Analysis of Issues in Australian Construction Management: A Report

Desklib provides past papers and solved assignments for students. This report analyzes issues in the Australian construction industry.

Contents
Introduction:...............................................................................................................................................2
Issues in Construction Industry:..................................................................................................................2
Reducing Productivity at the Workplace:................................................................................................2
Increasing Cost of Project:.......................................................................................................................2
Corruption:..............................................................................................................................................3
Quality issue:...........................................................................................................................................3
Unskilled Labor:.......................................................................................................................................3
Capital Constraints:.................................................................................................................................4
Site Safety:...............................................................................................................................................4
Concept Diagram:........................................................................................................................................5
Summary:....................................................................................................................................................5
Conclusion:..................................................................................................................................................6
Reference:...................................................................................................................................................7

Introduction:
In Australia, although the construction industry is developing day by
day still there are some issues that the industry have been facing right
now. Some major issues of this industry are described below with
explanation. Also, to make the understanding better, a concept diagram
is designed that explains issues as well as their common results or
consequence which can take place if a particular issue is there.
Issues in Construction Industry:
Reducing Productivity at the Workplace:
Productivity is basically based on the material resources and most
importantly on the workers, labors, who are engaged there for the
work but not providing that much of quality work, maybe because of
their truancy, which is the requirement of the project which directly
reduces the productivity of that workplace being an issue for the
industry.
Increasing Cost of Project:
The main issue that the construction management companies are
facing right now is the increasing rates of almost every resource.
Construction is based on multiple resources, combining those
resources produces a building but right now increasing the cost of
those products is a concern for the industry. These resources may
comprise, growing interest rates of the loan, strong Australian dollar,
metal prices rising, labour effort rates and many other resources.
The effect of this increment in various things directly affecting the

construction field.
Corruption:
Construction isn’t a small thing to do as well it isn’t a thing that can
be done for a small amount of money. It takes too much time, effort,
people, guidelines and money. Due to a large amount of money from
the vendor's side, the project management companies took too
much unnecessary money and complete the work with the poor
quality of products saving that money for them. Also if the site is
really big, the government officers also take money as a bribe to
complete the legal process. So corruption is also a critical problem
facing this industry these days.
Quality issue:
It is also a major problem rising these days. Many reasons are there
behind it but all those reasons are directly affecting the quality of the
construction. This is a major issue because there is going to be too
much of people in a building which is under construction right now
and if there is a quality issue because of any of reason, it isn’t good
for those people. There should be a focus on the quality so that it
won’t collapse gradually. Poor productivity and no regulations are
major reasons for poor quality.
Unskilled Labor:
The productivity of the workplace may also get affected because of
the shortage of skilled worker. There is very less number of workers
who are skilled in their job and holds professionalism. Therefore,
where the construction industry is getting larger there is a high

demand for workers but all the industry is getting is unskilled and
unprofessional workers at all and compromising with the quality.
Capital Constraints:
Due to all the issues that the construction industry is facing right
now, all the fund lending firms have lost confidence on construction
management and industries and no more want to let them borrow
their money on risk. This is becoming a problem for the vendor to
arrange sufficient money for the construction work in these
circumstances. Therefore, this is also becoming a noticeable issue for
the construction industry.
Site Safety:
All the facts that are expressed correlate with each other in this
industry. As too many workers are there on a construction site,
sector focuses on the insurance and compensation to the people for
any injury. Although they are providing enough money to the people
working out there is good for them but still spending too much of
money only on the safety issue leads to poor quality of resources
hence poor productivity.

Concept Diagram:
Summary:
The above concept chart is a graphical representation of the
construction management issues that are faced by the construction
industry these days in Australia. People have been facing these issues
both at the construction site as well as the off the construction site.
In the above concept chart, it is explained how the construction issues
are connected with each other, results of the various issues and the
interconnection between them. There are seven parts of the

constructions management issues that are presented in the above
chart. Those seven parts are:
Reducing Productivity At Workplace
Site Safety
Capital Constraints
Unskilled Labor
Quality Issue
Corruption
Increasing Cost Of Project
These parts are then further divided into subparts which explain about
the consequences that can happen if those seven issues arrive in the
construction management. These results can be, Improper Structure,
Poor Quality, Exceeded Deadline, Insurance Expense, Compensation
Expense, Fund Constraint, Insufficient Resources, Poor Quality, Labor
Strike, Value for Money, etc.
Conclusion:
In this paper, the problem and issues that the construction
management industry is facing right is explained and on the basis of
those issues a concept diagram is designed for better understanding
which presents all issues and their consequences in a graphical manner.

Reference:
O'Sullivan, T 2017, Issues facing the australian construction industry,
Masonry Contractors Association, retrieved 08 April 2019,
<https://masonrycontractors.com.au/2017/11/issues-facing-australian-
construction-industry/ >.
Oswald, D, Sherratt, F, Smith, S 2018, ‘Problems with safety observation
reporting: A construction industry case study’, vol. 107, pp. 35-45,
Safety science.
Zuo, J, Pullen, S, Rameezdeen, R, Bennetts, H, Wang, Y, Mao, G, Zhou, Z,
Du, H, Duan, H 2017, ‘Green building evaluation from a life-cycle
perspective in Australia: A critical review’, Renewable and Sustainable
Energy Reviews, vol. 70, pp. 358-368.