Industrialised, Integrated, Intelligent sustainable Construction - I3con

HANDBOOK 2 SUSTAINABLE CONSTRUCTION
� The short term of projects which are won in most instances on price and the opportunity or
motivation for industry stakeholders to invest in R&D initiatives for innovation is minimal.
� The patterns of the construction industry cycle follow that of the economic cycle, during a
recession, profits for companies are reduced, and as a result, this hinders the implementation of
innovation.
� The construction industry is project-based and does not produce repetitive products. The
implementation of construction methods, changes with every site according to the scope and
objectives of the project. In addition, the fragmented nature of the industry makes the products
of construction more complex. Consequently this hinders the implementation of innovation in
construction (Leiringer, 2001; Gann and Salter, 2000).
� Nam and Tatum (1997) and Budiawan (2003) argued that the slow adoption of new technology
and innovation is a major factor in the construction industry. Participants in the industry stated
that the tendering process in construction is too short to adopt innovative ideas. Furthermore,
when the construction stage is reached, it is too late to adopt innovative ideas as the processes
have already been priced.
� The industry is predominantly made up of small firms which hinders the ability to innovate
(Sexton and Barrett, 2003). Small firms have more factors limiting innovation (Reichstein et al.,
2005), for example they tend to focus mainly on those activities that directly affect them and
have no strategy on managing technical external changes (Gann, 2000).
� Budiawan (2003) stated that the risks attached to implementing innovation are higher in the
construction industry, as a trial-and-error approach is not acceptable. If the resulting effect of
implementing innovation is a failure, it affects the company’s reputation and credibility. As a
result, construction firms are more averse to innovation.
� The conventional method of managing construction projects poses another obstacle in the
execution of innovation in construction (Mohamed and Tucker, 1996).
� Government statutory regulations and procurement methods adopted also have a significant
impact on innovation in construction (Gann and Salter, 2000).
In an Australian case study by Manley (2006), key barriers facing the construction industry were
identified. The results of which are represented in Figure 2.
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