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Construction 2020: Partnering with Industry to Define the Vision for Australia’s Construction Industry

Dr Keith Hampson, CRC for Construction Innovation, WLG, 30.4.08 1

Construction 2020:

Partnering with Industry to Define the Vision for Australia’s Construction Industry

Dr Keith Hampson – CEOAustralian Cooperative Research Centre (CRC)

for Construction Innovation

30 April 2008Wellington

3

Structure

1. Australia’s CRC for Construction Innovation2. Construction 2020 process3. Lessons for the Future …

4

1. CRC for Construction Innovation

… First – some context …

5

Total R&D Expenditure% of GDP

15th

6

Business Expenditure on R&D % of GDP

Business Expenditure on R&D as a percentage of GDP – OECD countries

Source: OECD, Main Science and Technology Indicators, May 2007

Source: OECD, Main Science and Technology Indicators, May 2007

17th



7

International R&D ExpenditureR&D performance as %GDP

ChinaIndia

SpainNew Zealand

ItalySingapore

IrelandAustria

BelgiumCanadaNorway

AUSTRALIAChinese Taipei

United KingdomDenmark

NetherlandsFrance

GermanySwitzerland

United StatesJapan

South KoreaFinland

Sweden

Business

Government

Higher Education

Other

Government

Private Sector

8

Construction R&D as Propn of Value Added

(Compiled by Dr Karen Manley, QUT, based on OECD 19 99, Main Industrial Indicators; OECD STAN; US Natio nal Science Foundation)

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.45

Japa

n

Nor

way

Fin

land

Fra

nce

Net

her'd

s

Den

mar

k

US

UK

Aus

tral

ia

Spa

in

Italy

Irel

and

9

0 0.5 1 1.5 2 2.5 3

OTC

Gas

Repairs

Australia PostInvestment

Water

Water TransportInsurance

Air TransportServices to Transport

Non-bank Finance

Mechanical Repairs

TelecomDefence

Rail TransportPersonal Services

Banking

Road TransportWelfare

Electricity

Public Administration

Health

EducationResidential Building

Business Services

Non-residential Construction

Construction is KEYConstruction is KEYto economic growthto economic growth

Effect on GDP by reducing costs 10% in Australian Service Industries

10

Traditional industry – research relationship

There IS a better way!There IS a better way!

11We can do better! 12

Cooperative Cooperative Research Research Centres Centres Program Program (CRCs)(CRCs)

CRC’s in the Innovation Cycle



13

Economic, Social,EnvironmentalBenefit

PublicPublic

PrivatePrivate

High Risk Low

Short

Time to Produce Benefit

Long

Cooperative Research Centres Program (CRCs)

CRC Research Space

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The Australian CRC for Construction Innovation

Government

Research&

Education

Industry

CRC

400 people 400 people across Australia across Australia contributing to contributing to

CRC visionCRC vision

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To lead the Australian property, design, construction and facility management industry in collaboration and innovation

Our CRC Vision

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Public-private partnerships in R&D

� Build networks of industry, government and researchers for applied outcomes

� Research skills training for industry � Respond to industry challenges with national and

international partnerships

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Working collaboratively

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Industry Associations

Construction and Property Services Industry Skills Council

IAI

buildingSMART



19

International partnerships

CRC on International CRC on International

CIB Leadership Team CIB Leadership Team 20

2. Construction 2020 process

21 22

Researchers Research Users

We build bridges!We build bridges!

2311

Research to Industry Practice

[Rowlinson, QUT]

Value in ProjectDelivery Systems:Facilitating aChange in Culture

CRC for Construction InnovationResearch Project

Brisbane

Local PartnerDissemination

Internal PDPModules to

QDPWQDMRJHGLaing O’Rourke

NationalUniversityCurriculum

Incorporated intoQUT’s Master ofProject ManagementProgram

International IndustryDissemination

(QUT, AustraliaDelft University of Technology, NetherlandsUniversity of Texas at Austin, USACranfield University, UK)

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Construction 2020"Developed in response to identified industry needs ”

Sydney

Hobart

MelbourneCanberra

Perth

Darwin

Brisbane

Adelaide



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Property and Construction Sector

� Contribution to GDP = 14%� Growing at 3% pa

� Sector income A$100 billion� Highly fragmented

� 250,000 firms employing 1 million people

� 94% of businesses employ less than 5 people

� Australian Action Agenda supported formation of CRC to service property and construction

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Construction Innovation

� A$64M in cash and in-kind over 7 years � Government, industry and research partners

� 19 participants nationally – now 28!

� 400 people involved = 70 EFTS

� Headquartered at QUT in Brisbane� 6 centres nationally

� First of its kind in construction in Australia � Civil and building construction

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Construction 2020

Why is it important?

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C2020 – Engagement, Research Focus and Technology Transfer

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� Policy context

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� National Building and Construction Committee (NatBACC) - 1999

� Building for Growth Action Agenda – 2000� Called for national research centre to serve industry



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1. Innovation 2. Education & Training 3. Regulation4. Sustainability

Facilities Management Action Agenda (2004)

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Construction 2020 (2004)

1. Environmentally sustainable construction

2. Meeting client needs3. Improved business

environment 4. Welfare and improvement of

the labour force5. Advanced information and

communication technologies 6. Virtual prototyping for design,

manufacture & operation7. Off-site manufacture8. Improved construction

processes

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"To create real change in this world, you have to have a vision, and you have to

have enormous perseverance.”

Marguerite W Sallee, Chair and CEO of Frontline Gro up

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Outcomes of C2020

� Through consultation, capture and define vision of where Australian construction is heading

� How Construction Innovation can lead applied research and implementation to achieve this vision

� Industry-focused report for distribution� Disseminated through national seminars� Political engagement

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Industry dissemination

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Construction 2020 Visions

1. Environmentally sustainable construction2. Meeting client needs3. Improved business environment4. Welfare and improvement of the labour force5. Information and communication technologies for

construction6. Virtual prototyping for design, manufacture and ope ration7. Off-site manufacture8. Improved process of manufacture of constructed

products



37

ACIF Membership

1. Air Conditioning & Mechanical Contractors Association2. Association of Consulting Architects Australia3. Association of Consulting Engineers Australia4. Australian Institute of Building5. Australian Institute of Quantity Surveyors6. Construction Industry Engineering Services Group7. Engineers Australia8. Facility Management Association of Australia 9. Master Builders Australia10. National Electrical and Communications Association11. Planning Institute of Australia12. Property Council of Australia13. The Royal Australian Institute of Architects

200,000 members

200,000 members

across Australia

across Australia

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Engage with Industry and Research Leaders

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3. Lessons for the Future …

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Construction Industry Vision

� It’s about the process of engagement� Need champions� Get them into the tent� Be relevant, be mainstream, be credible� Deliver real outcomes� Communicate with stakeholders� Be active politically� It’s about the process of engagement

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� The Future …

Transforming the infrastructure and property indust ry through digital and process technology improvement

National measurement and reporting — national frameworks

Outcomes for industry and the community

Economic

4. Procurement

5. Productivity

Social

2. Health and safety

3. Skills development

Environmental

1. Environmental impact of new and existing

stock



www.construction-innovation.info

building Australia’s future

44

The beginning not the end!!

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