Gerard de Valence worked for the Australian Stock Exchange, the Property Council of Australia and the NSW Royal Commission into Productivity in the Building Industry as an economist and analyst, before becoming an academic in 1992.
He is Senior Lecturer in the School of the Built Environment at UTS and founding Course Director of the Master of Real Estate Investment, a past Director of the Master of Property Development, and before that Director of the Facilities Management course.
His research focuses on issues around the structure, conduct and technological trajectory of industry, with a focus on building and construction. AT UTS he teaches macroeconomics to undergraduates and property markets and business cycles to postgraduates.
In 2012 Gerard edited Modern Construction Economics: Theory and Application. He was co-editor with Rick Best of the three-volume Building in Value series of books published between 1999 and 2003: Pre-design Issues; Design and Construction; and Workplace Strategies and Facilities Management.
Gerard has had Best Paper awarded at three conferences. In 2006 Gerard was guest editor for the Construction Management and Economics Festschrift for Professor Ranko Bon.
Gerard has a longstanding interest in industry performance and development, and worked on industry policy in the 1990s with both the Australian Construction Industry Development Agency and the NSW Department of Public Works and Services. For the Commonwealth Government he was a consultant for DIST, including the 1998 Building for Growth construction industry policy, and the 2002 Cole Royal Commission into the industry.
Between 2003 and 2011 Gerard was a leader of the largest research group in the field when he acted as Co-ordinator of the Working Commission on Building Economics (W55) for the International Council for Research and Innovation in Building and Construction (CIB).
In 2014 and 2015 Gerard was a Visiting Scholar at the Bartlett School of Construction and Project Management at University College London.
Research has broadly focused on issues around the structure, conduct and performance of industry, with over fifty refereed papers and book chapters published. Through the 1990s a series of research grants (totalling over $50,000) within UTS funded an ongoing Economics of the Built Environment research group. Refereeing of articles for leading journals such as Construction Management and Economics, Building Research and Information and the Australasian Journal of Construction Economics and Building and membership of conference organising committees are also undertaken on a regular basis.
2013 Built Environment Economics (undergraduate)
Property Development Process (postgraduate)
2012 Financing Construction Projects (undergraduate)
Advanced Procurement Methods (undergraduate)
Construction Contracts and Finance (postgraduate)
2010 Industry Economics (undergraduate)
2009 Advanced Property Development (postgraduate)
© 2011 Gerard de Valence. All rights reserved. This distinctive volume explores how romantic coupleship is represented in books, magazines, popular music, movies, television, and the Internet within entertainment, advertising, and news/information. This reader offers diverse theoretical perspectives and methodological approaches on the representation of romantic relationships across the media spectrum. Filling a void in existing media scholarship, this collection explores the media's influence on perceptions and expectations in relationships, including the myths, stereotypes, and prescriptions manifested throughout the press. Featuring fresh voices, as well as the perspectives of seasoned veterans, contributions include quantitative and qualitative studies along with cultural/critical, feminist, and descriptive analyses. This anthology has been developed for use in courses on mass media and society, media studies, and media literacy. In addition to its use in coursework, it is highly relevant for scholars, researchers, and others interested in how the media influence the personal lives of individuals.
Best, R, Langston, CA & De Valence, G 2003, Workplace strategies and facilities management, Routledge.
Best, RA & De Valence, G 2002, Design and Construction: Building in Value, Butterworth-Heinemann, Oxford, UK.
The design and construction of buildings is a lengthy and expensive process, and those who commission buildings are continually looking for ways to improve the efficiency of the process. In this book, the second in the Building in Value series, a broad range of topics related to the processes of design and construction are explored by an international group of experts. The overall aim of the book is to look at ways that clients can improve the value for money outcomes of their decisions to construct buildings. The book is aimed at students studying in many areas related to the construction industry including architecture, construction management, civil engineering and quantity surveying, and should also be of interest to many in the industry including project managers, property developers, building contractors and cost engineers.
de Valence, G 2019, 'Reframing construction within the built environment sector', Engineering, Construction and Architectural Management, vol. 26, no. 5, pp. 740-745.View/Download from: Publisher's site
© 2018, Emerald Publishing Limited. Purpose: Official statistics on the output of the construction industry capture on-site activities of contractors and sub-contractors; however, the role of the industry linking suppliers of materials, machinery, products, services and other inputs is also widely recognised. These two views have been called broad and narrow, with the narrow industry defined as on-site work and the broad industry as the supply chain of materials, products and assemblies, and professional services. An argument is made for using the term “built environment sector” (BES) for the broad industry definition of construction. The paper aims to discuss these issues. Design/methodology/approach: Construction industry statistics capture the on-site activities of contractors and sub-contractors. This paper reviews research that adds to construction output the contributions of suppliers of materials, machinery and equipment, products and components, professional services and other inputs required to deliver the buildings and structures that make up the built environment. Findings: The same term, “construction”, has been used in a number of ways in different definitional studies of the narrow and broad industry. The term that best encompasses the large number and range of participants in the creation and maintenance of the built environment, from suppliers to end users, is the BES. Research limitations/implications: Construction economics makes an important contribution to researching the macroeconomic role of the BES. There is also a special role for construction economics in researching both the boundaries of the BES and the data available on the industries that contribute to the BES. Practical implications: Measuring the BES would improve the understanding of its macroeconomic role and significance. Social implications: Measuring the BES would contribute to city policies and urban planning. Originality/value: The paper proposes a new approach to defining an...
© 2015 Taylor & Francis. Graham Ive's central contribution to our methodological debate was his insistence on the firm as the analytical unit. Ive argues we should reject theories if the aspect of construction we are examining does not satisfy the assumptions of a particular theoretical model. We see this in his rejection of neoclassical economic theories in the two topics discussed in this paper: the adoption of innovations in construction; and microeconomic analysis as it relates to price determination in the market for construction. The former requires studying not just participants in the building process, but also participants in the innovation process, and the latter uses post-Keynesian pricing theory where prices are set according to mark-up procedures and vary with costs, but not directly with demand. This is in contrast to the general equilibrium, perfectly competitive price setting of neoclassical economics. Ive and his collaborators show a way towards better research in their emphasis on theory and the insistence that for construction economics the analytical units are the industry and the firm, not the project. Ive's concern is that the processes involved in organizing the production of buildings should be seen as a distinctive and defining element of our analysis of the industry.
Runeson, G & De Valence, G 2015, 'A critique of the methodology of building economics: trust the theories', CONSTRUCTION MANAGEMENT AND ECONOMICS, vol. 33, no. 2, pp. 117-125.View/Download from: Publisher's site
De Valence, G 2012, 'A Theory of Construction Management?', Australasian Journal of Construction Economics and Building, vol. 12, no. 3, pp. 95-100.
The links between theory and construction management (CM), and for that matter construction economics (CE), are not strong (see de Valence 2011). This may be one of the reasons why they have not gained complete acceptance as academic disciplines and are not seen as distinct branches of economics and management respectively. Another reason may be that products and production (the focus of management and economic theories respectively) are not the same as projects and project management in general, and construction projects and CM in particular
There has been an intense debate in the media and among academics on how the great financial crisis has affected the global economy, and how the effects have differed in different regions of the world. This survey was designed to establish to what extent the building industry has been affected by the GFC and the Euro crisis. Over the last months we have asked senior academics and executives in construction businesses what has happened up to now in their region, what will most likely happen in the near future and in the long term. The answer is that in developed economies the effect has been a substantial downturn as finances have dried up while in developing economies in most regions, demand has been sustained due to population growth with ever increasing needs for residential building and infrastructure. While there is some apprehension about the potential effects of the Euro crisis deepening, no-one seems really worried. In the long term there is an agreement, in developed and developing countries alike, that current business models do not work and that the industry has to reinvent itself to be sustainable.
Brockmann, C & De Valence, G 2010, 'Collusion and corruption in the construction sector', Modern Construction Economics: Theory and application. G. Valence (Ed.). Sydney.
De Valence, G 2010, 'Innovation, Procurement and Construction Industry Development', Australasian Journal of Construction Economics an..., vol. 10, no. 4, pp. 50-59.View/Download from: Publisher's site
The implications for analysis of innovation in construction of theoretical developments in industrial organisation are considered in this research, as an attempt to outline a new approach to construction innovation incorporating the ideas found in knowledge based, technology centred models. The paper firstly summarises characteristics of the construction industry, focusing on their effects on innovation, before surveying some of the ideas about the sources of innovation and the expansion and application of knowledge. Construction can be seen as an industry with limited scope for knowledge externalities, where the procurement methods used by the industrys clients do not pay for innovation. The following discussion uses recent developments in the research on the economics of innovation and industrial organization theory, such as research intensity and the endogenous sunk costs in competitive, fragmented, low research intensity industries. The effects on R&D of procurement methods and on industry structure are discussed, with a focus on the appropriability of innovations and the role of the client on the Heathrow Terminal 5 project. The paper concludes that the procurement methods used for building and construction projects appears to be a determining factor in the level of innovation in the construction industry
De Valence, G 2007, 'The Significance of Barriers to Entry in the Construction Industry', The Australian Journal of Contruction Economics and Building, vol. 7, no. 1, pp. 29-37.
This research looks at the significance of barriers that firms considering entry into the construction industry might face. Drawing on the microeconomic characteristics of imperfectly competitive and oligopolistic markets the analysis finds that there are a dozen barriers to entry that affect the industry, but their significance depends on the product type. The discussion covers the question of product homogeneity in construction and evidence for the existence of barriers to entry in concentration levels. Barriers to entry specific to construction are then identified, which leads to an analysis of how they operate and their significance (high, medium or low) in different market types, thus increasing our understanding of construction industry dynamics
Carassus, J, Andersson, N, Kaklauausk, A, Lopes, J, Manseau, A & De Valence, G 2006, 'Moving from Production to Services: A built environment cluster framework', International Journal of Strategic Property Management, vol. 10, no. 3, pp. 169-184.
De Valence, G 2006, 'Building as an Economic Process Revisited', Construction Management and Economics, vol. 24, no. 7-9, pp. 767-771.
Bon's book Building as an Economic Process: An Introduction to Building Economics was an important step in the development of the economic theory of the built environment. The book's aim was to establish theoretical foundations for building economics, using the perspective of Austrian economics. The objective of this review is to assess the significance and impact of the book, and how successful Bon was in achieving his stated purpose. Each of the major topics in the book is discussed, with the Austrian approach as used by Bon on capital theory, the building process, and business and building cycles assessed. Bon proposed a significant research programme based on these ideas. The impact of the ideas is discussed before progress on the research programme is reviewed. The conclusion attempts to bring out the significance of the book's contribution.
De Valence, G 2006, 'Future Development of Construction Economics', Construction Management and Economic, vol. 24, no. 7-9, pp. 661-668.
There has been an ongoing discussion about the future development of construction economics (CE) and the role theory should take in that development and this Editorial is a contribution to that debate. The purpose is to explain the basis for two propositions and argue for the importance of âmodern construction economicsâ. The first proposition is that CE is a still-emerging field. The second proposition is that there is a clear difference between what has been known as building economics and what is emerging as modern construction economics. This discussion of two propositions precedes an introduction to the papers in this special issue. From this range of contributions and four possible paths to the future for CE are evident. An argument for another, fifth approach is also suggested.
Searle, GH & De Valence, G 2005, 'The Urban Emergence of a New Information Industry: Sydney's Multimedia Firms', Geographical Research, vol. 43, no. 2, pp. 238-253.View/Download from: Publisher's site
This paper analyses the multimedia industry in Sydney. It seeks to understand whether the emergence of the industry has involved dense horizontal and vertical inter-firm linkages characteristic of an industrial cluster, or whether the industry has grown because of general urbanisation economies related to such factors as skilled labour supply and market demand. The industry is highly concentrated in and around central Sydney. This provides the best access to firms' main clients, notably advertising companies and other multimedia firms. It also reflects the centralised location of skilled labour such as web designers. While there is evidence of an emerging inner Sydney multimedia cluster which includes graphic design and advertising and related media, the main driver of the industry's development appears to have been general demand from advertising and related media companies, in association with the pool of computer graphics talent generated by these companies.
Best, R, Langston, C & de Valence, G 2003, 'Continuous improvement', Workplace Strategies and Facilities Management: Building in Value, Butterworth-Heinemann, Oxford, pp. 1-8.
De Valence, G 2001, 'Defining an Industry: What is the Size and Scope of the Australian Building and Construction Industry?', Australian Journal of Construction Economics and Building, vol. 1, no. 1, pp. 53-65.
The analysis and understanding of the conduct and performance of an industry begins with a study of its structure. However, before analysing an industry's structure it is necessary to define the industry and identify its size, scope and scale to establish its true economic contribution. This paper discusses the size and scope of the Australian building and construction industry, firstly, from a traditional industry economics approach by firm size and business characteristics using data from three construction industry surveys done over 15 years by the ABS. Secondly, data from an industry 'cluster' perspective is shown. The objective of the paper is to compare the differences found in industry size and scope in the structure-conduct-performance approach and the alternative industry cluster approach. Each model reveals different characteristics of the industry. The conclusion finds that the building and construction industry is a case where the traditional structure-conduct-performance model cannot be easily applied.
De Valence, G & Higgins, DM 2000, 'Leading Australian Business Indicators and Commercial Property Markets', Pacific Rim Property Research Journal, vol. 6, no. 1, pp. 57-66.
The commercial real estate market in Australia exhibits periods of boom and slump A feature of the cycles across different commercial real estate sectors is the timing of the base turning points; they are all generally grouped within a two-year period. The relationship between the business cycle and the turning points for these real estate cycles has changed over the 40 years of the data used in the analysis. The paper takes a macro approach to explaining construction supply cycles. A literature review of property cycles and the links to business activity is followed by analysis of the data. Finally, the results are discussed before concluding that links between the commercial property market and the broader economy have weakened and now operate differently compared to historical links. Commercial real estate cycles appear to now relate more strongly to property demand and supply disequilibrium.
De Valence, G & Searle, GH 2000, 'The Multimedia Industry and the New Economy', Form/Work: an interdisciplinary journal of design and the built environment No. 5 Oct 2000, vol. Multimedia, no. 0, pp. 0-0.
Best, R, de Valence, G, Best, R & de Valence, G 1999, 'Getting it Right at the Start', Building in value: Pre-design issues, pp. 1-9.
Langston, C & de Valence, G 1999, 'International cost of construction study-stage 2: evaluation and analysis', Canberra: Department of Industry Science and Resources (available at hyyp://www. isr. gov. au/library/content_library/BC-CoCStage2. pdf).
Neasbey, M, Barton, R, Knott, J, Best, R & De Valence, G 1999, 'Value management', Building in Value: Pre-Design Issues, pp. 232-247.
Best, R, de Valence, G, Langston, C, Smith, P & others 1996, 'Information technology and the evolution of the quantity surveying profession-future directions', INCIT 96 Proceedings: Bridging the Gap, pp. 151-151.
De Valence, G 2019, 'Accounting for the built environment' in Best, R & Meikle, J (eds), Accounting for Construction Frameworks, Productivity, Cost and Performance, Routledge, Abingdon, pp. 14-30.
The way we see and understand an industry typically starts with the economic data we get from the national accounts and other collections done by national statistical agencies. This data is often presented in tables and graphs showing industry shares of the economy or gross domestic product (GDP), so the whole economy is seen as a number of distinct groups of industries, such as manufacturing, retailing or business services. Over the decades since the 1930s, when economists in America and Britain began developing the concepts, methods and processes required to measure the economy, a complex and sophisticated system has evolved (Vanoli 2005). However, as with all extensive data collections, issues around the definitions and categories used to order the data are ever present, and the System of National Accounts (SNA), first published by the United Nations in 1953, is now in its fourth edition (UN SNA 2008; previous revisions were published in 1968 and 1993).
De Valence, G 2019, 'Comparing construction in national industrial classification systems' in Best, R & Meikle, J (eds), Accounting for Construction Frameworks, Productivity, Cost and Performance, Routledge, Abingdon, pp. 31-45.
The way we see and understand an industry typically starts with the data we get from the national accounts and other collections done by national statistics agencies. For building and construction, government statistics are typically collected by sector and then divided into building or structure type, shown in a generalized form in Table 3.1. Projects within a defined market are then grouped together to establish sector size and importance– detached housing for example, or commercial developments. Because the data on industry activity and output is presented in these classifications, analysis of trends and forecasts of construction work are also usually found in this format. Informal building is included here because it is an important part of the industry, but this sector is not usually included in industry statistics.This chapter addresses those issues. Construction data is presented as part of a system of national accounts alongside the other industries that make up the economy. The next section outlines the system of national accounting used inter-nationally, followed by an explanation of the system used to classify industries.The chapterlooks at the development and presentation of construction industry statistics reported by national and international statistical agencies. There is an International Standard Industrial Classification (UN 2008), but Europe, North America and Australasia have their own versions of the international standard. This raises the question of what the similarities and differences between their different versions of construction might be, and whether these differences are important.
De Valence, G & Abbott, M 2015, 'A review of the theory and measurement techniques of productivity in the construction industry' in Best, E & Meikle, J (eds), Measuring Construction Prices, Output and Productivity, Routledge, UK, pp. 205-221.
Prices, Output and Productivity Rick Best, Jim Meikle ... Much that is written about
construction prices, output, productivity and the rest is unreliable or plain wrong,
sometimes deliberately, often not. It is hoped that some of the approaches and ...
The chapter is structured as follows. The first section defines the four market types found in microeconomics and their main characteristics, including the hight of the barriers to entry found in each type. This is followed by a discussion on the question of product homogeneity in construction. Evidence for the existence and significance of barriers to entry in construction is found in concentration levels in the industry. Barriers to entry specific to construction are then identified, followed by a discussion on how they operate, which leads to an analysis of their significance (high, medium or low) in different market types. That analysis is the contribution this research makes to deepening our understanding of the construction industry.
The chapter analyses one of the characteristics of the building and construction industry that is difficult to quantify in a meaningful way - how competitive markets operate in the industry. The difficulties arise from the characteristics of the industry on one hand and data limitations on the other. This makes a discussion about what constitutes markets and market sectors in building and construction important, because how markets are defined leads to conclusions about the intensity and type of competition.
Broadly, there are three views of CE. The first follows Hillebrandt and her definition of CE as the application of 'economics to the study of the construction firm, the construction process and the construction industry. A second view is based on the classic definition of economics as the study of the allocation of scarce resources by Robbins. The third approach is somewhat more eclectic, but could be described as economics with a focus on building and construction.
This chapter deals with the creation of the 'new construction industry" a part of the construction industry that is as different: from conventional construction as to constitute a separate, totally new industry. The driving force behind the development of this new industry is the tendency of large firms to grow larger aided by globalization and progress in communication technology. The result is a high technology oligopoly developing out of, but separate from, the rraditional construction industry. It consists of a small number of very large firms operating in the global market, competing with technology and products, offering a complete project from material to design, finance, construction and operation. In this chapter we will first look at why and how firms grow, how the environment in which the building industry is operating is changing and how construction firms are responding. Finally, we will look at the theoretical and empirical implications of these responses in the form of the new construction industry.
© Taylor and Francis 2001. All rights reserved. Growing concern over the environment has been matched by the growth in interest in environmental policies. Lobbying and campaigning by environmentalists and community concern over degradation of the natural environment have pressured governments to address the problems associated with externalities more seriously. Economics has an important contribution to make in environmental policy but, despite appearances, there is no single view as to the appropriate form intervention by government should take.
De Valence, G 2004, 'Meso-economic Analysis of the Australian Building and Construction Industry' in Jean Carassus (ed), The Construction Sector System Approach: An International Framework, International Council for Research and Innovation in Building and Construction, Rotterdam, The Netherlands, pp. 19-43.
De Valence, G, Langston, CA & Best, RA 2003, 'The Future of Facilities Management' in Best, R, Langston, C & de Valance, G (eds), Workplace Strategies and Facilities Management, Butterworth-Heineman, Oxford, UK, pp. 295-404.
De Valence, G & Best, RA 2002, 'Building in Value' in Langston, C & Lauge-Kristensen, R (eds), Strategic management of built facilities, Butterworth Heinemann, Oxford, pp. 188-195.
Best, RA & De Valence, G 2001, 'Building in Value' in Langston, C & Lauge-Kristensen, R (eds), Strategic management of built facilities, Butterworth Heinemann, Oxford, pp. 188-195.
De Valence, G 1999, 'Procurement strategies' in Best, R (ed), Building in Value Pre-design Issues, Arnold Publishers, London, pp. 37-61.
Integrating strategic, financial and construction management techniques, this book provides an essential guide for construction professionals.
Integrating strategic, financial and construction management techniques, this book provides an essential guide for construction professionals.
De Valence, G & Algeo, C 2016, 'Transformational procurement model for managing megaprojects', ANZAM 2016, Australian and New Zealand Academy of Management Conference, Queensland University of Technology, Gardens Point Campus.
Adaptation of current procurement management practices is required to deliver projects in a
rapidly changing environment. Construction projects historically go over budget, result in litigation,
often failing to meet client expectations as a result of ineffective contract management. This paper
proposes an innovative framework for major construction project selection, procurement, and
implementation. Three opportunities will be identified and discussed. First, employ an experienced
project manager at the earliest stage of the project. Second, appoint consultants to complete the
design before a competitive tender is held. Third, separately contract the design and construction
of the project. The paper suggests that combining these opportunities can lower the risk of project
failure and ultimately deliver benefits through effective management of major construction
De Valence, G 2015, 'Characteristics of a project as a temporary micro-market', Construction, Building and Real Estate Research Conference (COBRA) 2015, Construction, Building and Real Estate Research Conference (COBRA), Sydney.
De Valence, G & Runeson, G 2015, 'Methodology in construction management and economics research', Construction, Building and Real Estate Research Conference (COBRA) 2015, Construction, Building and Real Estate Research Conference (COBRA), RICS, Sydney.
Runeson, G & De Valence, G 2013, 'International Construction: From Transnational to Global', Proceedings: 38th AUBEA International Conference Website, Australian Universities Building Education Association Annual Conference, AUBEA2013, Auckland, New Zealand, pp. 1-10.
Globalisation has transformed the world and national economies and had a profound impact on the way we live. The construction industry has been part of this transformation, driven by a number of factors. The development of the concept of globalisation in construction is divided into three chronological periods. The first starts with the work of Strassman and Wells (1988) and includes Hawk on the formation of the new construction industry (1991) and Abdul-Aziz's (1994) comparison of Japanese and American international construction firms. These writers document the change from the transnational firm discussed by Strassman and Wells within a conventional trade theory to Hawks and Abdul-Azizs work on the characteristics of the global firm operating in a globalised market. The second period runs from 1994 to about 2007 and the review identifies issues thought to be important in international construction at the time: competitiveness, technology and technology transfer, procurement and mergers and acquisitions. They draw surprisingly little from the previous discussion of globalisation, treating each issue in isolation. The third period starts about 2007 and brings together the different strands of thinking into a new, more mature, but equally footloose concept of globalisation. The review finds that there has been little progress in the appreciation of the effects of globalisation on the construction industry, which is surprising given the importance of the topic. The review concludes that there are a number of mega projects that call for firms with global outlooks, capabilities and strategies, but there is no global market in terms of how global manufacturing firms compete against each other. However, globalisation has created a new type of firms that in effect represent the development of a new industry that is changing our concept of construction.
De Valence, G 2012, 'Contestable Concepts of Construction Productivity', Australasian Universities Building Educators Association (AUBEA), 37th Annual International Conference: Proceedings, Australian Universities Building Education Association Annual Conference, The University of New South Wales, Sydney, Australia, pp. 706-715.
The objective of this paper is to categorise the explanations for the low rate of productivity growth found in previous research and thus improve our understanding of the analysis of construction productivity. Despite the efforts made by governments, industry organisations and firms in many countries, the rate of growth in construction productivity as measured by national statistical agencies has consistently been low compared to many other industries. Research into explanations for low construction productivity growth has found a wide range of factors and possible causes that may be at work, and there is no agreement on the most important of these. Explanations include: the methodology of productivity analysis and measurement; regional and sectoral effects on industry productivity; the project-based nature of the industry and the role of project management; procurement and delivery systems; the effectiveness of construction industry policy and intervention; and the contribution of research and development and innovation to construction industry productivity growth. By categorising this research the differences, commonalities and linking factors can be identified and the various analytical paradigms evaluated. The competing explanations of the causes of low construction productivity growth are then assessed in terms of their completeness (whole of industry or part), applicability (time, place and circumstance) and generality (a data artefact or not).
De Valence, G 2011, 'Project procurement as a market', 36th Annual conference of Australasian University Building Educators Association, Australian Universities Building Education Association Annual Conference, Bond University, Bond University, pp. 550-559.
When building and construction markets are analysed it is often at the project level, with markets defined by sector or structure type, procurement method or contract, size, complexity or other characteristic. Projects within a defined market are then grouped together to establish its importance, detached housing for example, or high-rise commercial. A distinction can be made, however, between a market made up of similar types of projects and the market for a single project. Such a market is created by a client as they go through the procurement process. This paper introduces the idea that procurement of a project creates a identifiable, though temporary, market for goods and services, and that such a market has distinctive characteristics that make it both interesting, as a source of testable hypotheses and further research, and important in developing our understanding of the industry and its dynamics. The research the paper reports on shows that the idea of project procurement as a mechanism for creating a market can utilise the elements of industry structure and competitive analysis that have traditionally been applied at the firm level. The paper concludes that this allows a new perspective on issues such as collusion, ruinous competition and cost uncertainty associated with the typical single price, sealed bid auction used for procurement in the building and construction industry.
De Valence, G 2009, 'Constructive confusion or paradigm proliferation: Competing explanations for low construction productivity growth', Construction Facing Worldwide Challenges, International Council for Research and Innovation in Building and Construction (CIB) Meetings, Workshops, Symposia, Conferences, Faculty of Civil Engineering, University of Zagreb, Dubrovnik, Croatia, pp. 189-199.
De Valence, G & Runeson, G 2009, 'Globalisation in construction', Construction Facing Worldwide Challenges, International Council for Research and Innovation in Building and Construction (CIB) Meetings, Workshops, Symposia, Conferences, Facukty of Civel Engineering, University of Zagreb, Dubrovnik, Croatia, pp. 200-209.
De Valence, G 2007, 'Procurement, Innovation and Competitiveness in the Construction Industry', Building Across Borders Built Environment Procurement, International Council for Research and Innovation in Building and Construction (CIB) Meetings, Workshops, Symposia, Conferences, Centre for Interdisciplinary Built Environment Research, Hunter Valley Gardens, pp. 326-334.
The implications for analysis of innovation in construction of theoretical developments in industrial organisation are considered in this research, as an attempt to outline a new approach to construction innovation incorporating the implications of knowledge based, technology centred models. The paper firstly summarises characteristics of the construction industry, focusing on their effects on innovation, before surveying some of the ideas about the sources of innovation and the expansion and application of knowledge. Construction can be seen as an industry with limited scope for knowledge externalities, where the procurement methods used by the industryâs clients do not pay for innovation. The following discussion uses recent developments in the theory of industrial organization, such as research intensity and the theory endogenous sunk costs in competitive, fragmented, low research intensity industries. Then the effects on R&D from industry structure and procurement methods are highlighted. The paper concludes that the procurement methods used for building and construction projects appears to have been a determining factor in the level of innovation in the construction industry.
De Valence, G 2006, 'Competition and the Characteristics of Construction Markets', Symposium proceedings: Construction in the XXI Century: Local and global challenges, Construction in the Twenty-first Century Conferences, Edizioni Scientifiche Italiane S.p.A, Rome, Italy, pp. 1-12.
De Valence, G 2007, 'Future Paths for Construction Economics', AUBEA 2006 Conference Proceedings, Australian Universities Building Education Association Annual Conference, Faculty of Design Architecture and Building, University of Technology Sydney, Sydney, Australia, pp. 1-13.
De Valence, G 2005, 'Production Theory an Construction Productivity', Proceedings: 13th Conference of the International Group for Lean Construction, International Group for Lean Construction Conference, International Group for Lean Construction, Sydney, Australia, pp. 135-144.
De Valence, G 2005, 'The FM Industry and Adding Value for Clients', Facilities Business and UTS Management, International Council for Research and Innovation in Building and Construction (CIB) Meetings, Workshops, Symposia, Conferences, VTT/RIT, Helsinki, Finland, pp. 13-23.
De Valence, G 2004, 'The construction sector system approach', CIB Publication.
De Valence, G 2003, 'Globalisation And Changes In Ownership Of The Building And Construction Industry', Construction Innovation And Global Competitiveness, Symposium Construction Innovation and Global Competitiveness, CRC Press, University of Cincinnati, USA, pp. 556-574.
De Valence, G 2003, 'Market Structure, Barriers to Entry and Competition in Construction Markets', Knowledge Construction: Proceedings of the Joint International Symposium of CIB Working Commissions: W55, W65 and W107, International Council for Research and Innovation in Building and Construction (CIB) Meetings, Workshops, Symposia, Conferences, Dept. of Building, National University of Singapore, Singapore, pp. 819-827.
De Valence, G 2001, 'Construction Deflators and Measurement of Output', Proceedings of ARCOM Seventeenth Annual Conference 2001, Association of Researchers in Construction Management Annual Conference, ARCOM, University of Salford, pp. 693-702.
De Valence, G 2001, 'Theorectical issues of Industrial Structure Applied to the Building and Construction Industry', Proceedings of COBRA 2001 Volume 2, COBRA 2001 Volume 2, The RICS Foundation, Glasgow Caledonian University, Scotland, pp. 434-443.
De Valence, G 2001, 'Trends in Procurement and Implications for Innovation and Competitiveness of Australian Building Congress', Proceedings of CIB World Building Congress, International Council for Research and Innovation in Building and Construction (CIB) Meetings, Workshops, Symposia, Conferences, N/A, Wellington NZ, pp. 0-0.
De Valence, G 2000, 'Strategic Management and Outstanding Maintenance of Public Schools in NSW', Proceedings of the Brisbane 2000 CIB W70 International Symposium on Facilties Management and Maintenance Nov 2000, International Council for Research and Innovation in Building and Construction (CIB) Meetings, Workshops, Symposia, Conferences, School of Construction Management and Property, Queensland University of Technology, N/A, pp. 0-0.