[Solved]Barriers to innovation in the construction industry, client perspectives of the industry and where they need the industry

Topic and subject matter – an investigation into….

Barriers to innovation in the construction industry, client perspectives of the industry and where they need the industry to innovate.

1. Context of your essay (Background and significance, why this, why now?)

• What is the background to your research?
• Whence does it come from?
• What does it grow out of?

The UK construction industry is regularly criticised for being wasteful, adversarial, fragmented, dominated by single disciplines, reluctant to innovate and poor at disseminating knowledge (Farmer Report 2016). However, given that despite a great number of reports about the industry, and numerous attempts to improve efficiency, the perception or poor performance persists, it might be inferred either that; under the circumstances the industry operates more effectively than it appears from the outside; expectations are unrealistic; or recommendations have been consistently poorly supported and implemented.

One of these recommendations is to innovate as it is seen as the route to greater efficiency and therefore greater productivity, something the UK construction industry at present is perceived to be lacking. This survey seeks to identify what the industry perceives these barriers to be and provide an indication of the ways in which the sector believes these issues can be addressed.

Background Research

The Industry itself has been shown in recent surveys as one of the industries least likely to invest in R & D and innovation.  In November 2016 a National Statistics paper entitled Research and Development in UK businesses 2015, found that the construction industry spent £146m on R & D compared to £4,178m spent in the pharmaceutical industry and £139m spent in agriculture. The UK’s construction sector is the largest industry in the UK, employing around 2.2 million people and accounting for 7% of the UK’s GDP in comparison to the pharmaceutical industry (0.6%) and agricultural (0.6%) sectors.

It could be stated that this is an unfair comparison as the pharmaceutical industry is a very different type

of industry and relies heavily on scientific innovation to keep up with public demands which is delivered

from product innovation; whilst the construction industry is mainly project based innovation. However,

the construction industry’s investment in R & D does fall behind closer and fellow traditional industries

such as agriculture.

A number of hypotheses exist as to why this would be so.  One such hypothesis is that low industry margins driven by high risk contracts and high competition preclude companies from having the latitude to innovate.  Another hypothesis (supported by Farmer (2016)) is that clients and businesses do not behave in a manner conducive to support this agenda.  ”Government should consider a behavioural deterrent scheme similar to the ‘carrier bag charge,’ taxing businesses that buy construction work in a way that doesn’t support industry innovation or skills development.”

This essay will explore what innovation means to construction clients.  Where are their key areas that require innovation so that they would support us in our approach.

1. Literature review

• What are your main sources of evidence, data, etc.?

                                  i.    relevant academic literature

                                 ii.    relevant industry, government, practitioner, and/or company sources

• How will you critically review the literature? (could include, but not limited to: comparing/contrasting the concepts and theories of existing knowledge)
• How does the evidence from the literature support your research aim?

Literature review of academic journals and industry reports.

Client perceptions study carried out by Laing O’Rourke 2016

Client innovation study 2016

1. 3.    Aim of the essay

• What is the aim of your essay? 
• What are you trying to do?
• Clearly define the scope of your essay given the word limits
• Make sure the scope is realistic

The aim of the essay is to understand from clients, who drive the behaviours in the construction industry what they want to see from the industry in terms of innovation.  If they could pick one major area to focus on what would that be?

4. Research problem

• What’s the problem you’re investigating or seeking to solve?
• What motivated this research?

Despite its flaws the construction industry is innovative.  Every project delivered is a prototype and requires innovative means and methods deliver it.

5.   Research question

• What question does the essay seek to answer?

Can clients support the construction industry’s innovation plans and if so where would they like it to begin? What are the barriers that stop construction industry innovation?

6.  Research methodology

• Provide a justified and robust research methodology 
• Justify the methodology you have chosen and why

Literature review to see what research had been brought forward.  Appraise and carry forward any findings on common industry problems.

The following qualitative data will be used to understand further the opinions of the sample.

LOR Client perception study 2016  - client feedback from the UK and Asia from all major projects is presented to the UK board to help address the strengths and weaknesses of LOR.  This will be used to test some of the perceptions gained from the literature review about the industry.

Innovation survey 2016 – is a survey of 97 individuals across 56 projects will help to understand construction innovation and what it means to them.

Then another survey and/or structured interviews will be conducted to further narrow the opinions of industry professionals to understand clearer what the barriers to achieving innovation are and what we could focus on in order to drive

7.   Critical analysis, interpretations, reflections

• How will you analyse the data/evidence collected?
• What are the key themes and patterns in the evidence?
• How will you present and critically review your findings?
• How is the evidence synthesized to demonstrate originality and independent thought?
• How will you demonstrate originality and independent thought

Interview and literature review to check breadth of perceptions.  Which can I credit as being correct /incorrect and why?  Is there evidence to support these findings?

I will present in the form of an essay.  I will begin with a concise overview of the topic. I will conduct a literature review and constructively critique the literature. I will then assess qualitative data from the surveys to condense view on innovation barriers and client opinion.   I will then conduct based on the findings of the above either a further survey and structured interviews.

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