Level 21, 420 George Street, Sydney
June 20, 2018
June 20, 2018
Lean Construction Institute Australasia
1300 77 88 99
The construction sector is undergoing unprecedented change, on-site construction work is moving off-site and in many cases off-shore. On-site construction costs now exceed $100/h and the effective utilisation of that workforce at best sits at 65 to 70%, depending on how this is assessed. Off-site workforce costs are below $50 per hour and the effective utilisation rate regularly reaches 100% as OSCM processes improve. Shipping costs from anywhere in the globe are typically 1% of the final construction costs and hence there is no longer a cost barrier to defend ineffective construction performance. Wasteful procurement practices, design processes and solutions, and on-site construction practices result in wasted labour, injury, rework and wasted materials to name a few, and this all contributes to falling construction competitiveness
While most support the view that systemic change could reduce construction costs by at least 20 to 30% the task of leading change seems always to be in the hands of others. Most still think this conversation is about screwing margins! What is needed to turn this around?
Research at the University of Western Sydney Centre for Smart Modern Construction (c4SMC) are collaborating with several Australian and overseas clients to develop new construction effectiveness measures designed to bolster procurement strategies that will drive the industry to deliver smarter, better outcomes.
Adjunct Professor David Chandler will discuss procurement strategies that will drive the industry to deliver smarter, better outcomes. David will discuss what is needed to turn the Australian construction industry's effectiveness around, and about a practical way forward that is being advanced in c4SMC using non-price measurement methods. He will also discuss the changing nature of on and off-site work packaging that he considers will result.