Multi Outcome Construction Policy (final report)

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Globerman and Vining (1996) proposed in their framework that contracting in asituation which comprised information asymmetries, externalities, high taskcomplexity and high asset specificity was a high risk proposition. They proposed thatthe development of prototypes and the establishment of joint governance mechanismswere ways of coping with the complexity and minimizing risk.In both Queensland and Western Australian policies each art project involved aninitial submission of a number of concepts or ideas, which were then short listed toprepare detailed prototypes of the actual <strong>final</strong> artwork. The selection of the art workwas undertaken by a group of diverse stakeholders who could include the clients, theusers, architects, engineers, public works authorities and even wider communitygroups. This correlates with the proposition advocated by Globerman and Vinning(1996) that joint governance be incorporated into the procurement process.The other interesting element in the Queensland and Western Australian policies wasthe representation of stakeholders in the development of the artwork for a specificbuilding. This strategy overcame the difficulties noted in the literature reviewconcerning the ownership of the art by the intended audience, and the difficulties inspecifying outcomes in contracts. In so doing, another cost was introduced into theprocess – that of expenditure of time, which was mentioned by every stakeholdergroup. What is interesting here though is that this cost was not considered significant– and simply part of the process in ensuring there was a good outcome for allinvolved. In economic terms the indirect costs of the involvement of representativesof the community in the planning and delivery of the public art work ensured that theexternalities were positive in the delivery of a highly specific public asset.The case study on percent for art in Queensland and Western Australia, has thusdemonstrated that principal agent theory and extensions such as those proposed byGloberman and Vining (1996) have considerable utility in the examination of theembedding of social outcomes in public works procurement.161
Additionally, while numerous costs and benefits have been proposed by variousproponents of public art and percent for art, these have now been largely validatedthrough a specific empirical case study – Percent for Art policies in Queensland andin Western Australia.162
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Table of ContentsBackground .......
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FiguresFigure 1: Total, Private, an
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stakeholders involved in constructi
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Project Objectives & ScopeThe prima
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the review first identified the ‘
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Social Policies Leveraged on Public
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construction contracts that fall un
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Similar to the Priority Access Poli
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employ Aboriginal people, that supp
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projects to address skills shortage
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ecruited from the local community.
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The contracting or delivering agenc
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Literature ReviewEconomic Perspecti
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innovations. These negotiations are
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investments in general skills); and
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Keeping this in mind, the following
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previous section, this research app
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Theoretical FrameworkThe theoretica
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max{ B(e)− C(e)eThis has a unique
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It is also useful to add a shift fa
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opposite influence - acting as a de
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component of the economic cost of t
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Figure 2: Average Number of Tender
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Figure 5: The Average Number of Ten
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Figure 7: Tender Bids by Pre-Qualif
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August 2002 (increasing by only 1.6
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egion and project size) before focu
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Figure 13: Average Number of Tender
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areas as compared to less remote re
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The results of this analysis are pr
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the Building Skills Policy were not
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The Training and Employment Policie
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documentation. The Department’s k
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And to achieve this objective, the
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also claimed that tenders had been
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Head ContractorsThe large sized con
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The key policy officer in the spons
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In summary, the information collect
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aised the cost of construction proj
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The Training and Employment Policie
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commented that the 10% Training Pol
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The sponsoring agency: DETAThe poli
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competitive industry to operate in,
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“There’s a disbenefit in taking
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Several of the head contractors and
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was defined as one were it was goin
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However, he did link the policy to
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The Provision of Public Art as a Pe
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eport examines percent for art prog
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…the big question with regard to
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considered essential to ensure that
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apparatus of public hygiene or of a
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provide important economic benefits
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‘new’ approaches to such contra
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self education that the Artist must
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Building user representative 1 stat
Page 116 and 117: Costs according to DHW Policy Offic
Page 118 and 119: Numerous interviewees noted that th
Page 120 and 121: Additionally, the skill development
Page 122 and 123: and so we have got a very nice outc
Page 124 and 125: The development of communication, p
Page 126 and 127: The majority of Building User Repre
Page 128 and 129: are all the same, and the Percent f
Page 130 and 131: vandalism on WA Percent for Art bui
Page 132 and 133: The major benefits achieved by the
Page 134 and 135: Stakeholder groupDHW contract manag
Page 136 and 137: The Art Built-In Policy of the Quee
Page 138 and 139: cover the concept design. The commi
Page 140 and 141: artwork and project management. Acc
Page 142 and 143: Moreover, according to the Intervie
Page 144 and 145: Benefits of the Art Built-in policy
Page 146 and 147: Public art can enrich public cultur
Page 148 and 149: 3 to discover skills that they had
Page 150 and 151: The artwork is able to increase pub
Page 152 and 153: Similar to the artwork’s ability
Page 154 and 155: potential. Also according to Client
Page 156 and 157: Multilayered artwork is able to be
Page 158 and 159: not be updated, as the artwork is a
Page 160 and 161: A number of benefits from the Art B
Page 162 and 163: administration and project manageme
Page 164 and 165: Those elements which were expected
Page 168 and 169: Table: WA Percent for Art policy an
Page 170 and 171: Summary of comparative analysisFigu
Page 172 and 173: concerning the art in buildings, th
Page 174 and 175: Appendix A: Summary of interviews f
Page 176 and 177: References“10% Training Policy”
Page 178 and 179: Hein, H. 1996. What is public art?:
Page 180: 175
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Multi Outcome Construction Policy (final report)

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