A System Dynamics Framework of Drivers and Constraints to Enhancing Productivity of the Hong Kong Construction Industry

Abstract

The Hong Kong construction industry has experienced high-speed growth during the past few decades and is still expecting significant growth in the near future due to the combination of public and private housing and infrastructure projects. However, project cost and time overruns are often reported. The future of the construction industry also faces risks imposed by other problems including ageing workforce and skill shortage. As a result, the industry is struggling with stagnating productivity. In order to deliver the growing construction projects on time and within budget, there is an urgent need for enhancing the productivity of the industry. This paper aims to develop a system dynamics (SD) framework of drivers and constraints to enhancing productivity of the construction industry. Wide-ranging drivers and constraints were identified at industry, project and activity levels and in five aspects, namely, policy formation, regulatory requirements, planning and design, project management and administration, and site construction. The framework was then verified through semi-structured interviews with 30 industry leaders. Many drivers and constraints were found to be interactive with each other and dynamic in nature for different types of construction projects. Although site-level activities were observed important, industry-level policy and regulatory factors were considered more significant.