Productivity Measurement and Improvement for Public Construction Projects

Abstract

Large-scale public construction projects often become expensive white elephants requiring considerable postconstruction maintenance. Thus there is a pressing need to integrate construction and postconstruction stages into productivity measurement and analysis. However, previous studies of productivity measurement focused on the efficiency of the project delivery phase, but overlooked the utilization of the constructed facility. This paper developed a two-stage construction project productivity (CPP) measurement model by integrating site efficiency (SE) and utilization effectiveness to investigate strategies for improving the overall CPP. An as-usual setting, which delineates the measurement of CPP, was developed as the benchmark model. Given the relative nature of the productivity concept, two scenarios were considered for CPP improvement. The enhancement scenario was introduced by adding a requirement that CPP is enhanced compared with that in the benchmark model. Then a transcendence scenario was developed to ensure that CPP is better than SE. Strategies for CPP improvement were formulated and were analyzed using the analytical models developed. This study for the first time distinguished the substitutionarity and complementarity between facility occupation and facility management in the postconstruction stage, and claims that the opposite natures offer opposite strategies for CPP improvement. The empirical analysis revealed the law of diminishing marginal utility of facility management. This paper contributes to the body of knowledge by extending the productivity measurement model from the construction stage only to the integration of the construction and postconstruction stages, and by offering two productivity improvement scenarios for strategy formulation. Methodologically, this paper offers a two-stage productivity measurement model and its improvement models in a mathematical way. Managerially, based on the developed models, this work offers the evidence and quantitative guidance for the policy makers and public clients to strategically improve CPP of public projects.