Causes and mitigation for declining productivity in the Australian mid-rise residential construction sector

The construction industry is a significant driver of economic activity in many countries. However, there has been a lack of growth in productivity within the Australian construction sector over recent years. The purpose of this paper is to gain an in-depth understanding of the causes for declining productivity within the Australian mid-rise residential construction network.

Two in-depth case studies have been conducted with a builder and developer, both significant entities of the Australian mid-rise residential construction network. Case study data collection comprised a five-stage process including semi-structured interviews and archival information review.

Drivers for declining construction productivity were identified under the categories of: industry-, firm- and project-level productivity. The drivers include: incomplete documentation, design changes, inefficient project management, supply chain fragmentation, among others.

The contribution of this study is the identification and categorisation of major issues impacting sector productivity along the mid-rise residential construction supply chain. The research identified that the substructure and superstructure are the construction phases during which most productivity losses occur. Mitigations are discussed in terms of systemic sector productivity increases at an industry, firm and project levels.