An economic modelling approach for public sector construction workload planning

Xiaohong Li, John Ogier and John Cullen

Construction Management and Economics, 2006, vol. 24, issue 11, 1137-1147

Abstract: The effectiveness of public sector construction workload planning can be enhanced through employing an economic modelling approach to predict the impact of different workloads on tender price changes. The main problem associated with existing methods used for predicting tender price index (TPI) for construction projects is a lack of robustness when the market becomes unstable. This is due to limited consideration of market conditions in these methods. An economic modelling approach has been developed and applied for public sector construction workload planning in the States of Guernsey where forward planning was required. The developed model overcomes the problem of existing methods—lack of robustness—by correlating TPI of construction projects to demand over capacity ratio of the industry, which represents the industry's economic condition. The model generates the price changes under different planning options associated with different workloads over a five-year planning period. The information is valuable to the public sector in estimating actually required investment. This ensures the feasibility of the plan and the possibility of contribution to the stability of the construction market. The model development and application process developed in this research can be used to assist a planning process for an industry where a demand, capacity and price relationship is applied.

Keywords: Modelling; construction workload planning; tender price index; demand; capacity (search for similar items in EconPapers)
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/01446190600798960 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:conmgt:v:24:y:2006:i:11:p:1137-1147

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RCME20

DOI: 10.1080/01446190600798960

Access Statistics for this article

Construction Management and Economics is currently edited by Will Hughes

More articles in Construction Management and Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().