled
manpower was fueled by requirements for new skills sets (CIC Sustainable Workforce
2015; Ho 2016). With the support of DEVB, the CIC introduced the Enhanced
Construction Manpower Training Scheme (ECMTS). The govern-
Productivity Assessment ment took forward the proposed legislative amendments [The
According to the interviewees from the Development Bureau Construction Workers Registration (Amendment) Ordinance 2014]
(DEVB), the Standard Marking Scheme assesses tenderers’ techni- to facilitate the workers’ registration by skills requirements and the
cal proposals, which include both the “productivity enhancement implementation of “designated workers for designated skills,”
proposal” to offer productivity enhancement potentials (i.e., precast which took effect on April 1, 2017. These government policies
to reduce labor intensiveness of site operations), and the “innova- aimed to improve workforce quality and raise workers’ career sta-
tion and creativity proposal” to encourage innovative applications tuses. The interviewees stated that long-term solutions for the labor
of new and existing technologies, plants, and materials. The project shortage lay in local workforce development and the reduction of
visits revealed the concerns about innovative designs, which were labor intensiveness via technologies and innovations. They per-
particularly affected by slow approval processes. The findings of ceived labor importation as a temporary solution and proposed a
the interviews and site visits suggest the necessity of a productivity holistic review of the Supplementary Labor Scheme (SLS). They
stressed the necessity of a clear career ladder that enables young
measurement framework to enable more effective productivity
people to thrive in the construction industry. They highlighted the
evaluation and of comprehensive incentive mechanisms to encour-
importance of long-term planning and stable supply of infrastruc-
age design standardization, prefabrication, and BIM.
ture projects in guiding the workforce mobilization of the industry.
Prefabrication
The Housing Authority actively championed the adoption of large UK Construction Industry
precast units in public housing projects to demonstrate the benefits Major Constraints and Strategic Foci
of off-site technologies and explore solutions for new challenges. The UK government developed a clear vision for enhancing con-
The discussions during the project visits recognized better quality struction productivity with strategic foci on sustainable and smart
and safety performance brought by prefabrication compared with construction, as well as workforce development, to address high
conventional methods, whereas concerned complex site logistics construction cost and labor shortage (HM Government 2013). The
prolonged the work schedule, especially in the congested sites in interviewees were concerned about relatively higher construction
built-up urban areas. The interviews found that private developers cost in the UK compared with the other parts of Europe or the US,
were particularly cautious under the time pressure of quick launch particularly when the higher cost was caused by the differences in
to the market for achieving better profitability. Furthermore, most planning, design, and regulations. Adverse weather conditions,
precast units were transported from Mainland China. For contrac- especially the cold and wet weather, and the shortage of local skilled
tors, local land price and labor costs were too high to build economi- labor were also perceived as key constraints on productivity
cally viable prefabrication yards within Hong Kong; whereas esca- advancement.
lating transportation cost caused new productivity concerns. The
case study also revealed the difficulties in achieving cost- Government’s Strategic Guidance
effectiveness in meeting stringent statutory requirements, in partic- The government set the cost reduction target and planned approaches
ular, the sustainability standards. for lowering greenhouse gas emissions (HM Government 2013).

© ASCE 05018013-6 J. Manage. Eng.

J. Manage. Eng., 2019, 35(1): 05018013


Echoing the recent call for a coherent long-term national infrastructure mechanisms. Observable benefits could only be realized when the
plan (Armitt 2013), the public sector interviewees highlighted the im- mechanisms worked well and joint learning leveraged lessons
portance for the industry to have a longer term vision and build a new learned.
mindset to drive productivity. The interviews also reflected the impli-
cation of Brexit for UK contractors and highlighted the necessity of Sustainable Workforce
using the European codes of practices and products to secure business The interviewees commented that, in addition to workers’ training,
opportunities across Europe. the government applied flexible labor market policies to ease man-
power shortages. Under the policies, a large proportion of the con-
Productivity Assessment struction workforce was of an international background and work-
Interview findings suggest that productivity should be managed ing under temporary working visas. The project visits revealed that
over the entire project lifecycle. In particular, the regulatory drawings were usually designed to comply with the building regula-
requirements about the planning stage have a massive impact on tions and obtain local authorities’ approval. However, the technical
productivity. The interviewees urged simplifying and streamlining contents were difficult for the foreign workers to understand. The
the planning requirements to reduce delays in construction proc- issue of foreign labor lacking English competence affected site pro-
Downloaded from ascelibrary.org by Newcastle University on 10/03/18. Copyright ASCE. For personal use only; all rights reserved.

esses due to the long wait time for planning permission. The find- ject productivity.
ings echo the recommendation made in the recent study of the
Chartered Institute of Building (CIOB) (Green 2016) that produc-
tivity evaluation should measure the value added by the entire deliv- Cross-Case Analysis
ery and maintenance of the built environment to inform holistic
policy-making. A public sector interviewee suggested that a The key constraints and strategies identified through the within-
dynamic rather than static threshold should be used for assessing case analyses can be classified into five strategic themes: stable and
productivity improvement of contractors in procurement processes, transparent government policies; new construction technologies
requiring tenderers to demonstrate how past lessons learned are and methods; design standardization, constructability, and off-site
applied to improve productivity. The project visits highlighted the prefabrication; collaborative procurement; and sustainable con-
importance of productivity evaluation at the activity and project lev- struction workforce. The industry stakeholders could develop strat-
els, and the necessity to reward productivity enhancement practices egies (Table 2) to deal with the constraints (Table 3), which hinder
through incentive schemes. the implementation of the productivity enhancement practices
under these five themes. Constraints imposed by weather conditions
Sustainable Construction and economic and market factors were beyond the control of the
A public sector interviewee pointed out that around 27% of CO2 industry stakeholders (Table 3).
produced in the UK came from the built environment. The “zero- The three case industries shared common constraints related to
carbon homes” policy, “code for sustainable homes,” and other government policies, manpower shortage, economic and market
policies enabled the stakeholders to explore the methods of sus- factors, and weather conditions (Table 3). Slow approval processes
tainable construction. Private sector interviewees commented of government agencies were raised by the private sector interview-
that the policies had worked well in general, and many construc- ees and revealed by site visits reflecting complex issues associated
tion firms had explored approaches, such as construction waste with the public administration. Because of cultural norms and an
reduction, whereas some firms reported a cost increase in the adverse industry image, labor shortage was persistent, and the
implementation. recruitment of young local workers was difficult. High land price
and high labor and material costs were primarily driven by eco-
Prefabrication nomic cycles and market forces. Adverse weather conditions could
The interviewees suggested that some firms invested huge resour- only be dealt with rather than changed. It appeared that the case
ces in developing operational techniques and tools of off-site pre- industries sought to overcome these constraints by reconfiguring
fabrication to achieve better control of the cost and speed of product the valuable resources of the construction supply chain itself.
delivery. Robotics had been used in factories to produce standard Across the three case industries, the productivity enhancement was
units on a continuous and regular basis, which helped to improve commonly driven by the five themes of strategies (Table 2). One
productivity and reduce cost. The interviewees foresaw that more strategy could influence those of multiple themes. Stable and trans-
prefabricated units, such as bathrooms and kitchens, would be used, parent government policies provided strategic support to the strat-
and the plumbing and electrical systems would be simplified. egies of the other four operational themes, which reconfigured the
supply chain by new technologies, off-site prefabrication, collabo-
New Construction Technologies rative procurement, and skilled workforce.
The interviews revealed that the government had mandated BIM In addition, the analyses unveiled the significant influence of the
submission for all centrally procured government contracts since public administration styles on strategy evolution. Figs. 1–3 present
2016; further, the initiative of the “modern method of construction” the implementation timeline of major strategies for productivity
(MMC) had been expanded to “smart construction,” which was measurement and evaluation, sustainable construction workforce,
more closely indicative of integrating information technology (IT) BIM application, constructability and prefabrication, and collabora-
and BIM with delivery through factory processors and tagging tive procurement.
materials with barcodes for on-site assembly. In Singapore, the major means of urban governance was careful
planning and monitoring of the bureaucracy (Ng 1999). The inter-
Collaborative Procurement views reflected a top-down approach applied by the government to
The public sector interviewees pointed out that the NEC3 contract develop and deploy strategies. The implementation of the strategies
had been widely used to deliver projects procured by national and was enforced through regulatory frameworks to drive productivity
local government bodies and agencies in the UK. They further com- of both public and private sector projects. Although the approach
mented that the positive impact of collaborative procurement on sustained the momentum of productivity enhancement, it also
project efficiency was indirect and through collaborative project caused concerns in the private sector about the transparency of the

© ASCE 05018013-7 J. Manage. Eng.

J. Manage. Eng., 2019, 35(1): 05018013


Table 2. Strategies revealed within industry cases for enhancing construction productivity

Strategic themes
Strategies of the five strategic themes that can be influenced by the
industry stakeholdersa 1 2 3 4 5 Singapore Hong Kong UK
1. Development of stable and transparent government policies
Provides strategic guidance and a clear vision for productivity — X X X X I P I
enhancementa
Develop productivity measurement standards for the construc- — X X — X I P P
tion industrya
Link productivity assessment with tendering processesa — X X — X I P P
Measure constructability, technology adoption, and workforce — X X — X I P P
development of tenderersa
Assess productivity and innovation of tenderer’s technical — X X — X I I I
proposala
Downloaded from ascelibrary.org by Newcastle University on 10/03/18. Copyright ASCE. For personal use only; all rights reserved.

Long-term planning and stable supply of infrastructure projectsa — X X — X I P I


Manage and measure construction productivity from an entire — X X — X — — P
project lifecycle perspective
2. Application of new construction technologies and methods
Develop BIM guidelines and roadmap for BIM applicationa — — X — — I I I
Provide BIM traininga — — — — X I I I
Set up a BIM Funda — — — — — I P P
Support SMCs in BIM applicationa — — — — X I P P
Mandate BIM submissiona — — — — — I P I
Share knowledge of construction technologies, methods, and — — — — X I I I
practices, which enhance productivitya
Adopt BIM as a common project management platform through- — — X — — — P P
out the entire project lifecycle
Develop robotics technologiesa — — X — — I I I
3. Design standardization, constructability, and off-site
prefabrication
Mandate buildability and constructability framework to evaluate — — — — — I P P
designa
Apply large precast units (e.g., kitchen and bathrooms)a — — — — X I I I
Build off-site prefabrication facilitiesa — — — — X I I I
Policies of zero-carbon/energy buildings, code for sustainable — — — — X I (pilot) I (pilot) I
homesa
4. Collaborative procurement
Promote collaborative procurementa — X — — — I I I
Application of NEC contract in public works projects — X — — — — I I
5. Development of sustainable construction workforce
Apply electronic productivity submission system to monitor — — — — — I — —
manpower at construction sites
Regulate the demand and supply of foreign labora — — — — X I I I
Skilled workers training and registration schemea — — — — — I I I
Incentivize manpower development, technology adoption and X X — — — I I I
capability buildinga
Note: I = strategies were implemented at the time of this study; P = strategies were proposed by the interviewees; and X = strategic themes on which a strat-
egy is also influenced.
a
Strategies that were implemented or suggested within all three case industries.

policy-making process, the cohesiveness of the regulatory require- developed with great caution and only applied to enforce the adop-
ments, and the overall impact of the policies on the construction tion of technologies or methods after a thorough test within the local
market. market. The private sector interviewees, on the other hand, called
In Hong Kong, a “minimum intervention and maximum sup- for stronger strategic support from the government regarding pro-
port” industrial policy had been adopted by the government, and ductivity measurement and comprehensive incentive schemes.
market mechanisms had been a major means of urban governance In the UK, the decision-making processes of urban governance
(Ng 1999). The government usually explored new technologies in involved the power balance between upper and a lower tier govern-
public sector projects and gradually increased the number of pilot ing bodies (e.g., region and townships) and regional coordination
projects to reinforce learning. The lessons learned were used to (Slack and Côte 2014). The government devised the strategies to
formulate or modify related administration procedures of govern- enhance productivity via sustainable and smart construction. The
ment agencies. The benefits and learning were shared with the pri- policies had significantly advanced the zero-carbon homes, new
vate sector to encourage changes. Regulatory requirements were technology applications, and off-site manufacture. In the meantime,

© ASCE 05018013-8 J. Manage. Eng.

J. Manage. Eng., 2019, 35(1): 05018013


Table 3. Constraints revealed within the industry’s cases that hindered construction productivity enhancement

Strategic themes
Constraints 1 2 3 4 5 Singapore Hong Kong UK
Constraints under the five strategic themes hindering
1. Stable and transparent government policies
development
Lack of cohesiveness of regulatory — X X — X O — —
requirements
Stringent statutory requirements — — X — — — O —
Slow approval processes of government — — X — — O O O
agenciesa
2. New construction technologies and methods
application
Downloaded from ascelibrary.org by Newcastle University on 10/03/18. Copyright ASCE. For personal use only; all rights reserved.

Be entrenched in the current 2D drafting — — X — — O O —


practices
Lack of BIM experts — — X — — O O —
3. Design standardization, constructability, and
off-site prefabrication
High cost of setting up precast factories — — — — — O O —
Complex logistics associated with site opera- — — — — — — O —
tions involving precast units
High carbon footing of transport precast — — — — — O O —
materials
4. Collaborative procurement
Lack of trust — X X — — — O —
Risk-averse culture — X X — — — O O
5. Sustainable construction workforce
development
Skilled worker shortagea — — — — — O O O
Difficulty recruiting young local skilled — — — — — O O O
workersa
Aging workforce — X X — — — O —
Rely on low-cost foreign labor — X X — — O — O
Long working hours — — — — — O — —
Constraints imposed by the macro business environmentb
Economic and market factors
High labor costa — — X — X O O O
High material costa — — X — — O O O
High land pricea — — X — — O O O
High initial cost of new technologies including — X — — — O
BIM, robotics, and mobile technologies
Weather conditions — — — — X Hot and humid Hot and humid Cold and wet
in summer weather
Note: O = Constraint was reflected within the case industries; and X = strategic themes on which a constraint is also influenced.
a
Constraints revealed within all three case industries.
b
Beyond the control of construction industry stakeholders.

the influences on planning and design from different tiers of gov- case study analysis, productivity measurement and evaluation indi-
erning bodies also concerned the private sector interviewees who cate the productivity level of a construction industry that is guiding
urged simplifying and streamlining the planning requirements for and inspiring the development and reconfiguration of CPESs to
improving productivity. The regional contingency factors, such as reduce the negative impact of the constraints and enhance construc-
Brexit, also had significant implications for workforce and design. tion productivity. The interactions between the three concepts are
influenced by multiple factors of the macro business environment.
Four assertions are used to contextualize the complex and evolu-
Theoretical Framework of CPESs tionary nature of CPESs within the dynamic business environment
reflected by the case study.
The findings of case study analyses support the five propositions First, heterogeneity of construction productivity is underpinned
derived from the literature review. A theoretical framework (Fig. 4) by heterogeneous resource configurations, which are largely
was derived from the findings to conceptualize CPESs. The frame- attributed to the complexity of CPESs. Government agencies
work has three key concepts: (1) productivity of a construction champion productivity enhancement by providing strategic guid-
industry, (2) constraints hinder productivity enhancement, and (3) ance and a clear vision for the industry. Government policies, in-
CPESs. As defined through the literature review and verified via the centive schemes, and regulatory requirements motivate industry

© ASCE 05018013-9 J. Manage. Eng.

J. Manage. Eng., 2019, 35(1): 05018013


Downloaded from ascelibrary.org by Newcastle University on 10/03/18. Copyright ASCE. For personal use only; all rights reserved.

Fig. 1. Implementation timeline of key CPESs in Singapore.

stakeholders to create operational strategies for developing and and evaluation of their strategies varied. Local history, traditions,
mobilizing valuable resources, such as new technologies, innova- and culture had a strong impact on how the public administrations
tive construction methods, and skilled workforce. Because these shaped the ways in which strategies were formulated and deployed.
resources are not necessarily rare and imperfectly imitable, they Economic and market forces and weather conditions brought in
might not be the source of superior productivity. Rather, produc- additional contingencies and increased the dynamics of decision-
tivity heterogeneity most likely lies in distinctive CPESs, which making in strategy deployment.
produce unique resource configurations to renovate the local con- Third, the combinations and structures of CPESs are socially
struction supply chain. complex and causally ambiguous; thus, they are specific to a con-
Second, CPESs depend on the unique evolutionary path of a con- struction industry. Productivity enhancement is driven by the strat-
struction industry and are influenced by the dynamic macro busi- egies under the five strategic themes (Table 2). The strategies inter-
ness environment of a specific region. The study findings demon- twine with each other, not only to deal with the constraints relating
strate that even though the three case industries shared some to the strategic themes, but also to overcome those imposed by con-
common constraints and adopted similar strategic foci, the genesis textual factors (e.g., adverse weather) (Table 3). Moreover, how the

© ASCE 05018013-10 J. Manage. Eng.

J. Manage. Eng., 2019, 35(1): 05018013


Downloaded from ascelibrary.org by Newcastle University on 10/03/18. Copyright ASCE. For personal use only; all rights reserved.

Fig. 2. Implementation timeline of key CPESs in Hong Kong.

structure of CPESs generates synergies for productivity enhance- Productivity variation triggers further strategy modification and
ment depends on local social and cultural norms, which are socially creation. An entire project lifecycle productivity measurement
complex and causally ambiguous. The strategies could be under- approach, which considers the value added by improved construct-
pinned by structured regulatory frameworks (e.g., in Singapore), ability and better safety, quality, and environmental performance, is
depend more on market mechanisms (e.g., in Hong Kong), or con- more likely to provide objective indications about the effectiveness
cern broader regional economic and political issues (e.g., in the of resource alignment, informing holistic strategy development.
UK). Strategy replication between the industries could be difficult
due to the lack of necessary social and cultural norms to understand
and integrate the strategies. Therefore, it is likely for a regional con- Conclusions
struction industry to sustain superior productivity.
Fourth, productivity measurement has a significant strategic This paper has revealed the commonalities of the constraints and
implication. Productivity indicates how well CPESs are developed strategies shared by the contemporary construction and built envi-
to align the valuable resources of a construction industry to the ronments concerning productivity enhancement through a multi-
needs for a sustainable built environment of an evolving region. case lens scrutinizing the construction industries of Singapore,

© ASCE 05018013-11 J. Manage. Eng.

J. Manage. Eng., 2019, 35(1): 05018013


Downloaded from ascelibrary.org by Newcastle University on 10/03/18. Copyright ASCE. For personal use only; all rights reserved.

Fig. 3. Implementation timeline of key CPESs in the UK.

Hong Kong, and the UK. The theoretical framework implies that a renovation reduced labor intensiveness of site operations, easing
construction industry is likely to effect and sustain superior produc- the labor shortage. Prefabrication factory environment improved
tivity through aligning unique resource configurations with the safety and quality and reduced the impact of adverse weather condi-
needs of its evolving environment. The framework demonstrates tions. Further, deepening supply chain integration seemed to
the potential to explain productivity heterogeneity of the construc- demand more collaborative contractual frameworks and less frag-
tion industries through studying the complex system that drives the mented public administration, suggesting a positive influence of in-
genesis and evolution of CPESs, which are responsible for the suc- dustrialization on both contract and public governance. Meanwhile,
cessful resource alignment. new challenges, such as a high carbon footprint caused by long-
The findings suggest that the persistent constraints of high con- distance transportation of precast units and complex site logistics,
struction cost, severe labor shortage, and adverse weather condi- called for innovative solutions. Therefore, the development of
tions can only be overcome by a radical transformation of conven- CPESs should adopt a systemic perspective.
tional construction supply chain through adopting new technologies The findings support that the holistic CPESs are underpinned
and prefabrication. The findings support that the supply chain by five themes to provide strategic support, infuse technologies,

© ASCE 05018013-12 J. Manage. Eng.

J. Manage. Eng., 2019, 35(1): 05018013


Economic cycles Public administration Market forces

Feedback to trigger
Construction Industry strategy
Construction Productivity
Enhancement Strategies (CPESs) reconfiguration for
improvement

Social norms, local culture, historical background


Include five themes of
strategies
+
1. Development of stable and transparent
government policies
2. Application of new construction technologies
Natural environment conditions

and methods
Downloaded from ascelibrary.org by Newcastle University on 10/03/18. Copyright ASCE. For personal use only; all rights reserved.

Reduce 3. Design standardization, constructability and


negative offsite construction
impact of 4. Collaborative procurement
5. Development of sustainable construction
constraints Enhance
- +
workforce

Constraints hinder productivity Productivity


enhancement of a Construction Industry
Constraints of strategic themes
1. Stable and transparent government policies Indicate
2. Construction technologies and methods • Productivity measurement standards:
3. Design standardization, constructability and reflect the concept of project life-cycle, cost
offsite construction Hinder
and benefit, safety and quality improvement,
4. Collaborative procurement productivity and environmental impact reduction, rather
5. Sustainable construction workforce enhancement than solely cost driven.
Constraints imposed by macro business
context - • Productivity evaluation framework: include
• High land price, high cost material, and both quantitative and qualitative evaluation
technologies approaches to share learning and inform
• Adverse weather conditions strategy reconfiguration.

Evolution over Time


: Impact from the contextual factors in broad business environment

- : Reduce + : Increase

Fig. 4. Theoretical framework of CPSEs.

innovate design and champion prefabrication, reform procurement, The theoretical framework opens the “black box” of CPESs and
and reskill the workforce. The essential strategies are to provide paves a foundation for future studies. Explanatory case studies
clear strategic guidance for productivity enhancement of the indus- could use pattern-matching or explanation-building approaches to
try; develop productivity measurement for benchmarking; assess confirm the impact of the strategies on addressing the constraints
productivity in tender evaluation; support BIM application through and enhancing the productivity. Deductive studies could test the
planning, training, funding, and mandatory BIM submission; intro- relationships between the constructs and factors of the framework.
duce mandatory buildability and constructability framework; en-
courage zero-carbon/energy buildings; promote collaborative pro-
curement; regulate the demand and supply of foreign labor; Data Availability Statement
strengthen skilled worker training and registration scheme; and
incentivize manpower development, technology adoption, and Data analyzed during the study were provided by a third party.
capability building. These strategies should be formulated with Requests for data should be directed to the provider indicated in the
cohesiveness to maximize synergies. Furthermore, the findings Acknowledgments section.
indicate that, rather than solely cost driven, productivity measure-
ment should reflect the concept of the project lifecycle, and consider
the benefits of safety and quality improvement and environmental Acknowledgments
impact reduction. Both quantitative and qualitative approaches for
productivity evaluation need to be applied to share learning and This work was supported by the research funding from the CIC in
inform strategy reconfiguration. Hong Kong (Project 200007741). Its contents are solely the

© ASCE 05018013-13 J. Manage. Eng.

J. Manage. Eng., 2019, 35(1): 05018013


responsibility of the authors and do not necessarily represent the productivity.” J. Constr. Eng. Manage. 137 (9): 678–688. https://doi.org
official views of the CIC. Also acknowledged are the participants /10.1061/(ASCE)CO.1943-7862.0000328.
in the study, as well as the editor, associate editor, and anonymous Green, B. 2016. Productivity in construction: Creating a framework for the
reviewers for their valuable comments and suggestions. industry to thrive. Bracknell, UK: CIOB.
Green, S. D., G. D. Larsen, and C.-C. Kao. 2008. “Competitive strat-
egy revisited: Contested concepts and dynamic capabilities.”
References Constr. Manage. Econ. 26 (1): 63–78. https://doi.org/10.1080
/01446190701656174.
Hanna, A. 2016. “Benchmark performance metrics for integrated project
Ahn, Y., Y. Kwak, and S. Suk. 2016. “Contractors’ transformation strat-
delivery.” J. Constr. Eng. Manage. 142 (9): 04016040. https://doi.org
egies for adopting building information modeling.” J. Manage. Eng.
/10.1061/(ASCE)CO.1943-7862.0001151.
32 (1): 5015005. https://doi.org/10.1061/(ASCE)ME.1943-5479
Hartmann, A. M., A. C. W. Davies, and L. F. Frederiksen. 2010. “Learning
.0000390.
to deliver service-enhanced public infrastructure: Balancing contractual
Armitt, J. 2013. “The Armitt Review: An independent review of long term
and relational capabilities.” Constr. Manage. Econ. 28 (11): 1165–1175.
infrastructure planning commissioned for Labour’s Policy Review.”
https://doi.org/10.1080/01446193.2010.521942.
Accessed April 15, 2017. https://goo.gl/QgnXge.
Downloaded from ascelibrary.org by Newcastle University on 10/03/18. Copyright ASCE. For personal use only; all rights reserved.

Helfat, C. E., S. Finkelstein, W. Mitchell, M. A. Peteraf, H. Singh, D. J.


Barbosa, F., J. Woetzel, J. Mischke, M. J. Ribeirinho, M. Sridhar, M.
Teece, and S. G. Winter. 2007. Dynamic capabilities: Understanding
Parsons, N. Bertram, and S. Brown. 2017. “Reinventing construction
strategic change in organizations. Malden, MA: Blackwell.
through a productivity revolution.” McKinsey Global Institute. HM Government. 2013. Industrial strategy: Government and industry in
Accessed February 06, 2017. https://goo.gl/1Nqqf8. partnership: Construction 2025.” London: Dept. for Business,
Barney, J. B. 2006. Gaining and sustaining competitive advantage. 3rd ed. Innovation & Skills.
Upper Saddle River, NJ: Prentice Hall. Ho, P. H. K. 2016. “Labour and skill shortages in Hong Kong’s construction
Barratt, M., T. Y. Choi, and M. Li. 2011. “Qualitative case studies in opera- industry.” Eng. Constr. Archit. Manage. 23 (4): 533–550. https://doi.org
tions management: Trends, research outcomes, and future research /10.1108/ECAM-12-2014-0165.
implications.” J. Oper. Manage. 29 (4): 329–342. https://doi.org/10 Hu, X., and C. Liu. 2016. “Carbon productivity: A case study in the
.1016/j.jom.2010.06.002. Australian construction industry.” J. Cleaner Prod. 112 (4): 2354–2362.
Barrett, S., K. Hanna, and S. Ullah. 2014. Skills to build: LCCI/KPMG con- https://doi.org/10.1016/j.jclepro.2015.10.042.
struction skills index. London: London Chamber of Commerce and Hu, X., and C. Liu. 2017. “Total factor productivity measurement with car-
Industry. bon reduction.” Eng. Constr. Archit. Manage. 24 (4): 575–592. https://
BCA (Building Construction Authority). 2016. “Construction industry trans- doi.org/10.1108/ECAM-06-2015-0097.
formation map.” Accessed June 15, 2016. https://www.bca.gov.sg/. Huggins, R., and H. Izushi. 2015. “The competitive advantage of nations:
Borg, L., and H. Song. 2015. “Quality change and implications for produc- Origins and journey.” Competitiveness Rev. 25 (5): 458–470. https://doi
tivity development: Housing construction in Sweden 1990–2010.” J. .org/10.1108/CR-06-2015-0044.
Constr. Eng. Manage. 141 (1): 05014014. https://doi.org/10.1061 Hwang, B., L. Zhu, and J. Ming. 2017. “Factors affecting productivity in
/(ASCE)CO.1943-7862.0000928. green building construction projects: The case of Singapore.” J.
Chan, A., A. Darko, E. Ameyaw, and D. Owusu-Manu. 2017. “Barriers Manage. Eng. 33 (3): 04016052. https://doi.org/10.1061/(ASCE)ME
affecting the adoption of green building technologies.” J. Manage. .1943-5479.0000499.
Eng. 33 (3): 04016057. https://doi.org/10.1061/(ASCE)ME.1943 Javed, A. A., W. Pan, L. Chen, and W. Zhan. 2018. “A systemic exploration
-5479.0000507. of drivers for and constraints on construction productivity enhance-
Chang, A., and W. Ibbs. 2006. “System model for analyzing design produc- ment.” Built Environ. Project Asset Manage. 8 (3): 239–252. https://doi
tivity.” J. Manage. Eng. 22 (1): 27–34. https://doi.org/10.1061 .org/10.1108/BEPAM-10-2017-0099.
/(ASCE)0742-597X(2006)22:1(27). Kadir, M. R. A., W. P. Lee, M. S. Jaafar, S. M. Sapuan, and A. A. A. Ali.
Chia, F. C., M. Skitmore, G. Runeson, and A. Bridge. 2014. “Economic de- 2005. “Factors affecting construction labour productivity for Malaysian
velopment and construction productivity in Malaysia.” Constr. Manage. residential projects.” Struct. Surv. 23 (1): 42–54. https://doi.org/10.1108
Econ. 32 (9): 874–887. https://doi.org/10.1080/01446193.2014.938086. /02630800510586907.
Chiang, Y., V. Li, L. Zhou, F. Wong, and P. Lam. 2016. “Evaluating sus- Kao, C.-C., S. D. Green, and G. D. Larsen. 2009. “Emergent discourses of
tainable building-maintenance projects: Balancing economic, social, construction competitiveness: Localized learning and embeddedness.”
and environmental impacts in the case of Hong Kong.” J. Constr. Eng. Constr. Manage. Econ. 27 (10): 1005–1017. https://doi.org/10.1080
Manage. 142 (2): 06015003. https://doi.org/10.1061/(ASCE)CO.1943 /01446190903273935.
-7862.0001065. Karimi, H., T. R. B. Taylor, and P. M. Goodrum. 2017. “Analysis of the
Chiang, Y. H., E. H. W. Chan, and K. L. Lok. 2006. “Prefabrication and bar- impact of craft labour availability on North American construction pro-
riers to entry–A case study of public housing and institutional buildings ject productivity and schedule performance.” Constr. Manage. Econ. 35
in Hong Kong.” Habitat Int. 30 (3): 482–499. https://doi.org/10.1016/j (6): 368–380. https://doi.org/10.1080/01446193.2017.1294257.
.habitatint.2004.12.004. Ling, F., M. Dulaimi, and M. Chua. 2013. “Strategies for managing migrant
Choi, K., and H. Lee. 2016. “Deconstructing the construction industry: A construction workers from China, India, and the Philippines.” J. Prof.
spatiotemporal clustering approach to profitability modeling.” J. Constr. Issues Eng. Educ. Pract. 139 (1): 19–26. https://doi.org/10.1061
Eng. Manage. 142 (10): 04016051. https://doi.org/10.1061/(ASCE)CO /(ASCE)EI.1943-5541.0000124.
.1943-7862.0001165. Ling, F. Y. Y., P. C. Tan, Y. Ning, A. Teo, and A. Gunawansa. 2015.
CIC (Construction Industry Council). 2014. Roadmap for building informa- “Effect of adoption of relational contracting practices on relationship
tion modelling strategic implementation in Hong Kong’s construction quality in public projects in Singapore.” Eng. Constr. Archit. Manage.
industry. Hong Kong: CIC. 22 (2): 169–189. https://doi.org/10.1108/ECAM-10-2013-0093.
CIC (Construction Industry Council). 2015. Hong Kong construction indus- Loosemore, M. 2014. “Improving construction productivity: A subcontrac-
try performance report for 2013. Version 1. Hong Kong: CIC. tor’s perspective.” Eng. Constr. Archit. Manage. 21 (3): 245–260.
Committee of Experts on Public Administration. 2006. Definition of basic https://doi.org/10.1108/ECAM-05-2013-0043.
concepts and terminologies in governance and public administration. Ng, M. 1999. “Political economy and urban planning: A comparative study
E/C.16/2006/4. United Nations, NY: Economic and Social Council. of Hong Kong, Singapore and Taiwan.” Prog. Plann. 51 (1): 1–90.
Farjoun, M. 2002. “Towards an organic perspective on strategy.” Strategic https://doi.org/10.1016/S0305-9006(98)00027-0.
Manage. J. 23 (7): 561–594. https://doi.org/10.1002/smj.239. O’Connor, J., N. Torres, and J. Woo. 2016. “Sustainability actions during
Goodrum, P., C. Haas, C. Caldas, D. Zhai, J. Yeiser, and D. Homm. 2011. the construction phase.” J. Constr. Eng. Manage. 142 (7): 04016016.
“Model to predict the impact of a technology on construction https://doi.org/10.1061/(ASCE)CO.1943-7862.0001128.

© ASCE 05018013-14 J. Manage. Eng.

J. Manage. Eng., 2019, 35(1): 05018013


Oduyemi, O., M. I. Okoroh, and O. S. Fajana. 2017. “The application and Shan, Y., D. Zhai, P. Goodrum, C. Haas, and C. Caldas. 2016. “Statistical
barriers of BIM in sustainable building design.” J. Facil. Manage. 15 analysis of the effectiveness of management programs in Improving
(1): 15–34. https://doi.org/10.1108/JFM-03-2016-0008. construction labor productivity on large industrial projects.” J. Manage.
Office of the Chief Executive. 2017. “The Chief Executive’s 2017 Policy Eng. 32 (1): 4015018. https://doi.org/10.1061/(ASCE)ME.1943-5479
Address.” Accessed January 20, 2017. https://www.policyaddress.gov .0000375.
.hk/2017/eng/index.html. Shealy, T., L. Klotz, E. Weber, E. Johnson, and R. Bell. 2016. “Using fram-
Pan, M., T. Linner, W. Pan, H. Cheng, and T. Bock. 2018. “A framework of ing effects to inform more sustainable infrastructure design decisions.”
indicators for assessing construction automation and robotics in the sus- J. Constr. Eng. Manage. 142 (9): 04016037. https://doi.org/10.1061
tainability context.” J. Cleaner Prod. 182 (May): 82–95. https://doi.org /(ASCE)CO.1943-7862.0001152.
/10.1016/j.jclepro.2018.02.053. Slack, E., and A. Côte. 2014. Future of cities: Comparative urban gover-
Pan, W. 2014. “System boundaries of zero carbon buildings.” Renewable nance. Working paper. London: Government Office for Science, HM
and Sustainable Energy Rev. 37 (Sep): 424–434. https://doi.org/10.1016 Government.
/j.rser.2014.05.015. Sterman, J. D. 2004. Business dynamics: Systems thinking and modeling for
Pan, W. 2018. “Rethinking construction productivity theory and practice.” a complex world. Boston: Irwin.
Built Environ. Project Asset Manage. 8 (3): 234–238. https://doi.org/10 Sveikauskas, L., S. Rowe, J. Mildenberger, J. Price, and A. Young.
2016. “Productivity growth in construction.” J. Constr. Eng.
Downloaded from ascelibrary.org by Newcastle University on 10/03/18. Copyright ASCE. For personal use only; all rights reserved.

.1108/BEPAM-07-2018-125.
Pan, W., A. Gibb, and A. Dainty. 2012. “Strategies for integrating the use of Manage. 142 (10): 04016045. https://doi.org/10.1061/(ASCE)CO
off-site production technologies in house building.” J. Constr. Eng. .1943-7862.0001138.
Manage. 138 (11): 1331–1340. https://doi.org/10.1061/(ASCE)CO Taylor, J., C. Dossick, and M. Garvin. 2011. “Meeting the burden of proof
.1943-7862.0000544. with case-study research.” J. Constr. Eng. Manage. 137 (4): 303–311.
Pan, W., A. G. F. Gibb, and A. R. J. Dainty. 2008. “Leading UK housebuild- https://doi.org/10.1061/(ASCE)CO.1943-7862.0000283.
ers’ utilization of offsite construction methods.” Build. Res. Inf. 36 (1): Teece, D. J. 2007. “Explicating dynamic capabilities: The nature and
56–67. https://doi.org/10.1080/09613210701204013. microfoundations of (sustainable) enterprise performance.” Strategic
Pan, W., and Y. Ning. 2014. “Dialectics of sustainable building: Evidence Manage. J. 28 (13): 1319–1350. https://doi.org/10.1002/smj.640.
from empirical studies 1987–2013.” Build. Environ. 82 (Dec): 666–674. Teng, Y., K. Li, W. Pan, and T. Ng. 2018. “Reducing building life cycle car-
https://doi.org/10.1016/j.buildenv.2014.10.008. bon emissions through prefabrication: Evidence from and gaps in empir-
Pan, W., and R. Sidwell. 2011. “Demystifying the cost barriers to offsite ical studies.” Build. Environ. 132 (Mar): 125–136. https://doi.org/10
construction in the UK.” Constr. Manage. Econ. 29 (11): 1081–1099. .1016/j.buildenv.2018.01.026.
https://doi.org/10.1080/01446193.2011.637938. Vogl, B., and M. Abdel-Wahab. 2015. “Measuring the construction indus-
Parham, D. 2008. “Definition, importance and determinants of productiv- try’s productivity performance: Critique of international productivity
ity.” Accessed February 19, 2016. http://goo.gl/sXnaax. comparisons at industry level.” J. Constr. Eng. Manage. 141 (4):
Pearce, J. A., and R. B. Robinson. 2011. Strategic management: 04014085. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000944.
Formulation, implementation, and control. 12th ed. New York: Windsperger, J. 2006. “A resource-based view of the competitive advantages
McGraw-Hill/Irwin. of cities: Empirical results on advantages for headquarters in Vienna for
Porter, M. E. 1998. On competition. Boston: Harvard Business School. Central Europe.” South East Eur. J. Econ. Bus. 2 (Sep): 20–31.
Rothaermel, F. T. 2014. Strategic management. 2nd ed. New York: Yi, W., and A. Chan. 2014. “Critical review of labor productivity research
McGraw-Hill/Irwin. in construction journals.” J. Manage. Eng. 30 (2): 214–225. https://doi
Rowlinson, S. 2014. Cost escalation in the Hong Kong construction indus- .org/10.1061/(ASCE)ME.1943-5479.0000194.
try report. Hong Kong: Univ. of Hong Kong, Dept. of Real Estate and Yin, R. K. 2009. Case study research: Design and methods. 4th ed.
Construction. Thousand Oaks, CA: Sage.
Ryall, M. D. 2009. “Causal ambiguity, complexity, and capability-based Zhao, T., and J. Dungan. 2014. “Improved baseline method to calculate lost
advantage.” Manage. Sci. 55 (3): 389–403. https://doi.org/10.1287 construction productivity.” J. Constr. Eng. Manage. 140 (2): 06013006.
/mnsc.1080.0938. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000800.

© ASCE 05018013-15 J. Manage. Eng.

J. Manage. Eng., 2019, 35(1): 05018013

You might also like