Application of a bottom-up approach to estimate economic impacts of building maintenance projects: cladding rectification program in Australia

Abstract

PurposeThis paper critically reviews economic impact assessment methods adopted in construction-related projects, to develop and present a novel bottom-up approach suitable to estimate regional economic impacts of building maintenance projects.Design/methodology/approachA thorough literature review of economic impact assessment in construction projects is carried out to identify the most relevant approach to estimate wider economic impacts of building maintenance projects. Based on these findings, a model based on the bottom-up approach to estimate wider economic impacts is developed. The applicability and face validity of the developed model is demonstrated through a case of cladding replacement program in Australia.FindingsThe literature review revealed that bottom-up models are better suited for estimating regional economic impacts of maintenance projects, given the challenges of obtaining micro-level economic data in the maintenance sector. In relation to the total economic impacts (direct and indirect), the results show that for every $1 of government spending on similar projects the Gross State Product would increase by $1.34. In terms of employment impact, over 70% of the direct economic value addition is driven by the increase in labour, where close to 3 FTE jobs will be required for each $1 million of spending on cladding replacement projects.Originality/valueThis paper presents a model to estimate the wider economic impacts of building maintenance projects, which is typically overlooked in the construction management field. The proposed model is developed to incorporate the variability of different building maintenance projects so that the economic impact resulting from these projects could be estimated more accurately. This model can be used by local government decision-makers to justify and prioritise maintenance projects in a similar manner to new construction projects.

The Transition to a Circular Built Environment in Australia: An Analysis of the Jurisdictional Policy Framework

“…6061 This is exacerbated further by the multitude of the political-economic factors that favour new-builds over maintenance and refurbishment of existing buildings. 62 The analysis of industry standards and guidelines in Australia also illustrate that CE related aspects focus on reducing waste and using recycled content. This is in contrast to more advanced economies where criteria such as whether buildings are fit for the future, reuse of existing building components in new developments and higher use intensity of usable building areas are assessed as circularity metrics.…”

Simulação de Monte Carlo aplicada à projetos de recertificação de 5 anos em equipamentos de superfície para perfuração de poços de petróleo offshore

“…Fonte: Adaptado de Yu e Zuo (2022, p. 09). Teo et al (2022) mostrou que, após o sequenciamento das atividades, é preciso estimar as durações das mesmas. As ferramentas/técnicas mais bem aceitas e utilizadas são a Estimativa Análoga, Estimativa Paramétrica, Estimativa de Três Pontos e Estimativa "Bottom-Up".…”

Conceptual Framework of a Simulation-Based Manpower Planning Method for Construction Enterprises

“…It depends on the size of the enterprise, its specialization, the territorial range, and the levels of mechanization of the works. An efficient employment plan facilitates allocating resources and scheduling projects, provides the data necessary for recruitment and employment of workers, and contributes to the rational use of the personnel [23,24]. The availability of qualified workers affects the quality of work and the client satisfaction.…”