Perfect information is a rare construction input but is invaluable to the construction contractor... more Perfect information is a rare construction input but is invaluable to the construction contractor. Decisions made once, earlier than scheduled, and not modified have many benefits. This paper theorises that 80% of required project information is available in the tendering instructions, plans, specifications, and contract. The last 20% has to be furnished by external parties such as the client, governing authority or vendors. This "last mile" can be costly to contractors – main and sub - since their average net profit before tax is single digits. Furthermore, these determinations are made after final design and tendering instructions are issued, affecting the bid phase forward and resulting in novel decisions such as logistics, plan, schedule, or payment, which affect planning, communication, and execution. Artificial Intelligence offers a quicker way to collect, confirm, understand and communicate project information to all parties, thus reducing risk. However, the technology is in its infancy for many industries, including construction.
The Thirteenth International Conference on Construction in the 21st Century (CITC-13) Arnhem, The Netherlands, 2023
This paper asserts that construction contractors are caught in a little understood dynamic of rap... more This paper asserts that construction contractors are caught in a little understood dynamic of rapidly changing construction industry value each quarter. Chaotic work acquisition volume is the start of other follow-on problems that may lead to financial distress. Unpredictable construction volume at the local level causes negotiating power and mutual dependence imbalances that manifest in misaligned tenders and, thus, suboptimal contract agreements for contractors – main and sub. Tendering is the leading source of insolvency for contractors in Australia. At the same time, the number of competitors stays the same and the means of production – their trust and qualified people – are the last resort in cost cutting. Since net profit margins in construction contracting are single digit percentages, these firms are never far from producing a year-end financial loss. Additional pressures on contractors include a disproportionately high number of competitors when compared to established industries such as manufacturing. Construction material suppliers are few, so they control the flow of necessary materials for project installation while having the ability to limit credit amounts and penalise late payments via an adverse public report. These negative dynamics are exacerbated by uncertain workflow and cash flow. This paper asserts that contractors should develop more risk management strategies for the work acquisition function. We suggest some, such as the Developer- Contractor business model and structured decision-making systems. For society, the long-term critical need is for better organisational and project outcomes. These are critical for mitigating the emerging crisis of climate change effects and rapid urbanisation.
Australasian Journal of Construction Economics and Building - Conference Series, 2014
The building and construction industry makes a major contribution to the New South Wales (NSW) ec... more The building and construction industry makes a major contribution to the New South Wales (NSW) economy, with an annual input of 7.6% during 2010 that is projected to rise to 8.4% in 2020. Irrespective of the sector’s growth potential, it is experiencing a severe skills shortage across a range of professions including building certification. Interestingly, the certification sector and the regulatory environment in which it operates is yet to receive rigorous attention in academia and industry. In the context of NSW, the role of the accredited certifier is multifaceted and involves confirming that building work complies with environmental planning controls and the National Construction Code. The Building Professionals Board (BPB) is the statutory body responsible for accrediting these professionals. The BPB is partnering with the University of Newcastle to ameliorate the current skills shortage through the development of an evaluation instrument regarding: certifiers seeking to upgrad...
Occupational Health and Safety (OHS) in the construction industry has attracted considerable inte... more Occupational Health and Safety (OHS) in the construction industry has attracted considerable interest in many countries over the years. During this period, Building Information Modelling (BIM) has emerged as an innovative evolution in a way the construction industry designs buildings. Concurrently the opportunities BIM presents have been widely touted as having the potential to significantly improve the ways in which designers engage with each other and thereby improve overall project outcomes. In the context of OHS, such collaboration has the potential to improve safe working conditions on site because designers are able to consider the implications of their designs on OHS in conference with others. A survey of UK designers shows that few use BIM on projects and can accurately define BIM. This paper reviews OHS legislation in the UK and Australia and explores the potential for BIM-enabled rule-checking systems to help identify and mitigate OHS risks.
Australasian Journal of Construction Economics and Building - Conference Series
The building and construction industry makes a major contribution to the New South Wales (NSW) ec... more The building and construction industry makes a major contribution to the New South Wales (NSW) economy, with an annual input of 7.6% during 2010 that is projected to rise to 8.4% in 2020. Irrespective of the sector’s growth potential, it is experiencing a severe skills shortage across a range of professions including building certification. Interestingly, the certification sector and the regulatory environment in which it operates is yet to receive rigorous attention in academia and industry. In the context of NSW, the role of the accredited certifier is multifaceted and involves confirming that building work complies with environmental planning controls and the National Construction Code. The Building Professionals Board (BPB) is the statutory body responsible for accrediting these professionals. The BPB is partnering with the University of Newcastle to ameliorate the current skills shortage through the development of an evaluation instrument regarding: certifiers seeking to upgrad...
Perfect information is a rare construction input but is invaluable to the construction contractor... more Perfect information is a rare construction input but is invaluable to the construction contractor. Decisions made once, earlier than scheduled, and not modified have many benefits. This paper theorises that 80% of required project information is available in the tendering instructions, plans, specifications, and contract. The last 20% has to be furnished by external parties such as the client, governing authority or vendors. This "last mile" can be costly to contractors – main and sub - since their average net profit before tax is single digits. Furthermore, these determinations are made after final design and tendering instructions are issued, affecting the bid phase forward and resulting in novel decisions such as logistics, plan, schedule, or payment, which affect planning, communication, and execution. Artificial Intelligence offers a quicker way to collect, confirm, understand and communicate project information to all parties, thus reducing risk. However, the technology is in its infancy for many industries, including construction.
The Thirteenth International Conference on Construction in the 21st Century (CITC-13) Arnhem, The Netherlands, 2023
This paper asserts that construction contractors are caught in a little understood dynamic of rap... more This paper asserts that construction contractors are caught in a little understood dynamic of rapidly changing construction industry value each quarter. Chaotic work acquisition volume is the start of other follow-on problems that may lead to financial distress. Unpredictable construction volume at the local level causes negotiating power and mutual dependence imbalances that manifest in misaligned tenders and, thus, suboptimal contract agreements for contractors – main and sub. Tendering is the leading source of insolvency for contractors in Australia. At the same time, the number of competitors stays the same and the means of production – their trust and qualified people – are the last resort in cost cutting. Since net profit margins in construction contracting are single digit percentages, these firms are never far from producing a year-end financial loss. Additional pressures on contractors include a disproportionately high number of competitors when compared to established industries such as manufacturing. Construction material suppliers are few, so they control the flow of necessary materials for project installation while having the ability to limit credit amounts and penalise late payments via an adverse public report. These negative dynamics are exacerbated by uncertain workflow and cash flow. This paper asserts that contractors should develop more risk management strategies for the work acquisition function. We suggest some, such as the Developer- Contractor business model and structured decision-making systems. For society, the long-term critical need is for better organisational and project outcomes. These are critical for mitigating the emerging crisis of climate change effects and rapid urbanisation.
Australasian Journal of Construction Economics and Building - Conference Series, 2014
The building and construction industry makes a major contribution to the New South Wales (NSW) ec... more The building and construction industry makes a major contribution to the New South Wales (NSW) economy, with an annual input of 7.6% during 2010 that is projected to rise to 8.4% in 2020. Irrespective of the sector’s growth potential, it is experiencing a severe skills shortage across a range of professions including building certification. Interestingly, the certification sector and the regulatory environment in which it operates is yet to receive rigorous attention in academia and industry. In the context of NSW, the role of the accredited certifier is multifaceted and involves confirming that building work complies with environmental planning controls and the National Construction Code. The Building Professionals Board (BPB) is the statutory body responsible for accrediting these professionals. The BPB is partnering with the University of Newcastle to ameliorate the current skills shortage through the development of an evaluation instrument regarding: certifiers seeking to upgrad...
Occupational Health and Safety (OHS) in the construction industry has attracted considerable inte... more Occupational Health and Safety (OHS) in the construction industry has attracted considerable interest in many countries over the years. During this period, Building Information Modelling (BIM) has emerged as an innovative evolution in a way the construction industry designs buildings. Concurrently the opportunities BIM presents have been widely touted as having the potential to significantly improve the ways in which designers engage with each other and thereby improve overall project outcomes. In the context of OHS, such collaboration has the potential to improve safe working conditions on site because designers are able to consider the implications of their designs on OHS in conference with others. A survey of UK designers shows that few use BIM on projects and can accurately define BIM. This paper reviews OHS legislation in the UK and Australia and explores the potential for BIM-enabled rule-checking systems to help identify and mitigate OHS risks.
Australasian Journal of Construction Economics and Building - Conference Series
The building and construction industry makes a major contribution to the New South Wales (NSW) ec... more The building and construction industry makes a major contribution to the New South Wales (NSW) economy, with an annual input of 7.6% during 2010 that is projected to rise to 8.4% in 2020. Irrespective of the sector’s growth potential, it is experiencing a severe skills shortage across a range of professions including building certification. Interestingly, the certification sector and the regulatory environment in which it operates is yet to receive rigorous attention in academia and industry. In the context of NSW, the role of the accredited certifier is multifaceted and involves confirming that building work complies with environmental planning controls and the National Construction Code. The Building Professionals Board (BPB) is the statutory body responsible for accrediting these professionals. The BPB is partnering with the University of Newcastle to ameliorate the current skills shortage through the development of an evaluation instrument regarding: certifiers seeking to upgrad...
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Papers by John Smolders