In today’s construction news, read about the commission discovering that during the previous 30 years, physical productivity—the total number of homes constructed per hour of labor—had more than halved. Meanwhile, an adolescent is encouraging other females to pursue careers in construction with confidence. Lastly, a Denver judge has granted over $74 million to a construction company that sued the owners of a Black Hawk casino and resort for breach of contract following a more than five-year legal struggle.
Here Are Some Reasons Why Raising Housing Construction Productivity is Such a Challenging Issue
Original Source: Here’s why increasing productivity in housing construction is such a tricky problem to solve
The much-anticipated Productivity Commission study on house construction productivity growth was released this week. Not a great review.
Over the past 30 years, physical productivity—the number of dwellings created each hour—has more than halved, according to the commission.
Even more sophisticated labor productivity, which factors for size and quality increases, has declined 12%.
The research blames “decades of poor performance” for home-building productivity falling behind the economy.
We knew about this issue long ago. Well-researched, the Productivity Commission study makes sensible recommendations.
Government, homeowners, building businesses, and workers must collaborate to fix the issue.
Measure productivity
Many types of housing exist. From a productivity standpoint, development is similar.
Simply put, it involves:
Concept, first design, feasibility, finance, business case development • Land acquisition and due diligence
thorough design, development, and building permits
design and working drawings before construction
Construction project management: practical completion, final certificates, settlement, commissioning, and handover.
No official housing construction productivity estimates exist. The Productivity Commission created new productivity indicators using ABS data to reflect productivity across this process.
Long-term productivity decline in this area is widely documented. The National Housing Accord requires the federal government to build 1.2 million well-located dwellings by the end of the decade.
Only 44,884 Australian homes were built in the first three months of the National Housing Accord. That’s 15,000 below the quarterly 60,000 target.
The National Housing Supply and Affordability Council predicts a quarter-million new market housing units below the accord’s aim.
4 main issues
The report identified four main causes of the malaise:
Challenges in construction include slow approvals, delayed certificates, and infrastructure connections, slow adoption of digital technologies, smaller firms dominating, supply chain fragmentation, and skilled worker shortages.
In response, the paper suggests seven reforms. These include speeding up planning approval, investing in R&D, and improving staff flexibility.
Fixing won’t be easy.
The Productivity Commission’s study emphasises planning and approvals to alleviate the housing shortage.
It accepts that short-staffed approvals authorities like local governments have exacerbated the issue.
The construction industry must build rapidly enough to keep up with the quantity of planning approvals.
Currently, no. Industry analysis shows Australia’s construction workforce has grown by almost 25% since 2013. This year, they labor 2% less hours and produce 25.4% less.
Monitoring quality
With every drive to speed up approvals, we must consider the consequences. Quality issues and inappropriate development might result from loosening construction standards.
Such issues can hurt households and society if pervasive across the business. They can raise building, insurance, and strata fees.
This issue requires a variety of solutions to decrease quality risks when restrictions are relaxed. New South Wales has two laws that could inspire other jurisdictions.
Construction workers who fail to use reasonable care might be sued by owners. The other lets the Building Commission examine and enforce problem repairs for six years.
NSW has an independent builder trustworthiness rating. Credit rating agency Equifax runs iCirt.
Innovation doesn’t cure all.
The Productivity Commission’s report highlights the housing building industry’s low innovation culture.
Many innovations are hidden because they happen during manufacturing. Innovation is not a cure-all.
While calling for more innovation seems clear, research has shown that its capacity to boost productivity depends on several circumstances and is not assured. Unmanaged, it can increase expenses and lower quality and productivity.
Integrated workforce planning
The report also addresses skilled personnel recruitment and retention challenges. Low apprenticeship completion rates, limited trade routes, and major infrastructure projects steal talent.
A bigger concern arises. Despite Construction sector Training Board workforce planning, the sector continues to constantly react to skilled labor shortages rather than planning forward to prevent them.
Girls Are Encouraged by Teenagers to Pursue Careers in Construction
Original Source: Teen encourages girls to join construction industry
A teen advises girls to “go for it” in construction.
Leeanna, 17, is a Kent apprentice bricklayer who started after GCSEs.
She said: “I applied for my apprenticeship at 15 while taking GCSEs. Within months of graduating, I started my apprenticeship and enjoyed it.”
Leeanna wants to build a house like her brother, who studied bricklaying.
She wants other young women and girls to join her in the profession, admitting she was frightened when she started but has enjoyed her time on the site.
She said: “Don’t let anything stop you if you’re enthusiastic.
“There are so many opportunities, and plenty of people, both male and female, who will support you along the way.”
She said, “That’s what I wanted to do.” She liked learning and earning during the apprenticeship.
The Office for National Statistics anticipated that 15% of UK construction workers are women in 2024.
Denver Judge Grants Casino Construction Case $74 Million
Original Source: Denver judge awards $74 million in casino construction lawsuit
A Denver judge awarded a construction company over $74 million for breach of contract against the owners of a Black Hawk casino and resort after a five-year legal struggle.
Denver District Judge Andrew Luxen’s Friday verdict favored PCL Construction and four of its subcontractors in the Monarch casino and resort expansion and makeover. A 23-story tower dominates Colorado Highway 119 drivers’ views of Black Hawk.
In August 2019, PCL sued the three casino owners for not paying for the work. Four months later, Monarch Growth, Casino & Resort, and Black Hawk counter-sued. PCL missed project deadlines and did poor work, according to their complaints.
Luxen sided with PCL on all but two issues in a 236-page judgment.
He ordered PCL to pay Monarch $144,894. After deducting that from what Monarch owed PCL, the construction business was left with $74,627,657.
“That’s a pretty big judgment,” said 43-year-old complicated case attorney Stan Garnett.
“One of my early mentors used to say the problem with construction litigation is other cases are two-dimensional, but construction cases are three-dimensional, meaning they’re happening on a whole bunch of different levels, and people are pointing their fingers at each other,” said former Boulder district attorney Garnett.
An counsel for Monarch declined to comment and sent queries to the company.
Jordan Sherman, Monarch’s spokeswoman, declined to comment but shared a letter filed with the SEC following the ruling. After a “initial review,” the business “anticipates filing an appeal with the Colorado Court of Appeals.”
PCL spokesperson Stephanie McCay said the business “appreciates the Denver District Court’s thorough review of the case and it’s decision to award a $74.6 million judgment in our favor.”
Summary of today’s construction news
To sum it up, the report from the Productivity Commission has thankfully raised attention to the importance of planning and permissions in mitigating the housing problem. It admits that the issue has gotten worse due to the underfunding of organizations like local governments that are involved in the approvals process. One problem with processing more planning permissions is that in order to keep up with them, the building industry must be able to build quickly enough. We don’t at the moment. According to industry estimates, Australia’s construction employment has grown by more than 25% since 2013. However, they are producing 25.4% less work while putting in 2% fewer hours annually.
Meanwhile, her brother, who studied bricklaying, served as an inspiration to Leeanna, who aspired to build her own home. She acknowledged that she was anxious when she initially joined but that she has thoroughly enjoyed her time on the site, and she expressed her desire to see other young women and girls follow in her footsteps in the industry. She stated, “If you’re passionate about it, don’t let anything hold you back.”Opportunities abound, and there are lots of men and women who will help you along the way. The ability to learn and earn at the same time was one of her favorite aspects of the apprenticeship, she continued, adding, “That’s what I wanted to do.”
Lastly, Monarch’s lawyer refrained from commenting and referred inquiries to the business. Jordan Sherman, the company’s spokesperson, declined to comment as well but did send a document that Monarch submitted to the Securities and Exchange Commission following the ruling. It states that the business “anticipates filing an appeal with the Colorado Court of Appeals” after an “initial review.” The business “appreciates the Denver District Court’s thorough review of the case and its decision to award a $74.6 million judgment in our favor,” according to a statement released by PCL spokesperson Stephanie McCay.
