Exam Revision Flashcards
(39 cards)
What is building economics?
How we look at and manage resources
Why is it necessary to understand building economics?
To be able to: Describe: What? How much? Analyse and explain: How? Why? Predict: When? To make better decisions
How is industry performance measured?
The accuracy in measuring productivity is crucial to determine proper estimating, cost control, scheduling, and resource management
Investment clock
1. Labour productivity: the ratio of real output produced to the quantity of labours employed
2. Capital productivity measured as output per unit capital
3. Multifactor productivity: the ratio of output to combined inputs of labour and capital
4. Total factor productivity
What is productivity and why it important but compromised?
Labour productivity: is the ratio of output to input of labour
Technical productivity: is the ratio of output to input of a physical system
Economic productivity: is the ratio of output to input of a business system
Defined as the measure of the rate at which work is performed
Output compared to the input; higher variance = productivity
What are reasons for construction firms to go bankrupt?
- Low productivity due to illegal behaviours: unprotected industrial action (strikes – pre ABCC) (unions support labour activity)
- Insolvency & in-security of payment: driven by unethical builders who delay the payment of subcontractors, using non-payment as a bargaining tool to reduce subsequent claims: SOP regime does not secure payment due to poor quality adjudicators and complexity of legislation
What are available remedies to emerging issues?
- Reinstating ABCC via Building and Construction Industry (improving productivity) Act 2016
- The act aims to: prohibit unions from organising unlawful industrial action and picketing/ set out a regime to compensate businesses who suffer loss as a result
- Empower the government to prepare and issue a Building Code (2016) – legislative framework on how we can improve productivity
What is Ethics all about?
Subjective Ethics generally constitutes: 1. A system of moral principles 2. Rules of conduct in respect of human actions 3. Individual moral principles
Why is it important to promote ethical practices?
- Maximise profit in the long run
- The need for regulation in areas not covered by legally enforceable duties
- Ethical judgement are inferred in many construction activities such as tendering and dispute resolution
- To bring back faith in the construction industry
What is the term “professional” all about?
A person who has had some specific advanced education to become fitted for a line of work and has a diploma to certify to this level of expertise
The professional must be ethical and follows the ethical codes of conducts in his profession
Education plus experience that has been polished
What are the roles & duties of clients?
Client – private and/or public sector: the one who is paying the bills. The client is always looking for function, efficiency and overall value.
Duties: selection of competent consultants and contractors, define and specify the outcomes required from the project, make appropriate decisions and give approvals with a selected timescale, provide payment, comply with oh&s standards, manage agency problems efficiently
What are the roles & duties of consultants?
Consultant – architects, structural engineers, m & e engineers, quantity surveyors, project managers
Duties: aware of regulations and standards, make sure the client is aware of their duties, eliminate hazards and manage foreseeable risks, provide/share information with clients and contractors, coordinate with other parties to make sure risks are controlled and managed, monitor construction work, perform ethically
What are the roles and duties of contractors?
Contractor – appointed by the client and responsible for delivering the project on time and within cost, managing the construction work and coordinating the work of the subcontractors
Duties (corporate): selecting the right jobs to bid, preparing the cost estimate, submitting the bid, procuring the payment and performance bonds, scheduling the work, securing project operating capital
Duties (project level): Controlling progress and expenditures, communicating effectively with owner and designer, sharing information, ensuring working conditions, managing construction risks, transferring risks to subcontractors, coordinating and monitoring the work of subcontractors, conduct all work ethically
What are the roles and duties of construction managers?
Construction manager – Hired for overall planning, coordination and control, aiming to produce a functional and financially viable project, appointed by the client to take care of most of the things, assist and advises the client
No CM = scope creep (variations), poor requirements, lack of resources, unrealistic planning
Duties: suitable advise to clients regarding their duties, specifying objectives, budgeting, scheduling and planning, monitor oh&s, resource efficiency through procurement of labour, materials and equipment, proper coordination and control of planning, design, estimating, contracting and construction, developing effective communications and mechanisms for resolving conflicts
How is professional liability determined?
You are liable for yourselves, whether you are an employee or a subcontractor
Professionals have a legal duty to do their work to a reasonable standard expected of their profession
If they perform work without duty of care, which results in loss/damage, they can be sued and held liable
What is professional negligence and what is the remedy?
Three key elements:
- There must be a duty of care
- The professional does not exercise the required standard of care, resulting in an error
- The error must cause loss/damages
What can professional institutes offer to members?
- Offer a career avenue
- deliver broad benefits to society,economy and the people in the industry
- social benefits of providing advice, regulate members, consumer protection
- Education, ethics and examinations
What is professional standards legislation – meta regulation
A group of people in a learned occupation who are entrusted with maintaining control or oversight of the legitimate practice of the occupations
Not for profit organisation, maintain the standard of a practice, safeguard public interest,
Example: The royal Australian Institute of Architects – code of conduct
Benefits: high standard of ethics, obligations, protects the reputation
What is industrial relations all about and why is it relevant to your profession?
A multidisciplinary field that studies the collective aspects of the employment relationship, concerned with social justice & fair employment
Management of the relationship between management and labour
Relationship between employers and employees
Management of the relationship between management and employees
Another branch of human resources management
Dispute management between builders and unions
What are the objectives of IR
Uninterrupted production, reduction in industrial disputes, high morale of the employees, higher efficiency/productivity, job satisfaction, work life balance
What is the role of unions in the industry and how is it regulated?
Organisations formed to represent and protect rights of workers, their primary function is to protect the in interest of workers against unfair practices. Traditionally focused on pay rates, work conditions and job security
Their objectives: representation, negotiation, voice in decisions affecting workers, member services
What is the relationship between employees, employers & government in the industry?
Main parties in IR: Employee, employer and government
Employers associations, trade unions and courts
Direct relationship between you and employer
Employees have more rights, protected by the government
How can employment laws protect your rights?
Fair work commission and fair work ombudsman
What is sham contracting and how is it regulated?
A device that attempts to disguise an employment relationship as one of client and independent contractor. Allows employers to avoid costs associated with standard forms of employment such as annual leave, sick leave & redundancy payments
What are the causes of industrial disputes?
A state of disagreement over a particular issues between an employer and its employees, resulting in industrial actions
Trade union policies: Union rivalry, non-cooperative approach
Legal & political: Multiplicity of labour law, political interference
Economic: wages, incentives, benefits, working condition
Management practices: unfair labour practices, ineffective supervision, violation of acceptable norms
