Emerging Debates in the Construction Industry: The Developing Nations' Perspective 2022055976, 2022055977, 9781032374673, 9781003340348, 9781032374697

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Routledge Research Collections for Construction in Developing Countries

EMERGING DEBATES IN THE CONSTRUCTION INDUSTRY Edited by Ernest Kissi, Clinton Aigbavboa, and Didibhuku Wellington Thwala

Emerging Debates in the Construction Industry

This book seeks to critically engage with emerging issues and debates within the construction industry but from the perspective of developing economies. Themes such as the 4th industrial revolution, management of pandemics, sustainability, diversity and inclusion, collaboration, skills development, and, Health and Safety are at the cutting edge of research and development in developed countries and fall directly into the United Nation’s Sustainable Developmental Goals. However, they remain problematic for industries and environments that have yet to understand their economies’ emerging growth patterns. These themes’ successful integration and diffusion into developing nations’ environments and cultures must be synchronized with their current developmental agenda. By acknowledging and understanding the difficulty and diversity of construction administrations in different countries, this book can help construction professionals in developing countries adopt technologies, policies and products which are proving successful in developed nations. Useful reading for researchers and practitioners in both developed and developing countries alike, this book gives insight and understanding of emerging areas in developing countries. Ernest Kissi is a lecturer and post-doctoral fellow at the Department of Construction Technology and Management, Kwame Nkrumah University of Science and Technology and Department of Construction Management and Quantity Surveying, University of Johannesburg, respectively. His research interests include construction economics, project management, procurement, and technical education. He is a member of the Ghana Institution of Surveyors (GhIS), Ghana Institution of Construction (GIOC), Institution of Incorporated Engineers (IIE), International Society for Development and Sustainability (MISDS) and an incorporate member of the Chartered Institute of Builders (ICIOB). Ernest is also a practising quantity surveyor who has been involved in a number of consulting works for several construction projects.

Clinton Aigbavboa is Professor in the Department of Construction Management and Quantity Surveying and Director of CIDB Centre of Excellence and Sustainable Human Settlement and Construction Research Centre, University of Johannesburg, South Africa. Before entering academia, he was involved as a quantity surveyor on several infrastructural projects in Nigeria and South Africa. He has published several research papers and more than ten research books on housing, construction and engineering manage­ ment, and research methodology for construction students. He is the Editorin-Chief of the Journal of Construction Project Management and Innovation. Didibhuku Wellington Thwala is Professor of Construction Project Management and Leadership at the Department of Civil Engineering, College of Engineering, Science and Technology, University of South Africa (UNISA), South Africa. He has extensive industry experience with a research focus on sustainable construction, leadership, and project management. He is the Editor-in-Chief of the Journal of Construction Project Management and Innovation. He also serves as an editorial board member to various reputable international journals.

Routledge Research Collections for Construction in Developing Countries Series Editors: Clinton Aigbavboa, Wellington Thwala, Chimay Anumba, David Edwards

Construction in Indonesia: Looking Back and Moving Forward Toong-Khuan Chan and Krishna Suryanto Pribadi A Maintenance Management Framework for Municipal Buildings in Developing Economies Babatunde Fatai Ogunbayo, Clinton Aigbavboa and Didibhuku Wellington Thwala Moving the Construction Safety Climate Forward in Developing Countries Sharon Jatau, Fidelis Emuze and John Smallwood Unpacking the Decent Work Agenda in Construction Operations for Developing Countries Tirivavi Moyo, Gerrit Crafford, Fidelis Emuze An Integrated Infrastructure Delivery Model for Developing Economies: Planning and Delivery Management Attributes Rembuluwani Bethuel Netshiswinzhe, Clinton Aigbavboa and Didibhuku Wellington Thwala A Roadmap for the Uptake of Cyber-Physical Systems for Facilities Management Matthew Ikuabe, Clinton Aigbavboa, Chimay Anumba and Ayodeji Oke A Building Information Modelling Maturity Model for Developing Countries Samuel Adekunle, Clinton Aigbavboa, Obuks Ejohwomu, Didibhuku Wellington Thwala, Mahamadu Abdul-Majeed

Emerging Debates in the Construction Industry

Edited by Ernest Kissi, Clinton Aigbavboa, and Didibhuku Wellington Thwala

First published 2023 by Routledge 4 Park Square, Milton Park, Abingdon, Oxon OX14 4RN and by Routledge 605 Third Avenue, New York, NY 10158 Routledge is an imprint of the Taylor & Francis Group, an informa business The right of Ernest Kissi, Clinton Aigbavboa and Didibhuku Wellington Thwala to be identified as the authors of the editorial material, and of the authors for their individual chapters, has been asserted in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloguing-in-Publication Data Names: Kissi, Ernest, editor. | Aigbavboa, Clinton, editor. | Thwala, Didibhuku Wellington, editor. Title: Emerging debates in the construction industry : the developing nations’ perspective / edited by Ernest Kissi, Clinton Aigbavboa, Didibhuku Wellington Thwala. Description: Abingdon, Oxon ; New York, NY : Routledge, 2023. | Series: Routledge research collections for construction in developing countriesv | Includes bibliographical references and index. | Summary: “This book seeks to critically engage with emerging issues within the construction industry, but from the perspective of developing economies. Themes such as the 4th industrial revolution, management of pandemics, sustainability, diversity and inclusion, collaboration, skills development, and behavioural studies are at the cutting edge of R & D in developed countries, however they remain problematic for industries and environments which are yet to understand the emerging growth patterns of their economies. This book can help construction professionals in developing countries to adopt technologies, policies and products which are proving successful in developed nations”‐‐Provided by publisher. Identifiers: LCCN 2022055976 (print) | LCCN 2022055977 (ebook) | ISBN 9781032374673 (hardback) | ISBN 9781003340348 (ebook) Subjects: LCSH: Building‐‐Developing countries. Classification: LCC TH127 .E44 2023 (print) | LCC TH127 (ebook) | DDC 624.09172/4‐‐dc23/eng/20230105 LC record available at https://lccn.loc.gov/2022055976 LC ebook record available at https://lccn.loc.gov/2022055977 ISBN: 978-1-032-37467-3 (hbk) ISBN: 978-1-032-37469-7 (pbk) ISBN: 978-1-003-34034-8 (ebk) DOI: 10.1201/9781003340348 Typeset in Times New Roman by MPS Limited, Dehradun

We dedicate this book to all the hardworking research members of the CIDB Centre of Excellence

Contents

Acknowledgement Foreword Preface

xviii xix xxi

PART I

Sustainability: Social, Economic and Environmental 1 Diversity and Inclusion in the Construction Industry: The Vulnerability Factor ER NEST KISSI , C LI N TO N A I G BA VB OA , EUGÈNE DAN QU A H SM I TH , A N D T IT US EB ENEZE R KW O FIE

1.1 1.2

1.3

1.4

Introduction 3 The vulnerability concept 4 1.2.1 Gender: women 5 1.2.2 People with disability 5 1.2.3 The age factor 6 Inclusion of the vulnerable in the construction industry 7 1.3.1 Gender in construction: women 8 1.3.2 People with disability in construction 9 1.3.3 Old and new generations in construction (Age) 10 Challenges faced by the vulnerable in their inclusion 11 1.4.1 Construction ‘man’ industry 12 1.4.2 Is physical ability a measure of capability? 13 1.4.3 Experiences of the experienced and the green 15

1

3

x Contents 1.5

Strategies for the inclusion of the vulnerable 17 1.5.1 Women’s inclusion in the construction industry 17 1.5.2 Disability inclusion in the construction 18 1.5.3 Age inclusion in the construction industry 20 1.6 Framework toward inclusion and diversity in the construction industry 22 1.6.1 Assessing the job needs 22 1.6.2 Determination of job areas in construction 22 1.7 Conclusion 23 References 24 2 Pandemics and the Construction Industry in Developing Countries M ICHA EL A D ES I, D U G A EW U G A , D E - GR AF T OW U SU- MA NU, A ND NEE M A O P I Y O

2.1 2.2 2.3

2.4

2.5

Introduction 28 Brief history of pandemics: Understanding pandemics 29 Pandemics in Africa 30 2.3.1 COVID-19: Global and Africa outlook 31 2.3.2 HIV-AIDS 32 Impacts of pandemics on the economic growth of Africa 35 2.4.1 Impacts of pandemics on the African construction sector 37 2.4.1.1 The impacts of the COVID-19 pan­ demic on the construction industry in Africa 37 2.4.1.2 Impact of HIV-AIDS on construction in Africa 41 Measures for addressing the impacts of pandemics in Africa 42 2.5.1 Restructuring construction contracts procurement 43 2.5.2 Social protection programmes 43 2.5.3 Adopt robust and effective approaches the forecasting potential pandemics 44 2.5.4 Digitisation 44 2.5.5 Accelerated infrastructure development 45

28

Contents

xi

2.5.6

African-wide pandemic policy and legislations championed by the African union 46 2.5.7 Industry-Academia collaboration 47 2.6 Conclusion 47 References 47 3 Collaborative Flow of Work in the Construction Industry

51

TITUS EBE NEZ E R K W OF I E , D AN I EL YA W AD DAI DUA H, M ICHA EL NII AD D Y , C LI N T ON A I G B AV BO A, A ND SA MUEL A M O S- ABA N YI E

3.1 3.2

Introduction 51 Evolution and progress in collaborative workflow 53 3.2.1 Theoretical perspectives of collaborative workflow 55 3.3 Attributes of collaborative workflow, planning, and management 58 3.3.1 Business environment for collaborative workflow 60 3.3.2 Human behaviours for collaborative workflow 62 3.4 Challenges faced in team and inter-organisational collaborative workflow 63 3.5 Tools for collaborative workflow integration 66 3.6 Conclusion and implications 69 References 70 4 Green Financing of Infrastructure Projects in the Construction Industry: Case of Sub-Saharan Africa DE-GR AF T O W U SU - MA N U , P RO S P ER B AB ON -A YENG, ER NEST KISSI, A N D CL I NT ON AI G BA VB OA

4.1 4.2 4.3 4.4 4.5

Introduction 78 Understanding green finance 79 Economic factors underpinning green financing of infrastructure projects 82 Environmental factors underlying green financing adoption of infrastructure projects 84 Approaches to green financing of infrastructure projects in the construction industry 87 4.5.1 Infrastructure project financing 87 4.5.2 Green bonds 88

78

xii Contents 4.5.3 Green bond market in Africa 92 4.6 Conclusion 92 References 94 5 Espousal of Zero Carbon Emission in Buildings: Empirical Analysis of Propelling Measures

98

M ATT HEW I K U AB E , D OU G L A S A GH I MI E N , CLINT O N A I G B A V BO A , A Y OD E J I O K E, S A MUEL ADEKUN LE, AND BA BAT U N D E O G U N BAY O

5.1 5.2

Introduction 98 Carbon emissions in buildings 99 5.2.1 Drivers of zero carbon adoption 100 5.3 Research methodology 101 5.3.1 Drivers of the adoption of zero carbon emission in buildings 102 5.3.2 Exploratory factor analysis 102 5.4 Discussion of the drivers 107 5.4.1 Government policies and regulations 107 5.4.2 Financial and economic incentives 107 5.4.3 Socio-cultural mechanisms 108 5.5 Conclusion and recommendations 108 References 109 PART II

4th Industrial Revolution 6 Overview of the 4th Industrial Revolution in the Construction Industry VIC TO R KA RI K A R I AC H E A M F OUR , M IC H E AL NII ADDY , ER NEST KIS S I , A N D CL IN T ON AI G BA VB OA

6.1 6.2

6.3

Introduction 115 4th Industrial Revolution 116 6.2.1 General overview of Industry 4.0 in developing countries 116 Construction 4.0 117 6.3.1 Internet of things 118 6.3.2 Computer-aided design technologies 118 6.3.3 3D printing 119 6.3.4 Big data 119 6.3.5 Artificial intelligence and robotics 119

113

115

Contents

xiii

6.4

Barriers to the adoption of Construction 4.0 in developing countries 120 6.4.1 Financial barriers 120 6.4.2 Institutional barriers 121 6.4.3 Societal barriers 121 6.4.4 Infrastructure barriers 121 6.4.5 Knowledge barrier 122 6.5 Conclusion 122 References 123 7 Digital Capabilities in the Construction Industry

126

BER NA R D T UFF O U R A TU A H EN E, SITTIM ONT KA N J A N AB O O T RA , AN D THA Y APA R A N G A J EN D R A N

7.1

Introduction 126 7.1.1 Digital capabilities 127 7.2 Theories for digital capabilities 128 7.3 Digital construction and digital capabilities in the construction industry 130 7.3.1 Digital Mindset 134 7.3.2 Digital investment/infrastructure 136 7.3.3 Digital skillset 138 7.4 Enabling approaches to digital capabilities 140 7.4.1 Firm-based approach 140 7.4.2 External-based approach 141 7.5 Case for digital capabilities in developing countries 142 7.6 Conclusion 144 References 145 8 Skills Development in the 4th Industrial Revolution: The Construction Industry ER NEST KISSI , C LI N TO N A I G BA VB OA , EUGENE DAN QU A H SM I TH , DIDIBHUKU W E LLI N G TO N T HW AL A, AN D TI TUS EBE NEZ ER K WO FI E

8.1 8.2 8.3

Introduction 149 The 4th industrial revolution 150 Skills development 152 8.3.1 Soft skills 153

149

xiv Contents 8.3.2 8.3.3

Hard skills 154 Skill development in the construction industry 154 8.4 The 4th Industrial Revolution and skills development 156 8.4.1 Skills required by construction industry professionals in the 4th Industrial Revolution 158 8.5 Challenges of the integration of the 4th Industrial Revolution in skills development 161 8.5.1 Resource constraints 162 8.5.2 Infrastructure and technology issues 163 8.5.3 Skills mismatch 164 8.5.4 Lack of knowledge of the disruptive changes connected to 4IR 164 8.5.5 Organizational and employee culture 164 8.6 Strategies for 4th Industrial Revolution in skills development 165 8.6.1 Investing in the retraining of current staff using innovative funding approaches 166 8.6.2 Development and implementation of “futureproof” primary and vocational curriculum 167 8.6.3 Investing in technological infrastructure 167 8.6.4 Encouraging lifelong learning 167 8.6.5 Redefining the role of human resources 168 8.6.6 Aligning stakeholder objectives and approaches 168 8.6.7 Introducing a culture of learning and acceptance of 4IR technologies and concepts 169 8.7 Conclusion 169 References 170 9 Mobile Device Applications in the Construction Industry JO NAS EKO W Y AN K A H , D I V I N E T U I N E S E NO VIET O, EM M ANUE L D A VI E S, A N D P ETE R A I DO O

9.1 9.2 9.3

Introduction 174 Research method 175 Mobile apps for built environment professionals 177 9.3.1 Apps for contractors and project managers 177 9.3.2 Apps for architects 180

174

Contents xv 9.3.3 Apps for quantity surveyors 182 9.3.4 Apps for civil engineers 184 9.4 Discussions 186 9.5 Conclusion 188 References 188 10 Systemic Capacity Building of Built Environment Professionals for Construction 4.0: A Review of Concepts

193

A BA ESSA NO W A F FU L, G O DW I N K OJ O K U M I ACQUA H, A ND BENJA M IN B A AH

10.1 10.2

Introduction 193 Industry 4.0 within the construction industry 194 10.2.1 Challenges of Construction 4.0 adoption 195 10.3 Capacity building for Construction 4.0 196 10.3.1 Construction 4.0 capacity needs 197 10.3.2 Capacity building for Construction 4.0: A systems approach 197 10.3.3 Capacity building dimensions for Construction 4.0 198 10.3.4 Types of capacity for Construction 4.0 199 10.3.5 Levels of capacity building for Construction 4.0 200 10.3.6 Stages of capacity building for Construction 4.0 200 10.3.7 Outcomes of capacity building for Construction 4.0 201 10.4 Conclusion 201 References 202 11 Competitive Intelligence Features and Competitive Advantage of Construction Firms in the Fourth Industrial Revolution M ATT HEW KW A W S O M I A H , CL IN TO N A I GB AV BOA A ND JO HN FR A NK ES H U N

11.1 11.2

11.3

Introduction 207 Competitive intelligence 209 11.2.1 Theoretical background 209 11.2.2 Entrepreneurs’ behavioural intelligence 210 Survey of features of CI for CA in the existing literature 210 11.3.1 Market intelligence 211

207

xvi Contents 11.3.2 Technological intelligence 212 11.3.3 Competitors’ intelligence 212 11.3.4 Hypothesis 212 11.4 Methodology 212 11.4.1 Data analysis 214 11.4.2 Assessment of common method bias 217 11.5 Discussions 219 11.5.1 Hypothesis testing 219 11.6 Conclusion 221 References 222 PART III

Health and Safety

227

12 Transfer of Construction Safety Knowledge to Project Host Communities: Naivety or Plausible?

229

EM MA NUEL AD I N Y IR A

12.1 12.2

Introduction 229 Characteristics of knowledge and its transfer 231 12.2.1 Knowledge and knowledge types 231 12.2.2 Knowledge transfer 232 12.3 The construction industry and knowledge transfer 234 12.4 Construction safety knowledge 235 12.5 Conceptualising a conceivable safety knowledge transfer 235 12.6 Why it is a plausible concept? 239 12.7 Conclusion 241 References 242 13 Visualization and Interpretation of Resilient Safety Culture: Integrated Social Network Modeling A RUN GARG , S H E RI F M O H A ME D , F AH I M TO NMOY, A ND O Z SAH IN

13.1 13.2 13.3

13.4

Introduction 249 Resilient safety culture model 250 Research method 253 13.3.1 Social network analysis 253 13.3.2 Fault tree analysis 256 Model application using fault tree analysis and social network analysis 261

249

Contents

xvii

13.4.1 Results and analysis 262 13.4.2 Network attributes 264 13.4.3 Node attributes 265 13.5 Discussion 271 13.6 Conclusion 273 References 275 14 Discomforts Experienced by Construction Workers with Safety Helmet Use: Experiences from the Ghanaian Construction Industry

282

ANITA ODAME ADADE-BOATENG, FRANK DESMOND KOFI FUGAR, AND EMMANUEL ADINYIRA

14.1 14.2

Introduction 282 Safety helmet discomforts and mitigation strategies 283 14.3 Methodology 285 14.4 Results 286 14.4.1 Management of discomforts with helmets 287 14.5 Discussion 288 14.6 Conclusion 288 References 290 15 Understanding Safety of Construction Sites: Construction Site Workers’ Experience

292

SA MUEL A DE NI Y I A D E K U N LE, MA TT H E W I KU ABE, JO HN A LIU, B AB A TU N D E O G U N B AY O, CL I N TO N A IGBAVB OA , W UMI OLUM ID E O Y EW O , AN D OB UK S EJ O H WOMU

15.1 15.2 15.3 15.4

Introduction 292 Safety enablers 293 Workers’ safety experience on construction sites 294 Methodology 296 15.4.1 Respondent background 296 15.5 Enablers of safety on construction sites 298 15.6 Workers’ safety experience 300 15.7 Study implications 301 15.8 Conclusion 302 References 303

Index

307

Acknowledgement

We express our gratitude to the CIDB Centre of Excellence for the Postdoctoral Fellowship granted, which paved the way for this book’s contribution. In addition, we also wish to express my gratitude to the reviewers of the chapters: Prof. Abdul-Majeed Mahamadu Associate Professor of Construction Digitalisation and Cost Intelligence Consultant University of West England, United Kingdom Dr Emmanuel B. Boateng Lecturer and Academic Program Director for Undergraduate Occupational Health and Safety University of Wollongong, Australia Dr Nsiah Ankomah Lecturer and Head of Department Building Technology Sunyani Technical University, Ghana Finally, we thank all contributors for their efforts.

Foreword

“Truth resides in the world around us.” Aristotle (384-322 BCE) At this crucial moment in history, humanity resides on a precipice. The omnipresent environmental crisis and emergent black swan events (e.g. the recent COVID-19 pandemic) challenge humanity to reflect upon anthropogenic activities and how the negative consequences of these transcend the national boundaries artificially created on a geopolitical map. Global temperature increases, for example, and the imperative need to adopt a circular economy (as an innovative model of sustainable production and consumption) now dominate the international discourse and ensuing policy development. The juxtaposition against the dystopian future that humanity may face is an advanced automated and digital revolution spearheaded by the 4th Industrial Revolution, which offers the potential to develop smart-city built environments. Digitalisation offers a utopian alternative premised upon a futuristic vision where a modern ‘net zero’ civilisation resonates in harmony with the natural environment. These two monolithic forces (viz., environmental problems and technological solutions) have inevitably collided to exponentially change the rate of scientific breakthroughs and knowledge development – where technology and science are heralded as a panacea to humanitarian crises in rebuttal to the postmodernist era predominated by skepticisms. Necessity always seems to engender modernity and a hope that anything is possible. The global construction and civil engineering industry cannot escape the vicissitudes of social and political machinations and enigmatically provides both a challenge and solution to these monolithic forces, given the sector’s central position in economic development. New buildings, infrastructure and sprawling urbanisation are created by the sector using raw materials sourced from manufacturing and minerals extraction industries in the downstream supply chain. Choice of materials is therefore critical to realising sustainable development. Moreover, the energy efficiency of buildings and infrastructure creates a further environmental impact through these structures’ whole life cycle. Cumulatively, the sector offers the greatest opportunity for society to shape a sustainable and environmentally sympathetic built environment that is resilient to future challenges posed by an exponentially expanding populous.

xx

Foreword

It is against this contextual backdrop that this current textbook provides unique and germane insight into the prevailing emergent discourse generated by some of the world’s leading academics and industrialists. Sections of this textbook are skillfully crafted around three thematic groupings (each containing individual chapters from various authors): (1) sustainability: social, economic and environmental; (2) the 4th Industrial Revolution; and (3) health and safety. This format allows readers to either follow the textbook from start to finish or dip into selected chapters as appropriate. Thereafter, I do advise readers to follow their favourite authors in ResearchGate or Google Scholar to discover other related research of interest. This textbook very much provides a gateway to future reading and discovery. I do hope you enjoy reading the chapters as much as I did and of acquiring new insight and ideas. Professor/Distinguished Visiting Professor David J. Edwards Birmingham City University, UK and University of Johannesburg, South Africa

Preface

The growing knowledge in the construction industry orbits around emerging themes such as the 4th Industrial Revolution, management of pandemics, sustainability, diversity and inclusion, collaboration, skills development, and health and safety. These themes in both developed and developing nations are still revolving. Thus, academicians and practitioners are still rigorously pursuing agenda to unravel the characteristics that come with each concept or technology. Therefore, the integration and diffusion of these concepts must be synchronized based on the culture of a particular nation’s current developmental agenda. It must be noted, the traditional approaches to construction research and its practices are being eroded due to the emergence of these concepts and technologies. The motivation of this book is, therefore, to explore the various emerging issues in the construction industry. Methodologically, the authors of the different chapters adopted multiple approaches comprising a critical review of existing literature, cases, analysis of secondary data collected from the databases and, in some cases, primary data. The book is divided into three sections along the major themes: sustainability, the 4th Industrial revolution, and health and safety. The books start with issues relating to sustainability, including social, economic and environmental issues in the construction industry. The next theme is the 4th Industrial Revolution, which capture the overview of the 4th Industrial revolution digital capabilities, skills development, mobile applications, and capacity building in the construction industry. The third theme deals with health and safety, ranging from the transfer of construction safety knowledge to project host communities: naivety or plausible? to visualization and interpretation of resilient safety culture, discomforts experienced by construction workers with safety helmets and understanding safety from experiences of site workers. Dr Ernest Kissi Prof. Clinton Aigbavboa Prof. Didibhuku Wellington Thwala

Part I

Sustainability: Social, Economic and Environmental

1

Diversity and Inclusion in the Construction Industry: The Vulnerability Factor Ernest Kissi1, Clinton Aigbavboa2, Eugène Danquah Smith3, and Titus Ebenezer Kwofie4 1

Kwame Nkrumah University of Science and Technology, Ghana/University of Johannesburg, South Africa 2 University of Johannesburg, South Africa 3 Kwame Nkrumah University of Science and Technology, Ghana 4 Kwame Nkrumah University of Science and Technology, Kumasi, Ghana/University of Johannesburg, South Africa

1.1 Introduction The concept of diversity and inclusion in the construction industry of developing and developed nations is evolving as a very important aspect of human resources management in both on-site and in organizations on all levels. Diversity and inclusion have been a topic which has garnered a lot of attention in the workplace in recent times. According to Kossek and Pichler (2006), workplace diversity is a variation of certain cultural and social identities among workers in a defined setting. Diversity must not be confused with inclusion since industry can be vastly diverse but still not be inclusive. Per Xuan and Ocone (2022), the concept is typically assessed by the proportion of persons and groups with various origins and traits. Additionally, the fundamental notion is acknowledging, appreciating, and embracing such diversity to foster creativity and innovation. Inclusivity can be achieved through the realization that differences exist between employees, which must be harnessed to create more productive and creative work environments with the employees feeling included in the general operation of the organization. With this being achieved through the proper utilization of their strengths and talents. Industries and businesses are becoming more vigorous in their attempts and efforts to hire and work with a diverse group of people for various reasons. Furthermore, the workforce’s education and orientations on diversity and inclusion by explaining why these efforts of integration are both essential and advantageous has been rampant in most businesses seeking to include the idea of diversity in their operations. According to Gale and Davidson DOI: 10.1201/9781003340348-2

4 Ernest Kissi et al. (2006), a company maintaining a diversified and inclusive workforce enables the organization to appreciate and meet consumer needs better. It helps them attract and maintain investors and clients and lessen the costs associated with workplace discrimination. With construction being an industry well seen in the public eye due to its typical ‘on-street’ nature, the concept of diversity and inclusion should be adequately integrated into the industry’s operations. This is because it is a big employer in the global economy. As a result, there exists a high likelihood of it being investigated by the public in future employment and recruiting procedures. The studies by Choi et al. (2022) on diversity and inclusion in other knowledge have gained prominence, for instance, in the social sciences. However, the architectural, engineering and construction industry is lagging behind in promoting and adapting this concept. In recent times, there has been an increasing argument for diversity and inclusivity in workplaces. From Karakhan et al. (2021), it can be gathered that the construction industry is yet to be considered a fully diverse, inclusive, and impartial sector, especially in developing nations where much marginalization exists. Although the construction industry is moving forward to improve workplace diversity, there is still a long way to go in creating a more inclusive industry. Choi et al. (2022) noted that several diverse groups in construction fall under the vulnerable, and these groupings are based on gender, age, race, disability, socio-economic status, sexual orientation, and ethnicity. This chapter, however, attempts to explore various vulnerable groups, challenges, and strategies for increasing diversity and inclusion in the industry. An inclusion framework is also proposed to optimize the concept in the sector.

1.2 The vulnerability concept With the general concept of vulnerability being relative and open to interpretation, the term ‘vulnerable group’ also remains similarly vague and a matter of perspective (Larkin, 2009). This precisely shows how ‘vulnerable groups’ remain flexible and are best understood and related to the context in which they are used. Vulnerable groups in the construction industry include gender, disability, and age issues. Likewise, these groups all face certain challenges peculiar to them based on how they are perceived or on already existing stereotypes. In most industries and organizations, groups and individuals must orient their behaviours to progress the entire concept of inclusive social and work relations. These groups can be said to be vulnerable or marginalized in the industry due to their inability to be who they are and have their talents and abilities adequately tapped. In addition, they are expected to live up to the exploits of non-disabled men in the same industry irrespective of their differences.

Diversity and Inclusion

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1.2.1 Gender: women The topic of gender is often primarily concerned with women, whenever there are discussions or studies on diversity and inclusion in industries around the world. Women have repeatedly been seen as the ‘weaker’ gender since time immemorial. This stereotype remains an issue in modern society, especially in industries termed as ‘non-traditional occupations’ for women. These are occupations where women occupy 25% or less of total employed personnel, particularly in construction, mining, and engineering industries (Bennett et al., 1999). In the opinion of Hickey and Cui (2020), women hold less than 4% of the executive leadership positions in engineering and construction firms in developed countries like the United States, giving female employees few opportunities to identify role models of their gender in the workplace. In another study by Adeyemi et al. (2006) on the participation of men and women in the construction sector, only 16.3% of the construction workforces in Nigeria were women. Per the survey, 50% of these women worked as labourers, 37.5% as administrative personnel, 10% as management staff, and only 2.5% as skilled personnel. Research has also been done into the attitudes of employers in the construction industry regarding women and identifying the obstacles to women entering the field (Rodgers, 1991). Women interested in jobs in the construction industry suffer the same stereotypes as women in other sectors. However, there are different preconceptions about the nature of the job and the professionals in this male-dominated profession. According to studies by Davidson and Cooper (1992), women seeking entry into male-dominated cultures like construction must either act like the non-disabled males to be successful or leave if they cannot adapt to the culture. They can, however, stay without acting like men but then have to occupy minor positions in the industry. 1.2.2 People with disability Per the World Health Organization (2001, p. 18), one who can be considered disabled has “a problem with body function or structure, an activity limitation, trouble performing a task or action; with a participation restriction”. These individuals comprise more than one billion of the world population and include people with visual or sensory impairment, intellectual, mental, and physical disabilities. In our ‘modern’ society, the workplace inclusion of people with impairments or disabilities has become a major issue. The existence of negative notions that disability equates to incapacity is ubiquitous and thus cannot be denied or argued. These negative perceptions and stereotypes contribute to cutting down the chances disabled people have in thriving in all work environments, be it mundane office jobs or fast-paced factory jobs. This has led to most disabled people in developing countries resorting to begging on the streets or engaging themselves in vocations which do not adequately make use of the innate skills and abilities they possess in contributing to national development.

6 Ernest Kissi et al. According to a study conducted by Stone and Colella (1996), the work attitudes of employers are characterized by the type of disability their workers deal with. The rate at which a disabled worker will be categorized as unsuitable by other colleagues and observers is directly related to the general degree of progressiveness, visibility of the disability in question and its chronicity. This eventually draws out specific adverse emotional reactions already residing in them. According to McMahon et al. (2008), the recorded allegations of discrimination in the hiring procedures for people with intellectual disabilities are reasonably more than other people with only sensory disabilities. This is with the consideration that the former could require longer training times and intensive on-the-job support in comparison to the latter. Nota et al. (2014) posited that the lack of inclusivity is worsening because of the continuous job market uncertainty, driven by globalization, and continuous and rapid technological improvements. According to Stensrud (2007), there are generally fewer recruiting chances for all people due to the economic crisis and how it is linked to lower investments in human capital. This is especially true for disabled employees who cannot fulfil high productivity criteria consistently. Societal stigma plays a major role in the broader issue of disabled people’s lack of inclusion in the workplace. 1.2.3 The age factor Age discrimination in the construction industry remains minimal (Sang and Powell, 2013). Little research is significant given the extent of the ageing populations in many developing and developed countries. Finkelstein et al. (2013) talked about the fact that while social categorizations of age groups are less precise than other social identity categories, scholars generally agree that younger employees are those between the ages of 18 and 30. However, older workers form part of the ageing workforce, consisting of those aged 55 and up. Indirect evidence from economic research proposes that discrimination against older workers still exists in the modern job markets of most countries, especially in developing economies. There exists a negative stereotype that age and disability are closely linked. Older workers who are unemployed and go job hunting have a restricted selection of occupations and sectors to choose from than their younger counterparts (Bendick et al., 1999). Organizations continue to struggle with the productivity of older workers. Although these more senior workers in the construction industry typically exhibit attributes of devotion and superior abilities and are properly valued and appreciated by coworkers and management, they tend to slow down as they age, resulting in a drop in overall level of productivity. Construction work can be physically demanding, and the nature of the work can be dangerous. Operational issues arise due to the intense atmosphere, which places tremendous physical demands on employees. The lifting of huge objects, operation of heavy machinery, and working in adverse weather

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conditions for lengthy periods are all examples of physical demands that older construction professionals in technical fields face (Karakhan et al., 2020). According to a report commissioned by the Equality and Human Rights Commission in 2011, a combination of the normal effects of ageing, with the physical tolls of heavy and stressful construction work, was found to lead to an early decline in health and general well-being. This has often led to workers retiring from the industry before the normal age for retirement. According to data from other industry sectors, these normal ageing effects also build on certain stereotypes surrounding older workers, making them unappealing to work with (Chui et al., 2001). From Sang (2007), evidence-based word of mouth or hearsay also implies that younger construction professionals, or those who appear youthful compared to other workers, tend to face negative attitudes from older site workers based on the premise that they are inexperienced even when in supervisory roles. In the modern construction industry, younger construction professionals have also termed Generation Y or Millennials, the group of people born between 1980 and 2002 (Kersten, 2002). Construction work has generally been seen as work for the experienced. Thus, since experience and age walk hand in hand, younger construction professionals are not treated with the respect they need to enjoy the industry they find themselves in. Older coworkers also complain that the younger workers do not exhibit job commitment as they work for only the required number of hours, sometimes even less. The vulnerability of younger workers becomes evident due to this prevailing stereotype that they do not know enough or do not work as hard as the older workers do.

1.3 Inclusion of the vulnerable in the construction industry The Construction industry is yet to be adequately recognized as a diverse, equitable, and inclusive industry. Most construction workforces across many countries are dominated by non-disabled men, with few opportunities for stereotyped and vulnerable groups such as those based on gender, disability, or age. These minority groups have been marginalized because it is assumed that they do not produce more industrial output or demand more resources to perform the same tasks as their male counterparts. However, the industry is starting to show signs of delivering on diversity. Inclusion and diversity have risen to prominence because of the numerous benefits it brings to the industry. These include improved staff retention, expansion of the pool of talent available to the industry by employing marginalized and vulnerable groups, and improving on-site working relationships between workers, regardless of differences in ability, gender, age, race, or even sexual orientation. Nevertheless, with all these benefits available for promoting diversity and inclusion in the workplace, stakeholders and the vulnerable still face many challenges in attempts to introduce and keep the concept existent and adhered to. These challenges can, however, also be countered

8 Ernest Kissi et al. with other strategies outlined in this chapter, which will help sustain the construction industry most developing nations with the several gains associated with the workplace promotion of diversity and inclusion. 1.3.1 Gender in construction: women According to statistics from developed and industrialized countries such as the United States, one out of every ten construction employees is a woman, highlighting the industry’s lack of diversity and gender imbalance (Center to Protect Workers’ Rights, 2018). Initiatives to increase the percentage of women in construction have shown very little speed in progression, especially for on-site work. However, this is not balanced by the percentage of women occupying senior management positions, with those also being mostly occupied by male colleagues. Women in construction are prominent in administrative and clerical positions in office-related construction activities. Thus, a vast majority of the little percentage employed in the industry work as labourers on construction sites in most developing countries. In Menches and Abraham (2007), it can be noted that typical paraprofessional and professional construction jobs for women also included the percentage of industry women in each discipline. Many traditional managerial positions that support field operations are included in this category. This entailed, drafters, cost estimators, inspectors, and construction managers. In all, 50% of professional occupations employ between 10% and 25% women, and the remaining 50% employ less than 10% women. Engineering management is one field where women make up less than 5% of the workforce, while the average percentage of women in professional and paraprofessional roles is 12.8% (Menches and Abraham, 2007). However, they are almost absent in the craft trades such as carpentry, masonry, and steelworks. The physical nature of building craft professions and a long-standing tradition that does not place a high priority on female training are two important reasons that contribute to women’s underrepresentation in the industry. These arguments should be disproved because women are just as capable, intellectual, and talented as their male contemporaries and empowering them will benefit not only women but the entire society. Female participation in the construction industries has long been vehemently and aggressively fought. According to Li et al. (2017), nearly onefifth (17%) of male engineers in a developed country like the United States believe that diversity efforts endangering the profession’s quality and that women have unfair advantages in acquiring positions. This perception has undoubtedly been picked up by other male construction professionals in emerging and developing countries around the world. With researchers recently making an evidence-based case for promoting inclusion and diversity in the construction industry, studies have shown that, diversity and inclusion based on gender in the workplace can increase profits by as much as 15% through the enhancement of the ability to attract top talent, increase

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the satisfaction of employees, promote workplace creativity, improve customer orientation, and alleviate hostility among coworkers among others (Arditi and Balci, 2009). 1.3.2 People with disability in construction Inherent from construction business being viewed as a completely exclusive industry for non-disabled and fit men, the issue of diversity and inclusion in terms of disabilities and impairments is a key one. Despite the multiple antidiscrimination legislation on both the local and international levels, disabled individuals continue to face prejudice and denial of their rights and benefits. According to Newton and Ormerod (2005), organizations are considered to discriminate against disabled employees in terms of the employment conditions provided for the worker, transfer, training, or receiving any other incentives, opportunities for promotion, dismissal of the disabled employee, or exposing them to any other disadvantage. An employer discriminates against a disabled person if they treat them less favourably than they treat or would treat others because of the person’s existing handicap or condition. It has long been acknowledged that, behavioural, institutional, and physical barriers keep disabled persons out of many aspects of social and economic life (Barnes and Mercer, 2005). Despite their best efforts, these barriers persist and confront their access to opportunities. Critically, these discriminatory barriers affect workers with physical or visual impairments and individuals with auditory and learning difficulties or mental health needs. In general, the discrimination against the disabled has increased their unemployment rates, resulting in widespread poverty and a low standard of living among them. Few reliable statistics are available to give a precise picture of the number of disabled people working in the construction industry. There is also a less studies on the relationship between employment, disability, and construction in developing countries. Even though most construction organisations are hesitant to hire disabled persons, they are more likely to keep them on once they become disabled under their employment. In a poll conducted by Stuart (2002) on employers and their employment habits, only 13% of the firms in developing countries stated that they now employ disabled persons. The construction sector is in dire need of competent and skilled workers, and some disabled persons either have the skills or are eager to develop them or learn new ones. Involving disabled individuals into the activities of organizations has the added benefit of improving the image of the organization to which they belong. However, there is no evidence that the construction sector is eager to adapt its procedures to be more welcoming to this vulnerable group of people. These disabled persons seek the same opportunities and experiences as everyone else but are often treated differently and excluded from gainful employment due to various obstacles. This is further emohasized by the existing notion that disabled individuals are much less

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productive than their non-disabled counterparts and that some disabled persons require extra care most of the time, if not all, to be able to do anything worthwhile. “This shows that, a degree of benevolent discrimination exists towards disabled persons,” as argued by Staniland (2011). With organizations’ increasing interest in including disabled persons in their dayto-day operations, workers need to be rated solely on their job performance, with no biases based on characteristics that are unrelated to their ability to perform essential work activities. Nevertheless, reasonable adjustments should be made when necessary, so that people with disabilities can do the required job activities. 1.3.3 Old and new generations in construction (Age) Including workers based on age is a major issue in all industries worldwide. The concepts of age discrimination and ageism are two obstacles faced by professionals in fields that ideally require experience and some level of strength and endurance that are, directly or indirectly affecting both ends of the age spectrum, the young and old. Age discrimination and ageism, however, cannot be interpreted as having the same meanings since age discrimination is mainly related to employment. In contrast, ageism is seen in most cases of societal interactions and attitudes. Age discrimination is when specific standards of the ‘ideal worker’ are applied to employers’ general hiring, firing, promotion, retraining and retirement practices. This is different from ageism, where the individualities of particular groups with a basis of age are applied to other individuals while disregarding the individual’s characteristics. The concept of age discrimination generally points towards older workers in most sectors. This isn’t entirely factual in the construction industry, where experience and knowledge in the field take precedence over age and other factors. However, a handful of stereotypes of older workers include productivity issues, with older workers being seen to take bigger time constraints and resources to carry out tasks, especially when age is often associated with disability in the industry. Other stereotypes include older workers being viewed as less adaptable, less inventive, less economically beneficial, and generally harder to train to stay up to date with modern procedures and practices since construction on its own is a versatile industry with continuous changes in processes and technology. Older workers are also seen as lacking physical strength, sticking to traditional approaches and being vastly opinionated because they believe they are more experienced than other relatively younger workers. Discrimination based on age, happening in most industries, does not also cease after a worker has a job. It is additionally a problem that affects nearly every older professional who is out to seek a job. The effects of this include having to search longer and harder for work, causing greater frustration and anxiety, settling for jobs that are grossly underpaid, gratifying, or stable, and possibly withdrawing from the job market as disillusioned workers. As a result, when senior

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construction professionals apply for jobs, they are confined to limited scope of careers and sectors as their younger colleagues with the same or equivalent skills and qualifications. Senior and experienced construction professionals usually, if not all the time, overlook ideas and opinions from younger workers with the perception that they are inexperienced and don’t know what they are about when it is usually not the case. Younger professionals or even those who look more immature about other professionals in organizations and on construction worksites in the industry who are tasked with supervisory roles are constantly belittled and face a variety of negative attitudes from older colleagues. According to Secules et al. (2021), most of younger construction workers experience ‘professional shame’, where other older workers see them to have failed to satisfy particular standards or norms of the practice, which is vital to their professional identities. These experiences of shame younger workers encounter in the industry have also been seen to emanate from the presumption that younger professionals are intelligent and the existing notion and expectation that they should also be able to grasp concepts quickly. This inevitably makes some of these workers afraid to ask for help when the need arises and makes practice increasingly difficult for them in the industry. Including younger construction professionals in the regular operations of organizations holds many merits. Ignoring the wrong conceptions surrounding these youthful ones and encouraging their active presence and participation in the industry will help in ensuring the long-term prosperity of the sector. It will also in no doubt help make the transition from old work practices to the use of emerging technologies in construction relatively easier, as well as have the additional benefit of being better positioned to add value to the evolution to a technological workplace since younger workers are generally tech-savvy. This inclusion will also help fill the vacuum the retirement of the older generations who currently provide the backbone of the industry will leave behind. Young employees also have the added advantage of bringing a fresh perspective and a different way of thinking to worksites or even the organization, not only through modern technology and digital advancements. With most young workers being eager to learn, build their experience, and apply their skills in the workforce, there is an increased possibility for higher levels of team building, productivity, and workplace morale, through the enthusiasm they possess and convey to the workplace. This eagerness to learn also makes training and development of these young workers with minimal previous experience into professionals who can meet the organization’s specific needs and culture.

1.4 Challenges faced by the vulnerable in their inclusion With the common notion that construction is and has long been working for the non-disabled men in society, there is also the flagrant cold-shouldering of other minority and relatively vulnerable groups, which have been

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aforementioned based on gender, age, and disability, among others. Strachan et al. (2020) posited that, with the virile culture, hard working conditions, noninclusive recruitment procedures, and sexist attitudes associated with the construction sector, it is seen to be prejudiced towards groups which don’t meet the ‘construction man’ image. This perception is a barrier to promoting inclusivity and diversity in the construction industries especially in developing countries worldwide. Organizations face various challenges in terms of the promotion of the concept of diversity and inclusion in the current setting. From Choi et al. (2022), these multiple challenges include segregation, inequality, discrimination, communication issues, and labour shortages inherent from failed attempts to attract and maintain under-represented groups. It has been observed in the various literature that, vulnerable and marginalized workers, especially in the construction industry, are indirectly compared with the non-disabled men of the long existent typecast with no proper scrutiny and clear depiction. The overall concept of vulnerable groups in the industry being treated the same way as ‘the construction man’ branded with no regard for the prevailing differences between the two groups has been vastly criticized, according to Barnard et al. (2010). This concept has also suggested that the endgame of workplace equality can be accomplished if the marginalized and stereotyped groups integrate the organizational culture of the dominant and accepted group into their own (Pilcher and Whelehan, 2004). Likewise, as opined by Keku et al. (2021), the growth of inequitable and prejudiced organizational systems highlights the problem of a lack of representatives for many vulnerable and marginalized groups and communities at the decision-making table. This underrepresentation further limits the voice and opinions of these vulnerable groups in the industry. It leaves final decisions affecting them to those with whom they share no associations, which eventually shakes the promotion of workplace inclusivity where every worker feels heard. 1.4.1 Construction ‘man’ industry According to a survey conducted by Barreto et al. (2017), little is known about women’s challenges in developing countries’ construction industries. However, there have been various studies which have investigated the challenges faced by women not only in entering the construction industry but also in developing professionally and feeling comfortable in their careers, according to Arenas-Molina et al. (2017). Construction and its related professions are constantly perceived as not ‘a woman’s job’ due to various embedded cultural images. These rationalizations reinforce that existing belief, and these occupations are deemed to be based around a dogma of masculinity and strength. Although some of the professions under this industrial umbrella have been effeminized through the number of women found in those positions, such as the administrative aspects of construction and architecture, women still find themselves hierarchically

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kept out of the non-traditional occupations where strength and endurance are generally given more importance. The job performance of women and the potential they hold in terms of their future are tainted by certain apparent stereotypes. Women are seen as unsuitable for the industry’s technical and strength-related aspects due to the dominant associations between traditional perceptions of masculinity. Additionally, Gale and Davidson (2006) indicated that women who are even employed in the construction industry and find themselves in senior positions through hard work and proving themselves still face prejudice and discrimination from old colleagues for the sole reason that they are women. Occupational segregation, where men are paid more and are promoted to the more prominent positions in the organizations, continues to be a significant barrier to women in the same workforce, particularly in the construction industry, which is notorious for its excessive gender segregation. Agapiou (2002) stated that, due to the prevalent image of construction being that of a male-dominated industry which requires sheer strength and the ability to tolerate vulgar language, poor weather, and outdoor conditions, trying to introduce women into this environment is one which will cause a lot more problems than they fix. Several modern-day employers in the construction industries in developing countries also see women as capable of working on-site and running it efficiently, while others hold the opposite opinion. The ability of female construction professionals to lead a laborintensive workforce has been constantly questioned due to the culture of masculinity in the industry. They are seen to be incapable of motivating their workers, especially when most manual labourers and trade personnel in the sector are males holding similar perceptions about women to those higher up in the organization’s hierarchical structure. Furthermore, organizational culture remains one of the sole major contributors to women quitting the construction sector and failing to consider construction a good career move. Thus, sexual harassment is usually among women. Inappropriate touching of colleagues, making jokes that are seen as sexist or improper, making overly sexual comments, and sexual staring during construction work is considered inconvenient or uncomfortable by the women. Although sexual harassment can affect anyone from the ‘manliest man’ to the ‘softest woman’, the abusers typically make women, and even worse, workers in the brackets of two or more vulnerable groups like younger female workers or even disabled female workers, their primary targets. 1.4.2 Is physical ability a measure of capability? Most developing nations worldwide are working very hard to provide better chances at finding and maintaining sufficient employment for disabled people. They are, however, still being discriminated against through countless facets of the workplace. One of the most critical factors in the lives of disabled people and even abled people, in general, is work or employment. It aids in

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developing one’s identity, fulfilling their life goals and overall identifying their life’s meanings. Nevertheless, while employment remains vital to people’s dayto-day living, disabled people face several barriers on their path to gainful employment. According to Narayanan (2018), several studies show the extent they face these obstacles due to the negative attitudes of employers against hiring and maintaining them to their lack of proper insight and awareness of the lives of disabled people. These barriers result in lower workforce participation, lower salaries for similar work done with equivalent qualifications, and commonly higher rates of unemployment for disabled people in society. Workplace discrimination against disabled people, not only in the construction industry, is a commonplace situation that is being fought vehemently by the victims and stakeholders in all sectors worldwide to eliminate it. It is largely seen as the area of employment distribution, where employment opportunities are allocated in a way that non-disabled workers gain more than their disabled colleagues (Narayanan, 2018). There exists a complete disregard of the various national policies and guidelines which foster assisted employment for people with disabilities by some organizations. Disabled people still do not find themselves placed in large numbers in the competitive workplace environment, where they can work together with non-disabled people and achieve the same advantages in equivalent jobs for the same organization. This is mainly based on the perception that disabled people are incapable of meeting the high standards of productivity set out by organizations and hence cannot be hired in an economic environment with fewer human resources investments, resulting in fewer employment opportunities. Studies have shown that even in discrimination, the promotion of the concept of disability inclusion in the construction industry faces another challenge, which can be said to be a root cause of discrimination. These are the negative attitudes and entrenched typecasts of colleagues and mostly superiors toward workers already in the industry who are disabled. As noted by Nota et al. (2014), workplace stigmatization continues to play a major role in the entire spectacle of negativity towards disabled workers. They are commonly shunned by other colleagues, face prejudice or discrimination, and are openly considered as less-desirable, less attractive, and unwanted workers than those with no evident disabilities. Due to disabled workers being appraised by bosses and superiors as less capable in the professional sense than those without disabilities, the probability of placing disabled people in employment positions is low. In industries like those of manufacturing and construction, the setting aside of the discriminatory, conventional, and attitudinal challenges in a work environment where inclusion is minimal still leaves behind the challenge of the integration or inclusion of already disabled workers and other workers who, due to the nature of the industry and its jobs, were disabled. The job becomes an obstacle to their workplace inclusion through impediments such as an overload of work, long working hours, work pressure, and the general effects of these circumstances on their personal lives

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(Narayanan, 2018). The lack of technology and a physical working environment, which can assist disabled construction workers to perform their work more effectively without overloading themselves, make up another factor which blocks the path to the workplace inclusion of disabled workers in the construction industry. Employers with no stringent inclusive policies tend not to hire disabled workers in the first place, even when they could make the worksites more disability friendly. Due to the overvaluation of the latent costs of making disabled people feel more comfortable in their workplace, fewer disabled people are being hired. Work environments where there is poor accessibility and are not disability-friendly are not only limited to physical factors but also those who are mental, intellectual, and sensory disabled. Conversely, due to the nature of the impairments of these brackets of workers and how their disabilities are what are termed ‘invisible’, the combination of employers and coworkers find it challenging to understand the needs and feelings of their disabled coworkers with the already unsuitable and gruesome work environments they find themselves in pose awful threats in the promotion of disability inclusion. 1.4.3 Experiences of the experienced and the green Construction industries in developing nations worldwide are already facing significant hurdles in employing and keeping skilled employees. In Choi et al. (2022), it can be learnt that this labour scarcity is expected to worsen. While increasing and promoting diversity and inclusion in the industry on its own is necessary, the industry continues to struggle to grow a diverse and inclusive construction workforce which will help attract or retain workers from vulnerable groups especially that of relatively older and younger workers. They toil in managing the productivity levels of older and younger construction workers, which continues to exist in the modern-day job markets. This results in certain challenges prospective individuals in the same bracket face in their inclusion in the construction industry in the developing world. Challenges in the inclusion of vulnerable and marginalized groups in the construction industry always include the issue of discrimination irrespective of the type of group involved. This is mainly due to, the organizational culture of the industry, where old beliefs and notions about construction work for a certain preconceived type of ‘man’. Discrimination of workers based on their age, be it young or old, creates certain unnatural restrictions, eventually affecting everyone involved. These unnatural restrictions tend to constrain the working capabilities and effectiveness of relatively older people, which may prevent future organizations and employers from considering them in their employ, which will lead to certain inevitable adverse effects on their hiring, training, career development and general working conditions. Existing studies have put forward the argument that discrimination against the older-worker group of the age spectrum can still be found in modern jobs markets of most countries, especially the developing

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economies. According to the Equality and Human Rights Commission in 2011 report, with the characteristic nature of work in the construction industry, the combination of the normal effects of issues relating to ageing with the physical tolls of heavy construction work was found to be a major factor in the premature decline in the overall well-being and health of workers. Certain misconceptions held by superiors and coworkers concerning older workers, which make them complex and unattractive to work with, have also been seen to be fueled by the normal ageing effects such as reduced vision through ageing cataracts, hearing loss, joint pains, among others since they link ageing with disability. Regardless, Warr and Pennington (1993) brought up facts to generate reasonable doubt on certain typecasts opinion concerning older workers, such as being less creative, less likely to stay with the company for a longer period and having a relatively lower physical capacity and health. However, according to Taylor and Walker (1994), there continues to be direct and indirect discrimination levelled against them by younger coworkers in the industry. These preconceptions have created the effect of restricting the array of job and industrial selections for older workers in relation to those of their younger counterparts (Bendick et al., 1999). This challenge of discrimination of older workers is further made worse due to how it is treated differently from the other types of discrimination. This is because common laws permit so when organizations have a justifiable cause for discriminating in certain situations. This, according to equality laws, is referred to as a ‘proportionate means of achieving a legitimate aim’, where the effort displaced to ensure what is needed to be done is bound by law and is in balance with the gravity of the discrimination itself. In another vein, Billett et al. (2011) posited an established pattern where supervisors and employers hold older workers in low regard in a series of national and international studies. Managers continue to produce unfavourable job evaluations regardless of the employees’ actual productivity ratings and jobs. According to Taylor and Walker (1998), certain negative views of older workers, be it men or women, disabled or able-bodied, may have a direct influence on their career advancement and development in the industry, in addition to their chances of getting work in a gainful employment setting. Extant literature shows that, employer attitudes and perceptions are essential to older workers’ hiring and maintenance practices. It also helps decide how they can be attractive for future employability through certain prospects provided for them to develop and apply their knowledge and experience on a wider scale. Construction labour markets are similarly characterized by the blatant marginalization of relatively younger workers worldwide. In the last decade, ageism and age discrimination in the construction industry especially in developing countries have been centred on only older workers. Youth employment in construction and career development in the industry has constantly been overlooked in inclusion discourses. At the same time, their discrimination in the workplace continues to be a fast and rising challenge to

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diversity and inclusion in the industry. As stated already, other workers who deem themselves as the right age for construction work and management hold certain perceptions, such as younger people lacking the appropriate experience and skills needed to adequately undertake the intricate work of construction. This has led to the discrimination of younger workers, without any regard to their actual capabilities, which make their experiences in the workplace nothing to write home about. These younger workers must still go through unnecessary wringers of scrutiny before they can stand the chance of promotions. This is due to employers holding prejudices owing to reasons relating to field experience and people management.

1.5 Strategies for the inclusion of the vulnerable With the immense contribution workplace diversity and inclusion has in making society better, the industry must endeavor to adopt strategies in the promotion of the concepts and ensure that all vulnerable groups in the industry feel heard and comfortable on their path to career development. Although there is still a long way to go before diversity and inclusion are the norm in industries in developing countries, implementing this idea into daily work life will begin by addressing the underlying issue, which is the industry’s culture where non-disabled men are viewed as the ideal employees. This will inevitably affect all the other challenges connected to the toxic organizational culture of the industry and drive reform up. Thus, this section outlines some strategies based on the vulnerable groupings. 1.5.1 Women’s inclusion in the construction industry From a study conducted by Lewis and Shan (2020), improving gender diversity has a positive impact on the bottom line as well as equal representation. According to research, organizations with more women in corporate leadership roles financially outperform companies with less gender diversity. This isn’t to suggest that increasing the number of women in the construction industry will result in increased profits. Instead, businesses that are efficient in advancing gender diversity in organizational leadership are more successful than those that are not. As a result, enhancing the diversity of the workforce in this industry is critical to its long-term growth and development. According to Powell and Sang (2013), there have been attempts to address the issue of masculinity in the industry. Most articles and studies have identified barriers and challenges to the success of the concept of diversity and inclusion. Still, relatively few have identified or proposed solutions to the stated challenges. The few papers which offered potential solutions to the problem all arrived at the common conclusion, which has been stated to be the organizational culture of the industry. A significant change in this culture and the overall image of the industry is one sure-fire way of ensuring the inclusion of women in the development process of the construction industry at all levels.

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Creating a diverse workforce and including women in the construction industry can be achieved two-fold. One is by attracting women into the industry in the first place by making the construction industry itself appealing to them. Attracting women into the construction industry is a critical first step toward creating a more diverse and socially representative workforce. However, retention is equally important given the large numbers of women who depart the industry each year. Introducing policies and culture will make the women already in the industry feel more included and stay to achieve more excellent career prospects, rather than leave for more occupations deemed traditional for women. The path of attracting women into the industry to promote diversity and inclusion can be helped through several other factors, which may include the following: •

•

•

•

•

•

The improvement of the overall quality of education and training for women with prospects to join the industry through potential female construction role models. Creating novel staffing strategies, such as partnerships with the building industry, pique the interest/attention of those joining or preparing to enter the workforce (Menches and Abraham, 2007). Promoting women in Science, Technology, Engineering and Mathematics (STEM) fields to increase the potential number of women who will find themselves in the construction industry’s workforce. The increase in the salaries or wages and benefits of women to match those of equally qualified men for the same jobs done to trump the gender wage gap is not only in the construction industry but in most (if not all) sectors worldwide. Introducing a flexible working environment for women workers goes a long way in making them happy and comfortable in the workplace. According to Bell and Narz (2007), flexible work arrangements are provisions which are set in place to ensure that the spread of working hours, place of work, and career development prospects are the choice of the employee, as long as a total number of hours and productivity levels are matched. The enthusiasm of organizations to assert their devotion to adopting and implementing equal opportunities for both men and women also plays a major role in retaining women in the industry. This can be accomplished through the creation of policies and statements and ensuring they are implemented and regularly reviewed to ensure that the rights and opportunities of women in the workplace are on par with those of male colleagues with the same qualifications.

1.5.2 Disability inclusion in the construction Several studies on disability and inclusion such as Barnes and Mercer, 2005; Newton and Ormerod, 2005; and Colella et al. 1998, have highlighted the

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advantages disabled people have to offer employers. However, most of these employers, particularly in the ‘man-power’ industries such as construction, are hesitant to hire and maintain people with disabilities. As already mentioned, other studies have shown that the exclusion of disabled people in the industry is also due to negative perceptions supervisors and coworkers hold, such as their inability to work the characteristic long hours of construction and their need for additions to the workplace to make their work easier. While hiring disabled workers doesn’t warrant higher costs than hiring those without disabilities, the utter underestimation of what disabled people have to offer regarding actual ability and experience leads to a high unemployment rate among disabled people. With most disabled workers demonstrating time and time again that they are of great advantage to productivity and organizational growth through the clear link between organizational performance and a system where the inclusion of disabled people is well established, this underrepresentation of disabled workers in a climate with scarcity in labour is a huge, missed opportunity. The acknowledgement of the benefits disabled workers can contribute to the industry and the will to combat the challenges facing their inclusion brings up the issue of whether building an inclusive workplace is just about hiring disabled people. And the answer is a resounding No! It also involves the development of measures and strategies which will create a suitable environment for the career development and advancement of disabled workers. This would be an environment where negative perceptions concerning the abilities of these workers are not as routine as it is now and where they can bring their whole selves to work. A more inclusive work environment can be achieved if disabled people are allowed to work in a wide range of roles within the industry, be it managerial or technical and feel appreciated for good work done through promotions and additional benefits. An array of other strategies can be implemented to promote the concept of disability and inclusion in the construction industry by targeting the challenges disabled workers face. These include but are not limited to: •

• • •

•

The recognition and altering of hiring or management processes which foster the unconscious bias against disabled job applicants or limit their ability to demonstrate their fortes is another step in the right direction. The establishment of anti-discrimination legislation, which discriminates against disabled workers prohibited. Establishing internal government policies will prioritize recruiting disabled people to increase the number of disabled workers in the government sector. Creating positive attitudes that are linked with a higher rate of interactions. Positive experiences with disabled workers also lead to less hate among workers and more acceptance of them for who they are and what they can offer in the industry. The provision of training and awareness platforms for non-disabled employees creates a jointly supportive environment by educating them on the lives of disabled workers, ways through which they can be

20

•

•

Ernest Kissi et al. understood, tools and accommodations which are available to them, and the benefits they bring to the workplace, among other factors is also a very vital strategy which can be employed to change the perceptions and attitudes workers hold for their disabled colleagues. Appoint diversity specialists who deal with diversity issues to avoid substantial mishandling of information concerning disabled workers by other inexperienced employees. Employers encouraging currently disabled employees to become role models for other disabled workers also remains a good strategy in promoting diversity and inclusion in the construction industry.

1.5.3 Age inclusion in the construction industry In the last couple of decades, the construction industry has expressed growing concern about the shortage of skilled labour at all levels of its organizational structures. This has been expedited by several factors, such as an ageing workforce and an unusually high number of retirements which put the industry at risk of losing key skills and experience as the older population retires in the coming years. For the construction industry to attract and retain qualified and skilled trade workers and achieve long- and shortterm rewards, current hurdles of inclusion must be overcome with the development of equitable work environments. While cost remains one of the main barriers to hiring and maintaining older and younger workers, their employment can still greatly benefit the organization’s financial standings. Older workers hold some experience and knowledge, while younger workers also hold expertise in technology which they all bring to the job and makes them much more productive than the employee seen as an ideal worker for the industry (Powell and Sang, 2013). With these benefits of age inclusion, various strategies can be implemented to tackle the challenges of olderyounger worker inclusion in the construction industry. These include those: •

•

•

Tackling the organizational culture which places little value on older and younger workers through incentivizing employers, supervisors, and coworkers to develop an inclusive workplace culture for all workers regardless of age. The establishment of training workshops and podiums which help educate other workers on stereotyping and negative perceptions about elderly and younger workers creates an avenue for promoting inclusion and enabling workplace environments. The provision of flexible work arrangements for older workers also remains a valid tactic. It can be adopted to ensure skilled, experienced older workers are retained in important technical and managerial positions where their skills can be harnessed in the industry’s best interest. Table 1.1 summarises the challenges and strategies for the inclusion of the vulnerable in the construction industry.

• Discrimination • Major responsibilities of childcare increase the difficult simultaneous balancing of work and family. • A culture that is openly male and characterized by violence, conflict, and hostility. • The establishment of attitudinal barriers due to hegemonic masculinity. • Overall negative organizational culture. • Occupational segregation. • Discrimination. • Negative attitudes and entrenched stereotypes. • Workplace stigmatization. • The lack of technology can assist disabled construction workers in performing their work more effectively without overloading themselves. • Physical working environment serves as inaccessible because of the existing lack of awareness about the needs of disabled employees by management. • Discrimination. • Negative stereotypes held by superiors and coworkers concerning older workers/ negative viewpoints. • Attitudinal barriers/ Negative attitudes and perceptions.

Women

Older and Younger Workers

People with Disabilities (PWDs)

Challenges

Vulnerable Group

• Tackling the organizational culture places little value on older and younger workers. • The establishment of training workshops and podiums helps educate other workers on stereotyping and negative perceptions about elderly and younger workers. • The provision of flexible work arrangements for older workers.

• The recognition and altering of hiring or management processes foster an unconscious bias. • The establishment of anti-discrimination legislation. • Promoting the quality of interactions with PWDs, through the provision of training and awareness platforms for non-disabled employees. • Employers encourage currently disabled employees to become role models for other disabled workers. • Provision of a suitable working environment for disabled employees.

• The improvement of the overall quality of education and training for women, especially in STEM programs. • Creating novel staffing strategies. • The increase in the salaries or wages and benefits of women to match those of equally qualified men for the same jobs. • Introducing a flexible working environment for workers. • The enthusiasm of organizations to assert their devotion to implementing equal opportunities for both men and women.

Strategies

Table 1.1 Summary of challenges and strategies for the inclusion of the vulnerable in the construction industry

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1.6 Framework toward inclusion and diversity in the construction industry Integrating vulnerable groupings in a diverse environment remains imperative in all industries. For the construction industry, it has become evident that there is a need to develop a framework that will easily ensure the integration of the vulnerable grouping into its activities. This inclusion can be achieved by assessing their job needs through the determination of their areas possibly they can work effectively and efficiently. Following this should be an identification of the challenges associated with the job area and then the development strategies for inclusion. Therefore, this section discusses the job needs and determination of the job areas. 1.6.1 Assessing the job needs According to Dent (2018), a job-need assessment is a procedure used to gather data regarding a job’s responsibilities, tasks, essential skills, and working conditions. Without a job-need assessment, you risk omitting crucial details for choosing the right candidate. You can employ someone who lacks crucial expertise for the position or pay an employee the incorrect amount, resulting in employee dissatisfaction. The goal of a job-need assessment is to make a position’s responsibilities clearer. Planning for performance development and recruitment are both aided by it. It is also crucial for the inclusion of vulnerable groups in the construction industry due to its value in obtaining reliable first-hand job-related data on the duties associated with the work. The recognition of risks related to the job responsibilities, the contribution to the development of a more equitable compensation plan, the driving force behind training requirements through more excellent knowledge about each job duty, the assistance with objectivity by enabling the separation of the job duties from other factors such as personal feelings, all exists as viable benefits an organization can derive from assessing their job needs in addition to it generally being a handy tool for the employment success assurance across the human resources department of any organization. 1.6.2 Determination of job areas in construction Job matching relates to matching the ideal candidate with the perfect position based on the candidate’s innate driving qualities or strengths. It necessitates a thorough comprehension of both the position and the applicant. The management of human resources has a significant role in determining a company’s productivity. Allocating each worker to the best job feasible is a challenging dilemma that not all managers may be equally adept at resolving since every employee has unique abilities and attitudes for

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Figure 1.1 Framework for inclusion in the construction industry.

various activities they usually hone during their careers. Understanding a person’s work capacities is crucial while looking for acceptable jobs for people with disabilities. Performance-based assessments give professionals the knowledge they need to evaluate employees’ abilities based on actual performance, as opposed to irrational assumptions or assumed information. Drawing from sections 1.4, 1.5, and 1.6, the framework for inclusion in the construction industry was developed as show in Figure 1.1.

1.7 Conclusion With the construction industry having a lot of influence in shaping and changing the lives of both its workforce and the society at large, the promotion of a diverse workforce and the inclusion of marginalized and vulnerable workers remains a major concern in the construction of developing nations. This concept has and is facing several barriers in its acceptance in the modern-day construction workplace, with vulnerable and marginalized groups facing challenges of discrimination, negative attitudes and perceptions, inequality, and disrespect, among others, stemming from the organizational culture of the industry where the ideal worker is seen as a non-disabled middle-aged man. This chapter identifies the various vulnerable groups in different developing nations worldwide and the challenges they face in their inclusion in a diverse construction workforce. Even though there have been attempts by industry stakeholders to advance the inclusion of marginalized groups, there has been very little progress up to date. The framework developed will therefore facilitate the inclusion processes.

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2

Pandemics and the Construction Industry in Developing Countries Michael Adesi1, Duga Ewuga2, De-Graft Owusu-Manu1, and Neema Opiyo2 1

Kwame Nkrumah University of Science and Technology, Ghana Liverpool John Moores University, UK

2

2.1 Introduction Africa has long been noted for the emergence of infectious diseases. Significant work has also not been done, as African infectious disease researchers are underrepresented compared to their peers in other countries (Phoobane, 2022). Globally, pandemics have posed several challenges that have disrupted and threatened the socioeconomic development of many nations (Nkengasong and Tessema, 2020). Hitherto, the emergence of the COVID-19 pandemic, infectious diseases, such as HIV-AIDS, Ebola, and Cholera, among others listed by the CDCl, have caused the death of several people on the African continent, culminating in a slow pace of development. Recently, the COVID-19 pandemic has posed challenges and disruptions to socioeconomic development on the African continent. For instance, by December 2022, the coronavirus had infected 8,917,354 and killed 174,158 infected people in Africa (WHO, 2022). In addition to the COVID-19 and HIV-AIDS pandemics, infectious diseases such as Ebola, yellow fever, and Meningococcal Meningitis continue to affect large swathes of Africa at an explosive rate. These pandemics have severely impacted Africa’s economic, industrial, political, and environmental progress (World Health Organization African Regional Office, 2014). According to the World Health Organisation (2019), disease costs Africa $2.4 trillion annually, culminating in the loss of nearly 630 million healthy lives on the continent. The construction industry plays a significant role in controlling pandemics and the outbreak of other infectious diseases, as the sector is mainly responsible for providing emergency health care facilities (International Labour Organisation, 2021). The construction industry in Africa is a target market for investors in large economics due to comparative advantages such as huge natural resources; cheap labour; availability of large and diverse investment opportunities in energy infrastructure, and a fast-growing population that has the potential to drive the consumer market of the continent (Mordor Intelligence, 2022). The construction industry in Africa consists of commercial, residential, productive, and infrastructure sectors. The commercial sectors include both residential and private non-residential projects which deliver DOI: 10.1201/9781003340348-3

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housing, rental, and office accommodation. Infrastructure projects on the continent consist of roads and civil works such as constructing airports, ports, and bridges. The productive sector deals with industrial infrastructure construction, including factories producing goods and services. The social infrastructure sector of the construction industry in Africa is fundamental to the provision of capital projects that provide social interventions. Thus, the social infrastructure sector in Africa focuses on projects, notably healthcare facilities (hospitals, CHPS compounds), the construction of schools, and courthouses. As the COVID-19 pandemic continues to exacerbate Africa’s economic growth with a bleak economic and market outlook, the key sectors of the construction industry will be negatively affected in several ways. For instance, the 2020 construction output of SubSaharan Africa declined to 3.6%, a significant drop from the pre-COVID-19 output of 6% (GlobalData, 2020). Therefore, this chapter investigates the nature of pandemics as it affects the construction industry in Africa. Thus, the aim of the study shall be achieved by the following objectives: 1 2 3 4

Examine global pandemics’ timelines to enhance understanding of their behaviour and characteristics. Analyse the various pandemics and infectious diseases on the African continent. Examine the impacts of pandemics on the construction industry of Africa; and Suggest measures African countries can adopt to improve their resilience against the impacts of pandemics.

2.2 Brief history of pandemics: Understanding pandemics There are several explanations of the term pandemic, but this chapter adopts the definition of Bonneux and Van Damme (2010), which define a pandemic as an infectious disease transmitted across international borders and affects large parts of the population in a wide area. The main features of pandemics include geographical coverage, disease movement, explosivity, high rate of attacks, infectiousness, novelty, and severity, which are the criteria for defining a pandemic (Morens et al., 2009). The world has witnessed several pandemics over the decades with negative impacts on people of all races and the performance of industries and organisations. This chapter section presents a historical timeline of pandemics that have occurred globally. Specifically, the focus will be on the Athenian Plague, the Antonine Plague, the Justinian Plague, the Black Death, ‘Spanish Flu’, HIV, Severe Acute Respiratory Syndrome (SARS), ‘Swine Flu’ or H1N1/09 Pandemic, Ebola Outbreak (2014–2016), and ZIKA (2015–2016) (Huremović, 2019), which are shown in Table 2.1.

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Table 2.1 Timeline of global pandemics Serial No. 1 2 3 4 5 6 7 8 9 10 11 12

Name of Pandemic

Year of Outbreak

Number of deaths

Frequency of Occurrence

Plague of Justinian The black Death 3rd Cholera 5th Cholera H2N2 flu 6th Cholera H1N1 flu H2N2 flu H3N2 flu HIV/AIDS H1N1 flu COVID-19

541 AD

25,000,000

-

1346

75,000,000

805th year

1852 1881 1889 1910 1918 1956 1968 1981 2009 2019

1,000,000 290,000 1, 000,000 800,000 50,000,000 2,000,000 1,000,000 33,000,000 575, 400 5,127,696*

506th year 29th year 8th year 21st year 8th year 38th year 12th year 13th year 28th year 10th year

Source: Developed based on Poorolajal (2020) and WHO report on COVID-19COVID-19 deaths as of 18th November 2021.

The data in Table 2.1 shows that pandemics have caused devastation over the decades, especially the death of human beings. For instance, from the Justinian plague to H1N1 flu, pandemics have caused the death of 189 665 400 people across the globe without considering the total deaths caused by COVID-19. These 189,665,400 deaths from previous pandemics are equivalent to wiping out the entire population of Vietnam, the Democratic Republic of Congo, Turkey, and Namibia. The 5,127,696 COVID-19 deaths worldwide are equivalent to the destruction of the human population of Oman. This means that previous global pandemics have wiped out the entire population of countries. Table 2.1 has also shown that the occurrence and recurrence of pandemics have rapidly increased and have become unpredictable. A study by Piret and Boivin (2021) on pandemics demonstrates a timeline of global pandemics, consistent with Poorolajal (2021). The impacts of global pandemics include the loss of human life, economic slowdown, travel restrictions, closure of business units or markets, disruption of industry operations, and collapse of the global supply chain (Mofijur et al., 2021). These impacts can potentially disrupt several sectors of the African economy, including the construction industry.

2.3 Pandemics in Africa This section of the chapter focuses on pandemics in Africa over the years. The Africa Centre for Disease Control (CDC) was established by the

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African Union with the responsibility of detecting, controlling, and responding to the threats of potential diseases on the African continent through the health institutions of member countries. Overall, the Africa CDC lists 25 diseases which have occurred in Africa. Out of the 25 diseases, 14 are largely pandemics because they have infected people in more than one country on the continent. This section will analyse these pandemics on the African continent, starting from the recent one, COVID-19. 2.3.1 COVID-19: Global and Africa outlook Contrary to the popular view held by most people globally that the COVID19 pandemic will decimate the African continent in terms of its transmission and number of deaths, results from data available from various sources show otherwise. For instance, Table 2.2 demonstrates the number of COVID-19 cases globally and the number of deaths in the world’s six main regions: Africa, Europe, North America, Asia, South America, and Oceania. Compared with the rest of the world, Table 2.2 indicates that Africa has one of the least numbers of confirmed COVID-19 cases and death apart from Oceania. For instance, the results in Table 2.2 are also contrary to the views expressed by Melinda French Gates that coronavirus ‘will make Africa have dead bodies lying on the streets’ (Africa Check, 2020). The impacts of the diseases emanating from measures and restrictions implemented to curb the spread have far and wider consequences for the African economy due to the lack of infrastructure and weak macroeconomic environment on the continent. In addition to the COVID-19 pandemic, HIV-AIDS is another pandemic that has negatively impacted Africa and is discussed in the next section of this chapter.

Table 2.2 Confirmed COVID-19 cases and deaths for epidemiological week 10 from 7–13 March 2022 Region

Number of Confirmed Cases

Percentage of Cases

Number of deaths

Percentage of Deaths

Africa Europe North America Asia South America Oceania Total

11,658,022 170,387,140 96,048,279

2.47% 36.16% 20.38%

252,043 1,753,046 1,431,675

4.14% 28.73% 23.46%

132,728,980 55,670,046

28.17% 11.81%

1,384,848 1,271,818

22.69% 20.84%

4,700,487 471,194,603

1.00% 100%

8,480 6,101,932

0.14% 100%

Source: Developed based on data extracted from Worldometer 2022.

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2.3.2 HIV-AIDS HIV-AIDS timeline in Africa consists of the pre-pandemic era and pandemic period where the disease began to spread across the international borders of the continent, with much concentration in sub-Saharan Africa. The pre-pandemic era of HIV in Africa is when the first known strain of HIV-AIDS, the Simian Immunodeficiency Virus found in monkeys, entered humans in Central Africa and began to spread among the population in Léopoldville, the present-day Kinshasa of the Democratic Republic of Congo by 1920 (Faria et al., 2014; Keele et al., 2006 and Worobey et al., 2008). The pre-pandemic timeline of HIV-AIDS on the continent involves the discovery of the disease through the testing of preserved blood sample of a man who died in Congo was tested by malaria researchers and found to have died of HIV in 1959 (Pence, 2008 and Worobey et al., 2008). By the 1990s, HIV-AIDS had become a global pandemic. The World Health Organization (WHO) reported 620,000 Africans contracted AIDS from 1980 to 1997 (Shisana, 2003). Table 2.3 shows the HIV-AIDS situation and trends throughout the world, with more cases occurring in Africa. As of 2020, out of the 37.7 million lives affected by HIV, 25.7 million are in Africa (WHO, 2021). Table 2.3 shows that the HIV-AIDS pandemic has infected more Africans than people living in other locations around the globe. For instance, the number of infected cases in Eastern and Southern Africa is more than the combined cases in the rest of the world shown in Table 2.3. Again, the HIV infections in Africa in 2020 exceed the rest of the world. In addition to Tables 2.2 and 2.3, Table 2.4 presents 11 different pandemics on the African continent. Table 2.4 shows that the annual rate of pandemics occurring in Africa is one year. Similarly, the results in Table 2.4 demonstrate that pandemics occur in a country and then spread to countries Table 2.3 Number of people living with HIV globally in 2020 Region

Number of Infected

Number of New HIV Infections

Eastern and Southern Africa Western and Central Africa Asia and Pacific Western, Central Europe and North America Latin America Eastern Europe and Central Asia Caribbean The Middle East and North Africa

20.6 million 4.7 million 5.8 million 2.2 million

670,000 200,000 240,000 67,000

2.1 million 1.6 million 330,000 230,000

100,000 140,000 13,000 16,000

Source: Developed based on UNAIDS Data, 2021.

Ebola

Yellow Fever

Cholera

Dengue Fever

Crimean-Congo Haemorrhagic Fever Chikungunya

2008–2019

2008–2017

2008–2019

2009–2017

2003–2018

2015–2019

Disease

Year

2015, 2016, 2018, 2019

2003, 2011, 2013, 2015, 2018

2009, 2015, 2016, 2017

2019, 2018, 2017, 2015, 2014, 2012, 2011, 2010, 2009, 2008

2019, 2018, 2017, 2014–2016,2012, 2011, 2008 2017, 2016, 2014, 2013, 2012, 2011, 2010, 2009, 2008

Year of Recurrence

Table 2.4 Other pandemics in Africa

Congo, Sudan, Kenya, Senegal

Uganda, DRC, Liberia, Guinea, Sierra Leone, Nigeria, Senegal Nigeria, Uganda, DRC, Kenya, Angola, Sudan, Cameroun, Ethiopia, Chad, Ghana, Senegal, Sierra Leone, Cote d’Ivoire, Guinea, Central Africa Republic, Liberia, Congo, Burkina Faso Ethiopia, Cameroun, Tanzania, Angola, Algeria, Mozambique, DRC, Somalia, Kenya, Zambia, South Sudan, Republic of Congo, Cameroun, Chad, Niger, Nigeria, Zimbabwe, Guinea-Bissau Burkina Faso, Côte d’Ivoire, Egypt, Cape Verde Uganda, Senegal, South Africa, Mauritania

Number of Countries with cases

235,451

18

4

4

8,404

62

27,690

2,317

18

4

31,143

Number of Cases

7

Number of Countries

(Continued)

-

17

35

7601

743

12,983

Number of Deaths

Pandemics and the Construction Industry 33

Disease

Hepatitis E Virus

Lassa Fever

Meningococcal Meningitis

Poliomyelitis (Polio)

Rift Valley Fever

Year

2017–2018

2016–2018

2008–2017

2008–2018

2008–2018

Table 2.4 (Continued)

2008, 2009, 2010, 2012, 2016, 2018

2008, 2009, 2010, 2013, 2014, 2015, 2016, 2017, 2018

2008, 2009, 2010, 2011, 2012, 2013, 2015, 2016, 2017

2016, 2017, 2018

2017, 2018

Year of Recurrence Namibia, Nigeria, Niger, Chad Liberia, Nigeria, Benin, Togo, Burkina Faso Liberia, Nigeria, Togo, Niger, Guinea, South Sudan, Benin, Burkina Faso, Chad, Cote d’Ivoire, Ghana, Sudan, DRC, Uganda Somalia, DRC, Nigeria, Madagascar, Cameroon, Equatorial Guinea, South Sudan, Kenya, Ethiopia, Congo, Angola Kenya, Uganda, Niger, Mauritania, South Africa, Madagascar

Number of Countries with cases

1,431

791

11

6

37,015

1,074

1,006

Number of Cases

14

5

4

Number of Countries

116

85

2473

413

41

Number of Deaths

34 Michael Adesi et al.

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closest to the borders of the disease’s epicentre. For instance, the 2014–2016 Ebola virus disease started in Guinea and spread across the boundaries of Liberia and Sierra Leone, as shown in Table 2.4. In Table 2.4, Cholera has infected more people, followed by Meningococcal Meningitis and Ebola. However, Ebola has the highest number of deaths, followed by Cholera in Table 2.4. Tables 2.2, 2.3, and 2.4 show that HIV-AIDS has infected and killed more people, followed by COVID-19, Cholera, Meningococcal Meningitis and Ebola in Africa. In terms of explosivity, HIV-AIDS ranks high, followed by COVID-19, Ebola, Cholera, Meningococcal Meningitis, and Dengue Fever. COVID-19 and HIV-AIDS have been confirmed in all the African countries as these two pandemics continue ravaging the continent with significant drawbacks to Africa’s construction industry and infrastructure development. However, Table 2.4 shows that other pandemics in the continent have not spread to all the African countries. For instance, Table 2.4 shows that cholera, yellow fever, and meningococcal meningitis have infected people in 19, 18, and 15 countries, respectively. However, Ebola, which infected people in eight countries, has killed more people in those countries than the total number of deaths caused by cholera, yellow fever, and meningococcal meningitis. Drawing from the results in Tables 2.3 and 2.4, Africa remains a reservoir for 11 pandemics, excluding COVID-19, which has its origin in another country and continues to spread throughout the world at the time of writing this chapter. Thus, it is necessary to point out that these pandemics in Tables 2.2, 2.3, and 2.4 potentially impact the African continent’s economic growth. Therefore, the next section of this chapter focuses on the impact of pandemics on Africa’s economic growth by using COVID-19 in most cases and HIV AIDS, which are the diseases that continue to cause the deaths of Africans.

2.4 Impacts of pandemics on the economic growth of Africa After two and half decades of economic recession, the economy of SubSaharan Africa grew by 4% in 2021, driven by 1.2% and 0.3% growth in Nigeria and South Africa, respectively (Zeufack et al., 2022). Also, the growth rate is underpinned by easing the first wave of COVID-19 restrictions, higher commodity prices, and global trade recovery. However, this growth in the economy of Sub-Saharan Africa is not sustainable due to the mutations of the COVID-19, such as the delta and Omicron variants which have the potential to delay vibrant economic activities. Similarly, the growth is also undermined by increasing debt levels of subSaharan African countries, supply chain difficulties, increasing inflation and the use of tough financial measures. Furthermore, projections indicate that the 4% growth cannot be sustained beyond 2022, as sub-Saharan Africa’s economic growth declined from 4% to 3.6% in 2021(Zeufack et al., 2022). The COVID-19 pandemic has led to the shutdown or the downsizing of

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Table 2.5 Declining sales in Africa’s economic sectors during the COVID-19 pandemic Economic Sectors

Percentage of Reduced Sales (%)

Hospitality and accommodation Food services Transport and storage Other services Construction Manufacturing Information and Communication Technology Retail and whole Financial services

−74 −63 −54 −54 −51 −50 −50 −45 −43

Source: Developed based on data adapted from Davis et al. (2021).

operations and a continuous decline in the sale of products and services (Zeufack et al., 2021). The decline in sales due to COVID-19 in Africa has reduced the number of people employed by firms. For instance, Davies et al. (2021) note that the probability of firms hiring during the COVID-19 pandemic is 0.05. For example, Table 2.5 shows the decline in sales in the various sectors of the African economy during the COVID-19 pandemic. From Table 2.5, it is apparent that the construction industry has seen 51% of output in sales, a phenomenon which has dire implications for the infrastructure development of Africa. Also, the COVID-19 pandemic has led to wage stagnation and reduced work hours, affecting labour productivity and output. Pandemics can also create economic shocks that impact the African economy negatively. As the COVID-19 pandemic continues, it has generated shocks that have adversely impacted the economies of African countries. The various economic shocks due to the COVID-19 pandemic in Africa are shown in Table 2.6. Table 2.6 COVID-19 shocks to Africa’s economy No. Shocks due to COVID-19

1 2 3 4 5 6 7 8

Labour supply External demand Oil price Global non-oil price Non-oil export price index Non-oil import price index Investment (for FDI, remittances, etc.) Government revenue

Scenario 1 Scenario 2

Scenario 3

Optimistic

Less Pessimistic Pessimistic

−20.0% −10.0% $40.0 −5.0% −5.0% −1.5% −25.0%

−30.0% −12.5% $35.0 −10.0% −7.5% −2.5% −30.0%

−40.0% −17.5% $30.0 −15.0% −10.0% −3.5% −40.0%

−15.0%

−20.0%

−25.0%

Source: Adapted from Economic Commission for Africa, 2021.

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The three main shocks of the COVID-19 pandemic are demonstrated in optimistic, less pessimistic, and pessimistic scenarios for the African economy. These shocks are projected to cause a decline in labour supply, external demand, global oil prices, and non-oil export and import price index and investment. Consequently, government revenue will decline by 15%, 20%, and 25% for optimistic, pessimistic, and pessimistic scenarios, respectively. Similarly, Table 2.7 shows the impacts of Covid-19 on key economic indicators in Africa, such as gross domestic product (GDP), consumption, and investment, among others. Table 2.7 shows a total decline in the performance of the economic indicators in Africa during the COVID-19 pandemic. Decline in investment and labour supply due to the COVID-19 has negatively impacted GDP by −4.04 and −3.84, respectively. Though GDP in Africa is projected to recover by 1.4% in 2022, this will not be enough to put the GDP of Africa on the pre-COVID-19 threshold (Economic Commission for Africa, 2020). This situation shows the pandemic’s huge impact on the GDP of the African region. Consequently, government revenue remains plateaued at 0, indicating that the capital formation of most African countries during the pandemic has shrunk. The decline in government revenue will significantly decelerate the rate of infrastructure development, particularly construction projects financed from public sector funds in Africa. 2.4.1 Impacts of pandemics on the African construction sector There is a significant relationship between the construction industry and the economic performance of many nations. Thus, the negative impacts of the pandemic on African economies will adversely affect the construction industry in Africa. This section examines the impact of Covid-19 and HIVAIDS pandemics on the construction industry in Africa. 2.4.1.1 The impacts of the COVID-19 pandemic on the construction industry in Africa The construction industry’s performance is strongly linked to the economic output of many nations (Adesi, 2020). Thus, the construction industry is cyclical by responding to uncertainties in the economic environment. The poor performance of the African economy due to the COVID-19 shocks has a domino effect on the performance of the African construction industry. According to the International Labour Organization (ILO) (2021), the construction industry has experienced major adverse negative impacts due to the COVID-19 pandemic. The adverse consequences of the COVID-19 pandemic are expected to have ‘knock-on effects’ on the performance of the African construction industry. Drawing from the Economic Commission for Africa (2020), the impacts of the COVID-19 pandemic on the construction industry will be felt in the following areas:

0.09 0.00

−17.15 −10.81

−1.31 −0.87

−0.03 0.00 −0.06 −0.08 0.30 0.20

0.00 0.00 −0.01 0.02

Non-oil Export Prices

Source: Developed based on data from Economic Commission for Africa, 2021.

−0.02 0.00 −0.24 0.01

−0.46 −0.02 −0.22 −0.93

GDP growth Consumption Investment Government consumption Exports Imports

Global Oil Global Price Non-oil Prices

External Demand

Economic Indicator

0.00 0.00

0.00 0.00 0.00 0.00

Non-oil Import Prices

0.00 −12.97

−4.04 −0.20 −40.66 0.00

0.00 0.00

0.00 0.00 0.00 0.00

Investment Government Revenue

Table 2.7 Marginal impacts of COVID-19 pandemic shocks on African economies in 2020

0.00 −6.78

−3.84 −0.22 0.00 −38.52

Labour Supply

−18.06 −31.24

−8.40 −0.44 −41.19 −39.50

Total Effect

38 Michael Adesi et al.

Pandemics and the Construction Industry 1 2 3 4 5 6 7 8 9 10

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Safety and security Health Expenditure Investment patterns Unpredictable production patterns Labour Absenteeism Capital flows Inflation Trade patterns Fiscal revenue Household income

The COVID-19 pandemic significantly impacts the safety and security of construction projects, with both positive and negative implications for recovery and post-COVID-19 period (Stiles et al., 2021). The negative consequences of the COVID-19 pandemic for safety include distractions, depletion of resources, lack of general well-being, organisation pressures on construction firms, and an increasingly transient workforce. In terms of positive implications, the COVID-19 pandemic has the potential to improve the safety and security agenda in the African construction industry. Most construction projects do not make provisions for health expenditures on a construction site and head offices. However, the emergence of the pandemic has led to the implementation of mandatory guidelines, which leads to extra costs. An investigation by Amoah et al. (2021) notes that the provision of safety gadgets and lack of contingency funds for construction projects during the COVID-19 pandemic led to extra health expenditure in construction firms. As the impacts of the COVID-19 pandemic continue to affect the infrastructure delivery rate, investments in Africa’s construction industry will decline as most of the resources are being used to mitigate the negative consequences of the pandemic. Also, the looming economic crises caused by the COVID-19 pandemic in African countries will reduce investments in the construction industry as there will be a freeze on public sector infrastructure projects. The contraction of investment in the construction industry also leads to the unpredictability of production in the sector. The COVID-19 pandemic led to a decline in production patterns and erratic output in the construction industry. COVID-19 restrictions such as lockdowns reduced the number of days and hours spent on construction sites. This has reduced the volume of work and overall output of the African construction industry. Construction labour is important to successfully delivering projects within budget and timeline. However, the COVID-19 pandemic has increased labour absenteeism to the extent that construction sites located in areas hard-hit by the pandemic on the African continent are without labour to execute tasks. COVID-19 created severe financial consequences for firms throughout the world due to a decrease in demand, sales and shrinking profits margin (Shafi et al., 2020). A global reduction in demand, sales, and profitability has a domino effect on the construction industry in Africa since the business

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activities of the continent are linked to other parts of the world. Thus, the declining profitability and lack of investment lead to a lack of capital flow in the construction industry. One of the lingering effects of the COVID-19 pandemic in Africa is the increasing prices of goods and services, including the price of construction materials and related services required in the industry. Higher inflation levels lead to tender price inflation in the African construction industry. Increasing tender price inflation in the industry leads to budgetary overruns for construction projects in Africa. There is a strong link between the performance of the construction industry and the economic activities in Africa. An economic solid with a buoyant trade positively impacts the construction output. Thus, trade activities on the African continent drive construction in member states. However, the construction industry has disrupted the intra-African trade patterns, which consequently affects the construction industry’s performance in Africa. Trade requires infrastructure such as roads, railways, and the construction of commercial areas, which the construction industry can only provide. A decline in trade volume as a result of COVID-19 on the African continent leads to a fall in demand for construction projects and related services. COVID-19 is driving an increase in global inflation in which African countries are the most affected. In addition, the COVID-19 pandemic has affected the finances of many nations in Africa. According to Chernick et al. (2020), fiscal revenue shortfalls due to the COVID-19 pandemic occur through a decline in monies generated from taxes and charges; less nonavailability of aid to local and central governments. The economic shocks of the COVID-19 led to a reduction in the revenue channels to many African countries with concomitant negative effects on the performance of the African construction industry. The pandemic has exacerbated the fiscal challenges of sub-Saharan African countries as they have to spend their meagre revenues on purchasing protective equipment and vaccines against the pandemic (Aslam et al., 2022). This phenomenon led to the construction industry’s reduction or even nonavailability of infrastructure development projects. While a majority of the discussions on the impact of the COVID-19 pandemic focused on health and safety, economic slowdown, business disruption and labour productivity, it is also necessary to indicate that the pandemic has significant effects on the household income of construction workers in Africa. Construction labour is transient and largely temporary. Majority of the workforce are paid wages and not monthly salaries compared to public sector workers. Thus, the lockdowns and other associated challenges of the pandemic greatly affect the household income of workers in the construction industry. COVID-19 can impact several aspects of the African construction industry, such as construction enterprise, construction site activities, construction workforce, and labour shortages. The significant number of informal sector workers in Africa, coupled with the COVID-19 restrictions such as lockdowns, negatively impact the construction industry, which has a large mass of informal workforce (ILO, 2020). The negative impacts of the

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Table 2.8 Percentage of construction output decline in a COVID-19 pandemic in 2020 Country

Percentage of Decline

South Africa Nigeria Kenya Ghana

5.9 2.1 3.1 −4.3

Source: Developed based on data from GlobalData 2022.

COVID-19 pandemic posed several challenges, such as liquidity shortage and bankruptcy in construction firms, especially the small and medium-sized ones. Supply chain challenges created by the COVID-19 pandemic in the African construction sector include labour shortage; disruption of materials distribution; closure of factories that produce construction components; and restricted transportation of machines and equipment (ILO, 2020). The COVID-19 pandemic also affected the output of construction in some of the African countries that had buoyant economies prior to the outbreak of the pandemic. Thus, countries such as South Africa, Nigeria, Kenya, and Ghana have the output of their construction sector declined by 5.9, 2.1, 3.1 and 4.3, respectively, in Table 2.8 (GlobalData, 2020). 2.4.1.2 Impact of HIV-AIDS on construction in Africa The massive spread and infection of HIV-AIDS among the economically active population of Africa pose a significant threat to the output and performance of the construction industry on the continent (Dickinson and Innes, 2004). According to Harinarain and Haupt (2014), the impact of the HIVAIDS pandemic on the construction industry cannot be ignored due to the Table 2.9 Impact of HIV-AIDS on construction in Africa Impacts of HIV-AIDS on Construction

Source

Declining quantity and quality of labour force Disrupt or shift the age structure of the construction labour force Diminishing construction sector output leads to a contraction of the GDP Increasing costs leading to erosion of profits Labour absenteeism and low output Increasing labour turnover due to the need to replace workers lost to the HIV AIDS pandemic High cost of recruitment and training

Fourie (2006); Whiteside and Sunter (2000) Haupt and Smallwood (2004); Ibrahim et al. ( 2010) Ahwireng-Obeng and Akussah (2003) Harinarain and Haupt (2014)

Harinarain and Haupt (2014)

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Michael Adesi et al.

catastrophic threat it poses to Africa’s sector. Table 2.9 provides the various impacts of HIV-AIDS on Africa’s construction industry based on investigations carried out by scholars.

2.5 Measures for addressing the impacts of pandemics in Africa This section focuses on the measures that African countries can adopt to mitigate the effects of pandemics on the various aspects of social life and economic sectors, such as the construction industry. The proposed measures include the following: 1 2 3 4 5 6 7

Restructuring procurement processes to include clauses that cater for emergencies created by pandemics Pandemic forecasting Social protection Digitization Accelerated infrastructure investment Pandemic policies Academia-industry collaboration

Figure 2.1 Proposed measures for mitigating future pandemics in Africa.

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The aforementioned measures have been organised in a pictorial view in Figure 2.1, followed by their discussion. 2.5.1 Restructuring construction contracts procurement Construction projects have been significantly affected during the outbreaks of pandemics in Africa. It is necessary to indicate that the construction industry provides the physical facilities needed to mitigate pandemics. This is because physical infrastructure such as hospitals and infectious disease centres have been used to prevent pandemics from spreading. Though most construction contracts have clauses that address issues relating to force majeure, it is apparent that the recent outbreak of COVID-19 and the 2014–2016 outbreak of Ebola in Liberia, Sierra Leone, and Guinea indicate that some events can prolong with a high cost of emergencies. Therefore, it is necessary to reconsider the formation of construction contracts by restructuring them to allow for the inclusion of clauses that focus on future pandemics. Other considerations for mitigating the impacts of pandemics on the construction industry include the following: 1 2 3

Contractual provisions for adjusting project durations and financial resources Financial institutions implementing repayment delays to enhance the liquidity of construction SMEs; and Stimulus packages for construction firms during prolonged pandemics.

2.5.2 Social protection programmes The challenges that pandemics pose to the African construction industry can be mitigated by measures listed in this section, which have also been suggested by authors like Harinarain and Haupt (2014), including: 1 2 3 4 5 6 7

Formulating policies or legislation that reduce stigmatisation and discrimination of victims. Company policies that compel management and leadership to ensure the protection of employees against infectious diseases. Promoting information exchange on pandemics through mass communication. Adoption of public-private partnership approaches to address labour issues in the construction industry. Suspension of taxes and fees to enable construction firms to encourage construction firms to retain employees during pandemics. Introduction of paid sick leave. Occupational Safety and Health protocols should include pandemic impact mitigation measures.

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2.5.3 Adopt robust and effective approaches the forecasting potential pandemics Predictive models have become important tools in providing early warning and detection of pandemics so that healthcare providers can educate the public regarding protection measures. While developed countries have improved predictive modelling in monitoring potential infectious diseases, the African continent significantly lags in using such predictive models. Some of the predictive models usually adopted for forecasting pandemics include: 1 2 3 4 5 6 7

Models for forecasting/predicting pandemics: for early warning and detection. Predictive Analytics-Based Intelligent for malaria (Modu et al., 2017). the machine learning model for dengue forecast (Guo et al., 2017). Deep Learning and Big Data predictive models for infectious diseases (Chae et al., 2018). Machine Learning models for predicting epidemics (Masinde, 2020). Maxent models for diseases’ spatial and seasonal distribution (Manyangadze et al., 2016). Susceptible-Infected-Recovered (SIR) models.

2.5.4 Digitisation Digitisation plays an important role in mitigating the spread of pandemics, as it reduces the physical contact of people during business transactions. The level of digitisation continues to increase globally. However, the construction industry requires an accelerated level of digitisation, as it lags in the uptake of digital technologies. Similarly, the use of digital technologies in Africa is low. Digitisation has been widely used to control the spread of COVID-19 by developing mobile applications for location data tracking suspected cases. The African continent must prepare for the next pandemic by developing a digital response. Key areas of digital response necessary for consideration in Africa include the following: 1 2 3 4 5 6 7

Public health information Health care connectivity E-Learning Digital payments Pandemic tracking Business continuity Telemedicine

Africa’s digital response to COVID-19 in the seven key areas listed earlier is low, as shown in Table 2.10. Thus, African countries must improve their

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Table 2.10 Digital response to COVID-19 in Africa Digital Service Responses to Pandemics

Percentage of Response

Public health information Health care connectivity E-Learning Digital payments COVID-19 tracking Business continuity Telemedicine

15% 7% 22% 35% 4% 16% 1%

Source: Developed based on data from World Bank Global Digital Development Policy Response Database, 2021.

Table 2.11 Future outlook of increasing digital technology application in African economies Economic Activity

Probability of Increasing Digital Technology Usage

Agro and mining Construction and utilities Accommodation Manufacturing Food preparation services Transport and storage Retail and wholesale ICT Services Financial services Other services

0.16 0.17 0.19 0.19 0.21 0.22 0.26 0.39 0.4 0.23

Source: Adapted from Davies et al., 2021.

digital technology uptake to be digitally prepared for the impacts of future pandemics on the continent. In addition, the probabilities of increasing the level of digitisation in various sectors of the African economy remain low, as shown in Table 2.11. 2.5.5 Accelerated infrastructure development Infrastructure development can potentially mitigate pandemics’ impacts, as they can isolate and eliminate infectious diseases, thereby reducing their explosivity and transition to pandemics in Africa. During the outbreak of COVID-19, countries such as Ghana used the public–private partnership approach to construct Ghana Infectious Disease Center (GIDC). Figure 2.2 presents a case on the GIDC: During Update Number 8 on COVID-19, 26 April 2020, the president of Ghana announced the construction of 111-bed hospitals in various districts

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Michael Adesi et al.

Figure 2.2 Accelerated infrastructure development.

of Ghana to improve the health infrastructure. The project is popularly called the ‘Agenda 111’, part of the Ghana Priority Health Infrastructure Projects. The box, Case 2 in this chapter, provides the details of ‘Agenda 111’. The ‘Agenda 111’ is to construct a quality, standard-design, one hundred-bed hospital with accommodation for doctors, nurses, and other health workers within a year in six administrative regions of Ghana. The three main objectives of ‘Agenda 111’ include the following: 1 2

3

The objective of the agenda 111 is to ensure that Ghanaians in every district and region in Ghana have access to quality healthcare services. The project will enhance the provision of healthcare infrastructure to promote in line with universal health care to all citizens and attainment of United Nations’ Sustainable Development Goal 3 (SDG3). To achieve the Government of Ghana’s policy on the availability of a hospital in each district and region and improve the geographical coverage of healthcare delivery in the country for improved accessibility to healthcare by all Ghanaians.

Some African countries’ efforts are being made to improve health infrastructure delivery; such efforts are just ‘little drops of water in a big ocean of infrastructural deficits.’ Thus, African countries must invest in infrastructure for the next ten years. 2.5.6 African-wide pandemic policy and legislations championed by the African union Policies are also needed to develop the resilience of Africa against pandemics. Policies targeted at developing the continent’s capacity against pandemics must highlight long-term measures and programmes that countries must implement irrespective of the government in power. For instance, during COVID-19,

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public–private partnership has proven to be an essential vehicle for the rapid response of countries in addressing or mitigating the spread of the virus. For instance, Ghana’s GIDC was constructed through private and public partnership initiatives. Similarly, Ghana has enacted the Public–Private partnership Act (Act 1039), also known as the ‘PPP Act’. Through the African Union, the Africa CDC must champion the promulgation of the PPP Act in African countries for enhanced and transparent collaboration between the public and private sectors to mitigate, control and eliminate infections, diseases, and pandemics in Africa. 2.5.7 Industry-Academia collaboration A robust policy on PPP in Africa can drive collaboration between industry and academia represented by African universities, primarily public sector institutions. Within the context of industry-academia collaboration in the fight against pandemics in Africa, research collaboration and manufacturing of healthcare facilities or equipment should be the priority of private sector entities with the support of universities through research and development. For instance, industry-academia collaborations in some African countries have led to the development of COVID-19 tracking apps and diagnostic test kits recognised by the Africa CDC.

2.6 Conclusion This chapter explores the nature of pandemics in developing countries, focusing much on African countries. Specifically, the chapter delves into the history of pandemics at the global level; analysis of pandemics and infectious diseases in Africa, including their origin. Furthermore, this chapter examines the impacts of pandemics on the performance of African economies and associated impacts on the construction industry in Africa. The chapter demonstrated that the rate of pandemics occurrence in Africa is yearly. In addition, the chapter has proposed seven main measures that African countries can adopt to mitigate potential pandemics on the continent.

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Collaborative Flow of Work in the Construction Industry Titus Ebenezer Kwofie1, Daniel Yaw Addai Duah2, Michael Nii Addy3, Clinton Aigbavboa4, and Samuel Amos-Abanyie5 1

cidb Centre of Excellence, Faculty of Engineering and the Built Environment, University of Johannesburg South Africa and Department of Architecture, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana 2 Dean International Programs Office and Department of Architecture, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana 3 Department of Construction Management and Technology, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana 4 cidb Centre of Excellence, Faculty of Engineering and the Built Environment, University of Johannesburg, South Africa 5 Department of Architecture, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana

3.1 Introduction Collaboration has received due significance in the literature on teamwork, organisational effectiveness, work and role interdependence, and project delivery integration in various contexts as well as in performance because an effective collaborative working and process help in achieving the objectives of a project, team balance and overcoming fragmentation in the design and construction process. However, the term collaboration has variedly been conceptualised and defined, especially in construction management. The lack of collaborative working within the construction industry of many developing countries has been a longstanding issue that has often been highlighted (Emuze and Smallwood, 2014; Kwofie et al., 2017 & 2019; Rahman and Kumaraswamy, 2012). Conventionally, construction project delivery and workflow, especially in developing countries, have been conducted within a fragmented and adversarial environment, with growing stakeholder dissatisfaction and frequent disputes common (Emuze and Smallwood, 2014; Rahman and Kumaraswamy, 2012). Dziubaniuk et al. (2022) noted that project delivery and workflow tasks and activities in developing countries had become highly internationalised, DOI: 10.1201/9781003340348-4

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involving multi-stakeholders and professionals of varied background that often requires the facilitation of collaborative workflow among international networks of stakeholders and tasks performers. Aaltonen et al. (2015) and Ivanova and Torkkeli (2013) appreciated that workflows and interactions among project teams and stakeholders in developing countries are frequently associated with risks and tensions. It is well acknowledged that workflows and task functions in project delivery are highly relationshipbased and often involve a diversity of project stakeholders and facilitators. In this regard, Ayuso et al. (2011), Bendell et al. (2010) and De Bakker et al. (2019) noted that due to the socio-political, systemic and cultural contexts of different countries, there is often inherent complexity in the networks formed especially in developing countries. This makes effective interaction, coordination and workflow collaboration among project teams and workgroup task functions and actions a more nascent necessity in project implementation and country-specific contexts (Artto and Kujala, 2008; De Bakker et al., 2019). Workflow collaboration and interactions have become fundamental fragments of task functions, activities and project network management, facilitating a continuous exchange of technologies, financial support, human resource expertise, cognitive knowledge and others (Ayuso et al., 2011; Bendell et al., 2010). Continuously, several scholarships have highlighted a need to engender a more collaborative workflow in project delivery on a global scale, especially in developing countries. In recent times, collaborative workflow and interactions are increasingly being suggested as fundamental to developing successful partnerships, strategic alliances, encouraging teamwork, sharing of information and building trust (Emuze and Smallwood, 2014; Eweje et al., 2020; Kwofie et al., 2019). The need to improve collaborative working within construction workflows, especially in developing countries, is well documented and acknowledged. However, in scrutinising the extant literature on collaborative working, collaborative workflow and collaborative effectiveness, the existing knowledge has ignored the context of developing countries. In this regard, this chapter focuses on collaborative workflow in construction project delivery in developing countries. Given the highly volatile project environment, sociocultural variabilities and geopolitical challenges in developing countries, understanding collaborative workflow in the developing country context can lead to the optimisation of its benefits, improvement in collaboration stakeholder networks and greater responsiveness to user requirements towards project delivery effectiveness and success. This assertion is important because adversarial tensions and risks often accompany workflows and interactions among parties in developing countries’ contexts to the stakeholder and team collaboration (Ivanova and Torkkeli, 2013; Tennakoon et al., 2022). In this regard, special attention must be given to the socio-cultural and country-specific contextual

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conditions and attributes affecting collaborative workflow and multistakeholder collaborative effectiveness in project implementation.

3.2 Evolution and progress in collaborative workflow Collaborative workflow is a working model that emerged from the broad concept of collaboration. Collaboration is comprehensively defined by Bedwell et al. (2012) as “an evolving process whereby two or more entities or organisations actively and reciprocally engage in joint activities to achieve at least one shared goal”. According to Bedwell et al. (2012) and Barratt (2004), collaboration emerged in the mainstream supply chain in the 1990s and has since taken numerous forms and been conceptualised in various ways in different disciplines. Collaboration has dominantly been perceived as a process. It can occur at individual, team, group and inter-organisational levels (see Aaltonen and Turkulainen, 2018; Barratt, 2004; Kwofie et al., 2019; Sabath and Fontanella, 2002). From extant literature, collaboration was seen as a strategic management approach that enabled organisations and teams to match their task functions and actions to the changing and highly competitive environment and achieve superior performance in competition (Mor et al., 2018; Routroy et al., 2018). The onset of collaboration was seen in risk-sharing, mutuality of benefits and rewards (Cao and Zhang, 2011; Ireland and Bruce, 2000; Kalay, 2001; Sabath and Fontanella, 2002). In the architectural and engineering construction industry (AECI), collaboration has been recognised as a solution to the industry’s challenges and responding to the changing environment in project delivery (Morrell and Learmonth, 2015; Bemelmans et al., 2012). In the last decade, collaboration in the construction sector has been operationalised in many forms, such as collaborative working, collaborative learning, collaborative planning, collaborative practices, collaborative sharing, collaborative procurement, collaborative relationship and collaborative workflow (Kwofie et al., 2017 & 2018; Manley and Chen, 2016; Xue et al., 2010; Emuze and Smallwood, 2014; Saukko et al., 2020; Suprapto et al., 2015). In the construction sector, these forms of collaboration have increasingly been viewed from the process perspective and thus deemed to take place at the individual, team, group, organisational and industry levels (Faris et al., 2022; Manley and Chen, 2016). Collaborative workflow is conceived as a design and management concept and a process that ensures a continuous and consistent flow of resources through diverse locations in a project in the planning and control of day-to-day construction tasks (Bertelsen, 2002; Koraltan and Dikbas 2002). Project workflow is often described as a planned and coordinated process that shows what, when and how activities are taken on certain tasks to complete a construction project (Bertelsen, 2002; Koraltan and Dikbas 2002). The fragmented nature of the construction industry, delivery process and activities and project complexities necessitated the

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exploration of collaborative workflow management as a panacea for improving productivity and efficiency in task functions and activities to deliver construction projects. Collaborative workflow in construction was explored as a remedy to the concern about how best to plan and control projects and determine the optimised strategies depending on the project type, size and culture (Bertelsen, 2002). Workflow planning and scheduling of construction processes, activities and tasks in construction have gained sustained attention and become an active research subject since the 1950s. In that time, many techniques and methods have emerged. The onset of workflow planning, control and management in construction saw the development and adoption of essential tools and techniques such as the critical path method (CPM) as an influential pattern for practical scheduling of construction tasks, activities and workflow (Bertelsen, 2002; Monden, 1998). In spite of the widespread use of CPM and its antecedent benefits to workflow planning, inefficiencies persisted due to practical and methodological reasons (Alazmeh et al., 2018; Jongeling and Olofsson, 2007). Later workflow management and planning techniques also provided restricted insight into the spatial configuration of construction and building operations, limiting communication and information sharing among project participants and stakeholders and consequently limiting workflow planning and control. From the turn of the 1908s, the construction industry pursued process models, tools and techniques for workflow management in construction project delivery that provides project participants, facilitators and stakeholders with spatial awareness and understanding of the flow of construction work and operations. This era novated lessons of workflow planning, management and control from the manufacturing industry to change the conventional sequential operational and development process into cohesive concurrent engineering processes (Andersson and Hammersberg, 2007; Toolanen and Olofsson, 2006; Womack et al., 1990). As noted by Toolanen and Olofsson (2006), the concurrent design processes required less engineering hours. This resulted in products being better adapted to the production and operational processes, thus bringing about a better quality of the product outcome and process efficiency. In the construction industry at the turn of the 2000s, most workflow models and techniques aimed at promoting collaboration were founded on the combination of dual concepts of Virtual Design and Construction and Lean Construction (Jongeling and Olofsson, 2007). The process models in these two models provide for macro-and micro-workflow management (Bertelsen, 2002; Jongeling and Olofsson, 2007). In macro workflow management, planning and control workflows centred on an amalgamation of locationbased scheduling and nD computer-aided design (CAD) are seen as an alternative to the common discipline-oriented work breakdown scheduling approach (Bertelsen, 2002; Jongeling and Olofsson, 2007). Micro workflow management, on the other hand, is a vehicle for planning and controlling

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day-to-day construction tasks (Andersson and Hammersberg, 2007; Monden, 1998). Currently, the industry seeks to pursue a novel approach for planning, controlling and managing construction workflow based on the blend of location-based scheduling and simulations towards reliability in predictions, process efficiency, reducing errors and workflow improvement. This approach facilitates products and processes to be designed virtually and simulated before commencing construction to appraise various design and construction options against project objectives (Jongeling and Olofsson, 2007; Koskela et al., 2002). This era has led to extensive information technologies such as multi-dimensional (nD) modelling like BIM and mobile applications in collaborative workflow planning, control and management (Eastman, 2011; Elghaish et al., 2019; Jongeling and Olofsson, 2007). 3.2.1 Theoretical perspectives of collaborative workflow The theoretical underpinnings and conceptualisations of collaborative working and collaborative workflows are often based on the three phases of preconditions, process and outcomes (Patel et al., 2012; Thomson and Perry, 2006; Wood and Gray, 1991). From extant literature, it can be gathered that collaborative workflow has consistently been conceptualised as a linear function embedded in the three phases of collaborative working in teams, inter-team and inter-organisations (Patel et al., 2012; Thomson and Perry, 2006). Wood and Gray (1991) explained the preconditions phase as the set. They desired the conditions that motivate, encourage and facilitate the commitment and participation of participants and stakeholders in the collaborative working process and workflow activities. The process phase has been expressed as the systematic structure that elaborates how collaborative working and activities are practically undertaken and upheld (Thomson and Perry, 2006; Wood and Gray, 1991). The outcome phase refers to the desired and expected outcome of the collaborative working and workflow activities (Wood and Gray, 1991). Essentially, collaborative working relating to workflows and activities in a construction project environment is embedded in the interactive process (Wood and Gray, 1991). However, literature has mainly focused on pre-conditions and outcome phases of the collaborative workflow. This position is shared by Ring and Van de Ven (1994), Thomson and Perry (2006) and Thomson et al. (2007). From Bedwell et al. (2012), a cohesive and encompassing conceptualisation of collaborative workflow should be perceived as a process that can take place at individual, team and inter-organisational levels. From this perspective, the bullshit theory, collective identity theory, adaptive communication theory and swift trust theory have all demonstrated theoretical support for the process dimension of collaborative workflows (Orchard et al., 2012; Patel et al., 2012; Simatupang and Sridharan, 2005; Thomson and Perry, 2006). This is because most construction projects and activities

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today are structured after a sequential product development process (Thomson and Perry, 2006; Thomson et al., 2007). From the bullshit theory, it is argued that teams and organisations in collaborative working and collaborative workflows can develop a way of sidestepping the meaninglessness that stalks working life in the immaterial workplace, which is called bullshit (Belfiore, 2009; Graeber, 2013). This is often prompted by teams and organisations often dominated by irrelevant role functions that give their occupants little sense of broader social purpose and value (Spicer, 2013). Spicer (2013) averred that, for effective collaborative workflow, there should be a resilient, strong social purpose and value system that will establish the truth to overcome bull-shiting in a workflow process. The adaptive communication theory as applied to collaborative working and collaborative workflow largely aligns with the Adaptive Structuration Theory, which explains the process in which information technologies are adapted and integrated into the workflow and activities of groups, teams and organisations at the workplace (Cropper et al., 2009; Frey et al., 2006; Gajda, 2004). From this perspective, the theoretical position offered by Frey et al. (2006) and Gajda (2004) in adapting technologies to workflow activities and task functions in teams, groups and organisations establish the structures that can engender effective collaborative workflow. The collective identity theory prescribes collaborative working and collaborative workflow as the shared definition of a group with narrative constructions which permit the control of the boundaries of a network of actors and derives common interests, experiences, and solidarities of a group and team members (Blomqvist et al., 2005; Williamson, 2002). This perspective accepted that collaborative workflows in teams, groups and organisations must develop collective identities that can derive effective governance, mutuality, norms and autonomy necessary for their common interests, experiences and solidarities (Mattessich et al., 2001; Thomson and Perry, 2006). Using the swift trust theory, Srivastava and Banaji (2011) and Thomson and Perry (2006) identified trust as a valuable, rare, hard to imitate and nonsubstitutable resource for collaborative workflow processes in teams and groups. From this, faith has become a precursor for formal structures that facilitate coordination and control, resource aggregation and reducing vulnerability, uncertainty, and risk in a collaborative workflow (Barczak et al., 2010; Thomson and Perry, 2006). From these theoretical positions, Thomson and Perry (2006) developed and tested a model based on an interactive process in collaborative working and collaborative workflow using integrated theories. By viewing collaborative working and collaborative workflow as a relationship process between task and activity groups, teams and organisations and key stakeholders, the model prescribed five adaptable dimensions of governance, administration, organisational autonomy, mutuality and norms that must be recognised and managed intentionally to facilitate collaborative workflow (Kaats and Opheij, 2014; Patel et al., 2012; Thomson and Perry 2006). According to Thomson and

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Perry (2006), using these five-factor dimensions can reveal likely challenges, dynamics and process functions in a collaborative workflow. In the argument of Thomson and Perry (2006), it can be gathered that these dimensions should guide the collaboration process. It was further contended that governance, administration, organisational autonomy, mutuality and norms being the five variable dimensions as a matter of significance, should be advanced as knowledge among teams, workgroups and inter-organisations and intentionally managed to engender effective collaborative working and workflow. Against the background that the model’s focus was outlining the nature and extent of practical collaboration process functions, their study further established challenges in inter-organisational collaboration through an investigation using these five dimensions of the collaboration process. Using the Thomson and Perry (2006) model as the theoretical framework, it can be said that this study draws on its strengths and arguments due to the theoretical fact that its focus on the process of collaborative working and workflow fits the focus of this study. Additionally, the suitability of the Thomson and Perry (2006) model can also be seen in application in multiple contexts, unlike the other reviewed models. The theoretical model has been operationalised in Figure 3.1 The dimension of governance alludes that actors in the collaborative workflow must show leadership, offer support and the structure that facilitates accepted engagement rules, decision making, required information and flow (Blomqvist et al., 2005; Kaats and Opheij, 2014; Thomson and Perry, 2006; Williamson, 2002). In Blomqvist et al. (2005), it can also be gathered that governance in a collaborative workflow is a sine-qua-non for sustaining mutuality, managing conflicts,

Figure 3.1 After the Thomson and Perry (2006) model of collaborative working and workflow process.

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keeping functional relationships and order and situating the governance strategy that helps to reduce anxiety and failure. According to Thomson and Perry (2006), effective collaborative workflow requires an administrative structure that can facilitate achieving the purpose of bringing the team, groups and organisations together as it moves the governance to action. The organisational structure will delineate planning methodologies and strategies, clarifying roles, responsibilities, procedures, boundaries, attainable goals, and communication protocols (Frey et al., 2006; Gajda, 2004; Thomson and Perry, 2006). On the autonomy dimension of process in collaborative working, Thomson and Perry (2006) contended that actors in the collaborative workflow must simultaneously preserve their identifiable distinctive identities and authority of the team, group or organisation distinct from the collaborative identity. This aspect of autonomy is said to capture both the possible dynamism and the frustration implicit in collaborative workflow endeavours. This explains that collaborative workflow actors share a dual identity (Cropper et al., 2009; Thomson and Perry, 2006). In Cropper et al. (2009) opinion, failure of dual identity can result in tension between self-interest and collective interest among collaborating organisations, which often frustrates the willingness to pursue collective goals and power dynamics. In the case of mutuality as a dimension of a collaborative workflow process, the works of Cropper et al. (2009) and Thomson and Perry (2006) espoused mutuality as values and beliefs about the inherent value of collaborating for mutual gains and this is a fundamental aspect of interdependence and shared benefits in a workflow. From this perspective, Thomson and Perry (2006) delineated information sharing as key in facilitating mutual benefits in the collaborative workflow. Thomson et al. (2007) and Thomson and Perry (2006) stated trust and reciprocity as the two most significant norms for the success of collaborative working and collaborative workflow. Developing norms in the form of trust and reciprocity among work groups, teams and organisations in the collaborative workflow can mitigate costly governance mechanisms and promote mutuality (Barczak et al., 2010; Cropper et al., 2009; Thomson et al., 2007). The theoretical perspectives affirm that collaborative workflow effectiveness in the process domain can be facilitated by the governance, mutuality, administration, autonomy and norms factors. Hence, construction teams, groups and interorganisation in collaborative workflow must pursue them to engender desired and improved outcomes in task functions, decisions and activities in project delivery.

3.3 Attributes of collaborative workflow, planning, and management A workflow consists of steps and actions that make up a single use case or process in a task function or activity (Pudhota et al., 2004; Reijers et al., 2008).

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Hence, a collaboration associates a workflow to a specific catalogue or hierarchy in a process. The main goal of the collaborative workflow is to ensure process-oriented coordination of distributed teamwork and collocated groups and organisations in project delivery (Aaltonen and Turkulainen, 2018; Grabher, 2002). Collaborative workflow emerged as a solution to the fragmented nature of construction process, increasing the dynamic business environment and competitive marketplace (Engebø et al., 2020; Mignone et al., 2016; Saukko et al., 2020). Mignone et al. (2016) noted that tasks and flows are the two tenets of workflow, and these must be considered simultaneously in the planning and delivery process to ensure effective management. Collaborative workflow success centrally depends on two key functions: planning and managing tasks and the workflow process. Jongeling and Olofsson (2007) proved that achieving tasks in project delivery profoundly depends on flows, and the progress of flows sequentially depends on the realisation of tasks. Typically, in construction, a lack of collaborative planning of tasks in workflows reflects high levels of non-productive time and workflow inefficiencies (Alazmeh et al., 2018; Jongeling and Olofsson. 2007). In Jongeling and Olofsson (2007), it was gathered that, a construction worker dispenses about 15%–20% of the time on direct work, 45% is spent on indirect, and 35% is spent on redoing errors, waiting, and disruptions. Against this, it is highly recommended that key attributes of project tasks, flows and processes make collaborative planning a critical function in collaborative workflows. According to Bertelsen (2002) and Sears et al. (2008), collaborative planning in construction task activities and functions significantly relies on novel project delivery methods, lean construction, and collaborative planning technologies as the three main principles. Existing literature is replete with numerous studies that have looked at collaborative planning practices in relation to novel project delivery methods for improving workflow collaboration efficiency and performance (Che Ibrahim et al., 2019; Costa et al., 2019; Faris et al., 2022; Hall et al., 2018; Manata et al., 2018). From these, partnering, relational contracts, alliancing and lean project delivery, integrated project delivery have dominantly been expressed as improving collaborative workflow (Che Ibrahim et al., 2019; Costa et al., 2019; Faris et al., 2022; Hall et al., 2018; Manata et al., 2018). Lahdenpera (2012) identified cooperative culture, administrative consistency, commercial unity, team formation, teamwork premises, planning emphasis and operational procedures as salient attributes of teams, groups and inter-organisations that hugely impact collaborative workflow planning and management. It is further stressed that, engendering effectiveness in collaborative planning in the workflow can be pursued through governance systems such as joint contract, joint responsibility, joint organisation, joint risk-bearing, information accessibility and unanimous decision-making (Lahdenpera, 2012). In the case of lean construction as a collaborative planning principle, Daniel et al. (2019) and Zhang et al. (2018) found pull planning and the Last

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Planner System (LPS) to have a significant impact on collaborative workflow planning and management. Manata et al. (2018) found that specifying non-value-added processes and choosing between different lean techniques can lead to effective collaborative planning, resulting in improved collaborative workflow among project teams and stakeholders. In the case of collaborative planning technologies, Elghaish et al. (2019) and Park et al. (2017) highlighted the use of multi-dimensional (nD) modelling like BIM and mobile applications as information technologies that have effects on collaborative design, construction and workflow. Park averred that using web-based visualisation tools and techniques facilitates real-time information sharing, critical for effective collaborative workflow in task activities and processes. It is argued that the management of task processes and workflow must be congruent with collaborative planning if an effective collaborative workflow is to be achieved (Elghaish et al., 2019; Manata et al., 2018). Jongeling and Olofsson (2007) and Zhang et al. (2018) confirmed macro-management of workflow and Micro-management of construction tasks as two critical levels of workflow management in construction project delivery. In this regard, Zhang et al. (2018) proved that macro-management of workflow is often associated with managing the flow of resources across project life cycle phases. Micromanagement of construction tasks focuses on planning and controlling the pre-conditions for completing tasks and activities (Zhang et al. (2018); Jongeling and Olofsson, 2007). Against this, Manata et al. (2018) found the use of information technology as central to managing workflow, given the complexities of construction projects and their information-intensive nature. The challenge in achieving collaborative workflow effectiveness is that, in reality, collaborative planning and management workflow is often overlooked by team participants, groups and organisations, which may largely be due to role and tool incompatibilities. 3.3.1 Business environment for collaborative workflow Saukko et al. (2020) and Sears et al. (2008) noted that collaborative working and collaborative workflow in teams, groups and inter-organisations are affected by the collaborative human behaviours and business environment for the tasks and activities of the projects. Xue et al. (2010) and Kwofie et al. (2020) alluded to those human behaviours. The business environment remains a factor that affects effective and efficient collaborative workflow processes and task activities in construction project delivery. Chen (2003) and Xue et al. (2010) confirmed the significance of considering the business environment and environmental factors’ impact on collaborative working, workflow effectiveness and efficiency. Construction project delivery is well noted as a business environment characterised by adversarial relationships, a lack of genuine cooperation over time, fragmented operation processes, an increasingly dynamic environment and marketplace and excessive

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complexity (Cicmil and Marshall 2005). These genuine and obvious characteristics have been proven to impact collaborative workflow (Reijers et al., 2008; Xue et al., 2010). According to Xue et al. (2010) and Yeomans et al. (2006), the need for an era of global connectivity has occasioned the need to pursue a business strategy and develop a collaborative environment that can tap into the knowledge and expertise of the team, group and inter-organisational participants, and business partners to facilitate collaborative workflow and process effectiveness. Additionally, evolving and emerging trends of macromarket globalisation and micro-changes in the management of construction projects have made the pursuit of a collaborative working environment an imminent necessity for collaborative workflow in project delivery (Yeomans et al., 2006). Xue et al. (2010) and Kwofie et al. (2017 and 2018) found collaborative business culture, attitudes, and working forms in the construction industry have become necessities for a collaborative environment that significantly engender collaborative workflow and process effectiveness. To this end, the work of Kwofie et al. (2020) offered theoretical and practical support to the fact that there is an urgent need for a change in culture and attitude among construction work groups that can be a strategy (working forms) to transition from fragmentation and adversarial relationship to a more cooperative, integrated and collaborative working relationship which has become a panacea for collaborative workflow. Interestingly from a synthesis of existing literature on the business environment for collaborative working and workflow, evidence point to focusing mainly on the construction stage and at a project or organisational level (Xue et al., 2010; Kwofie et al., 2018). It can be argued that to improve collaborative workflow in project delivery, there is the need to create a business environment by focusing on business strategy and culture that promote effective collaborative workflow across the life cycle phases. In the case of business strategy, the focus has been on exploring working forms that reduce fragmentation and adversarial relationships, respond to changing market conditions, and promote collaborative working (Kwofie et al., 2017; Manley and Chen, 2016; Mignot, 2012). In this regard, partnering, project alliancing, strategic alliancing, coalition, joint ventures and integrated project delivery (IPD) have been advanced as appropriate business strategies (working forms) that create the business environment needed for effective collaborative workflow (Manley and Chen, 2016; Mignot, 2012). This is because these business strategic working forms are typically not tightly structured, thus facilitating more open and less class-oriented cultures that allow the collaborative workflow to thrive (Kwofie et al., 2018 & 2020; Manley and Chen, 2016). Regarding business culture, literature has proven culture on team effectiveness and collaborative task functions. (Phua and Rowlinson, 2003; Ren et al., 2014; Kwofie et al., 2020; Xue et al., 2010). Xue identified team and organisational culture as fundamental tenets of business culture that can stimulate the needed environment for a

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collaborative workflow to thrive. From this dimension, Stock et al. (2007) averred that, by developing team and organisational cultures, there should be shared values among shared goals in work groups and teams. These result in common attitudes, codes of conduct and expectations that guide behaviour among teams and organisations in workflow and process delivery (Stock et al., 2007; Kwofie et al., 2018). Kwofie et al. (2020) found team culture and organisational culture to be promising approaches for work groups and teams to learn to cope with the problems of external adaptation and internal integration. In challenging work situations, organisational culture and team culture have been found to define the appropriate behaviour that can guide interpretations and action in organisations and work groups (Sørensen, 2002; Stock et al., 2007). Sørensen (2002) accounted that a strong team and organisational culture improves team and organisational performance by facilitating consistent internal behavioural, which is a sinequa-non for collaborative workflow. Over decades, cultural issues in project delivery have contributed to conflict among teams, process inefficiencies and workflow effectiveness (Stock et al., 2007). Cultural differences can have substantial damage to workflow and processes. Thus, an in-depth understanding of influential cultural factors is a recipe for reducing and managing conflicts and improving workflow and procedures (Sørensen, 2002). Work groups and organisations must continue pursuing cultural factors that promote workflow effectiveness and process efficiency. 3.3.2 Human behaviours for collaborative workflow The works of Phua and Rowlinson (2003) and Sørensen (2002) provided a theoretical and practical impetus to the relevance of the attitudes and behaviours of teams, groups and organisations involved in collaborative workflow in the project environment. Trust, incentive, communication, mutual respect, concern for relationship, incentive, conflict and tension have been determined to be key behavioural factors that significantly impact collaborative workflow (Diallo and Thuillier, 2005; Xue et al., 2010). Trust has become a popular behavioural factor cited by many research. And also considered a success factor in collaborative working and workflow in construction project delivery (Cheung et al., 2003; Diallo and Thuillier, 2005; Sørensen, 2002). Cheung et al. (2003) and Xue et al. (2010) found trust as a multilevel phenomenon at personal, team/group, organisational, inter-organisational and international levels. Trust is deemed a key factor needed in cooperative relationships, effectively moderating concerns about opportunistic behaviour, accelerating the integration of partners and reducing formal contracting (Cheung et al., 2003). Trust is pivotal for a collaborative workflow to thrive and ensure effective processes (Cheung et al., 2003; Diallo and Thuillier, 2005). Diallo and Thuillier (2005) and Kwofie et al. (2019a) confirmed the relevance of communication and information sharing as critical behavioural

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factors in collaboration workflow, cooperation and project success. Rahman and Kumaraswamy (2012) asserted that building trust and improving communication increases permeability, reflecting the partner’s openness in sharing information. Issues of tensions, conflict and relationship quality reflect the behavioural stability and adjustment to working conditions, environments and team dynamics. It is said that collaborative workflows are often entangled in the web of relationship networks and linkages in teams, groups, organisations and inter-organisations. In this regard, such relationships are prone to conflict behaviours, tensions and disagreements in the construction delivery process and project environment (Cheung et al., 2003; Xue et al., 2010). Cheung et al. (2003) proved that conflict is always not negative but sometimes can provide an opportunity for teams, work groups and organisations in project delivery to reflect on ideas, produce higher-quality solutions, deliver better performance and improve organisational effectiveness, which is necessary for collaborative working. From this, it is argued that teams, work groups and organisations in a collaborative workflow must have incentives and motivations for challenges faced in an inter-organisational collaborative workflow. Right team behaviours can contribute to effective collaborative workflow through project governance, appropriate business strategies and a collaborative environment.

3.4 Challenges faced in team and inter-organisational collaborative workflow Recently, it has generally been accepted that construction projects have become massive, indivisible and complex, demanding inter-organisational collaborative workflow between different actors to reach goals and ensure success (Bedwell et al., 2012; Dziubaniuk et al., 2022). Suprapto et al. (2015) alluded that, in general, collaborative workflow faces both process-oriented, planning, coordination and systemic challenges and the suitability of collaborative planning tools across roles and functions on tasks and activities. Understanding the challenges confronting collaborative workflow is crucial in managing and improving construction tasks, activities and processes to successfully deliver the project. Thomson et al. (2007) also stated the prevalence of behavioural challenges in the five dimensions of the collaborative workflow process. Lindhard and Wandahl (2013) identified a lack of appropriate coordination and management of value-adding activities as a key process-oriented, planning, coordination challenge in a collaborative workflow. This development is primarily inherent from the continuous use and reliance on traditional approaches for scheduling endeavours of activities and tasks which are perceived as complex, especially within an on-site construction environment. Lindhard and Wandahl (2013) noted that traditional approaches for managing construction project workflow consist of defining, sequencing and duration estimating activities and developing and controlling the respective schedule.

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Nonetheless, using these approaches, fundamental aspects of process and workflow, such as flow and value generation, seem to be neglected (Lindhard and Wandahl, 2013). CPM, which is a unique traditional approach to activities and task planning in workflow, designates activities as discrete events, which, when organised in sequence, often leads to plans that practically cannot be executed on-site and therefore result in time and money consuming readjustments and delays (Gao and Low, 2014; Lindhard and Wandahl, 2013). In this regard, Gao and Low (2014) recommend developing and adopting collaborative construction process management tools and flowline methods and techniques that suit the complexities associated with project tasks and activities beyond traditional planning and scheduling tools. This is because organising construction tasks and activities around a locationbreakdown structure and considering work as flow through the construction delivery process enhances continuous work. It reduces critical interface problems and interruptions due to different trades operating simultaneously in the same locations (Gao and Low, 2014). Reijers et al. (2008) sized cultural intelligence and organisation cultural variabilities in teams and inter-organisations as a challenge in the collaborative workflow process, especially with distributed project actors and participants. It is accounted that the lack of harmony in cultural intelligence of teams and organisations provides a context that leads to a breakdown in process-oriented coordination of activities among distributed and co-located teamwork and inter-organisations in project delivery (Gao and Low, 2014; Reijers et al., 2008). In a collaborative workflow, there is the need for consistent performance of the workflow process that allows for similar work activities and tasks to be performed by actors with some cultural intelligence to bridge a cultural gap that can be a potential for process inefficiency, misunderstanding and dispute among teams and organisations. In this regard, there has been a general acceptance among players and stakeholders to pursue a more collaborative environment through the use of tools and technologies that offer rich support for process-oriented coordination in both distributed and co-located teamwork (Reijers et al., 2008; Suprapto et al., 2015). They also reduce critical interface problems and work interruption due to different roles and cultural diversities in teams and organisations operating in the same locations or distributed (Gao and Low, 2014). Thomson and Perry (2006) found varied challenges to collaborative workflow in the five dimensions of the collaboration process. Thomson and Perry (2006) discovered leadership, structure, nature of collaboration and strategic adaptation as key challenges related to the governance dimension of collaborative workflow among teams and inter-organisations. The leadership challenges in governance took the form of the interplay of different leadership styles exhibited at both management and participant levels from different organisations and teams (Suprapto et al., 2015). These differences in leadership often affect how each organisation functions and performs task activities and involves collaboration. It also caused unclear goals and

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objectives due to a lack of clarity in communication by leaders. In structure, the challenge experienced in the collaborative workflow process is the existence of structural complexities in strategy failing to address various workflow process coordination and harmony (Thomson et al., 2007). Thomson and Perry (2006) proved that the lack of a well-designed strategic structure that governs collaborative workflow sometimes creates a lack of norms and ethical standards that should guide how things are done. Strategic adaption has been cited as a precursor for effective collaborative workflow in construction project delivery (Thomson and Perry, 2006; Thomson et al., 2007). However, a lack of strategic adaption in the collaboration process towards implementing project goals and collaborative strategy can be problematic (Thomson et al., 2007). Thomson et al. (2007) noted that project complexities and changing environment and context for project activities and workflow bring about emerging challenges that are often not reflected in the workflow management strategy and technology. This significantly affects collaborative workflow functionality and processoriented coordination (Reijers et al., 2008; Suprapto et al., 2015). There is the need for strategic adaptation of the strategy of the work forms and models in workflow management and processes to the changing needs of teams and organisations as well as role-specific tasks and activities requirements. The nature of collaborative platforms adopted often creates managerial and process challenges in a workflow (Thomson and Perry, 2006; Thomson et al., 2007). Reijers et al. (2008) and Thomson et al. (2007) explained that sometimes formal and informal collaborative platforms include representatives from different organisations and teams. The challenge is that representatives sometimes implement actions that do not align with the strategy, which may breed task and activity process difficulties while maintaining their interests. Thomson et al. (2007) that access to information, communication ineffectiveness and lack of role clarity and protocols are notable administrative challenges encountered in collaborative workflow and working models. Communication and information sharing has often been repeated as a major challenge in workgroups, teams and inter-organisational boundary-sharing activities, largely due to the complex network of relationships and channels (Engebø et al., 2020; Kwofie et al., 2019a; Saukko et al., 2020). According to Saukko et al. (2020), leadership, organisational structure and transparency among work groups and organisations impact communication and information sharing for workflow activities and processes. Where there is a lack of transparency and unclear leadership, team participants and organisations are unwilling to share information, thus hampering workflows (Engebø et al., 2020). Likewise, where there is no role clarity and protocols among workgroups, teams and inter-organisational boundary-spanning activities, communication and information sharing are affected, consequently impacting workflow. It is established that collaborative workflow and processes are information-intensive, and thus ensuring effective communication and

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information flow is an uncompromised necessity. Against this, collaborative workflow and working models must adapt communication and information strategies facilitated by leadership, role clarity and transparency. This will undoubtedly engender efficiency and effectiveness in collaborative workflow in project delivery. Teams and workgroup collective identity are significant for shared vision and inclusion (Reijers et al., 2008; Thomson and Perry, 2006). Reijers et al. (2008) averred that collaborative workflow is participant centred, and thus each participant is a vital part of an activity or task in the workflow and process. Hence, there is a need for conscious effort to facilitate the inclusion of all participants by ensuring collective identity in the team and workgroup. Where there is no collective identity, participants express a lack of inclusion and low commitment in the collaborative workflow and process, thus affecting their contribution to activities and task function (Thomson and Perry, 2006). Collective identity is, therefore, significant in a collaborative workflow. Consequently, it is urgent to prioritise it to promote inclusion and increase participants’ commitment to the workflow process and activities. Reijers et al. (2008) also cited variabilities in a team and organisational values and culture as a major challenge in collaborative workflow, especially in boundary-spanning activities and task functions. In this regard, it is often stated that, since participants are from different role backgrounds and organisations, work culture and values often differ, consequently impacting workflow activities and processes. This tends to affect the team and organisation’s norms and may bring challenges in working together. To this end, there is the need for a conscious attempt to manage differences in the culture of workgroups, teams and organisations. This can be achieved by developing cultural intelligence among groups and organisations, as it is seen as a recipe for improving working quality and norms in a collaborative workflow (Suprapto et al., 2015).

3.5 Tools for collaborative workflow integration The Allen curve affirms the significance of an integrated information and communication technology platform to facilitate collaborative workflow in project delivery through increased access to information with mutual understanding and inputs (Allen, 1977; Carmel and Agarwal, 2001). Carmel and Agarwal (2001) alluded that factors such as distance between team and workgroup participants and virtuality significantly influence the frequency of communication, information sharing, protocols, role efficiency and interactions in a collaborative workflow. Against this, it is a widely held view that extensive utilisation of information and communication technologies (ICTs) can ameliorate the influence of these factors (Carmel and Agarwal, 2001; Jongeling and Olofsson, 2007). In the last decade and with the coincidence of industry 4.0, ICT tools and platforms have emerged as key enablers of effective collaborative workflow in construction project delivery, especially in geographically and organisationally dispersed teams, workgroups and coworkers (Aslst and van Hee, 2002; Reijers et al. 2008).

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Reijers et al. (2008) and Jongeling and Olofsson (2007) found Workflow ICT tools as one of the prime enablers for teams and organisations to work effectively on complex tasks while mitigating the effects of virtuality and geographical dispersion in project delivery. Yet, not much is known about the extent to which typologies of ICT can facilitate the collaborative workflow of teams and organisations and how these tools fit project attributes and features. Construction projects exhibit different attributes and characteristics. Projects can be one-off, repetitive, complex, mega and internationalised (Kwofie et al., 2015 & 2021; Saukko et al., 2020). There is the need for workflow ICT tools to be aligned to suit project attributes and role particularities to engender workflow processes more efficiently and effectively. It is noticeable that the importance of ICT integrated platforms for collaborative working, information sharing and communication has increased significantly in construction project delivery. To date, the pursuit of developing such platforms is on the increase. Jongeling and Olofsson (2007) noted a recognised necessity among construction planners to design a process that facilitates a continuous and reliable flow of resources through different locations in a project among various participants in the workflow supply chain in an integrated manner. Notably, not all ICT-enabled systems have proven effective in various aspects of work structure, team and professional role particularities, organisational structure and processes (Koskela and Kazi, 2003; Sommerville and Craig, 2006). However, those which have significantly improved collaborative workflow activities and processes within projects have proven successful through changes within the project organisation’s processes, team adjustment and role function adaptation (Sommerville and Craig, 2006). Jongeling and Olofsson (2007) found that combining location-based scheduling and simulations with 4D CAD tools could facilitate the flow of resources, which can result in the ability to control the hand-over between both locations and crews, greatly empowers the management of construction operations. In the UK construction industry, Building Information Modelling (BIM) sets out processes and standards that formalise and regulate collaborative processes, methods and approaches for producing, sharing and exchanging information during different stages of any construction project (Alazmeh et al., 2018; Eastman, 2011). According to Fischer and Kunz (2004), BIM improved coordination, information exchange and efficient data management through automation, avoiding the repetition of task functions across multiple design disciplines. Kenley and Seppänen, 2010) and Gao and Low (2014) emphasised that the use of integrated ICT systems such as the digital twin can facilitate the flow of information that helps in accurate planning decisions and the other that allows taking informed project control and actions. Koskela and Kazi (2003) elaborated on the various ways ICT has been deployed in construction project delivery through the life cycle phases. Evidence provided for the use of ICT for automating and supporting various tasks, supporting and

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automating the information flows to integrate these tasks and facilitate decision making in construction project delivery. It is well acknowledged that ICT tools to facilitate construction project delivery and management of the process and task functions have grown remarkably over the past few decades, helping improve the way industry players manage information, beginning from CAD to creating 3D BIM models, virtual design and construction (VDC), and common data environments (Alazmeh et al., 2018; Eastman, 2011; Fischer and Kunz, 2004; Koskela and Kazi, 2003). These aimed to address the fundamental requirements of communication and collaborative workflow processes between the various stakeholders to facilitate delivery. Given the era of digitalisation, ICT deployment in construction has focused on critical aspects of tools for data visualisation, data sharing, and data analysis that can enhance informed planning, control decisions for efficient production management and improve workflow processes (Alazmeh et al., 2018; Eastman, 2011; Kwofie et al., 2020a & 2020b; Mignone et al., 2016; Sommerville and Craig, 2006). The construction industry is now positioned in the digital era called the Fourth Industrial Revolution (4IR), also known as industry 4.0, where there is extensive digitisation, digitalisation and automation of the construction process and environment (Alazmeh et al., 2018; Kwofie et al., 2020a; Mignone et al., 2016; Reijers et al., 2008). In this Industry 4.0, BIM, nD, Autonomous robotics, internet of things (IoT), digital twin, cloud computing, big data analytics and advanced algorithms, 3D printing, artificial intelligence (AI), augmented reality (AR), horizontal and vertical system integration, IoT enabling interconnected virtual environments, virtual reality has been developed as ICT tools for integrated collaborative workflow and process that facilitate information access, sharing and collaborative work task function (Alazmeh et al., 2018; Eastman, 2011; Kwofie et al., 2020a; Mignone et al., 2016; Reijers et al., 2008). These tools, when applied to construction project delivery, facilitate collaborative workflow and collaborative working by organising the cyberphysical systems supporting interactions and communications and merging the physical and digital environments to form a seamless, cohesive and flexible value-driven network (Kwofie et al., 2020a; Reijers et al., 2008; Statsenko et al., 2022). It is expected that this array of ICT tools could be applied to various aspects of collaborative workflow, which can bring about the needed improvement and the accompanying benefits to ICT adoption in the construction delivery process and environment. The industrial IoT has been applied to a specific function of communicating with other equipment in a project delivery setup (Lichtblau et al., 2015). In a collaborative workflow, cloud computing can allow pooling resources to obtain flexible, measured-ondemand self-service in project delivery (Alcácer and Cruz-Machado, 2019). Alcácer and Cruz-Machado (2019) found the possibility of horizontal and vertical integration in cross-organisation, groups and teams using computerbased horizontal and vertical system integration by enabling collaboration

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and information exchange within the organisational and team hierarchy planning, production, scheduling or management in project delivery. Big data analytic tools aid decision-making in solving operational problems in near real-time related to construction activities within the entire project lifecycle (Alcácer and Cruz-Machado, 2019; Oesterreich and Teuteberg, 2016). Alcácer and Cruz-Machado (2019) further provide insight into the application of computer-based simulation that enables tackling project complexity and uncertain problems that cannot be quickly resolved by means of analytical and mathematical models in workflow processes. Augmented reality applied to collaborative workflow activities and task functions enable the integration of digital information with the construction environment in real-time by increasing the reality perception through overlaying digital data over the objects observed by the operator in the surrounding environment (Alcácer and Cruz-Machado, 2019; Oesterreich and Teuteberg, 2016). Despite the numerous acknowledged benefits of applying ICT tools to collaborative workflow and construction in general, the industry is still at a nascent stage in adopting emerging technologies of the Fourth Industrial Revolution, especially in developing economies. While we drive the necessity to escalate the use and application of ICT tools in construction workflow activities and processes, it is worth noting that technology alone has not successfully brought the needed improvements and benefits as expected (Alcácer and Cruz-Machado, 2019; Oesterreich and Teuteberg, 2016). Efforts should also be made to look at the people-process, business process, organisational process and team and group process dimensions of ICT usage in a collaborative workflow. These are fundamental to enable effective information sharing, communication and efficient collaborative workflow processes (Statsenko et al., 2022).

3.6 Conclusion and implications Collaborative working and workflow in construction project delivery and construction supply chain have been advancing as a precursor in the construction industry to improve project delivery by enhancing information sharing and integration between the teams, workgroups and interorganisation. However, several aspects of collaborative workflow such as planning, ICT integration, process management and inter-organisational and boundary-spanning challenges have been pursued. However, the depth and quality of improvement and effectiveness in a collaborative workflow is proven to be one aspect that is still necessary. This chapter has examined the evolution, progress and theoretical perspectives in a collaborative workflow. It also assessed the attributes, human behaviours and business environment for collaborative workflow, as well as the challenges and tools to engender collaborative workflow integration. The context was on teamwork, workgroups and inter-organisational collaborative workflow. Theoretically, it can be asserted that governance, administration, autonomy, mutuality and

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norms are crucial preconditions and dimensions towards effective collaborative workflow in teamwork and inter-organisational task functions in project delivery. This chapter also advances the understanding of critical human behaviours and the business environment necessary to facilitate team and inter-organisational collaborative workflow, which has received less attention in the existing literature. Though these aspects espoused are akin to optimising the benefits of collaborative workflow integration, the challenges faced in the workflow process are notable obstacles that cause teams and organisations to mull over failures in collaborative workflow planning and management. In this chapter, there is a clear demonstration with theoretical and practical support to the significant role of emerging ICT tool applications in improving workflow and process integration where existing tools proved to be limiting and significantly hindered. With an integrated tool that can facilitate and enable effective scheduling with bottom-up collaborative planning and integrated roles and task visualisation, teams and organisations on projects can streamline their production planning and control methods in the workflow through enhanced collaboration, information sharing and effective communication. Collaborative working and collaborative workflow are necessary for construction project delivery spite the apparent challenges that are known in practice, the benefits of the concept can be optimised with the right balance of the five dimensions in process management and integration of enabling ICT tools.

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Green Financing of Infrastructure Projects in the Construction Industry: Case of Sub-Saharan Africa De-Graft Owusu-Manu1, Prosper Babon-Ayeng1, Ernest Kissi2, and Clinton Aigbavboa3 1

Kwame Nkrumah University of Science and Technology, Ghana 2 Kwame Nkrumah University of Science and Technology, Ghana/ University of Johannesburg, South Africa 3 University of Johannesburg, South Africa

4.1 Introduction The convergence of environmental and financial issues has sparked curiosity about how the two are connected and how they may be resolved simultaneously. Carbon markets, payments for ecological services, catastrophe bonds, biodiversity offsets, investments in fossil fuels, and sustainable infrastructure are all examples of how finance and the environment are becoming increasingly intertwined and complex (Deschryver and De Mariz, 2020). As it looks for new investment opportunities, the financial industry has developed a rising interest in the environment, which is a sign of the sector’s recent spectacular development. Businesses would find it simpler to invest in sustainability initiatives thanks to a variety of regulatory requirements imposed on the banking industry as a result of market-driven procedures (Ng, 2018). Recent debates have focused on achieving economic development without harming the environment. In this regard, fostering green projects is critical for all governments to continue their policies of long-term economic growth (Bhandary et al., 2021). According to these standards, a long-term public and private investment must be used to build environmentally beneficial projects. Policymakers should implement climate-resilient financial tools in order to maximise sustainable growth (Reboredo and Ugolini, 2020). Without sufficient funding, according to Kocaarslan (2021), it is challenging to carry out plans for sustainable economic growth because going green requires a substantial investment in irreversible technology. Countries must entice private investment and foster the growth of the financial sector in order to allocate financial resources to environmentally advantageous developments. By creating green markets DOI: 10.1201/9781003340348-5

Green Financing of Infrastructure Projects 79 with enticing financial products, more funding can be given to important green programmes (Zhang, 2020). The difficulty in sustainable financing of infrastructure is not due to a shortage of cash; instead, low global interest rates combined with enormous unmet needs for infrastructure investment hint at additional impediments, particularly when scaling up private sector investment (Meltzer, 2016). Climate finance will be required to assist with this transition and adapt to the inevitable effects of climate change. Financing infrastructure will be a critical concern in this scenario. According to Meltzer (2016), about 50% of greenhouse gas emissions are attributed to infrastructure; thus, failing to create sustainable infrastructure will lock the globe into a high-carbon path incompatible with reaching the climate objective. Around two-thirds of the demand for sustainable infrastructure will also be met in developing countries. Additionally, the majority of infrastructure demands and associated increases in greenhouse gas emissions will occur in developing countries, highlighting the relationship between infrastructure development and meeting global climate change goals. Sustainable infrastructure development will also result in improved development results. Infrastructure’s critical role in development is represented throughout the Sustainable Development Goals (SDGs), for example, renewable energy, infrastructure, sustainable cities, and climate action (Azhgaliyeva and Liddle, 2020). As a result, the attractiveness of financial instruments that support environmentally friendly initiatives is critical to reaching the SDGs. Therefore, this chapter examines green financing of infrastructure projects in the construction industry. The chapter was organised based on four main themes, namely: 1 2 3 4

Understanding Green Finance. Economic Factors Underpinning Green Financing of Infrastructure Projects. Environmental Factors Underlying Green Financing of Infrastructure Projects; and Approaches to Green Financing of Infrastructure Projects in the Construction Industry.

4.2 Understanding green finance Green finance, according to Guild (2020), is the use of financial tools, such as bonds and equity investments, that are designated specifically for sustainable development. According to the study, green finance is a revolutionary concept in global financial markets that resolves the dilemma of how to sustainably support rapid economic growth right away. According to Khan et al. (2021), rising global efforts to combat climate change have drawn a lot of attention to green financing in recent research. With the passage of the Paris Climate Agreement and the United Nations SDGs,

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international organisations and national governments demonstrated a stronger commitment to environmental sustainability. Muganyi et al. (2021) observed that green finance is not merely a global trend but also a key strategy for industrialised countries to achieve sustainable growth. In a similar vein, Sinha et al. (2021) contend that governments are gradually adopting a sustainable finance method using green bond financing to achieve the SDGs. Ng (2018) was of the view that using the proceeds from green financing through the Global Financial Centre of China (GFCC), significant sums of money from the global capital market can be given to the construction of sustainable infrastructure across a region. Researchers and practitioners have recently started to pay particular attention to the connection between finance and environmental sustainability, according to Chiesa and Barua (2018). Muganyi et al. (2021) who used text analysis and panel data from 290 Chinese locals to assess the effects of green finance-related legislation between 2011 and 2018 found that these regulations have favourable environmental effects. According to the analysis, green finance-related programmes implemented in Chinese cities between 2011 and 2018 had a negative impact on industrial gas emissions. Overall, it appears that during the duration of the study, green funding policies have decreased SO2 emissions by 38%, industrial gas and smoke discharge by 28%, and SO2 output in Chinese cities by 20%. According to Khan et al. (2021), who sought to quantify green finance as climate mitigation finance and examine its effects on the ecological footprint across 26 Asian economies, environmentally responsible investment and financing improves environmental quality by lowering CO2 emissions and ecological footprint. Green financial instruments, such as green bonds, can be used to finance a variety of eco-friendly endeavours (Guild, 2020). The Association of Southeast Asian Nations (ASEAN) Green Bond Standard makes eligible for green funding projects such as commercial building repairs, climate change mitigation, and more sustainably managed land use. Sachs et al. (2019) explored the significance of green financing for achieving SDGs and energy security in a study. The analysis concluded that global investment in renewable energy and energy efficiency fell by 3% in 2017 and there is a chance that this trend may persist. Additionally, the analysis shows that this can threaten the development of green energy, which is crucial for reaching clean air and climate goals as well as energy security. In order to accomplish the SDGs, Sinha et al. (2021) claim that governments are gradually implementing a sustainable finance strategy via green bond financing. The study of Sachs et al. (2019) indicated that many developed and emerging economies continue to adopt pro-coal energy policies. The authors were of the view that new coal-fired power plants may emit more CO2 than they consume, more than offsetting any emission reductions made by other countries. Infrastructure development is facilitated by the financial resources available. Financial institutions are more interested in fossil fuel efforts,

Green Financing of Infrastructure Projects 81 according to the authors, because new technologies still carry a number of risks and have a lower rate of return than green enterprises. The study indicates that new financial tools and regulations are required to open a new file for green projects in order to scale up the financing of investments that help the environment and achieve SDGs. Community-based green funds, green bonds, green banks, carbon market instruments, fiscal policy, green central banking, and financial technology are a few examples. By stimulating innovation and a transition to a greener economy, the expansion of green finance can aid in the fight against climate change, the ecological crisis, and energy security. Sustainable and balanced development is necessary for green finance. Cui et al. (2020) developed an evolutionary game model with four players in governments, financial institutions, enterprises, and consumers. Analog simulation is utilized to examine how each parameter effects the growth and evolution of the green financial sector. The outcomes of the study indicate that the credibility of the green finance system contributes to long-term sustainability and cleaner production. Secondly, there must be stricter government control, decreased production costs for green finance among corporations and financial institutions, increased consumer pollution compensation, and decreased administrative costs. The findings also indicate that cooperation between governments, financial institutions, enterprises, and consumers is crucial for the development of a green financial system. Green finance has a significant impact on the use of renewable energy and environmental sustainability over the long run. Given that the environment and ecology are already stifling economic development, ecological challenges are already impeding its expansion (Cui et al., 2020). Therefore, the development of green finance is becoming an unavoidable economic trend. In addition to a trading platform, the financial market for green products comprises topics, products, and media. As the key participants, the government, financial institutions, enterprises, and consumers use stock exchanges and brokers to trade green finance, green derivatives, and green credit (Ren et al., 2020). As a result of increased product diversity, green financial markets have become more competitive, making green growth a driving force behind good social governance. Green financial activity, in contrast to conventional financial activity, prioritizes ecological and environmental advantages (Falcone and Sica, 2019). According to the Financial Sector Deepening (FSD) Africa (2021) Report, since 2017, key policy documents such as the National Climate Change Adoptions Strategy and the National Master Plan against Climate Change (2015–2020) outline Ghana’s national strategy and priorities around combating climate change. The report indicates that there have been no green bond issuances in Ghana. Ghana’s Paris Agreements targets require up to USD22.6 billion of investment across several key sectors, including Renewable Energy, Mass Transportation and Freight, Wastewater, Sustainable Agriculture, Forestry, and Real Estate. Whilst the Government

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of Ghana has started allocating budget to the SDGs and the Intended Nationally Determined Contributions (INDCs), significant private sector investment is necessary for at least 16% of the overall Nationally Determined Contributions (NDC) costs are earmarked for private capital. To this end, the Government of Ghana and its Ministries have already identified Green Bonds as a tool that could help achieve several of Ghana’s ambitions and have made significant progress towards issuing the first green bond in the country (FSD Africa, 2021). While the potential of Green Bonds is well understood, especially regarding the potential financing of Ghana’s SDGs, there have been no green bond issuances in Ghana, whether sovereign or corporate (FSD Africa, 2021). Several capacity-building workshops have been hosted by the government, alongside the United Nations Development Programme and market players such as Climate Bond Initiative. In 2019, FSD Africa hosted two workshops on Green Bonds and finance for market participants and other stakeholders, including members of the government, regulators, pension funds managers, banks, and other asset managers. Further market engagement is required, with broader backing from the government, including via entities such as the Ministry of Finance and Bank of Ghana. In addition, bodies such as the Bankers Association and Association of Ghana Industries will prove to be critical stakeholders in ensuring the success of Green Bonds in Ghana. While climate finance remains new to Ghana, there have been some attempts in the banking sector to explore what the International Finance Corporation (IFC) refers to as ‘green banking.’ In 2019, the IFC approved an investment of up to USD 40 million in Republic Bank (Ghana) Limited, 25% of which was earmarked for Small-Medium Enterprise (SME) lending for climate-smart projects. This investment will address SDGs 8 and 11, which deal with decent working and economic growth and sustainable cities and communities, respectively. According to the IFC, the growth of climate finance has faced challenges primarily due to: constraints of inadequate long-term funding; and a lack of dedicated incentives for developers (FSD Africa, 2021).

4.3 Economic factors underpinning green financing of infrastructure projects From the perspectives of financing costs and regulatory arbitrage, Cao et al. (2021) explored the causes of the recent high growth in the number of green bonds issued by Chinese commercial banks. The study discovered that the growth could not be explained by the financing cost mechanism, as the financing costs of green financial bonds are not lower than those of non-green financial bonds. The findings of the study also reveal how commercial banks with low asset liquidity utilize regulatory arbitrage to increase their liquidity by taking advantage of the ease of green bond financing approval. Due to the regulatory arbitrage mechanism, the analysis reveals that commercial

Green Financing of Infrastructure Projects 83 banks have a strong incentive to issue Green Bonds. According to the study, green project ratings should be tied to financing costs in order to establish a system of positive feedback incentives for financiers of green projects. This will reduce this incentive and allow the market for green bonds to expand in a healthy and sustainable manner. Sinha et al. (2021) were of the view that green bond issuance may increase in anticipation of abnormal profit in the form of economic incentives, while being compatible with the promise of social benefits communicated by policymakers and monitored. Cao et al. (2021) posited that the financing cost of bond issuance is determined by a variety of factors, including coupon rates, frequency of coupon payments, duration to maturity, and issuer credit ratings, among others. Consequently, comparing the yield to maturity of the bonds without taking into account other aspects is insufficient. Similar research by Febi et al. (2018) supports the findings of the global green bond market by demonstrating that, among bonds issued by non-banks, green bonds have significantly lower financing costs than non-green bonds. Green bonds, however, do not provide a cost advantage over bank bonds that are not green bonds in the marketplace. Financial bonds produced by commercial banks dominate the Chinese green bond market (Cao et al., 2021). Because their green investment still originates indirectly from banks, green non-financial enterprises only partly profit from the green bond issuing strategy. Kocaarslan (2021) study postulated that a rise in the value of the US dollar increases the degree of dynamic correlations between green and conventional bonds, while decreasing the degree of correlations between green bonds and the stock and energy commodities markets. As the economy weakens, foreign investors tend to quit risky positions in the energy and stock markets and invest in safer and more liquid bond markets, such as conventional and green bond markets. Compared to the volatile energy and stock markets, green bonds appear to be less susceptible to the negative effects of rising US dollar prices. The findings highlight how green bonds are distinguished from risky assets by a rising US dollar, a sign of worsening economic conditions in challenging times, and how this boosts the diversification potential of green bond investments for stock market and energy investors. Understanding economic transmission channels in the markets for commodities utilised in finance and energy requires consideration of the repercussions described above. The two most important elements in the decision to invest in or refrain from investing in green bonds, according to Sangiorgi and Schopohl (2021), are bond pricing and appropriate green credentials post-issuance. The findings of the study also imply that bondholders value a bond’s green credentials and that a bond’s lack of green credentials suggests that bondholders are unwilling to invest in such bonds. Similarly, Flammer (2021) was of the view that issuers use the issuance of green bonds to demonstrate their commitment to the environment and green credentials. This signal will only be effective if issuers adhere to their green commitments, given the high ranking of green credentials at issue and post-issuance for respondents’

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Table 4.1 Economic factors underpinning the adoption of green bonds Economic Factors

References

Regulatory arbitrage mechanism of commercial banks Linking green ratings of projects with financing costs Expectation of supernormal profit in the form of economic incentives Coupon rates Coupon Payment frequencies Time to maturity Credit ratings of issuers Business conditions Satisfactory green credentials post issuance Pricing of the bond Satisfactory green credentials at issuance

Cao et al. (2021)

Stock market capitalization Trade openness Financial returns Financial risk Universal Investor Incentives Better capital access Tax incentives Economic stability Market-based economic system Business climate Macroeconomic drivers of conventional capital market growth Transaction cost Availability of collateral

Cao et al. (2021) Sinha et al. (2021) Cao et al. (2021), Pham (2016) Cao et al. (2021) Cao et al. (2021) Cao et al. (2021), Pham (2016) Kocaarslan (2021) Sangiorgi and Schopohl (2021) Sangiorgi and Schopohl (2021) Flammer (2021), Sangiorgi and Schopohl (2021) Tolliver et al. (2020) Tolliver et al. (2020) Maltais and Nykvist (2020) Maltais and Nykvist (2020), Anh Tu et al. (2020) Maltais and Nykvist (2020) Maltais and Nykvist (2020) Anh Tu et al. (2020) Anh Tu et al. (2020) Anh Tu et al. (2020) Anh Tu et al. (2020) Tolliver et al. (2020) Banga (2018) Pham (2016)

green bond investment decisions. Zerbib (2019) asserts that investors are motivated by non-financial, environmental preferences to invest in green bonds. Tolliver et al. (2020) hold the view that the macroeconomic parameters that influence the development of traditional capital markets, such as the size of the economy, the value of the stock market, and trade openness, also influence the development of the green bond market. Summary of Economic Factors underpinning the adoption of Green Bonds is shown in Table 4.1.

4.4 Environmental factors underlying green financing adoption of infrastructure projects Due to its connection to significant challenges like climate change and water management, green bonds are becoming more relevant in financing

Green Financing of Infrastructure Projects 85 environmental programmes that promote sustainability. As people’s awareness of the environment has grown, corporations have likewise boosted their adoption of CSR policies and environmentally friendly initiatives (Pieiro-Chousa et al., 2021). The Resilience Development Initiative reported that ‘difficult investment conditions, inconsistent policies, and complex permission procedures’ have hindered green finance and those foreign investors mostly experience these obstacles with considerably ample liquidity who wish and show strong interest to do business in Indonesia. The study of Laborda and Sánchez-Guerra (2021) indicated that when the countdown to climate change begins, we must become more aware of the environment and live more respectfully and responsibly with it in all parts of our life. Green Bonds are one of the domains where these values can be reflected, and investors are gradually gaining more tools to incorporate this concern into their investment decisions. The issuance of Green Bonds may help green initiatives expand and have a beneficial environmental externality (Sinha et al., 2021). For SDG 13 to be achieved, businesses’ financing structures must be used to improve the environment. In order to tackle climate change, green forms of finance are becoming more important (van Veelen, 2021). Choi et al. (2021) demonstrate that green infrastructure (GI) is becoming more widely acknowledged as a promising natural solution for mitigating and adapting to climate change as well as other societal goals for sustainable development. Agliardi and Agliardi (2019) say that green financing is at the heart of initiatives to reduce energy use and carbon emissions. Investing in green bonds, which are geared towards specific climatic and environmental projects, has shown to be a viable way to counteract global climate change (Chen and Zhao, 2021). Guild (2020) who employed institutional economics to study the possibilities of green finance in Indonesia found that growing investor awareness of the significance of sustainable development and rising infrastructure demand fuel the nascent green finance market. The study also shows that organising funds and choosing relevant projects are frequently more difficult than raising money for green efforts in developing countries. In spite of the financial markets’ substantial demand for green bonds financing clean energy projects, the study argues that Indonesia’s political class has a flawed incentive structure because of the institutional framework for the renewable energy sector. A study by Kocaarslan (2021) sought to determine the impact of the US dollar as a reserve currency on the ability of green bond investments to diversify. The findings of the study suggest that foreign investors need reliable financial instruments on the bond market to fund investments in green initiatives. The bond market is chosen by high-risk investors because it is less risky than stock markets. The SDGs may not be achievable without the use of green bonds (SDGs). As a result, they’ve attracted the attention of numerous worldwide investors concerned about the effects of climate change and global warming. There are two main causes driving the growth of the green finance sector in the Asia-Pacific region (Guild (2020). One is that the region’s largest

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economies, such as China, India, Indonesia, and Vietnam, are expanding swiftly, necessitating an urgent need for infrastructure investment. Several governments are becoming aware of the long-term consequences of environmental degradation and climate change, and they are becoming concerned about the viability of such rapid economic expansion. Tolliver et al. (2020) claim that by hastening the market capitalization of green bonds, the macroeconomic and institutional dynamics driving the growth of the traditional capital market enhance sustainability. Nationally Determined Contributions (NDCs) are one of the distinctive variables, in addition to traditional capital market dynamics, that are improving sustainability and driving the growth of the green bond market. Institutional changes should be made after macroeconomic progress in order to finance the pursuit of sustainability. NDCs are crucial to reducing the business costs related to pursuing sustainability initiatives by pushing Green Bonds as less expensive financing options. It is possible that the growth of the green bond market will help bridge the gap between environmental and economic concerns. Two interdependent factors are to blame for the current expansion in the green bond market (Banga, 2018). Individuals are becoming increasingly aware of the potential links between financial stability and environmental degradation. The second issue is political, and it stems from the Paris Agreement signing in December 2015. The research recommends that investors consider environmental, social, and governance (ESG) factors when making investment decisions. There has been an increase in the incorporation of environmental criteria into financial market systems. Ng (2018) asserts that the trend towards sustainability reporting is likely to persist because doing so offers financial incentives for doing so. The study claims that adopting international standards eventually requires regulated companies to report on sustainability, which may be in line with the interests of global capital market participants who are concerned about corporate sustainability. The study found that international capital market inspection is helpful in creating a more dynamic green financing system, even when it deviates from regulatory requirements; nonetheless, it requires some assurance. Financing long-term development goals has become increasingly difficult due to structural and normative disparities in the Global South (Pereira, 2020). Although the SDGs constitute a considerable incentive for private investment, they call for measures to preserve the precise scope of development, that is, taking into account the interdependency of economic growth and socio-environmental variables. Environmentally friendly manufacturing methods, such as those involving the usage of Green Bonds, are increasingly being employed to fund initiatives aimed at helping the Paris Agreement meet its two-degree warming target. Sustainable infrastructure benefits all stakeholders during the course of the project, including the poor, and enhances livelihoods and social wellbeing (Serebrisky et al., 2018). Projects must be built in accordance with decent labour, health, and safety practices. The benefits of sustainable infrastructure

Green Financing of Infrastructure Projects 87 Table 4.2 Environmental factors underlying the adoption of green bonds Environmental Factors

References

Global climate change

Chen and Zhao (2021), Choi et al. (2021), Laborda and SánchezGuerra (2021), Ng (2018), Piñeiro-Chousa et al. (2021), Veelen (2021) Piñeiro-Chousa et al. (2021)

Increase in people’s environmental awareness Capacity and experience in environmental risk analysis Progression towards achieving the objective of SDG 13 Energy and emission reduction Ecological crisis Promotion of better development of environment CO2 emissions level Investors’environmental preferences Financial sector’s increasing and greater interest in the environment

Piñeiro-Chousa et al. (2021) Choi et al. (2021), Sinha et al. (2021) Agliardi and Agliardi (2019) Cui et al. (2020) Ng (2018) Anh Tu et al. (2020) Zerbib (2019) Deschryver and De Mariz (2020)

initiatives should be distributed fairly and openly. Sustainable infrastructure projects should provide services that promote gender equity, health, safety, and diversity while adhering to human and labour rights. Summary of environmental factors underlying the adoption of green bonds is shown in Table 4.2.

4.5 Approaches to green financing of infrastructure projects in the construction industry 4.5.1 Infrastructure project financing Global infrastructure demand is now higher than it has ever been, and between 2013 and 2030, there will be a funding deficit of $1 to $1.5 trillion (Airoldi et al., 2013). PPPs are widely used by governments around the world to bridge the infrastructure investment gap (Zhang et al., 2016; Liu et al., 2016). Communities in the United States deal with a number of difficulties, including an ageing infrastructure stock (Singla et al., 2019). Because of this problem, local governments must deal with unfunded pension commitments, financial difficulties, and the potential reduction of state and federal funding. As a result, new funding instruments may be required to meet infrastructure needs, such as general obligation bonds (e.g., Green Bonds or social impact bonds, public-private partnerships, or privatization). Despite the fact that many countries have access to these technologies, it is not clear how often they are used or why certain governments choose to use them while others do not. To determine the extent to which cities are already using or considering using

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alternative tools to manage their infrastructure demands, as well as the factors that influence the decision to use or pursue those instruments. Financing methods like Green Bonds are more frequently linked to budgetary problems. All three agendas are intertwined since economic progress depends on infrastructure. However, when finance is tight, building and sustaining infrastructure is challenging. The fact that mayors are paying attention to these concerns implies that they are aware of how much infrastructure their cities will need but are worried about how to pay for it. Local government representatives might make an effort to solve the issues brought on by poor upkeep and the need for new infrastructure to support economic development. Given the legal restrictions on new revenue, one of the most pressing challenges for mayors today is how to raise enough money to deal with these problems. As a result, local governments may be looking at alternative funding sources like the use of Green Bonds (Singla et al., 2019). 4.5.2 Green bonds Green bonds are any sort of bond instrument that will only have their revenues utilized to fund or refinance, in whole or in part, new and/or existing qualifying green projects (Agliardi and Agliardi, 2019). The Climate Bond Initiative (CBI) certifies a considerable number of Green Bonds (Tolliver et al., 2020). This confirms that the Green Bonds are in conformity with the aims of the Paris Agreement, and that the proceeds from the Green Bonds go towards supporting green activities. Issuers of green bonds are frequently required to invest in projects that can be classified into one of six different categories (Agliardi and Agliardi, 2019). These categories include resource conservation and recycling, clean energy, ecological preservation, and climate change adaptation in a controlled setting. Recent times have seen a rise in the popularity of new financial instruments that are designed to stimulate investments and activities that are environmentally friendly (Sinha et al., 2021). The European Investment Bank issued the first green bond in 2007. It had a five-year maturity and a value of 600 million euros. As seen in Figure 4.1, the market for green bonds has been steadily growing since its inception. When compared to the conventional bond market, the market is still modest 2.42% in 2018 (Fatica et al., 2021). The issuance of green bonds suggests a novel kind of debt financing with unique terms and tactics that is broadly supported by the global financial market (Ng, 2018). A pre-issuance assurance on the provided sustainability information is usually required for such new debt funding channels. Large professional businesses offer third-party assurance to verify the sustainability information offered both before and after issue. Green bonds were developed to help efforts that help the environment or the climate. Asset-linked or use of proceeds bonds make up the majority of green bonds issued. Although the issuer’s whole balance sheet is used to support these bonds, the proceeds go towards green initiatives. In addition, green securitized bonds, green revenue bonds, and green project bonds have been issued (Climate Bond Initiative, 2021).

Green Financing of Infrastructure Projects 89

Figure 4.1 Green bond milestones. Source: Climate Bond Initiative (2021).

Green bond markets are rapidly expanding, and the money raised is increasingly flowing towards renewable energy sources (Tolliver et al., 2020). The expanding potential of green bond markets could aid in mobilizing financial resources for green initiatives that significantly promote the SDGs. Green bond issuance is increasing, which helps the world meet its climate goals. To assess the diversification potential of green bonds and attract more money from investors, a better understanding of the fundamental processes that drive the dynamic relationships between green bonds and other important markets is required. When there is little economic activity, this possibility is critical for market participants’ asset allocation decisions. The majority of investors actively participate in the green bond market through various investment channels (Sangiorgi and Schopohl, 2021). Green bonds are in high demand among investors in the industrial, automotive, and utility sectors, as well as among non-financial businesses. Green bonds issued by corporations and governments are favoured by investors. Prior to and following issuance, the most often reported factors influencing respondents’ decisions to invest in a green bond were a competitive price and excellent green credentials. Due to unclear and insufficient data on how bond revenues are allocated to green projects, the majority of investors refrained from purchasing green bonds or selling existing bonds. Investor support for governmental efforts to enhance the green bond market is greatest for preferential capital treatment for low-carbon assets and minimal green defining standards. Respondents were divided as to whether a stringent or broad definition of green would be more beneficial in expanding the green bond market

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(Sangiorgi and Schopohl, 2021). The unwillingness of asset managers to participate in the development of market debt is another key hurdle to the expansion of the green bond market in emerging nations. Total 83% of asset managers in the study’s sample were able to purchase emerging market debt, indicating that 17% are unable to invest in Green Bonds or other emerging market securities. The proportion of foreign investors who can purchase emerging market debt ranges between 75% and 100%, depending on the market. Credit upgrades for Green Bonds are believed to be a realistic future risk reduction method, allowing investors with an aversion to risk to invest in developing market debt. In addition to credit rating criteria, other restrictions on emerging market investments include currency restrictions, deal size constraints, issuer exposure limits, and general emerging market exposure limits. Consequently, the emerging market green bond market could gain from policies that make developing market debt more investable for asset managers in general, as well as green finance-specific procedures and instruments. Green bonds can be an essential financial tool for developing market nations, assisting them in diversifying their investor base and financing their transition to low-carbon economies. According to the research, credit improvements from international or government-affiliated institutions are the most promising factor driving the growth of green market debt. In addition, the poll reveals that credit risk and rating limits appear to be one of the most significant challenges facing the emerging market green bond market. Additionally, public infrastructure expenditure may influence the issue of green debt in emerging economies, particularly China. The findings of the study indicate that investor support for deal-supporting practices and benchmarks for producing market green bonds looks to be less than in previous years, particularly in the United States. The study also intended to gain a better understanding of the approaches and tools that investors in developing nations may find useful. Certification, transparency, traceability, use of profits (UoP), and dependability are the most crucial considerations, according to the study’s findings. Market organisations and governments can facilitate the expansion of green bonds in developing countries by assuring trustworthy certification and traceable use-of-proceeds reporting in Figure 4.1. According to the findings of a study conducted by Banga (2018) to evaluate the potential of green bonds in mobilising adaptation and mitigation finance for developing nations, the growth of green bonds is a reality in industrialised and emerging countries, supported by increasing investor climate awareness. The market in emerging nations is still in its infancy, and its full potential is undervalued, according to the report. Chen and Zhao (2021) assert that China stands out among emerging markets due to a strong increase of green bonds since 2016. The study found that there are still concerns about the future growth of green bonds for sustainable finance, especially in light of regional differences in requirements and improper government engagement. Table 4.3 shows the types of green bonds.

Earmarked for green projects

Earmarked for or refinances green projects

Ring-fenced for the specific underlying green project(s) Refinance portfolios of green projects or proceeds are earmarked for green projects

Use of Proceeds Bond

Use of Proceeds Revenue Bond or ABS

Project Bond

Earmarked for eligible projects

Other debt instruments

Source: Climate Bonds Initiative (2018).

Loan

Earmarked for eligible projects included in the covered pool Earmarked for eligible projects or secured on eligible assets

Covered Bond

Securitization (ABS) Bond

Proceeds raised by bond sales are

Type

Table 4.3 Types of green bonds

Recourse to the issuer: same credit rating applies to the issuer’s other bonds Revenue streams from the issuers through fees, taxes etc. are collateral for the debt Recourse is only to the project’s assets and balance sheet Recourse is to a group of projects that have been grouped (e.g., solar leases or green mortgages) Recourse to the issuer and, if the issuer is unable to repay the bond, to the covered pool Full recourse to the borrower(s) in the case of unsecured loans. Recourse to the collateral in the case of secured loans but may also feature limited recourse to the borrower(s).

Debt recourse

Convertible Bonds or Notes, Schuldschein, Commercial Paper, Sukuk, Debentures

MEP Werke, Ivanhoe Cambridge, and Natixis Assurances (DUO), OVG

Berlin Hyp green Pfandbrief; Sparebank 1 Bolligkredit green covered bond

Invenergy Wind Farm (backed by Invenergy Campo Palomas wind farm) Tesla Energy (backed by residential solar leases); Obvion (backed by green mortgages)

Hawaii State (backed by a fee on electricity bills of the state utilities)

EIB ‘Climate Awareness Bond’ (backed by EIB); Barclays Green Bond

Example

Green Financing of Infrastructure Projects 91

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4.5.3 Green bond market in Africa The continent with the highest risk from climate change is Africa. Increased frequency and intensity of natural catastrophes due to rising temperatures, sea levels, and erratic rainfall are endangering infrastructure, disrupting agricultural output, and endangering the viability of cities (Tyson, 2021). Also necessary is the continuous economic growth that is consistent with climate change objectives. These expectations are unlikely to be met with the anticipated public support by national governments and foreign donors. Private capital must be raised in order to accomplish this. One possible resource for this kind of private funding is the green bond market. The market has risen significantly globally in the previous ten years; it is now valued at $2 trillion and involves 40 different countries. This has been made possible by a corresponding increase in the availability of green assets, particularly GI, as well as the rise of a brand-new and quickly expanding investment class known as green investors. However, Sub-Saharan Africa is not included in these patterns. There have only been 16 bond issuances so far, representing less than 0.3% in terms of value and just 1.5% of the total number of bonds issued globally (Tyson, 2021). Governments (both local and sovereign) and financial institutions wield the most power, with the majority of revenue going to infrastructure (including energy, water and transport). The majority of investors are domestic, and they invest through private placements or open offers on national stock exchanges. Table 4.4 depicts Sub-Saharan Africa Green Bond Issues from 2014 to 2020.

4.6 Conclusion Sustainability is often an afterthought, considered only during later stages, which may result in the need for substantial modifications that miss opportunities, delay projects, and increase costs (Tuhkanen and Vulturius, 2020). Clear and transparent sustainable infrastructure frameworks that cover the entire infrastructure project cycle will help inform decision-makers and investors about the needs, benefits, and opportunities in developing sustainable infrastructure. Provision of local guidelines for green bond is one of the priorities considered by industry professionals. It must be noted that although standard green bond guidelines exist such as the green bond principles, it is impendent that country-specific guidelines are also developed in tandem to give a true representation of local conditions and peculiarities which can be associated with the bonds. Guidelines traditionally control the entire issuance procedure and as a requisite of the strategies for success ought to design to make the best scenarios governing a specific country. This chapter offers guidance to governments and private developers on how to make the worldwide shift to green/sustainable finance and accomplish the UN SDGs of urgent action to address climate change and its effects. Policy implementation should be geared towards promoting green financing of

200

Standard Bank Group

NGN NGN

USD ZAR NGN ZAR

8500 15000

66

15 1100 10690

1000

1460

North-South Power Access Bank

Bank of Windhoek

Republic of Seychelles Growthpoint Federal Government of Nigeria City of Cape Town

City of Johannesburg

ZAR

NAD

116.7

ZAR

137.8

73.8

15 97.3 29.7

4.6

23.5 41.5

40.9 41.4

KES NGN

200

USD value (M)

Acorn Project Limited 4300 Federal Government of 15000 Nigeria Nedbank 1662

USD

Value Issuing (Issue CCY) Currency

Issuer

Table 4.4 Sub-Saharan green bonds issues (2014–2020)

Municipal

Municipal

Financial Institution Corporate Financial Institution Financial Institution Sovereign Corporate Sovereign

Financial Institution Corporate Sovereign

Issuer

Year Use of Proceeds

2018 Energy, Transportation

2019 Energy 2019 Energy

South Africa 2017 Conservation Urban Infrastructure South Africa 2014 Energy, Transportation

Seychelles 2018 Conservation South Africa 2018 Conservation Nigeria 2017 Energy

Namibia

Nigeria Nigeria

2019 Buildings 2019 Conservation, Energy, Transportation South Africa 2019 Energy

Kenya Nigeria

South Africa 2020 Water, Energy, Buildings

Country

Green Financing of Infrastructure Projects 93

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infrastructure projects and incentivizing sustainable funding of infrastructure projects. In light of the current desire for sustainability in all aspects of life, policymakers should concentrate on innovations or new approaches to financing projects that are environmentally friendly, socially inclusive, and provide value for money in order to meet the needs of the current generation while not jeopardizing future generations’ ability to meet their own needs.

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Pereira, M. Y. B. (2020). Green Bonds in the emerging multilateral development banks: A (sufficient) alternative to catalysing private capital? Asia Pacific Viewpoint, Vol. 62, No. 1, pp. 116–130. 10.1111/apv.12297. Pham, L. (2016). Is it risky to go green? A volatility analysis of the green bond market. Journal of Sustainable Finance & Investment, Vol. 6, No. 4, pp. 263–291. Piñeiro-Chousa, J., López-Cabarcos, M., Caby, J., and ŠEvić, A. (2021). The influence of investor sentiment on the green bond market. Technological Forecasting and Social Change, Vol. 162, p. 120351. 10.1016/j.techfore.2020.120351. Piñeiro-Chousa, J., López-Cabarcos, M. Á., and Ribeiro-Soriano, D. (2021). The influence of financial features and country characteristics on B2B ICOs’ website traffic. International Journal of Information Management, Vol. 59, p. 102332. Reboredo, J., and Ugolini, A. (2020). Price connectedness between green bond and financial markets. Economic Modelling, Vol. 88, pp. 25–38. 10.1016/j.econmod.2019. 09.004. Ren, X., Shao, Q., and Zhong, R. (2020). Nexus between green finance, non-fossil energy use, and carbon intensity: Empirical evidence from China based on a vector error correction model. Journal of Cleaner Production, Vol. 277, p. 122844. Sachs, J. D., Woo, W. T., Yoshino, N., and Taghizadeh-Hesary, F. (2019). Importance of green finance for achieving sustainable development goals and energy security. Handbook of green finance: Energy security and sustainable development, Vol. 10, pp. 1–10. Sangiorgi, I., and Schopohl, L. (2021). Why do institutional investors buy Green Bonds: Evidence from a survey of European asset managers. International Review of Financial Analysis, Vol. 75, p. 101738. 10.1016/j.irfa.2021.101738. Serebrisky, T., Watkins, G. G., Ramirez, M. C., Meller, H., Frisari, G. L., and Georgoulias, A. (2018). IDBG framework for planning, preparing, and financing sustainable infrastructure projects: IDB sustainable infrastructure platform. IADB website. 10.18235/0001037. Singla, A., Shumberger, J., and Swindell, D. (2019). Paying for infrastructure in the post-recession era: Exploring the use of alternative funding and financing tools. Journal of Urban Affairs, Vol. 43, No. 4, pp. 526–548. 10.1080/07352166.2019. 1660580. Sinha, A., Mishra, S., Sharif, A., and Yarovaya, L. (2021). Does green financing help to improve environmental & social responsibility? Designing SDG framework through advanced quantile modelling. Journal of Environmental Management, Vol. 292, p. 112751. 10.1016/j.jenvman.2021.112751. Tolliver, C., Keeley, A. R., and Managi, S. (2020). Drivers of green bond market growth: The importance of Nationally Determined Contributions to the Paris Agreement and implications for sustainability. Journal of Cleaner Production, Vol. 244, p. 118643. 10.1016/j.jclepro.2019.118643. Tuhkanen, H., and Vulturius, G. (2020). Are green bonds funding the transition? Investigating the link between companies’ climate targets and green debt financing. Journal of Sustainable Finance & Investment, pp. 1–23. Tyson, J. E. (2021). Developing green bond markets for Africa. The joint FSD Africa‐ODI research program – Policy Brief 3. Available: https://www.mfw4a.org/ sites/default/files/resources/green_bonds_in_africa.pdf. [Accessed: 7th June 2022].

Green Financing of Infrastructure Projects 97 van Veelen, B. (2021). Cash cows? Assembling low-carbon agriculture through green finance. Geoforum, Vol. 118, pp. 130–139. 10.1016/j.geoforum.2020.12.008. Zerbib, O. D. (2019). The effect of pro-environmental preferences on bond prices: Evidence from Green Bonds. Journal of Banking & Finance, Vol. 98, pp. 39–60. 10.1016/j.jbankfin.2018.10.012. Zhang, H. (2020). Regulating green bond in China: Definition divergence and implications for policy making. Journal of Sustainable Finance & Investment, Vol. 10, No. 2, pp. 141–156. Zhang, S., Chan, A. P., Feng, Y., Duan, H., and Ke, Y. (2016). Critical review on PPP Research – A search from the Chinese and International Journals. International Journal of Project Management, Vol. 34, No. 4, pp. 597–612. 10.1016/ j.ijproman.2016.02.008.

5

Espousal of Zero Carbon Emission in Buildings: Empirical Analysis of Propelling Measures Matthew Ikuabe1, Douglas Aghimien2, Clinton Aigbavboa1, Ayodeji Oke1, Samuel Adekunle1, and Babatunde Ogunbayo1 1

cidb Centre of Excellence, Faculty of Engineering and the Built Environment, University of Johannesburg, South Africa 2 Department of Civil Engineering Technology, Faculty of Engineering and the Built Environment, University of Johannesburg, South Africa

5.1 Introduction The world is greatly affected by the rising quantity of greenhouse gases constantly discharged into the atmosphere. In 2016, there was an increase of 0.5% of the total global emissions of greenhouse gases (Oliver et al., 2017). The effect is the anthropogenic change of climatic conditions experienced by the earth’s inhabitants. The consequences are being felt by both developed and developing countries of the world irrespective of their contributions to the discharge of greenhouse gases into the atmosphere. Carbon dioxide (CO2) is the primary culprit in environmental degradation; Kibert (2013) noted that the indiscriminate discharge of CO2 is the primary cause of climate change. Also, human processes such as fossil fuel combustion, burning of wood, waste, and carbon all hugely contribute to greenhouse gases (Pervez and Henebry, 2015). This pushes for the attainment of Goal No 13 of the Sustainable Development Goals (SDGs) by embarking on revolutionary actions in abating global warming. Niemack (2008) noted that South Africa faces a daunting challenge in tackling the effects of carbon emissions due to being a coal-dependent nation, carbon-intensive mining, and impact from the industrial sector. However, efforts have been made in the past to seek a buoyant redress to these challenges. The Mayors of Cape Town, Tshwane, Johannesburg, and Durban 2018 developed a framework that would enable new buildings to be energy efficient by reducing greenhouse gases and electricity tariffs (Ikuabe et al., 2021). However, much is still desired in attaining the country’s lofty goals of sustainable practices through carbon emission reduction. Activities from the construction of buildings and the subsequent activities of the occupants of the buildings after completion also contribute to the DOI: 10.1201/9781003340348-6

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discharge of greenhouse gases. Salagnac (2012) stated that the building sector is a significant contributor to greenhouse gas discharge, thus bringing about adverse effects on the environmental, social, and economic life of inhabitants. Furthermore, Castilla et al. (2014) stated that half of the world’s energy consumption is derived from the building, either residential or non-residential, which makes them contribute an average of 35% in CO2 emissions. Environmental sustainability aims to sustain a global life-support system in the long term in relation to a system that puts human life at no risk. The transition to eco-friendly buildings is urgent because the deterioration of the global life-support system in which the environment is composed imposes a time limit. Achieving a net carbon zero emission in buildings will significantly contribute to the whole ecosystem enhancing biodiversity, protecting the wildlife, and improving human health. The push for the actualization of Goal No 13 of the SDGs of the United Nations, which calls for taking firm action against global warming, raises the need for an assessment of the drivers for the attainment of zero carbon in buildings. In this light, this study brings to bare an evaluation of the drivers of adopting zero carbon emission in buildings. The findings of this study would contribute immensely to the growing call for sustainable practices in the built environment, with a significant focus on the post-occupancy stage. Furthermore, it provides practical insights to relevant agencies and stakeholders on viable ways of abating the adverse effect of global warming via reducing carbon emissions in buildings. The other sections of the chapter are the review of extant literature, research methodology, data analysis, presentation of findings from the study, discussion of results, and conclusion and recommendations.

5.2 Carbon emissions in buildings In the current century, climate change is now recognized as part of the environment biodegradation, forming a major issue and raising a global concern (Wilde and Coley, 2012). Trees and oceans absorb nearly the same quantity of complete CO2 emissions, and the remainder remains in the atmosphere. There are two significant impacts of CO2 emissions: an increase in atmospheric CO2 concentration and an increase in the ocean and plant CO2 absorption. The increased atmospheric CO2 concentration results in a temperature rise. Increasing ocean CO2 absorption triggers ocean acidification, and increased plant CO2 absorption leads to carbon fertilization (Jain, 2018). The emission of CO2 comes from both natural and human operations in the environment. Gong and Song (2015) stated that there is a limited concern given to the carbon sources classification of buildings during their construction process and highlighted the absence of uniform criteria on the sources of carbon emissions in the construction industry. Furthermore, Renard et al. (2010) suggested that fossil fuels such as oil and natural gas are some sources of CO2 emission. Also, CO2 emanates from the

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products and materials used in buildings, such as fossil fuel heating in residential and office buildings (Renukappa et al., 2013). Additionally, it is reported that the building industry will generate 15.6 billion metric tons of CO2 by 2030 (Shurrab et al., 2019). The issue has assumed greater urgency as a combination of smaller household sizes and a growing population, especially in developing countries, has meant that high demand for new housing stocks is likely to be high in the foreseeable future. Moreover, rapidly developing nations like China and India are experiencing escalating wealth. This point to a huge possible global request for new modern housing to be built on zero carbon emission principles if the world is to prevent a devastating rise in carbon emissions (Allan, 2013). Reports have shown that one-third of the global CO2 is emitted annually through building activities and materials used in the construction of buildings thereof, which is forecasted to increase in the upcoming years. To this end, the construction industry is unlikely to be linked when tackling carbon emissions (Kibwami and Tutesigensi 2016). 5.2.1 Drivers of zero carbon adoption Oke et al. (2009) recognized the drivers as influencers that inspire the implementation sustainable construction practices. The construction business’s growing obligation is to implement green principles in their activities and policies (Ebekozien et al., 2022; Shurrab et al., 2019). This has led to ongoing pressure, commercial and legal, forcing the building industry to adopt greener practices such as the construction of zero carbon homes (ZCH) (Shurrab et al., 2019). Amongst many others, the followings aspects are presented as drivers that can improve the implementation of zero carbon practices in buildings, with the key ones involving Customer requirements, brand integrity, shareholders or investors’ expectations, business pressure, cost savings, building regulations, environmental concerns, and improved corporate image (Shurrab et al., 2019). Further propelling factors are advocacy and awareness, government development such as standard legislation guidelines and assessment systems, financial incentives, and consumer demand, which play a crucial role in attaining zero carbon emission (AlSanad, 2015; Oke et al., 2009). Renukappa et al. (2013) also suggested that implementing carbon emissions reduction initiatives such as local construction materials procurement could help as a driving force. Whilst customer demand for low-carbon housing is currently limited, it is recognized as a growing market and area of interest (Osmani and O’reilly, 2009). Simultaneously, the demand for low-carbon homes is growing, encouraging house builders to implement zero carbon features and practices in future developments (Osmani and O’reilly, 2009). Government initiatives are the leaf behind this growing low-carbon culture, such as fiscal incentives (Dobson, 2007) or green factors when valuing properties (Lutzkendorf and Lorenz, 2007). Legislations are envisaged to be one of the significant drivers in achieving zero carbon homes (Osmani and O’reilly, 2009). Furthermore, the

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code of sustainable homes (CSH), which is becoming legislation that could have a big influential drive for builders encouraging them to adopt the low carbon homes practices and availing those who are taking the initiative to acquire extensively and practically increased knowledge of low carbon homes, thus financially benefiting them to be able to meet more enhanced requirements that are cost-effective (Osmani and O’reilly, 2009). Moreover, Vorsatz et al. (2007) highlighted that the prospect of the legislative introduction of the Code of Sustainable Homes, alongside the Energy Performance Certificates and the Energy Performance in Buildings Decree implementation, could succeed in the feasibility of significantly reducing CO2 emissions and costeffectiveness, to a level that the above-stated measures could be the driving forces to the attainment of zero carbon emission house.

5.3 Research methodology The study aims to assess the drivers of adopting zero carbon emission in buildings. Adopting a post-positivism philosophical approach, a questionnaire survey was used to elicit responses from the target respondents of the study. The choice of the questionnaire results from its ease of use and ability to cover a wide area (Tan, 2011). The study area is Gauteng Province in South Africa. The targeted population for the study was the built environment professionals, namely: Architects, Quantity Surveyors, Builders, and Engineers, while convenience sampling was deployed. A total of 63 questionnaires were distributed, while 59 were returned and all appropriate for analysis. A time frame of one month was used in the collection of data through the questionnaires by selfadministration coupled with the aid of two field agents. The questionnaire comprised two sections: the first dwelt on the respondents’ demographic information, whereas the other centred on collecting responses from respondents on the drivers for adopting zero carbon emissions in buildings. A list of the drivers get from the review of relevant literature was provided, and respondents were told to rate the drivers based on their level of agreement. A Likert scale of 1-5 was adopted, using 1 as strongly disagree, 2 agree, 3 neutral, 4 agree, and 5 as strongly agree. Cronbach alpha was used in ascertaining the reliability of the questions in the second section, which gave a value of 0.821, thus indicating the high reliability of the research instrument (Tavakol and Dennick, 2011). The data analysis methods deployed for the study are mean item score (MIS), one sample t-test, and exploratory factor analysis (EFA). With the use of SPSS version 27, the mean item score (MIS) was deployed in ranking the identified barriers based on the respondents’ perceptions. Also, one sample t-test was employed to outline the difference in the sample mean of the retrieved data. This data analysis method helps determine the likely statistical difference between the sample data hypothesized mean and the population mean (Kibel and Holmes, 2007). Also, EFA was used to assess the unidimensionality and factor-analysis ability of the identified barriers as employed by Oke et al.

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(2021) and Ikuabe et al. (2020). The method aims to provide insights into the structured patterns, thereby understanding the formulated relationship and the logic therein (Young and Pearce, 2013). 5.3.1 Drivers of the adoption of zero carbon emission in buildings Subsequently, 25 variables were identified after the review of extant literature. The respondents ranked these drivers based on the level of their significance. The study adopted one sample t-test to ascertain the significance of the identified drivers as rated by the respondents. The study postulated a hypothesis which goes thus: The null hypothesis states that a driver is insignificant if the mean value is less than or equal to the population mean (H0: U ≤ U0); while the alternate hypothesis states that the driver is significant if the mean value is greater than the population mean (Ha: U > U0). The study’s population mean (U0) was fixed at 3.5, while the significance level was at a 95% confidence level. Table 5.1 shows the result of a two-tailed p value portraying the significance of the identified drivers. All the variables appear to be significant by having a p value of 0.000 except the rising cost of electricity, having a p value of 0.169. Revealed in Table 5.2 is the mean item score of the identified drivers for adopting zero carbon emissions in buildings. Government initiatives and stakeholders’ influence are the most ranked drivers having (MIS=4.46, SD=0.783, R=1) and (MIS=4.37, SD=0.721, R=2), respectively. This is followed by the construction supply chain (MIS=4.33, SD=0.684, R=3). The fourth- and fifthranked drivers are market differentiation (MIS=4.30, SD=0.718, R=4) and enhanced brand recognition (MIS=4.28, SD=0.621, R=5). 5.3.2 Exploratory factor analysis For grouping the identified drivers of adopting zero carbon emission in buildings into smaller and concise subscales, exploratory factor analysis was used. This was achieved using principal component analysis (PCA) aided with varimax rotation. Tabachnick and Fidell (2007) noted that this technique aids in the reduction of variables of large numbers into smaller clusters of well-defined coherence. Furthermore, Kaiser-Meyer-Olkin of sampling adequacy and Bartlett’s sphericity test were utilized to determine the dataset’s factorability. The KMO is employed to ascertain the factor homogeneity and deployed to determine the partial correlation of the variables (Ikuabe et al., 2022a). Table 5.3 portrays the KMO sampling adequacy result and Bartlett’s sphericity test. It is shown that the resultant value of 0.962 was given for the KMO, satisfying the threshold of 0.6 as stipulated by past studies (Aghimien et al., 2021; Ikuabe et al., 2022b). Also, for Bartlett’s test of sphericity, a value of 2283.694 was given with a p value of 0.000, indicating that it is significant (Pallant, 2005). The outcome of these preliminary assessments of the EFA gives credence to the fittingness

Enhanced brand recognition and reputation Social performance Construction supply chain market differentiation Government initiatives Stakeholders’ influence Government awareness Customer demand Builders to implement zero carbon features and practices Partnership with local associations Incorporation of green factors in property valuation Government policies Environmental legislation Home Information Packs (HIPS) Planning policies Decree implementation Building regulations

Drivers

Table 5.1 One-sample test of the drivers

62 62 62 62 62 62 62 62 62 62 62 62 62 62 62 62 62

6.728 7.279 8.338 9.631 10.553 6.924 7.798 5.422 7.552 12.208 8.612 9.849 5.036 8.724 8.089 9.336

df

8.449

T

Test Value = 3.5

.000 .000 .000 .000 .000 .000

.000 .000

.000 .000 .000 .000 .000 .000 .000 .000

.000

Sig. (2tailed)

.754 .786 .516 .770 .786 .849

.563 .897

.611 .627 .754 .754 .754 .675 .802 .579

.833

Mean Difference

.5837 .6309 .3134 .5934 .5988 .6734

.4133 .7590

.4397 .4545 .5799 .6023 .6175 .4898 .6034 .3711

.6464

.9389 .9545 .7267 .9562 .9856 1.037

.7156 1.043

.7986 .8044 .9367 .9134 .9083 .8758 1.014 .7967

1.032

Upper

(Continued)

95% Confidence Interval of the Diff. Lower

Espousal of Zero Carbon Emission 103

implementation of financial incentives Fiscal incentives Implementation of innovative fiscal arrangements Participation of Municipal organizations in the role of customers Use of labelling schemes Market demand Rising cost of electricity Asset management

Drivers

Table 5.1 (Continued)

62 62 62 62 62 62 62 62

10.983 9.261 8.250 9.530 11.414 1.393 5.164

df

9.719

T

Test Value = 3.5

.000 .000 .169 .000

.000

.000 .000

.000

Sig. (2tailed)

.738 .960 .198 .516

.643

.722 .690

.690

Mean Difference

.5845 .7944 −.0978 .3245

.4945

.5934 .54

.5599

95% Confidence Interval of the Diff. Lower

.8924 1.139 .4866 .7234

.8067

.8589 .8456

.8377

Upper

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Table 5.2 Drivers of the adoption of zero carbon emission Drivers

Mean

Std. Deviation

Rank

Government initiatives Stakeholders’ influence Construction supply chain Market differentiation Enhanced brand recognition and reputation Social performance Government awareness Customer demand Builders to implement zero carbon features and practices Partnership with local associations Incorporation of green factors in property valuation Government policies Environmental legislation Home Information Packs (HIPS) Planning policies Decree implementation Building regulations Implementation of financial incentives Fiscal incentives Implementation of innovative fiscal arrangements Participation of Municipal organizations in the role of customers Use of labelling schemes Market demand Rising cost of electricity Asset management

4.46 4.37 4.33 4.30 4.28 4.27 4.25 4.22 4.19

.783 .721 .684 .718 .621 .567 .773 .816 .848

1 2 3 4 5 6 7 8 9

4.15 4.12

.592 .583

10 11

4.11 4.09 4.08 4.06 4.04 4.03 4.01 3.97 3.94 3.88

.695 .633 .813 .700 .771 .722 .564 .522 .592 .618

12 13 14 15 16 17 18 19 20 21

3.82 3.79 3.70 3.66

.615 .668 1.131 .793

22 23 24 25

Table 5.3 KMO and Bartlett’s test Kaiser-Meyer-Olkin Measure of Sampling Adequacy

0.962

Bartlett’s Test of Sphericity

2283.694

Approx. Chi-Square df Sig.

331 0.000

and factorability of the dataset for the conduct of EFA. Moreover, the result of the correlation matrix of the resultant analysis indicates the variables are ≥ 1.00, therefore upholding the suitability of the dataset (Hair et al., 2006). Table 5.4 shows the result of the rotated component matrix and the extracted communalities resulting from the EFA. The analysis entailed using principal component analysis (PCA) utilizing varimax rotation, which

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Table 5.4 Rotated component matrix and variance explained Drivers

Component 1

Government Policies and Regulations Government initiatives 0.921 Government awareness 0.905 Building regulations 0.873 Partnership with local 0.826 associations Decree implementation 0.803 Environmental legislation 0.654 Environmental legislation 0.616 Planning policies 0.588 Government policies 0.572 Participation of Municipal 0.537 organizations in the role of customers Financial and Economic Incentives Market demand Asset management Rising cost of electricity Fiscal incentives Implementation of innovative fiscal arrangements Enhanced brand recognition and reputation Implementation of financial incentives Market differentiation Socio-cultural mechanisms Stakeholders’ influence Social performance Enhanced brand recognition and reputation Builders to implement zero carbon features and practices Incorporation of green factors in property valuation Home Information Packs (HIPS) Use of labelling schemes

2

Extracted Communalities

% of Variance

0.635 0.712 0.529 0.711

39.73

3

0.684 0.667 0.748 0.852 0.636 0.539

0.826 0.810 0.792 0.774 0.762

0.783 0.697 0.594 0.586 0.731

0.749

0.727

0.626

0.649

0.584

0.711

Extraction Method: Principal Component Analysis. a.3 components extracted.

0.713 0.527 0.707 0.645 0.661 0.728 0.638 0.631 0.619 0.733 0.587 0.649 0.552 0.554

12.86

8.33

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converged in eight iterations. The result presented three principal components with eigenvalue ≥ 1.00 and total cumulative variance of 60.92%. As shown in Table 5.4, the first component is attributed to ten variables having factor loadings ranging from 0.921 to 0.537; it accounts for 39.73% of the variance extracted and labelled as government policies and regulations. The second component is characterized by eight variables having factor loadings ranging from 0.826 to 0.584; it accounts for 12.86% of the variance extracted and is labelled as financial and economic incentives. The third component has seven variables and has factor loadings ranging from 0.713 to 0.587; the component accounts for 8.33% of the variance extracted and labelled as socio-cultural mechanisms. The intrinsic attributes and nomenclature informed the names given to the loaded components of the variables that formed the constructs. Furthermore, it is shown that the extracted communalities of the drivers for adopting zero carbon emission in buildings are all above 0.5 set for the study.

5.4 Discussion of the drivers 5.4.1 Government policies and regulations The result of the EFA shows that the first component is made up of ten variables which are government initiatives, government awareness, building regulations, partnership with local associations, decree implementation, environmental legislation, environmental legislation, planning policies, government policies, and participation of municipal organizations in the role of customers. This component is labelled as government policies and regulations. The findings reveal that government policies and regulations are a major driver for adopting zero carbon emission in buildings. This shows that the government’s influence in actualising the abatement of the emission of CO2 and its subsequent effects cannot be overemphasized. This is in conformity with the study of Al-Sanad (2015), who emphasized that government has a crucial role in advocating sustainability. The attainment of zero carbon emission in buildings is a core tenet in advancing sustainability within the built and natural environment. Also, the study of Oke et al. (2009) buttressed the role of government in advancing the cause of sustainability. Enactment of enabling laws and policies would further propel individuals and corporate entities on the need to adopt zero carbon emissions in buildings. 5.4.2 Financial and economic incentives The second component consists of eight variables: market demand, asset management, the rising cost of electricity, fiscal incentives, innovative fiscal arrangements, enhanced brand recognition and reputation, financial incentives, and market differentiation. This component is labelled as financial and

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economic incentives. It is shown that there are economic drivers to actualising the use of zero-carbon espousal for buildings. This can be propagated by increased demands for its use and the financial perks accompanying it. This finding is corroborated by Reidy et al. (2011) by stating that an upsurge in the uptake of zero carbon homes can be influenced by when stakeholders well spell out the economic rewards. Also, Shurrab et al. (2019) affirmed that financial incentives would go a long way in pushing the yearning to use carbon-free initiatives for domestic use. Furthermore, with the rising cost of conventional energy supplies, there is now a need for a rethink towards gravitating towards the espousal of alternative routes for energy use, which brings to mind the use of zero-carbon energy sources. 5.4.3 Socio-cultural mechanisms The third component consists of seven variables: stakeholders’ influence, social performance, enhanced brand recognition and reputation, builders to implement zero carbon features and practices, incorporation of green factors in property valuation, home information packs (HIPS), and use of labelling schemes. This component is labelled as socio-cultural mechanisms. This study shows that stakeholders’ influence is germane to the call for the abatement of carbon emissions in buildings. This is affirmed by Häkkinen and Belloni (2011), who noted that fostering sustainability tenets would be propagated by professionals’ knowledge and willingness for its actualization. This shows the importance of knowledge impartation on the need for adopting zero carbon emission buildings and sensitization of professionals in the built environment. Consequently, as the awareness of zero carbon homes grows among concerned stakeholders, its general acceptability would be positively influenced.

5.5 Conclusion and recommendations The study assessed the drivers of adopting zero carbon emission in buildings. Through the review of extant literature, the drivers were identified, which aided in formulating the questionnaire for the study. Respondents were asked to rate these drivers based on their level of significance. The collected data, such as mean item score, one sample t-test, and exploratory factor analysis, were analysed. Based on the statistical analysis findings, the study concludes that the most significant drivers for adopting zero carbon emission in buildings are government initiatives, stakeholders’ influence, and the construction supply chain. Furthermore, it is shown that three core components are the drivers of zero carbon emission in buildings these are government policies and regulations, financial and economic incentives, and socio-cultural mechanisms. The role of government in the pursuit of the core mandates of sustainability is further reinforced by this study. Hence, it is vital to note that governments

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worldwide should make it a top priority to create initiatives for the attainment of sustainability by enacting legislative laws and policies that will enhance the cause of zero carbon emission buildings. Furthermore, stakeholders’ influence is shown to be very significant in the attainment of zero carbon buildings. Consequently, creating the awareness and sensitization of professionals in the built environment would be a big boost. Relevant professional bodies within the built environment sphere should embark on an intense and firm drive to ensure members are fully committed to such a cause. It is vital to note that this study was limited to Gauteng province, South Africa. It is recommended that future studies can be engaged in other provinces of the country to provide a more inclusive finding for the country.

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Part II

4th Industrial Revolution

6

Overview of the 4th Industrial Revolution in the Construction Industry Victor Karikari Acheamfour1, Micheal Nii Addy1, Ernest Kissi2, and Clinton Aigbavboa3 1

Kwame Nkrumah University of Science and Technology, Ghana 2 Kwame Nkrumah University of Science and Technology, Ghana/ University of Johannesburg, South Africa 3 University of Johannesburg, South Africa

6.1 Introduction The construction industry is crucial for ensuring economic and social growth within a country. Studies have established a significant relationship between the construction industry’s growth and the macroeconomic growth rate in developing countries (Anaman and Osei‐Amponsah, 2007). There is a consensus regarding the construction industry’s contribution to developing countries’ growth (Oladirin et al., 2012; Rameezdeen and Ramachandra, 2008). Consequently, there is always the quest to expedite processes in the construction industry of developing countries. Recent technological advancements have transformed practically all sectors, and the construction sector is no exception. This has provided innovative ways of expediting every process within all sectors. There have been three different industrial revolutions, and presently in the fourth. Hence, the construction industry is experiencing transformation by the 4th Industrial Revolution with its emerging technologies, termed Construction 4.0 by Roland Berger in 2016. Nevertheless, the construction industry is inherently reluctant to adopt new technologies, especially in developing countries (Yap et al., 2019). In a study conducted by Alaloul et al. (2020), they concluded that the adoption of Industry 4.0 within the Egyptian construction industry is still lacking regardless of the accessibility to these technologies. Similar findings were reported in a study conducted by Forcael et al. (2020). Nevertheless, due to the vertical and horizontal integration nature of Industry 4.0, its successful adoption in developed countries depends on adaptation in developing countries (Yüksel, 2020). Hence, it is crucial to implement strategies that drive the adoption of IR 4.0 in developing countries. However, developing countries face different economic, social, and DOI: 10.1201/9781003340348-8

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organizational challenges while implementing IR 4.0 technologies. Hence it is prudent to explore the peculiar barriers hindering the adoption of and implementation of IR 4.0 techniques in the construction industry of developing countries. This chapter examines the 4th Industrial Revolution in the construction industry of developing countries. The main question guiding this study is: In the face of all the prospects, what challenges hinder the adoption of Industry 4.0 in the construction industry? The chapter begins by providing a general overview of the 4th Industrial Revolution and its nature in developing countries. This is followed by an introduction to Construction 4.0 and a brief description of the techniques applied in Construction 4.0. A secondary literature review is undertaken to explore the major prospects and barriers to the adoption of Industry 4.0 in the construction industry of developing countries.

6.2 4th Industrial Revolution Industrialization began in the 1700s, and each industrial revolution came with its significant contribution to today’s development. In the 1700s, mechanical looms were first introduced, driven by the power of water and steam on mechanical equipment and replaced the agricultural sectors (Alaloul et al., 2020). The 2nd Industrial Revolution began in the 1870s when electrical energy was introduced, leading to mass production relying greatly on human efforts. The 3rd Industrial Revolution saw the rise of analogue and mechanical electronics. The current 4th Industrial Revolution is a digital revolution where technology and people are connected. This technological breakthrough has created new ways to blur the lines between the physical and digital worlds. The 4th Industrial Revolution has radically changed employees, organizations, and society. Work and the meaning of work are changing for employees, and organizations must now balance the efficiencies of technological innovation with new jobs and employment concepts, as well as global and local power shifts. The latest research within the context of the 4th Industrial Revolution has emphasized that workplaces will, more than ever, be driven by digitalization and extensive smart ecosystems (Chearavanont, 2020). However, this digital paradigm shift is not reserved exclusively for private enterprises and corporate offices; it extends to a city-wide scale. The technologies driving the 4th Industrial Revolution are changing our demands and expectations of the buildings and cities we work and live in. 6.2.1 General overview of Industry 4.0 in developing countries The rapid takeover of the 4th Industrial Revolution sets the opportunity for developing countries to leapfrog stages of development and align with developed markets by embracing emerging technologies. Governments are

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seizing the opportunities generated by IR 4.0 to improve their social and economic transformation. However, there is overwhelming evidence of the failure of developing countries to adopt these innovation trends, especially in the construction industry. For instance, in a systematic review conducted by Forcael et al. (2020), on Construction 4.0, a country-based analysis of articles showed a scanty level of contribution of developing countries to the knowledge of Construction 4.0. This depicts its low level of adoption in developing countries. Yuksel (2020) indicated that the transformation of IR 4.0 cannot be achieved in insecure economic conditions. However, the prevalent insecurities surrounding the economies of developing countries call for an alteration in tactics to drive the adoption of these innovative trends. Bogoviz et al. (2019) opined that, in adopting IR 4.0 in developing countries, the dominating goal is to ensure the overall development of the economy and modernization of entrepreneurship. The implementation of IR 4.0 in developed countries is at the national level; however, in developing countries, it is at the corporate level as the digital economy is still under development. The process of formation of the digital economy and IR 4.0 in developed countries started earlier and aimed at marketing and social results; however, developing countries faced institutional and financial barriers in its initiation (Bogoviz et al., 2019). Nevertheless, corporate organizations forming the initiators of IR 4.0 adoption in developing countries envisage greater flexibility and effectiveness than developed countries’ state initiative approach.

6.3 Construction 4.0 The enormous technological and scientific advances in the 21st century due to the 4th Industrial Revolution have affected most industries. The construction industry, which in light of the 4th Industrial Revolution is often referred to as Construction 4.0, has also benefitted from this revolution. According to Forcael et al. (2020), IR 4.0 was first related to the construction industry in 2014, and Construction 4.0 was first mentioned in 2016. This shows that the adoption of IR 4.0 tools and techniques is in its infancy within the construction industry. Hence existing information on the concept of Construction 4.0 is lacking. Nevertheless, the adoption of IR 4.0 in the construction industry can be predominantly based on two pillars, namely, digitization of the construction industry and industrialization of the construction process (Forcael et al., 2020). Digitization is the management of data in digital form using the internet and software, whiles industrialization of the construction process focuses on the automation of construction processes (Atherinis et al., 2018; Woodhead et al., 2018). Even though IR 4.0 is still developing, its impact has been tremendously felt in numerous industries. However, the full potential of Construction 4.0 has not yet been realized due to reluctance in its adoption, especially in developing countries. Nevertheless, within the Construction 4.0 paradigm,

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the most prevalent techniques reported by most authors include the internet of things (IoT), BIM, 3D printing, big data and artificial intelligence (AI). They are discussed as follows. 6.3.1 Internet of things IoT was created in 1999, and it is regarded as one of the crucial areas of innovative technology receiving great attention from industries (Lee and Lee, 2015). IoT is a technology that brings physical objects into a cyber world based on devices or technology such as sensors, actuators, radio-frequency identification (RFID) devices, video cameras, and laser scanners. It is a global network of machines capable of communicating and making it possible for objects to share information and make decisions which converts them into smart objects to achieve a common goal (Lee and Lee, 2015). IoT also can process data in real-time and produce larger amounts of shared information. This is optimized when IoT is used with the cloud for real-time data transmission for monitoring systems (Borgia, 2014; Chiarello et al., 2018). Botta et al. (2016) identified five IoT technologies that are used for products and services relating to construction, namely, RFID, wireless sensor networks (WSNs), middleware, cloud computing and IoT application software. IoT application facilitates the concepts of smart homes and smart cities through managing large amounts of data, bringing positive impacts to users’ lives. 6.3.2 Computer-aided design technologies Computer-aided design (CAD) technologies emerged around the 1980s; Building Information Modelling (BIM) has emerged as a collaborative building design approach that integrates all processes improving information flow between designers and contractors. BIM is a critical tool for digitalization in the construction industry (Chong et al., 2017; Peng, 2016). Hence, BIM has been a focal topic for improving the construction industry and a core simulator of Construction 4.0 (Oesterreich and Teuteberg, 2016). BIM has the prospect of closing the digital gap within the construction industry to facilitate the adoption of Construction 4.0 (de Lange et al., 2017). The application of BIM in the construction industry ranges from the integration of augmented reality models, the simulation of energy consumption prior to its actual operation (Kamel and Memari, 2019), and the more efficient flow of information during the construction process (AntwiAfari et al., 2018). BIM has bidirectional coordination between the physical and virtual domains, which creates a digital replica of the building. This improves the control and optimization of the construction process while generating valuable data for the building’s operation and maintenance (Maskuriy et al., 2019). BIM has a versatile application in the construction industry, and its prospects could be the foundation for innovative changes that stimulate Construction 4.0.

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6.3.3 3D printing Three-dimensional printing creates a physical object by depositing layers using a digital plan (Zareiyan and Khoshnevis, 2017). The technology of 3D printing was first introduced in the 1980s and was used to create prototypes (Weller et al., 2015). However, in recent times, various approaches have been developed using different techniques and materials (Muth et al., 2014; Xia et al., 2019). Due to its relative affordability, there has been an increase in the use of 3D printers. The implementation of 3D printing in the construction sector has the prospect of aiding in the transition of the industry to a technically advanced sector due to technological breakthroughs and improvements in construction efficiency. 3D printing can facilitate Construction 4.0, allowing for innovative technologies such as 3D online printing. 3D printing in the construction industry will lower the demand for a skilled workforce and reduce waste generated through construction; however, some challenges associated with its usage include shape optimization, hardware, maintenance issues, slicing, and speed (Oropallo and Piegl, 2016). 6.3.4 Big data The considerable amount of data generated during construction makes the industry a massive prospect for big data technologies. The term big data is relatively recent, as it became widespread in 2011 (Gandomi ad Gandomi and Haider, 2015). Recent technological upgrades are making it easier to collect and effectively use massive volumes of data generated by various design and construction activities to enhance the performance of construction projects (Omran and Chen, 2016). The IR 4.0 prospect of big data is not merely managing massive data but extracting valuable information from them. Within the Construction 4.0 paradigm, big data can be used mainly for urban planning and management, where large quantities of data are utilized in assessing social variables in urban growth. Big data applications within the construction industry can reduce risks associated with project management (Górecki, 2018). With the increasing amount of data generated in construction, big data promises to be a great advance of Construction 4.0. 6.3.5 Artificial intelligence and robotics AI captures the ability to empower machines and systems to mimic human intelligence (Li et al., 2017). This plays a crucial role in IR 4.0 by creating an active connection between the physical and digital world (Darko et al., 2020). A significant point in the development of AI can be traced to 1950 by Alan Turing, who wanted to ascertain if a machine could exhibit indistinguishable behaviours from human behaviour. Recently, the use of AI in the construction industry is increasingly becoming prevalent. It is applied

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in artificial vision systems, which allow identification of some aspects of a construction site, speech, and pattern recognition to monitor workmen’s performance (Bryson and Winfield, 2017). Robotics is another field of AI which has gained much popularity in the construction industry. Since the 1980s, robotics has been implemented to develop construction projects to increase speed, precision, and productivity (Kehoe et al., 2015). In the construction industry, robotics has adapted to provide solutions to problems, from planning routes for transporting materials to automated systems that perform tasks at construction sites (Lundeen et al., 2019).

6.4 Barriers to the adoption of Construction 4.0 in developing countries The general barriers that hinder the adoption of IR 4.0 hold for Construction 4.0. However, there may be peculiarities due to the nature of the construction industry. More importantly, the barriers hindering the adoption of Construction 4.0 in developed countries may not be true for developing countries due to the disparities in the socio-economic environment. A similar assertion was made by Bogoviz et al. (2019) when they compared the adoption of IR 4.0 in developed and developing countries. They indicated that the major barriers that hinder the adoption of IR 4.0 were financial and institutional. Manda and Ben Dhaou (2019) acknowledged that developing countries are confronted with societal, technological, and infrastructure challenges in adopting IR 4.0 in their processes. In Bangladesh, the major hindrances to adopting industry 4.0 were the availability of cheaper labour and lack of knowledge in its implementation (Islam et al., 2018). A review of these challenges is discussed as follows. 6.4.1 Financial barriers Bogoviz et al. (2019) showed that financial barriers on the path to the formation of Industry 4.0 are absent or low in developed countries but high in developing countries. The implementation of Construction 4.0 is hindered due to the unclear financial benefits that come with its performance (Zhou et al., 2015). Investors usually seek to be clear on the returns associated with their endeavour before its implementation. Implementing Construction 4.0 requires substantial capital investments for infrastructure installation, employee training, and equipment maintenance. Since the adoption of Construction 4.0 comes with huge capital commitments, uncertainties associated with the return on such investments only hinder its effective implementation. Finally, the availability of cheap labour in developing countries disincentive stakeholders from adopting a perceived expensive approach. This was evident in a study by Islam et al. (2018), which showed that the availability of cheap labour in Bangladesh greatly hinders the

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quicker adoption of automation technologies. Hence, construction firms hesitate to adopt innovative technologies due to high investment costs, uncertainties of the benefits and availability of cheap labour. 6.4.2 Institutional barriers Institutional barriers focus on the absence of state policy in implementing Construction 4.0. Bogoviz et al. (2019) acknowledged the blockage offered by the lack of state policy to implement Construction 4.0. The development and implementation of state policies on Construction 4.0 depict the government’s support for its implementation. However, the lack of government support is realized in numerous developing countries. Islam et al. (2018) identified the lack of government support as a major barrier to the industry 4.0 implementation. They opined that, although governments have been speaking on technological improvement, it does not show any more explicit supporting policies regarding automation in the various industries. 6.4.3 Societal barriers Societal barriers originate from resistance to change, and the insecurities associated with adopting IR 4.0. Numerous studies have shown that the construction industry is conservative in embracing change (Oesterreich and Teuteberg, 2016; Trstenjak and Cosic, 2017; Woodhead et al., 2018). However, Construction 4.0 requires massive changes, which appears to be a significant barrier to its implementation, especially in developing countries. Also, the significant impact of Construction 4.0 on job displacement due to the widening skill gap, as indicated by World Economic Forum (2016), has triggered heavy resistance to its implementation, especially in developing countries where governments are already struggling to curb high rates of unemployment. The adoption of Construction 4.0 is expected to have a negative impact on economic sustainability if implemented in developing countries. Furthermore, the introduction of Construction 4.0 will create a skill gap leading to the lack of qualified labour force for implementing the new technologies. The skill gap comprises skills mismatches and redundancy due to the changing nature of jobs. In developing countries, these significantly hinder the effective adoption of Construction 4.0. 6.4.4 Infrastructure barriers The inadequate infrastructure in developing countries hinders the effective implementation of Construction 4.0. The effective implementation of Construction 4.0 depends on ICT infrastructure. However, in developing countries, such facilities are inadequate. For instance, broadband penetration is still low in developing countries (International Telecommunications Union, 2015). Manda and Backhouse (2017) identified poor broadband

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penetration as a significant barrier that hinders industry 4.0 transformation of industries. According to Islam et al. (2018), the presence of infrastructural issues like poor communication processes and poor internet hinders the effective implementation of IR 4.0. ICT infrastructure forms the spine for digital transformation; hence, governments worldwide have invested in ICT infrastructure as a strategy for industrial transformation. However, the ICT infrastructure of developing countries remains poor and hinders the effective implementation of IR 4.0. 6.4.5 Knowledge barrier Industry 4.0 is projected to bring disruptive changes to the labour market, creating the need for highly skilled labour. According to the World Economic Forum (2016), the ability to anticipate and prepare for future skills requirements, job content and the aggregate effect on employment is increasingly critical for businesses, governments, and individuals to seize the opportunities presented by these trends fully and to mitigate undesirable outcomes. However, there is a significant knowledge gap regarding the implementation of Construction 4.0. This may be due to the lack of research and development in Construction 4.0 in developing countries. This is evident in the systematic review conducted by Forcael et al. (2020), which showed a low contribution of developing countries to the knowledge of Construction 4.0. The lack of research and development on Construction 4.0 in developing countries has led to low-level understanding, hindering its adoption.

6.5 Conclusion The 4th Industrial Revolution promises to create major advancements in all industries through digitalization and industrialization. The 4th Industrial Revolution within the construction industry (Construction 4.0) has recently gained much popularity. However, there is a slow pace in its adoption. The dominant IR 4.0 techniques in the construction industry are the IoT, CAD technologies, 3D printing, big data, AI, and robotics. Numerous studies have explored the barriers to adopting Construction 4.0 in developed countries; however, lacking in developing countries. There is evidence of differences in economic, social, and organizational settings of developed and developing countries, which creates variations in the barriers to adopting Construction 4.0. With abundant studies in developed countries, this chapter focused on the barriers that hinder developing countries from adopting Construction 4.0. The specific barriers identified included financial, institutional, societal, infrastructure, and knowledge barriers. With the government being the largest client in the construction industry of developing countries, the effective adoption and implementation of Construction 4.0 require massive government support backed by guidelines and policies. This will stimulate other stakeholders in the construction industry to

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develop their competencies in Construction 4.0 tools and techniques. This will aid in closing the skill gap created by the emergence of Construction 4.0 and create a smiley adoption within developing countries.

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Digital Capabilities in the Construction Industry Bernard Tuffour Atuahene1, Sittimont Kanjanabootra2, and Thayaparan Gajendran2 1

Department of Civil and Structural Engineering, Faculty of Engineering and Informatics, University of Bradford, Richmond Rd, Bradford BD7 1DP, United Kingdom 2 School of Architecture and Built Environment, College of Engineering, Science and Environment, University of Newcastle, Callaghan 2308, NSW, Australia

7.1 Introduction Digital transformation has become a common phrase used in business settings, irrespective of the industry, perhaps because of the disruption caused to the “ways of doing business” (Bongiorno et al., 2018, p. 2). Dörner and Edelman (2015), on the other hand, described digital as “a way of doing things” rather than just an object or technology. The former included creating business value, new opportunities, and developing technological and organizational capabili­ ties. These descriptions are an extension of Schumpeter’s theory of innovation that suggests changing either marginally or wholly the production function could improve a firm’s economic performance (Schumpeter, 1934), thereby transforming how business is done. Technological advancements have changed the production function of businesses. They have immensely contributed to changing the old ways of doing business and have led to the improvement and performance of businesses, even in the construction industry. These positive outcomes fuelled the clarion call to digitize the construction process, business, and industry and increase scholarly research in digital construction. In the construction industry, innovation, technology, and digital have been used interchangeably to describe the use of technologies. The term digital will be used in this chapter. In addition, in relating digital to construction for this chapter, digital construction will mean a new way of doing things in the construction pro­ cess to improve and create business value in the construction industry. This chapter advances an understanding of theories for identifying digital capa­ bilities (DC), DC needed in the construction industry, approaches to develop DC and inferences made as a way forward for the construction industry in developing countries. DOI: 10.1201/9781003340348-9

Digital Capabilities 127 7.1.1 Digital capabilities The oxford learners dictionary defines capability as “the ability or quali­ ties necessary to do something”, which suggests that capability could be considered from the perspective of an individual, group of people or an organization. Notwithstanding, capabilities should be significant and substantial in size, visible and their impact known, and act as the nervous system of an individual or organization (Winter, 2000). In essence, capa­ bilities are instrumental for the survival of organizations, and it is no surprise that the strategic management field has extensively researched capabilities in the context of organizations (Ulrich & Smallwood, 2004). Khin and Ho (2019) defined (DC) as “a firm’s skill, talent, and expertise to manage digital technologies for new product development”. They pre­ suppose those DC equip people to use digital technologies to advance a business objective. It is, therefore, appropriate, as this chapter defines DC as the ability or qualities needed to transform the way of doing con­ struction business digitally. Developing DC have been well-researched in strategic management because of its intended benefits for business. For example, Wielgos et al. (2021) conceptualized digital business capabilities to have three capabilities: digital strategy, integration, and control. Reflecting on the definitions ascribed to these capabilities suggests a linear relationship between them. For instance, digital strategy enables the firm to explore the benefits of digital technologies to the business, digital integration establishes the link­ ages by coordinating the business processes and technologies, and digital control sets up strategies to monitor and evaluate the benefits of the digital systems in the business. The digital workforce was an essential digital capability (Arkhipova & Bozzoli, 2018). The study used a firm as a case study to articulate the structures needed to develop, nurture, and evaluate the DC of the workforce in the firm. Since the workforce element keeps surfacing, a study by Ulrich and Smallwood (2004) developed a generic capabilities assessment tool not specific to DC. However, it emphasized qualities to be developed in the workforce. For instance, talents, speed, collabora­ tion, learning, and leadership, amongst others, were described as capa­ bilities needed by the firm. For further advancement, Levallet and Chan (2018) recognized IT infrastructure and a well-developed IT capability as the required DC. González-Varona et al. (2021) model on organizational competence for digital transformation conceptualized the elements of capabilities to include governance, organizational alignment, culture technologies, and employees. Though the focus of this study was on organizational com­ petence, it demonstrates an array of individual capabilities, which in the context of DC are very strategic. Information technology (IT) has been important to innovations and directly linked to the digitalization drive in

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business. Two decades ago, Bharadwaj (2000) researched the relationship between IT capabilities and firm performance. The findings showed that firms with high IT capabilities tend to have a better impact on firm performance than low-IT capabilities firms. The findings advocate that those capabilities can be considered within a spectrum; nonetheless, the identified capabilities were IT infrastructure, human IT resources and ITenabled intangibles. Literature has shown their capabilities linked to the organization and others linked to digitization; however, these organizational or DC work in unison to make businesses competitive. Moreover, digital technologies application could be generic or industry-specific; for example, Building Information Modelling is an architectural, engineering, and construction technology tailored. In contrast, MS Project or Primavera is applicable in every other industry. Given this, the DC required within an industry might differ from others (Carcary et al., 2016). The next section describes some theoretical basis used in identifying capabilities and DC.

7.2 Theories for DC There are theories in strategic management which have contributed to the development of capabilities in strategic management. These theories have been extended and well established in the IT and digital field to explore potential capabilities that tend to make firms competitive. There are two main theories useful for the strategic development of capabilities. Capabilities development in strategic management has evolved from two main theories: resource-based view (RBV) and dynamic capabilities. The RBV of the firm emphasizes creating a sustainable competitive advantage through deploying organizational resources (Barney, 1991; Wernerfelt, 1984). Wernerfelt (1984) grounded firms’ resources in the traditional economic perspective of the declining nature of resources to be either a strength or weakness to the firm because the profile of the resources could lead to competitive advantage. In a similar study, value, rare, imitable, and non-substitutable were identified as the features of resources that enable a firm to sustain its competitive advantage over a period (Barney, 1991). Valuable resources enable firms to implement strategies which contribute to achieving efficiency and effectiveness in the firms’ processes. These valuable resources do not give a competitive advantage to the firm if similar firms have access to the same resources. However, exploiting these common but valuable resources under competition can help the firm’s survival (Barney, 1991). The valuable resources become rare when few firms in the same industry possess such resources, or a single firm possesses unique resources amongst its competitors. Though valuable and rare resources are essential, sustaining a competitive advantage will mean that others do not easily imitate the firms’ resources due to the inability to obtain such

Digital Capabilities 129 resources. Finally, for a firm to sustain competitive advantage, from an RBV perspective, requires the non-substitutability of resources, that is, the resource should not be replaceable with others. These resources include assets, culture, knowledge, capabilities, and organizational systems. Grant (1991) advanced the argument for resources by developing a framework that identifies firms’ resources based on their strengths and weaknesses. The identified resources can be the inputs for the core capabilities of the firm, which can lead to the firm’s competitive advantage through the exploitation of strategies that suit the resources and capabilities of the firm. On the other hand, dynamic capabilities identify resources, assets and capabilities outside the firm and integrate them into the organizational processes to achieve business value and competitive advantage (Teece et al., 1997). Eisenhardt and Martin (2000, p.1107) defined DC as “the firm’s processes that use resources – specifically the processes to integrate, reconfigure, gain and release resources - to match and even create market change”. Contextually, the definition did not indicate at what stage should dynamic capability apply. However, it could be argued that this can be done at the firm’s discretion based on whether some weaknesses are identified or innovations emerge. From the perspective of Teece (2007), technological opportunities are contributors to the dynamism in the business environment, which substan­ tially impact processes. For DC to be complete, the firm has to sense the opportunities and threats, seize the opportunities, manage threats; and then reconfigure. Sensing is scanning both the internal and external environment to understand the changes in the business environment on the strength, weakness, opportunity, and threat spectrum. The firm seizes the opportunity and manages the threat by strategizing on creating, adapting, and re­ configuring its processes to accommodate them (Gajendran et al., 2014). In the study of Ellström et al. (2022), using the sense, seize, and reconfigure principle of DC does not mean having a new revolutionary idea. However, it could be to copy an existing idea and make them an essential part of the firms’ processes. For example, drones did not originate in the construction industry, but they are now used to monitor performance construction in construction projects. Similarly, Konanahalli et al. (2018) argued that the application of DC can allow facilities management organi­ zations to innovate and respond to dynamic market conditions. Using digital transformation as used in the study of Warner and Wäger (2019), it could be argued that DC brings flexibility to the firm in picking and choosing digital technologies external to the firm but leads to improvement of processes. For example, most digital technology experts are outside the construction firm, unlike RBV, which recommends using inhouse actors. DC, unlike RBV, proposes that firms can rely on external resources and capabilities to achieve their competitive advantage strategy. Therefore, DC and RBV can be used as theoretical constructs to understand DC in the construction process and how they can be accrued.

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7.3 Digital construction and DC in the construction industry Digitalization has become a “buzzword” in revolutionizing the global economy, and this is due to the strategic management view and govern­ ments’ belief that digital advancements lead to performance improvement (Akter et al., 2016; Australian Government, 2018; Bauer, 2018; Bharadwaj, 2000). The construction industry is no exception to digitalization. However, the term Industry 4.0 is rather used (Chan, 2020), and the purpose of digi­ talization is to emphasize what digital technologies can offer in terms of time and cost benefits, which Deloitte terms digital construction (Veldhuizen et al., 2019). Cheng et al. (2020) demystified Industry 4.0 by listing some of the digital technologies emerging in the business landscape: artificial intel­ ligence, big data analytics, augmented/virtual reality, cloud computing, digital twin, and Internet of Things. In the case of the construction industry, while there are studies which explored and identified various technologies (Akinyemi et al., 2021; Atuahene et al., 2022; KPMG China, 2016; Low et al., 2019), this chapter used a systematic approach to identify digital technologies and its rela­ tionship with activities in the construction life cycle. Therefore, the Scopus database was scraped to inform an understanding of the evolution of digitalization in construction using the search terms (TITLE-ABS-KEY (“digital construction”) OR TITLE-ABS-KEY (“industry 4.0 in con­ struction”) OR TITLE-ABS-KEY (“digital transformation in construc­ tion”) OR TITLE-ABS-KEY (“digital technology in construction”)) without limiting the search to other specific timelines. Scopus was used because it indexes most of the top-ranking and high-impact journals and conferences in construction management. Four hundred twenty-six articles from 1967 to 2022 were retrieved; however, 255 articles between 1998 and 2022 relating to the construction industry were uploaded and processed in the EndNote data management tool. The 255 articles were transferred in the Mendeley data management tool to make the file compatible with the VOSviewer software. The VOSviewer co-occurrence function based on keywords from these articles was used to generate Figures 7.1 to 7.5. The criteria for the analysis were based on a minimum occurrence of keywords at 2 – the keywords should be present in at least two articles – 137 out of the 1995 keywords met the threshold. Figure 7.1 shows a colour visualization network of keywords, the size of the keywords, and their associated bubble shows the frequency of use of the keyword(s). For ex­ ample, digital construction is green coloured and based on the legend, started appearing in literature in post-2017 but happens to be keyword present in most of the articles. It is visible compared to the blockchain, which is small and yellow coded, which means that it started appearing in the construction industry in 2021 or post-2021. In addition, each of the keywords is connected, which can be seen in Figures 7.1–7.5; meanwhile, some selected examples relating to the construction life cycle can be seen in Figures 7.2–7.5.

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Figure 7.1 Overview of keywords in at least two documents.

Figure 7.2 Relationship between architectural design and other keywords (emphasis on specific i = Industry 4.0 technologies).

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Figure 7.3 Relationship between quality control and other keywords (emphasis on Industry 4.0 technologies).

Figure 7.4 Relationship between energy efficiency and other keywords (emphasis on Industry 4.0 technologies).

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Figure 7.5 Relationship between concrete and other keywords (emphasis on Industry 4.0 technologies).

Based on the legend shown in Figure 7.1, the under-listed Industry 4.0 technologies were identified using their respective assigned colour from the VOSviewer visual analysis; the list below represents the first-time occurrence of the technologies in the documents: a b c d

e f

Pre- 2017: computer-aided design, automated construction and data mining, 2017–2018: virtual reality 2018–2019: internet of things, embedded systems, robotics, BIM, and geographic information system 2019–2020: 5G mobile communication system, 3d printers, additive manufacturing, intelligent buildings, point cloud, natural language processing, augmented reality, intelligent computing and rfid. 2020–2021: automation, 3d modelling, artificial intelligence, and big data Post-2021: deep learning, digital twin, blockchain, and smart contract

These Industry 4.0 technologies have been applied based on the keywords: accident prevention, quality control, structural design, energy efficiency, productivity, scheduling, decision making, project management, construction equipment management, sustainability, the life cycle of projects, and others (Figure 7.1). For instance, at the design stage of projects, architectural design

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makes use of the following technologies: augmented/virtual reality, big data, computer-aided design, intelligent computing/building, BIM, Internet of Things, digital twin, artificial intelligence, robotics, natural language proces­ sing, automation and 3D printing, blockchain, smart contracts, point cloud, global information system, and embedded systems (Figure 7.2). In the construction stage, quality control is ensured by using augmented/ virtual reality, BIM, and Internet of Things (Figure 7.3). At the postconstruction stage, artificial intelligence, 3D printers, and automation are helping with energy efficiency in buildings (Figure 7.4). Meanwhile, technol­ ogies are used to develop sustainable construction materials like concrete, including additive manufacturing, computer-aided design, automation, and 3D printers (Figures 7.5). These show how different Industry 4.0 technologies have impacted the construction industry. Generally, this indicates the industry’s dynamism to potentially accommodate these technologies at various stages of the con­ struction life cycle. Though, Chan (2020) remarked that systemic change is needed before the construction industry can fully embrace digitization due to the entrenched position of the industry. Profoundly, the interpretation of comments by Chan (2020) leads to two fundamental thoughts of either the construction industry (a) not well-prepared for digitalization or (b) antidigital mindset. These two views do not suggest digitalization is not hap­ pening in the industry. However, the extent of its uptake is problematic, which could be deeply seated in the industry not digitally capable. By implication, specific digital qualities or abilities should be developed to facilitate new ways of doing business in the construction industry, rather than just limiting the focus on the availability and use of these Industry 4.0 technologies in the construction industry. In retrospection of the literature on general, organizational, and DC, three main DC could be deduced for the construction industry: (i) digital mindset, (ii) digital investment/infra­ structure, and (iii) digital skillset. Examples from the UK and Australia are used to explain these capabilities. 7.3.1 Digital Mindset Traditional, matured, and entrenched industries like the construction industry have well-established structures, making it difficult to accept new ideas and digital innovation fully. A common example is a delay in the uptake of BIM in the construction industry due to resistance to change by construction professionals. Nevertheless, professionals in the construction industry are to develop digital mindset capability, which requires leadership from heads of construction firms. For instance, in a case study on big data technologies in Australia, an interviewee alluded that “it certainly coming from the CEO down, he is a big supporter of it and management team are. The inner cynics say its cost saving and good record keeping” (Atuahene,

Digital Capabilities 135 2021). This specific construction firm applies different digital technologies in executing construction projects and is known to be a technology-led firm. Moreover, the response by the interviewee gives credence to Ulrich and Smallwood (2004) assertion that leadership is a capability needed by firms. Leadership as a capability contributes to developing a digital strategy that can transform activities in the construction industry. It is worthy to note that digital strategy has been identified as a distinct digital capability (Wielgos et al., 2021). The digital strategy covers a holistic approach to integrating digital technologies into all activities of the firm to transform and survive in this age of digitalization. However, the vision of leadership birth digital strategy, but the input of the site personnel and other employees are needed because these professionals will be at the forefront during its implementation. This digital strategy provides a strategic direction and re­ creates value to the construction firm. The authors conducted another interview with a construction consultancy firm involved in project 4D design and time management. The firm’s CEO described the next digital move for the business because of the high competition within their field of operation, where a client will request BIM designs and project duration within a short time. At the point of the interview, the firm used Synchro BIM gaming software to visualize construction projects even at the tender stage for potential bidders. However, to be more efficient, the firm is initiating resources to be involved in the machine learning and artificial intelligence space, where the duration of projects can be estimated within a reasonably short period. Another digital mindset capability is collaboration. Individual con­ struction firms do not exist in isolation but rely on the services of other firms within and outside the construction industry. For example, the HS2 project is a high-speed railway connecting the south and north of the UK (HS2, 2022). The project has four main contractors and other sub­ contractors in the execution of the projects, and it has demonstrated the large supply chain associated with the project. HS2 uses digital technol­ ogies like virtual reality, real-time monitoring technologies and digital twin (Emmett, 2022). It points to the fact that collaboration as a capa­ bility is key to the digital delivery outcomes on the HS2, especially when many firms are involved in the project. It is of utmost importance to the project and stakeholders to collaborate digitally; otherwise, it will frus­ trate the project if other stakeholders cannot collaborate because these stakeholders are not up to speed on the digital technologies. The con­ struction industry’s fragmentation inhibits firms’ collaborative efforts, but collaboration is the way forward for a high scale of digitalization. This is also exemplified in the collaborative nature of BIM and other digital platforms like Aconex, Procore, Buildertrend, Smartsheet, Fieldwire, CoConstruct, Esub, RedTeam, and STACK, which the client should initiate and, in some circumstances, the main contractors.

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7.3.2 Digital investment/infrastructure Digital infrastructure for construction technologies requires the integration and connectivity of digital technologies, which has financial implications and ramifications for the firm (Chan, 2020). It implies that construction firms should have the financial capability to build and develop such digital systems. In this digital age, internet connectivity is a major player in the digital drive of construction firms; unlike other sectors, construction projects are delivered in all sorts of geographical terrain, some at good internet connection jurisdiction and vice versa. As urgent, construction firms’ ability to secure a reliable internet system for their projects is crucial for feeding project stakeholders the right information at the right time. An experience was shared by a construction professional interviewed on big data in Australia who said, getting the data, data connection can be challenging on-site sometimes if it is not fast enough. Internet connection. Because, we in our last few jobs in public schools and because we have to share the connections on the site with the school, that can slow things down a lot, and all your data cannot get through quickly enough. (Atuahene, 2021) This suggests the need for construction firms to have alternative arrange­ ments for internet connectivity on project sites. The COVID-19 pandemic magnified the need for internet capability since real-time project monitoring became necessary for construction projects. Another digital infrastructure capability is a high investment in digital technologies. Bharadwaj (2000) considered IT infrastructure in terms of physical assets to a business. However, in the case of digital technology infrastructure in construction, it could be physical assets and software, for example, BIM is a combination of software and hardware (Braun & Sydow, 2019). A high-performance visual computing system makes designers and users of BIM effective in their roles because it enables the production of the required visual effect. Moreover, virtual reality is added to provide a walkthrough experience for clients and stakeholders on BIM-produced designs to make these stakeholders feel of their facility, which comes at a cost. The authors visited once visited an under-construction big hospital facility within a town in regional New South Wales, Australia. The parts fitted on the projects has their unique QR codes, making site inspection an interesting experience. For example, if the inspectors witness any defects in the projects, they scan the QR codes on the defective parts and forward the details to the main contractor to make good to it. Surveillances technology was becoming a normal technology for construction projects and was rec­ ommended by the McKinsey Institute to change the digital scope of con­ struction (Manyika et al., 2011). Time-lapse cameras and drones are now used for different surveillance activities, and some projects employ the

Digital Capabilities 137 services of helicopter photography for strategic captures before, during and after construction within some time intervals. Interestingly, after capturing activities from the projects, these data are stored in well-secured cloud servers, accessible to the contractors at any point in time but within a des­ ignated time. Firms with financial capability could afford these technologies, and it is not surprising that most digital-led firms are large firms with high portfolios. Investment in intranet and interconnected platform systems was identified as a digital infrastructure capability. Construction offices and projects offices could be miles away and having an intranet system facilitates easy, fast, and quick communication between these two offices and collaborative working. The interconnected system should not be only about linking some computers but other hand-held and wearable smart devices. It also feeds into the unwritten principles of digitalization, thus the reduction in the use of papers on projects. According to Chan (2020), a school of thought in construction believes that investing in digital systems could replace human labour. It is obscure and partly due to limited evidence about the promises of digitalization to construction; this discussion is limited to evidence on digitalization and not to the debate of whether or not digitalization will substitute human labour. The simplest example is the use of google forms, where everyone with access to the forms can work collaboratively in realtime with others. A known construction firm to the authors has this cus­ tomized built intranet system where various devices and applications have been synchronized. However, this is a project-based system, so each project has its dedicated dashboards, accessible to staff with the right security clearance. For example, every worker logs in and out of the site using a procured mobile app and people from the head office could see site attendance instantaneously. In addition, every defect signoff by sub­ contractors and every data captured by the site engineers are uploaded unto the intranet platform, where anyone with access to the dashboard can monitor the project’s progress remotely. Another digital infrastructure capability requiring investment in the era of this digital age is an efficient, robust and secured data storage platform (Correani et al., 2020). Data is common among the various digital tech­ nologies used in the construction industry like BIM, drones, sensors, Internet of Things devices, and others. Correani et al. (2020) remarked that the instrumental role of the growth of digital technologies leads to the accumulation of data, which has become central to the digital transforma­ tions in business. The fundamental questions here will be, where do all these data go? Answering these questions then elevates the relevance of data storage as a non-negotiable capability in the construction industry. For instance, the McKinsey Global Institute analysis of data stored in some sectors of the US economy shows that 51 petabytes of data were stored in 222 construction firms with less than 1000 employees in 2009 (Manyika et al., 2011). Considering these facts, the potential benefits of these data

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(Atuahene et al., 2022) and the legal implication of data privacy make it fundamental for construction firms to have a well-protected storage system. Two major forms of big data storage and processing platforms used in construction firms were identified from interviewing fifteen construction professionals in seven firms in Australia (Atuahene, 2021): cloud-based and on-premise-based storage. The cloud-based storage has no limitation in geographical location and most often uses cloud computing/ servers. In addition, it can store massive amounts of data collected from digital tech­ nologies. Examples of cloud-based storage identified from the study include the Aconex server, BIM360 server, Time Lapse Camera server, Whos on Location server, and other project-based servers. In the case of on-premisesbased storage, there is a limitation because the storage size could be limited to the size of the computer, for example, Navisworks with no BIM360 integration, and other construction-based software like Teambinder, Astapower project and JD Edwards. Aside from these storage platforms, there is the need to restrict access to only people directly involved in cap­ turing project data or performing supervisory roles. 7.3.3 Digital skillset The capabilities mentioned earlier are very important, but they will be of no use if the human element is ignored; this is why the digital workforce is central to digital construction and capabilities. The development of digital skillsets has become important to governments (Australian Government, 2018) and researchers (Bharadwaj, 2000; Bongiorno et al., 2018) worldwide. Bharadwaj (2000) identified technical and managerial skills as important for digital skillset capabilities. A similar study on digitalization with emphasis on big data extended the capabilities to include technical knowledge, tech­ nology management knowledge, business knowledge, and relational knowledge (Akter et al., 2016). Notwithstanding, these can be summarized in the technical and managerial knowledge/skills stated earlier, and some authors have made the same (Atuahene et al., 2018). Another capability that is mostly ignored in construction is the digital analytic skillset. Technical skills are the individual’s technological know-how and the ability to understand, operate, and use the digital technologies in the firm’s processes. Technical skills are the knowledge acquired in design, project monitoring and control, sensors on projects, management of projects services, site access systems, and so on. Construction professionals could develop these skills through their core responsibility is to deliver the actual physical project. There have been instances where construction professionals are mandated to enrol on certification courses as far as some technologies are concerned. For example, drone technology for project monitoring on construction has brought another level of responsibility to site engineers. As a result, the site engineers must gain a certificate before using this particular technology and the privacy policy associated with using them in populated areas.

Digital Capabilities 139 As pointed out earlier, there is an ongoing debate on whether or not digitalization in construction will replace the construction workforce (Chan, 2020). Notwithstanding, the effective use of these digital technologies is subject to the managerial skills of the people involved. The managerial skillset capabilities relate to construction domain knowledge and the in­ dividual’s ability to collaborate closely with others on these digital tech­ nologies. In the context of the construction industry, managerial skillsets can be viewed from two perspectives, (i) the construction personnel with digital technical knowledge and (ii) a digital-oriented person with no con­ struction knowledge. In the case of the former, the construction professional will need to use the digital technologies in areas where their construction knowledge takes them and ensures that other construction personnel with no/limited digital knowledge use the various assigned technologies on site. For example, in a case study conducted by the authors, one of the respon­ dents, who was a site engineer and personnel in charge of digital technol­ ogies on the project, assisted subcontractors in using the technologies such as the sign-ins and off apps, as well as capturing data on defects using these technologies (Atuahene et al., 2022). For the latter, the digital personnel direct and collaborate with the construction personnel. For instance, in the case study, the digital team have developed an interconnected system with inputs from the construction personnel. The digital personnel then task the construction people on site on how to use the various digital technologies, the specific data required from the construction site, and the transmitting and communicating with head office. Most of the time, there is a disconnect between these two teams (digital and construction teams), especially since the construction team fears their jobs are in danger. However, harmonious working between the two becomes very important, and it is through man­ agerial skillset that such an objective is achieved. Another level of digital workforce capabilities needed in the construc­ tion industry is digital analytics skill capability. The use of digital tech­ nologies in all industries, including construction, generates data, and the ability to mine and interpret this data leads to business value. The McKinsey Global Institute analysis of the big data in construction indi­ cated that most of the data generated and stored in the construction industry are unstructured. This potentially enables the construction industry to extract more value from construction big data. Therefore, the role of the data analytic skillset cannot be overemphasized. It is pretty disappointing that the construction industry globally has jumped into the digital frenzy agenda and thinks that being a digitally oriented construc­ tion firm is to invest in these digital technologies but forgetting about how the output from these technologies can be used to the benefit of the firm (Atuahene et al., 2022; Bilal et al., 2019; Han & Golparvar-Fard, 2017). An example is a study by Kanjanabootra et al. (2019), which analyzed social media data relating to a large construction project to assess the public’s sentiments on the project. The feelings were overwhelmingly

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negative, creating a negative public image of the project; however, because the project team did not perform such an analysis, the project team could not correct the sentiments promptly.

7.4 Enabling approaches to DC From the RBV and the dynamic capabilities theory, the identified and dis­ cussed DC in section 7.4 can be developed from two main perspectives, ei­ ther within a firm and support from the external environment. It is easier to distinguish between the two based on the motivation for developing the capabilities. These are further discussed here. 7.4.1 Firm-based approach Firm-based approach to DC is described as the need to develop and upgrade digital competencies to meet the firm’s objectives, which stems from assessing and reflecting on the firm’s capabilities. The apparent reason for developing a firm’s capability, which includes DC, is to capitalize on them and increase its competitive advantage. For instance, the Merthyr Tydfil County Borough Council’s agenda to transform one of its dilapidated bus stations into a modern facility by incorporating sustainability features and being efficient in the project delivery led them to choose Bluebeam (Bluebeam, 2022). According to the council and the contractor for the project, this software helped in digital colouration, accuracy and time saving on estimation, among others. This example clearly shows where the motivation for using Bluebeam emanates, which is part of the need for digital mindset capability in con­ struction firms. Davies et al. (2017) interviewed people involved in BIM, and one of the comments was that people in their 50s and 60s are not bending to the BIM update but prefer the old ways of doing things. The profound un­ derstanding and interpretation gleaned from this response are that these are the same age groups managing most construction firms across the globe. Therefore, leadership becomes important for transforming digitalization. Through leadership, construction firms can have a periodic selfreflection to identify the non-performing areas in their operations and develop an implementable and realistic digital strategy based on their strength to improve their processes. The construction industry was impacted by the COVID-19 lockdown restriction, especially in the mon­ itoring and inspection of projects. Nevertheless, before COVID-19, these firms’ initial strategy was to have their representatives on-site to monitor and inspect some of these projects. However, most firms changed to a digital approach to monitoring and inspecting projects without going to the project sites (Emmett, 2022). In essence, DC can be motivated by internal factors.

Digital Capabilities 141 7.4.2 External-based approach External-based approach to DC development is motivated by the hap­ penings in the external environment, and dynamic capabilities underpin it. The identification of the capabilities is influenced by leaders of construc­ tion firms scanning the environment, seizing, and integrating the DC in the construction firms’ processes. There are avenues where construction firms can identify DC, including professional bodies, digital firms, and gov­ ernment policies. Professional bodies are ideally the gateway to facilitating the development of DC in construction firms. The Royal Institution of Chartered Surveyors sanctioned a research project on digital twins in the construction industry (Seaton et al., 2022). The study introduced this technology to construction professionals, firms affiliated with these pro­ fessional bodies, and other industry professionals. Through this, con­ struction firms and professionals become aware of the changing trends in doing construction business in this era. Based on the success stories of others, other firms become motivated to employ these digital technologies in their processes. The demand for digital technologies in the business world has created a large market for firms producing different digital technologies, thereby creating competition amongst these digital firms. These digital firms develop various strategies to market their products through supporting programs organized by construction research and professional bodies or through tailor-made adverts to the construction industry, or partner with some construction firms to develop customized digital systems, which falls within the digital partnering concept (Aghimien et al., 2020). Examples include the London Build expo webinars, where various construction software firms present their products to participants on the benefits of the software to the industry. A recent webinar by the organizers was on MTWO products from the SoftwareONE group. This is a cloud-based software with cloud, 5D BIM, integrated platform, and data function. It also aids in contributing to sustainability in the construction industry, for example, selecting (sub) contractors on projects. Oracle has introduced a variety of construction software like Primavera; recent to their portfolio is Aconex, which is useful for project delivery and control. Another example is Autodesk, which contributes to the construction in­ dustry’s BIM technologies – AutoCAD, Revit, Navisworks, and BIM360. Because the construction industry embraced Autodesk many years ago, most professionals assume Revit is the only BIM technology in the market. Any construction professionals who attended construction webinars/semi­ nars or came across these technologies then decided to explore the benefits by seizing and integrating them into their process. Government policies contribute to the development of DC in the con­ struction industry. Notably, this is because the Government is a major purchaser of the construction business, and it is not surprising that

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construction is mostly part of the critical contributors to gross domestic product. A construction firm must meet certain contractual requirements before a contract is awarded. For instance, the authors interviewed workers on construction projects. They indicated that Health New South Wales in Australia has made it mandatory for construction firms to provide a 24/7 time-lapse camera from the start to the end of the project. Such policy compels construction firms to invest in these digital technologies, either owning them outright or through a lease. These policies are derived from the government-industry-academia partnership to make the construction industry digitally inclined. One of the HM Government’s (2013) visions is to transform the construction industry into a smart industry, which seeks to have a digital industry to improve efficiency. An example is to encourage digital design and smart construction, like the Manchester Town Hall project building that used BIM schemes as part of the Government’s pilot project. These policies are mostly reactionary actions to the inefficiency issues in the construction industry. For instance, the Egan (1998) report identified systemic challenges facing the UK construction industry through the industry was delivering excellent projects. The report’s findings contributed to the introduction of integrated project delivery methods and the need for collaboration in the industry. They advocated for extensive use of CAD for project design. Almost after two decades, the construction playbook is advocating and instructing professionals in the industry to use a digital approach to bridge the collaboration gap on government projects (HM Government, 2020). Another effective approach the government uses is the partnership with universities to develop and educate students and profes­ sionals about the current trends—a case in the future digital vision of the Australian Government (Australian Government, 2018). The Government’s partnership with Swinburne University has contributed to developing a digital technology curriculum contributing to the digital workforce. In this same country, the authors were part of a team that received a grant from one of the states construction training boards to map and develop BIM expertise for the Board. This was a research collaboration between the university and the state. The research identified the expertise gaps and recommended var­ ious levels of training for the board.

7.5 Case for DC in developing countries Further analysis was done to know the demographic distribution of the 255 articles, shows the origin of these documents, and the frequency is shown in all shades of blue. The first ten countries with many publications are China (16.5%), the UK (12%), Germany (10%), Russia (7%), Australia (7%), the United States (6%), Italy (5%), Singapore (4%), and Malaysia (3%). Interestingly, the continent of Africa, Latin America, and the Caribbean had publications from only Egypt, South Africa, and Brazil. The United Nations

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Figure 7.6 Distribution of publication amongst the UN classification of countries.

(2019) classification of countries due to the basic economic conditions and the number of the countries in each of the classifications was used: developed (36 countries), in transition (17 countries) and developing economies (126 coun­ tries). The publications originated from 41 countries: 21 developed economies, 19 developing economies and 1 in-transition economy (Figure 7.6). However, more than half of the publications originated from developed economies (58%). Based on the data from the UN, there are more developing countries than developed and in-transition countries lumped together. On average, it can be seen in Figure 7.6 (Ave. pub per pub country class) that the in-transition country, which is only Russia had 18 numeral strengths, compared to 21 developed countries averaging 7 publications each. In contrast, the 19 developing countries average almost five publica­ tions each. For analysis, the total publication has also expressed a propor­ tion of the total number of countries in each classification. For instance, each of the overall 36 developed countries averagely produced four publi­ cations, whilst the 126 developing countries struggle to get one publication each. Going back to Chan (2020) assertion on the difficulty of Industry 4.0 adoption in the construction industry, it could be argued from Figure 7.6 that the developing countries are making such assertion true. However, there is no actual data to support it, except the observations made by practitioners and academics. On the other hand, China is considered a developing country (United Nations, 2019) but its digital advancements, in Gantz and Reinsel (2012) report, possibly, elevate China as at least a highly digitally advanced country from the other developing countries. Out of the 126 countries in the developing economies, only 19 had publications on the

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subject, representing 15%. Africa, for instance, has 54 developing countries, but only 2 countries (South Africa and Egypt) contributed to the publica­ tion. Meanwhile, Brazil was the only country out of the 27 countries in Latin, Central and South America to contribute to the published statistics. Indeed, some developed countries have yet to publish the subject in discus­ sion, but most of these countries are from developing economies. These iden­ tified technologies in section 7.4, as seen, apply to various stages of the construction life cycle and diverse sectors in the construction. Notwithstanding, for the developing countries to be major contributors and participators of digital construction, there is the need to build, develop, upgrade, and use digital technologies to achieve maximum efficiency. The under-listed points are rec­ ommended as a way forward for the construction industry in developing countries: 1

2

3

4

There is a need for total government commitment and strategy in implementing digital construction. As of now, most governments in developing countries are unaware of the inefficient state of the country through contribution to GDP is always high. This is a call for a national task force in developing countries to survey the contextual needs of the construction industry and recommend fit-for-purpose digital strategies as used in the developed country. Construction professional bodies in developing countries have been involved in traditional construction-related continuous professional development, but this is time for these bodies to adapt and introduce digital skillsets developments as part of the continuous professional development for these construction professionals. Through this initia­ tive, traditionally minded leaders in construction could soften their stand and invest in digital construction. The digital workforce is an essential digital capability for digital construction. There is a need to establish a government-built environ­ ment, academic institutions, professional bodies, and alliances aimed at developing digital training for construction professionals and firms. The first few years of this programme could be for free as a motivation strategy for the participants, and then at the end of the free window, a subsidy can be introduced for participants. The government, through its policies, should encourage and make it mandatory for construction firms to possess some level of digital technology training or system before they can bid or win some project types from the government.

7.6 Conclusion Digital construction is changing the way construction businesses, and the influx of digital technologies will continually increase the motivation to use them in the construction process. However, knowing and understanding the

Digital Capabilities 145 DC needed to get the best of these technologies will always become very important and relevant. This chapter has discussed these capabilities using real-life examples and other case studies. From this chapter, it is worth noting that developing capabilities for digitalizing in the construction industry is a two-way affair: the construction firm and the external en­ vironment. As digital construction continues to evolve in the construction industry, the capabilities of developing and applying them will still be imminent. The developing countries, though, are late adopters of digital construction and require these DC to transform the global perspective of the construction industry as a self-inflicted and a self-resistant to the technology industry because developing countries occupy a greater percentage of countries in the world.

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Skills Development in the 4th Industrial Revolution: The Construction Industry Ernest Kissi1, Clinton Aigbavboa2, Eugene Danquah Smith3, Didibhuku Wellington Thwala4, and Titus Ebenezer Kwofie5 1

Kwame Nkrumah University of Science and Technology, Ghana/ University of Johannesburg, South Africa 2 University of Johannesburg, South Africa 3 Kwame Nkrumah University of Science and Technology, Ghana 4 University of South Africa 5 University of Johannesburg South Africa/ Kwame Nkrumah University of Science and Technology, Kumasi, Ghana

8.1 Introduction The construction sector is one of the major industries that provides the infrastructure for economic development in many developing nations. Due to the industry’s generating economic value, upholding societal well-being, and serving as the organizational underpinning of an economy, the construction sector has become a vital part of our daily life (Weber et al., 2016). However, Bogue (2018) noted that in spite of its worth of over $10 trillion annually, the industry struggles with underqualified labour, a lack of familiarity with cutting-edge technologies, and slow productivity development. One of the most significant segments of the global economy is the construction sector, with delivery of buildings and infrastructure taking varied forms and approaches such off-site construction. Offsite construction which has become a notable feature of the fourth industrial revolution, however, requires considerably different skill needs than conventional construction. Additionally, productivity performance improvement has also become central feature of the global economy’s performance and long-term sustainable competitiveness in the fourth industrial revolution. Notably, government reports such as the Leitch Review (2006) and its agencies seem to endorse and offer theoretical assertiveness to the emergence of skills as precursor to increasing productivity. While there continues to be a clear link between skills, productivity, and employment, the Leitch Review (2006), for instance, based on the UK construction economy, asserted that “the UK DOI: 10.1201/9781003340348-10

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skills base remains inadequate by worldwide standards, holding back productivity, growth, and social fairness.” A variety of internal and external factors that affect construction productivity performance have been identified and some attempts have been made to account for in current literature. These external and internal factors relating to productivity performance in the building process were determined by Olomolaiye et al. in 1998. The internal determinants comprised managerial practice, technology, and labour skills and training, while the external factors included design, weather, client changes, economic progress, and political stability. The continuous development and training of the workforce were frequently highlighted as a component in productivity studies and industry reports, even though there are a numerous factors affecting construction productivity. There exist evidences from plethora of studies that skills are crucial component influencing productivity performance in the construction sector, with managerial skills and manpower concerns having the most significant impact (Rojas and Aramvareekul, 2003). The way we live, study, and work is being changed and will continue to be altered by the Fourth Industrial Revolution. While some occupations will cease to exist, others will prosper, and professions that don’t even exist will become more typical. The coronavirus pandemic has also significantly accelerated that timescale, and the future workforce will need to adapt its skill set to the unrelenting pace of technology (Kaka, 2022). The World Economic Forum’s “Future of Jobs 2020” research estimates that automation and COVID-19 will collectively eliminate 85 million jobs by 2025. However, 50% of the professions that are most likely to stay will need reskilling. Thus, the 4th Industrial Revolution has rapidly transformed industries and job positions, and the current gap between the skills held by today’s youth and what the market demands runs the risk of growing even more wider.

8.2 The 4th industrial revolution Throughout history, there have been three distinct industrial revolutions in the world. Ionescu (2018) argued that the First Industrial Revolution (1IR) began in the Middle Ages and continued until 1780. Human communities evolved during this time, moving from farming to the usage of machinery. The 1IR was primarily rooted in Britain, and once the British Empire changed, many other European nations quickly joined the revolution. Ionescu (2018) went on further to state that the 1IR was so effective that it helped lift European countries out of the Middle Ages. This allowed numerous nations to build, expand, strengthen, and diversify their economies. In the 1IR, an infrastructural upgrade is widely credited with raising living standards, developing new skills, accelerating urbanization, and many other things. Beginning in the early 19th century, the Second Industrial Revolution (2IR) was the continuation of the 1IR. According to Agarwal

Skills Development in the 4IR 151 and Agarwal (2017), the 2IR was marked by the employment of machines which were mostly powered by electricity and saw significant scientific advancements in steel, chemicals, electricity, and several other sectors. The creation and harnessing of electricity were considerable advances since it enabled many industries to function and grow. In the mid-1900s, the Third Industrial Revolution (3IR) also started. The 3IR, according to Roberts (2015), was driven by technical developments in the manufacturing, distribution, and energy sectors. The advent of nuclear power and the widespread use of electronics were two of the largest developments of the 3IR, with many regions of the world beginning to catch up to Europe in the process of global industrialization. There were increased technological advancements during the first three industrial revolutions, but not at the same rate as it is now, per Kayembe and Nel (2019). Kayembe and Nel (2019) also opined that, the 4IR, which began in 2016 (Skilton and Hovsepian, 2018), describes a society where people can move across digital domains and connect while utilizing technology to manage and aid with daily tasks. Technology has been used, implemented, and advanced quickly for various reasons. While it has given civilizations new abilities, capacities and generally changed lifestyles, current technology has emerged to play a significant role in people’s daily lives. Inherent from the uncertainty in the world, 4IR’s function in construction activities has become critical. Case in point, when COVID-19 was declared a pandemic by the World Health Organization (WHO), all industries, including construction, came to a complete standstill, resulting in the closure of construction sites and businesses that manufactured related products all over the world. In this era, digital tools and virtual means of remotely managing construction sites and projects became a common phenomenon. However, the construction industry’s adoption of most of the cutting-edge digital technologies has lagged compared to other sectors. Examples of these digital tools include cyber-physical systems, big data, blockchain, digital twin, augmented reality, robotics, and three-dimensional printing (3DP). These technologies belonged to the fourth industrial revolution (4IR), which according to Hirschi (2018), is enabled by employing advanced technologies such as 3DP in producing goods and services. Due to their possible implications, it is essential to include these technologies in construction. The terms “industry” and “industrialization” refer to the creation of goods or services using technological and commercial organizational advancements, as well as the growth of various industries on a large scale, respectively. The advent of industrialization, which took place in western civilizations during the 1770s, required scientific knowledge and technological advancement (Skilton and Hovsepian, 2018). This has come to be known as “The Industrial Revolution” since the transition from an agrarian civilization focused on agriculture and human social organization to an industrial one centred largely on the industry. According to Schwab (2016), from the 1IR in the early 1770s to the current 4IR, which started circa a

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decade ago, technology and human connectivity have improved with higher performance. According to Park (2018), the characteristics of quick advances like artificial intelligence (AI), advanced robotics, digitalization, and automation make this industrial revolution the primary component of Science, Technology, Engineering and Mathematics (STEM). Information and communications technology (ICT) usage is expected to rise throughout the Fourth Industrial Revolution (IR4.0). These technologies span a range of clusters, including the internet of things (IoT), automation, and robotics in Smart Factories, building information modelling, simulation models, and augmented reality in simulation and modeling, cloud computing, big data, and mobile computing in digitization and virtualization. According to Papadopoulou (2020), the 4IR would challenge the STEM pipeline by redefining the labour market and increasing the demand for the competence of all construction stakeholders. Most industrial sectors have embraced and accepted the use of technology in their industrial activity and progressing swiftly in terms of application and even development. Contrarily, despite the great expansions in other sectors, the construction industry has been noted for being slow to implement this IR 4.0 technology. This is mostly due to specific difficulties that arise from various perspectives. Consumer demand for generally better services has been addressed with the advent of Industry 4.0 (Vokes and Brennan, 2013). Still, innovation has also enhanced company productivity and sustainability and redefined the skills capacities needed to exist in the ever-expanding world. For the time being, this has been true for a small number of the world’s most developed nations. However, because of issues such as a lack of commitment, skilled labour, and infrastructure, most developing countries struggle to accept and apply IR 4.0 technology. This chapter focuses on skill development in the construction industry. It also talks about specific challenges faced by stakeholders in integrating the 4th Industrial Revolution in skills development and strategies which can be employed to tackle this array of challenges.

8.3 Skills development The phrase “skills development” is typically used to describe the practical talents obtained during all stages of education and training, which can take placed in formal, informal, non-formal, and on-the-job contexts. Thus, it is about identifying skill gaps and facilitating trainees’ access to extra knowledge and abilities through skills training, establishing skill standards, and other activities specific to the required skills. The ever-expanding definition of the word “skills” adds another layer of complexity. For instance, Grugulis et al. (2004) presented three viewpoints on skill and ability. These include the skills a man possesses and have grown through time because of new experiences, each adding a percentage to the total. The demands/

Skills Development in the 4IR 153 specifics associated with the job might or might not correspond with the employee’s expertise and current skillset, which will consequentially point towards the required skills pertinent to the job at hand. To achieve rapid, sustainable, and comprehensive development and as well as providing the growing young population with decent economic opportunities, skill development is essential (Dixit et al., 2017). The Swedish International Development Cooperation Agency (SIDA, 2018) reported that skill development is often regarded as necessary for finding gainful employment. As a result, it plays a crucial role in boosting productivity, developing the private sector, fostering inclusive economic growth, and reducing poverty. By increasing employability and labour productivity and making nations more competitive, skill development may support structural change and economic growth (World Bank, 2021). In the construction industry, studies have indicated that one of the things that delay construction projects is the lack of trained labour, with the potential effects of a skilled labour shortage being significant in the unsuccessful completion of construction projects (Johari and Jha, 2019). As a result, various studies, notably Forde and Mackenzie (2004) and Marn and Roelofs (2017), have focused on how to use the workforce effectively, including providing pertinent training to undertake employee skills development. Thus, with the advent of the 4th industrial revolution, it is seriously anticipated that less hands are required, that is, in terms of physical actions. Notwithstanding, it must be noted that construction professionals need new skills if the industry wants to embrace the new paradigm shift (4th industrial revolution). This paradigm embrace can be undertaken through the differentiation between soft and hard skills, and how both types could be adopted to suit peculiar project deliverables at hand. According to Chell and Athayde (2011), the terms “soft” and “hard” skills are often used confusingly. For an employee to be deemed capable to perform the so-called hard skills, they must have attained a high degree of competence in the relevant knowledge domain. This is because these skills have a high knowledge and technical content. In contrast, “soft” skills are relatively simple, as they consist of behaviours, and are not thought to be cognitively challenging, and may be learned by experience. However, the successful use of “soft” abilities is probably more complex than previously thought. This results from both context awareness and the cognitive substance of the skill. 8.3.1 Soft skills Soft skills are character traits that improve a person’s ability to engage with others and perform well at work, while also are interpersonal and broadly applicable, in contrast to hard skills, which are about a person’s skill set and ability to accomplish a particular task or activity (Hendarman and Tjakraatmadja, 2012). Hendarman and Tjakraatmadja (2012) went on to

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opine that soft skills are the capacity to connect, communicate, and collaborate with a variety of people, including coworkers, clients, and leadership. Essential human abilities like creativity, sophisticated problem-solving, critical thinking, communication, emotional intelligence, and people management will remain critical even as more and more people work alongside/ with robots and other 4IR technologies. Consequently, having strong leadership and management abilities will remain crucial. Employers will continue to need employees who can communicate with others and forge relationships both within and externally; thus, making communication skills extremely essential. 8.3.2 Hard skills Technical or “hard” skills, such as computer programming, coding, project management, financial management, and technology-based skills, indicate the knowledge and abilities needed to carry out task-specific tasks (Kaka, 2022). These abilities tend to be more technical and frequently involve using instruments like project scheduling, as in the context of project management (Chell and Athayde, 2011). As a result of technology, there are more chances for employment, which increases the demand for qualified workers with specialized training and technical abilities in their fields. Developing a solid set of technical skills will remain essential. This makes it is critical to define and comprehend the requirements that are perculiar to each industry, so that job searchers are better equipped for the demands of these occupations. 8.3.3 Skill development in the construction industry The economic value of skills is well recognized. According to Moehler et al. (2008), the construction industry’s lack of investment in skill development and education generally relies on the nature of the sector. The construction industry is vulnerable to the risks of boom-and-bust economic cycles since it is a gauge of the overall economic health, where in the case of economic regressions, the industry becomes stagnant, with the opposite holding true for that of inflation and progression. This attachment to the economy and these known risks ensure that most businesses become less willing to invest in employee skill development, since their productivity can be greatly affected by external economic factors which often calls for an ignored longer-term perspective. Against this, it is important to evaluate the quality of the construction workforce over a period, which could be revealed by considering the industry’s skills profile over that same period (Abdel‐Wahab et al., 2008). Even though the construction business is predicted to be one of the fastestgrowing industries by 2026, the sector will experience a considerable decline in skilled workforce over the next several years (Kang et al. 2018). An especially urgent issue is the impending retirement of the “baby-boomer”

Skills Development in the 4IR 155 generation (people born between the years 1945 and 1964, a generation that has contributed to numerous significant cultural and economic developments), which currently dominates, and anchors the construction industry (McGraw-Hill Construction, 2012). The next generation of construction personnel must be created and nurtured to meet the imminent scarcity of skilled labour through the implementation of new teaching techniques. According to Ramana and Ramakrishna (2013), the demand for various required resources for the construction process has increased due to the construction sector’s fast growth resulting from investments as well as the desire for physical activity. One of such resources is both skilled or unskilled manpower, of which demand for various construction-related activities has increased significantly. It is striking to note that most of the workers in the sector fall under the unskilled labour category, which is needed for nearly all aspects of construction activity. Ramana and Ramakrishna (2013) also contended strongly that, skill development is a crucial component that might increase employee productivity. Here, skill development education can significantly transform people and organizations by equipping them with the essential skills necessary for employability and lifetime earning potential. Per Ferns (2012), employers look for candidates with various employability skills, particularly those with technical, communication, team management, professional, and ethical conduct skills, design and construction capabilities, and the capacity to make decisions throughout design processes. Others include expertise in managing legal contracts, building information management, and work health and safety throughout the project process (Senaratne and Hapuarachchi, 2009; Wu et al., 2015). A worker’s educational background, attitude towards own skills development, the organization where one works, the work environment, and the nature of construction work tasks all play a significant role in enhancing an employee’s skills development for improved productivity (Erasmus et al., 2016; Orando, 2013; and Schwab, 2016). Orando (2013) suggested that the complexity of construction work often ranges from very basic to very sophisticated, with many complex projects requiring literacy and technical skills, including reading, as part of communication skills. This demonstrates the importance of literacy and primary education for productivity in the construction sector. In this context, Erasmus et al. (2016) stressed that, in addition to the fundamental technical skills, professionals should also have interpersonal, communication, and problem-solving abilities. The level of education required for management in the construction industry is significantly higher because of the increasing complexity of the sector (Torres Machi et al., 2013). According to Schenk (206), workers have a significant role to play in their skill development. They must, among other things, assume responsibility for their work, maintain their knowledge and skills, contribute to creating and achieving performance goals, and use available possibilities for growth.

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Organizations are essential in equipping employees with the necessary skills. The industry, as a whole, is known for taking a mediocre approach to investing in skill development and training. In Schwab (2016), firms must provide time and resources for training and development across all departments to foster a work climate that encourages training and learning to be adequately prepared for the ever-changing/developing characteristic of the sector. The array of effects and consequences of the 4th industrial revolution makes the assertion by Schwab (2016) the more imminent into the construction industry.

8.4 The 4th Industrial Revolution and skills development In recent years, academia community and the construction industry have both focused on the need to improve stakeholder education and development to gain new skills and improve abilities (Lantelme and Formoso, 2000). This is primarily as a result of the construction sector having to keep up with the rapid speed of change and technological advancement inherent from the requirement to improve performance globally. The discussions in the last decade have centred on numerous significant changes in this industry that have recently had significant impact on the jobs of construction workers, notably the advancements in 4th Industrial Revolution (4IR) era. The attributes and technologies of the 4IR era inducing significant changes to work in the industry have included Building Information Modeling (BIM) and AI, among others; the growing demand for sustainable and performance-based design; increasing dissemination of lean production principles and concepts to economize material usage and labour; and the implementation of creative procurement techniques that support supply chain integration. Leopold et al. (2017) claimed that the 4IR era will continue interacting with various other socio-economic and demographic factors affecting regions worldwide, particularly Sub-Saharan Africa. This interaction will lead to significant disruptions in labour markets, the emergence of entirely new occupations, new methods of organizing and coordinating work, new skill requirements for all jobs, and new tools to enhance workers’ capabilities. However, Sub-Saharan Africa is underprepared for the imminent disruption to employment and skills brought about by the 4th Industrial Revolution. It is far from using its human capital potential (Leopold et al., 2017). Employers in the region have already identified a significant business barrier as the issue of underqualified/skilled workers. This skills instability frequently results from numerous jobs in the area using digital technology more regularly. The region’s main issue is to reshape national skilldevelopment programs to reflect exposure to the future employment market. For a larger and more technologically advanced organization, companies need highly skilled personnel (Spottl and Windelband, 2021). Since there are intelligent factories on the one hand and production and logistics processes

Skills Development in the 4IR 157 that are networked internationally over the internet on the other hand, Industry 4.0 can legitimately be referred to as a production paradigm on its own. This makes it possible for a flow of materials to be optimized and connected to the extent that has never been possible, thus increasing the productivity of the entire construction process (Spöttl and Windelband, 2021). According to Leopold et al. (2017), the main challenge to future workforce planning is a lack of knowledge about the disruptive developments that are taking place. Resource limitations and inadequate alignment of organizations’ talent plans with their larger innovation strategies come next. The commercial and educational sectors rarely work together. In the opinion of Leopold et al. (2017), there is generally little cooperation among the businesses looking to solve skills gaps in their workforces and the communities in which they operate, leading to disorganized and potentially costly initiatives. Higher occupational levels, such as management, professionals, associate professionals, and technical occupations are where the skills required to drive the development or usage of technology are most frequently recorded (Vokes and Brennan, 2013). Vokes and Brennan (2013) further identified some additional core skills for offsite construction as particularly being important for higher-level occupations. These include mutual understanding, collaborative working, IT savviness, planning and design, and a whole life approach, which is the overall project consideration from the cradle to the grave. Leopold et al. (2017) found a cluster of African countries was found to have a relatively poor capacity to adapt to the demands of future professions, which their relative exposure to these technological developments at that time is somewhat limited. These countries have a window of opportunity for implementing long-delayed reforms. Their efforts should notably enhance fundamental education and develop a robust Technical and Vocational Education and Training (TVET) system to provide a solid basis for the future. According to the same study by Leopold et al. (2017), the second set of nations, including Kenya and South Africa, had a marginally more substantial potential for adaptation but were also more directly exposed to the job disruptions of the 4th Industrial Revolution. These nations urgently require reskilling and upskilling initiatives to enhance higher education and adult learning. The World Economic Forum (WEF), in a recent study, made various recommendations for improving education and training systems to facilitate the 4th Industrial Revolution. These recommendations include: • • • • •

Greater accessibility to early education. Offering quality technical and vocational education and training (TVET). Investing in developing digital literacy and ICT fluency. Ensuring that syllabi and courses are “future-ready.” Making investments in creating and upkeep a qualified teaching and training workforce.

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Ernest Kissi et al. Fostering a culture of continuous learning. An open mind to new educational approaches. Early workplace exposure and career guidance.

The region, as well as other developing countries around the world, urgently need to make correct investment decisions today to reinforce the foundations for the jobs and skills of tomorrow. According to Leopold et al. (2016), global educators should create future-ready curricula that promote critical thinking, creativity, and emotional intelligence in addition to accelerating the acquisition of digital and STEM skills to match job demands and attributes of the 4th Industrial Revolution and also create a conduit for future skills and skills development. 8.4.1 Skills required by construction industry professionals in the 4th Industrial Revolution In Spottl and Windelband (2021), Industry 4.0 is known to influence the skills outlined in various skills development literature. In 2011, the German federal government announced its high-tech strategy and policy to boost the competitiveness of the German economy during the Hannover Fair. This announcement gave rise to the concept of skills required in the construction industry from building professionals to reach increased production levels in the Industry 4.0, which was also refered to as Competencies 4.0 (Poszytek, 2021). Dobrowolska and Knop (2020) stated that, factors such as Industry 4.0, sustainable development mandates, building an innovative economy, and global competition necessitate the modification or development of new legacy business models with skills that are appropriate to new employment opportunities playing a significant role in these modifications. Prifti et al. (2017) conducted a traditionally structured state-of-the-art literature review on the concept of competencies 4.0. They examined how frequently the 4th Industrial Revolution skills will be based on the skills required of a professional. Their analysis demonstrated how different models of skills for Industry 4.0 frequently refer to the capacity for interpersonal communication but less regularly to the capabilities for leadership or innovation. Dobrowolska and Knop (2020), in the model of Competencies 4.0, offered a further assessment of sources. The tenet of the model is summarized here: •

Managerial skills cover a range of abilities and skills, including self- and team-management, self-image creation, financial management, business strategies, project management, work psychology, organizational management, public relations, marketing, and media, managerial economy, management of human resources, training in managerial, leadership, and entrepreneurship skills, quantitative methods and business statistics, ethics, risk management, and management change in societal and technological contexts.

Skills Development in the 4IR 159 • •

•

Cognitive or thinking skills: including creativity, logical reasoning, and solving complex problems. Social and psychosocial skills include working well with others in a group, leadership, entrepreneurship, and emotional intelligence, which have soft skills like interdisciplinarity and personal adaptability. Technical and digital skills, often known as “hard skills,” include a wide range of skills, from using technology to solve problems to being knowledgeable about online privacy and cybersecurity. These talents go beyond simple programming and data analysis. To increase the overall effectiveness of the construction process, they include, among other things, specialized skills such as processing large data sets, utilizing computing clouds and the industrial Internet of Things, integrating, simulating, and visualizing processes, and evaluating technology and its products.

It should be noted that some studies only discussed three core domains, digital namealy, cognitive, and social, under Competencies 4.0 (Bakhshi et al., 2017;). However, this is primarily because scholars that advocate for such a paradigm classify leadership, entrepreneurship, and management skills under the heading of social skills rather than managerial ones. Additionally, it is deemed that, flexibility may fall under the social or cognitive category, depending on the approach. Fitsilis et al. (2018) suggested a similar strategy, albeit with somewhat different language. Their proposal included the following: • •

•

•

Personal skills like adaptability, ambiguity tolerance, learning motivation, pressure tolerance, sustainability attitude, and compliance. Social skills include intercultural competence, language proficiency, communication skills, networking skills, teamwork abilities, capacity for compromise and cooperation, knowledge transfer, and leadership capacities. Methodological skills include innovation, problem-solving, conflictresolution, decision-making, analytical aptitude, research aptitude, and a focus on efficiency. Technical skills, including up-to-date information and an understanding of how things work.

There are other Competencies 4.0 typologies in literature as well, and their distinctions are due to the particular situations that each address. Mostly, they focus on particular abilities pertinent to specific conditions rather than offering a general framework for Competencies 4.0. As an illustration, Geryk (2020) gave a list of capabilities required to meet the problems provided by Industry 4.0 from the perspective of the higher education system, which is meant to equip students with the modern credentials needed for the modern labour market. These include adaptation, business thinking, risk-taking, flexibility, technology literacy, and skills related to information management, quality control, and sustainability. These aforementioned abilities relate

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directly to the more general categories of the management, social, cognitive, and digital domains. Another illustration comes from strict construction and industrial processes. The human factor is listed as one of the most crucial components in sustainable manufacturing, engineering, and construction by Stock and Seliger (2016). Stock and Seliger (2016) emphasized technical ICT capabilities and social, creative, and decentralized decision-making abilities. Additionally, it also referred to management, social, cognitive, and digital spheres. However, all these models directly support the idea of skills, and can/are being employed in human resource management to improve overall construction productivity in the 4th Industrial Revolution. These skills are summarized in Table 8.1. Table 8.1 Skills required by construction professionals in the 4th Industrial Revolution Skill Domain

Sub-skills

Reference

Managerial Skills

People management Self and team management Human resource management Public relations Creativity Critical Thinking Innovative Skills Ability to present or communicate. Emotional Intelligence Communication skills Self-awareness Networking skills Leadership skills Teamwork Confidence Ability to use technology Data analysis Understanding how things work Visualization of processes Adaptability Learning motivation Pressure tolerance Sustainability attitude Innovation Problem-solving Conflict resolution Decision making

Dobrowolska and Knop (2020) Fitsilis et al. (2018) Prifti et al. (2017)

Cognitive Skills

Social and Psychosocial Skills

Technical and Digital Skills

Personal skills

Methodological skills

Dobrowolska and Knop (2020) Geryk (2020) Stock and Seliger (2016) Fitsilis et al. (2018) Prifti et al. (2017) Stock and Seliger (2016)

Dobrowolska and Knop (2020) Fitsilis et al. (2018) Geryk (2020), Hecklau et al. (2016) Stock and Seliger (2016) Fitsilis et al. (2018) Hecklau et al. (2016) Fitsilis et al. (2018) Hecklau et al. (2016)

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8.5 Challenges of the integration of the 4th Industrial Revolution in skills development The employment markets and in-demand skills of today are very different from those of a decade or half a decade ago, according to the World Economic Forum (2016). As shown in the report, the change rate will only increase. In order to meet business demands for talent and empower, those who possess them to take advantage of emerging opportunities, governments, businesses, and individuals are all becoming more concerned with identifying and forecasting skills that are relevant not just for today but that will remain or become so in the future. Nevertheless, many developing countries are falling behind the developed world in developing worker skill sets and productivity levels to match one’s representative of the current industrial revolution era. This is due to a lack of skilled human resources, large-scale investment, modern infrastructure, unstable political culture, and ineffective public policy (Rumi et al., 2020). The fourth industrial revolution (4IR), according to Kayembe and Nel (2019), is the current and evolving context in which emerging technologies and trends like the IoT and AI are transforming how we live and work. The 4IR has various implications for education and skill development, including reimagining educational systems and adopting deliberate strategies to foster creativity and innovation. With the creation and application of new technologies come their own set of risks for the 4IR. According to Dregger et al. (2016), the 4IR is anticipated to bring about significant changes to the labour market, including an increase in the demand for highly skilled workers and concerns that technology will supplant people through automation in jobs and other sectors of the economy. Careful planning and implementation of new risk management procedures are required to reduce these risks. Nonetheless, the fourth industrial revolution also brings new difficulties and chances that call for knowledge and abilities from people. This suggests that the potential for new technology to improve living is present. However, the world should not disregard these new technical developments’ hazards and unfavourable effects, including reduced data privacy and employment displacement. An entirely new type of worker that is knowledgeable, creative, and technologically receptive is required by the digital transformation and inventions of the fourth industrial revolution (Manda and Backhouse, 2017). According to Schwab (2016), the fourth industrial revolution may indeed have the ability to “robotize” humans and steal us of our hearts and soul. But in addition to the best qualities of humanity, such as creativity, empathy, and stewardship, it can also elevate people to a level of moral consciousness based on a sense of shared destiny. Additionally, from the World Economic Forum (2016), “only one type of organization will thrive, a human one,” during the fourth industrial revolution. The abilities required to recognize, design, and implement fresh and inventive business opportunities given by industry 4.0 will be

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increased in creative working processes like strategic planning, research, and development (Deloitte, 2016). From a recent analysis, technology will displace 800 million unskilled people globally by 2030 (World Economic Forum, 2020). Both industrialized and emerging nations will confront formidable obstacles in adjusting to the 4IR technologies. This is because the industrialized economies have more sophisticated technologies and trained human resources than developing countries and are less likely to face these associated risks. Integrating the fourth industrial revolution in processes for developing construction skills is not without challenges. For instance, the need for investment, shifting business models, data issues, legal concerns around responsibility and intellectual property, standards, and skills gaps were all noted as major challenges (Manda and Ben Dhaou, 2019). The following sections describe aspects that significantly impact on the integration of 4th Industrial Revolution concepts and technology in improving personnel capabilities and skills. 8.5.1 Resource constraints One definition of resource constraints is limitations or dangers associated with the resources allotted to projects. The example shows the effort to create construction skill sets during the 4th Industrial Revolution. The 4th Industrial Revolution’s defining features, new technologies, and digitization calls for increased investment in education and training for employees of all ages, according to the World Economic Forum (2016). The International Labour Organisation (2021) states that organizations and governments should try to support the cluster of skills specified in Figure 8.1.

Figure 8.1 Clusters of skill development needed. Source: International Labour Organisation (2021).

Skills Development in the 4IR 163 However, the majority of nations, particularly emerging ones, experience certain resource limits, particularly in the area of funds. Despite the numerous benefits of lifelong learning and training for people, businesses, and society, there are still shortfalls in its levels which is largely attributed to wide financing gaps. Due to the limitations on how far workers can be up or re-skilled, these notable challenges of financial resource capability present significant obstacles to integrating the fourth industrial revolution into skill development. A critical need is to provide consistent funding and develop appropriate incentives for training providers, individuals, and businesses, with the impact of COVID-19 having increased the urgency of the situation (United Nations Educational, Scientific, and Cultural Organization, 2020). According to Todd and Dunbar (2018), public investment in education has historically been minimal, particularly in continuing education and adult learning, where financial resource is allocated chiefly to general and academic programs. Despite its patchy availability, the UNESCO Institute for Lifelong Learning (2019) found that only a fraction of public funds are allocated to adult learning initiatives. Adult learning and education accounted for less than 0.5% of the education expenditure in 19% of the countries and less than 1% in 14% of the countries. Only 19% of the 107 nations surveyed said they spent more than 4% of their total education budget on adult learning and education. Similarly, while businesses and employers typically initiate and fund a sizable portion of job-related training on their dime, investment generally tends to be far lower in micro, small, and medium firms (MSMEs). The notion that there is a low return on investment in employee training and upskilling to match capabilities needed for the fourth industrial revolution is further exacerbated by the fear of poaching, which is the danger of losing qualified personnel to competitors. 8.5.2 Infrastructure and technology issues In addition to cultural issues, developing nations face infrastructure and technology issues. Introducing new technologies like analytics, network development, and smart gadgets in a country like China with a developed infrastructure presented difficulties, according to Zhou et al. (2015). Therefore, one of the main obstacles governments will likely face in applying industry 4.0 in many enterprises, such as skill development, is poor ICT infrastructure in underdeveloped nations. According to Manda and Ben Dhaou (2019), internet penetration is still low in developing countries compared to industrialized economies, which are leaders in internet and other ICT infrastructure. According to Manda and Backhouse (2017), poor internet penetration, for instance, in South Africa, it has become one of the obstacles preventing the nation from becoming a so-called smart society that relies on digital connectivity, cutting-edge technology, skills, knowledge, and innovation to implement economic and social development.

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8.5.3 Skills mismatch According to Handel (2003), there is still a common misconception that the skills and education of employees are not necessary for the tasks of the modern economy and 4IR era. A mismatch between the skills a worker possesses and what employers require to be “competent” in this fourth industrial revolution is suggested by extant literature, publications on the economy, the underclass, and economic estimates of the development in wage disparity. An imbalance between the supply and demand for human capital is what economists refer to in this situation. However, there are already significant discrepancies between the demand for and supply of critical work-related abilities. Thus, there may be a mismatch between the supply and demand of current skills and the existing skill base as well as the future skill needs (Manda and Ben Dhaou, 2019). The rate of change in skills demand is accelerating leading to occupations getting more high-tech service oriented and being reformed to entail more participation in the workplace. This has led many to believe that the problem of mismatching workers with certain skills to certain work items will worsen (Handel, 2003). According to the World Economic Forum (2016), it has taken decades to establish the education systems and labour market institutions required to generate significant new skill sets on a wide scale. Even if today’s skills base perfectly matched today’s perceived skills needs, there would still be a significant problem with skills instability. 8.5.4 Lack of knowledge of the disruptive changes connected to 4IR According to the World Economic Forum (2016), integrating 4IR technologies and concepts into skill development is problematic due to the lack of knowledge of the disruptive changes connected with the era. Organizations and governments may not see the desired results from their reskilling and retraining efforts if they don’t recognize the impending disruptive change that the fourth industrial revolution poses to current skill sets and instead base their content primarily on current needs or past successes. From the World Economic Forum (2016), these drawbacks of resource constraints, skills mismatch, infrastructure and technology issues, and the lack of knowledge of the disruptive changes associated with 4IR, along with others such as lack of coordination between workforce strategies and firms’ innovation strategies, lack of priority from top management, and pressure from shareholders due to concerns for short-term profitability all form challenges to the integration of the fourth industrial revolution in the development of worker skills to supplement existing skills and meet modern work requirements. 8.5.5 Organizational and employee culture According to Ivaldi et al. (2021), the world is experiencing significant changes in culture, society, and the economy as a direct result of the digital

Skills Development in the 4IR 165 Table 8.2 Challenges in the integration of 4IR technologies and concepts in skill development Challenges

References

Lack of knowledge of the disruptive changes connected to 4IR Resource constraints Lack of coordination between workforce strategies and firms’ innovation strategies Infrastructure and technology issues

World Economic Forum (2016) Todd and Dunbar (2018) World Economic Forum (2016) Manda and Ben Dhaou (2019) World Economic Forum (2016) Handel (2003), Manda and Ben Dhaou (2019) World Economic Forum (2016) Ivaldi et al. (2021)

Lack of priority from top management Skills mismatch Pressure from shareholders due to concerns for short-term profitability Organizational and employee culture

revolution, which presents us with a new environment in which to live. In the fourth industrial revolution era, AI, big data, robotics, and the IoT, technologies will play a crucial role in increasing worker productivity and making everyday undertakings significantly easier. This phenomenon is represented by an unparalleled level of automation and connectivity. Lu (2017) asserted that businesses must improve their cultures, integrated activities, and structures when dealing with organizational learning processes geared toward acquiring new skills and work cultures to fully realize the capabilities of industry 4.0. Changing these processes, however, can be difficult and take months due to the organizational culture being deeply ingrained in the organization’s history, values, and activities as well as in the backgrounds of its employees. This makes it challenging since there are likely contention with long-standing customs (Ivaldi et al., 2021). Summary of challenges is given in Table 8.2.

8.6 Strategies for 4th Industrial Revolution in skills development The Fourth Industrial Revolution (4IR) has been likened to an approaching rainstorm, a broad pattern of change apparent in the distance and moving quickly enough to leave little time for preparation (Armstrong et al., 2018). The World Economic Forum (2016) asserted that society needs specific strategies to ensure it is ready for the future labour markets by effectively integrating ideas and technologies from the 4IR to develop employee skills. These strategies should consider the current spread of education and skills across generations and the anticipated future trajectory of jobs. According to the World Economic Forum (2016), hastening disruptive change to business

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Table 8.3 Strategies for 4th Industrial Revolution skills development Strategies

References

Investing in the retraining of current staff using innovative funding approaches Encouraging lifelong learning

Armstrong et al. (2018)

Investing in technological infrastructure Development and implementation of “future-proof” primary and vocational curriculum Redefining the role of human resources Aligning stakeholder objectives and approaches Introducing a culture of learning and acceptance of 4IR technologies and concepts

World Economic Forum (2016) Armstrong et al. (2018) Leopold et al. (2017) World Economic Forum (2016) Armstrong et al. (2018) Ivaldi et al. (2021)

models has significant effects on employment and skill sets, quick adaptation to the new reality and the opportunities it presents is still attainable with a coordinated effort from all stakeholders. The government will need to innovate in labour-related policymaking and education, necessitating its skills evolution. Meanwhile, the education and training sector will experience a vast expansion of business opportunities as it offers new services to consumers, small businesses, large corporations, and the public sector. This subsection looks at potential solutions that would be required to overcome perceived barriers to using widely used concepts and technology that are now associated with 4IR and can be applied to skill development in the construction sector. Summary of challenges is given in Table 8.3. 8.6.1 Investing in the retraining of current staff using innovative funding approaches Armstrong et al. (2018) suggested investing in the retraining of current staff using creative funding approaches to address the problem of financial resource limitations. To make sure that employees’ abilities are in line with 4IR standards as well as those of the firm, it is essential to evaluate and promote workforce training programs that align with corporate social responsibility goals, talent practices, skill demands, and corporate culture. While national budgets sponsor some training and reskilling programs, many government and non-profit initiatives use a variety of strategies to achieve long-term financial sustainability on training (Armstrong et al., 2018). Armstrong et al. (2018) stated that several government-backed and private investor models, such as income-contingent loans, tax-based reform, loan guarantees and human capital contracts, offer incentives for investing in education and skill development. These models, which relate the return on investment to career performance outcomes, depend on effective job entrance and long-term employability, which goes a long way toward preparing and

Skills Development in the 4IR 167 maintaining workers readiness for any changes the integration of the 4th Industrial Revolution would bring. 8.6.2 Development and implementation of “future-proof” primary and vocational curriculum In an effort to incorporate 4th Industrial Revolution concepts in up-skilling and reskilling initiatives, it is vital to highlight the development and implementation of “future-proof” basic and vocational curricula, which contain digital fluency and ICT literacy abilities. The use of digital technologies in emerging jobs is increasing across all skill levels and around the globe, particularly in Sub-Saharan African nations (Leopold et al., 2017). The World Bank estimated that over the past ten years, the average ICT intensity of jobs has climbed by 26% in South Africa, while high ICT intensity occupations account for 6.7% of all employment in Ghana and 18.4% of all employment in Kenya. Additionally, several African nations, including Ghana, Mauritius, Kenya, Senegal, and South Africa, have already established themselves as hubs for the global digital business process outsourcing (BPO) industry (Leopold et al., 2017). However, rather than merely catering to these lowskilled ends of the global digital market, these countries would reap the greatest long-term advantages from ICT-intensive occupations if given the technical know-how to create and engineer indigenous solutions. 8.6.3 Investing in technological infrastructure The development of the necessary skills for the 4IR can also be aided by investing in technological infrastructure to promote digital literacy, which includes directly funding the purchase of computers, AI components, and other digital devices peculiar to the 4IR. There are many ways to invest in ICT and digital literacy, such as distributing and promoting open-source online courses created to meet 4IR’s business objectives and developing easily accessible, technology-based learning opportunities (Armstrong et al., 2018). 8.6.4 Encouraging lifelong learning According to the World Economic Forum (2016), encouraging lifelong learning is another tactic that may be used to successfully implement the 4th Industrial Revolution in the construction industry’s skills development. The future population share of today’s youth group is expected to decline in many ageing economies, suggesting that improving current educational systems to better prepare students for future skill requirements won’t be enough to maintain competitiveness. The workforces of ageing nations will require thorough reskilling over their whole lifecycles and lifetime learning. Technology can also be regularly used at the corporate level to retrain and upskill workers. Governments and construction companies have numerous

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chances to work together more closely to ensure people have the time, desire, and resources to look for retraining opportunities. According to a World Economic Forum (2016) from 2016, Denmark, for example, provides funding for two weeks of certified skills training for adults each year. This country’s strong emphasis on in-work training helps explain its extremely high level of employment mobility, with workers rating mid-career transitions as a “good thing” at a rate of 70%, compared to 30% or less in most other European nations. 8.6.5 Redefining the role of human resources Redefining the role of human resources is another tactic that can address the difficulties in integrating the fourth industrial revolution in skill development. Construction businesses and stakeholders need to handle skills disruption as an urgent problem as they start to think about proactive adaptation to a new talent landscape, according to World Economic Forum (2016). It must be recognized that a lack of talent is no longer a long-term problem that can be fixed using tried-and-true methods that have worked in the past or by immediately replacing current employees. Instead, proactive and inventive skill-building and talent management are essential issues as the rate of skills change accelerates across both old and new professions in all industries. This calls for an increasingly strategic human resource function that uses new types of analytical tools to identify talent trends and skills gaps and offer insights, that can assist organizations in aligning their business, innovation, and talent management strategies to take full advantage of opportunities to capitalize on transformational trends like the 4th Industrial Revolution. 8.6.6 Aligning stakeholder objectives and approaches It is necessary to bring multiple perspectives together to build a shared agenda and align the vision, goals, and workforce skill development methods. This is known as the alignment of stakeholder objectives and approaches (Armstrong et al., 2018). Removing employment obstacles in existing settings, creating, and implementing strategies to do so, and enhancing upstream and downstream practices are all part of the overall plan. The underlying drivers of the skills mismatch, which frequently differ by industry, are also identified. This could include comparing the present employee skill training programs offered through regional workforce initiatives or traditional educational systems to the actual employment needs of the construction industry. Additionally, the development of performance measures to confirm the acquisition of soft skills at various stages of worker development, and the alignment of the vocabulary and critical indicators of soft-skill acquisition to demonstrate competency and proficiency in workplace education, all provide perspectives for coordinating stakeholder

Skills Development in the 4IR 169 objectives and strategies for developing skills in the construction industry in this contemporary industrial revolution. 8.6.7 Introducing a culture of learning and acceptance of 4IR technologies and concepts Adopting a successful corporate culture of learning that addresses the ongoing changes occurring in social and business environments and, if feasible, anticipate them has become a strategic tool in the modern world (Ivaldi et al., 2021). Ivaldi et al. (2021) further stated that a strong and widespread learning culture that permits ongoing updating of employees’ skills, specifically regarding the impact of the fourth industrial revolution on workers’ activities, will serve as a crucial tool in curtailing the challenges culture poses to implementing the fourth industrial revolution in skills development. Establishing a strong alliance between top management and potential ambassadors (middle managers and younger employees) for the creation of a new culture is strongly correlated with organizational climate and cultural support. This is necessary for a proper and suitable learning environment in the integration of 4IR technologies into construction skills development in the industry (Ivaldi et al., 2021).

8.7 Conclusion Governments and construction stakeholders must respond effectively to the substantial socioeconomic opportunities and challenges that the fourth industrial revolution has brought to assist the change in society and industry. Understanding the various 4IR technologies and concepts available, the difficulties facing the industry, and the solutions to these difficulties in integrating 4IR agendas into skill development to maximize its social and economic benefits, were the goals of this chapter. The construction and building industry initially struggled with a lack of technological advancement. Recent research has demonstrated that the 4th Industrial Revolution (4IR) technologies play a crucial influence in the success of building projects by easing the usual challenges connected with the process by improving worker abilities and productivity. Construction stakeholders and employees must adjust to this shifting industry environment depending on knowledge and skills gained through training and experience. The degree to which such training enables employees adapt to shifting demands has considerable relevance for the types of management and general manpower development policies that construction organizations can adopt to improve employee skill development. This chapter has offered exposition on how building industries worldwide may increase capacity and boost production by investing in the skills development of construction employees. While other elements may affect workers’ skill development, this study focused on the 4th Industrial Revolution and how it affected the construction industry.

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9

Mobile Device Applications in the Construction Industry Jonas Ekow Yankah1, Divine Tuinese Novieto2, Emmanuel Davies1, and Peter Aidoo1 1

Department of Building Technology, Faculty of Built and Natural Environment, Cape Coast Technical University 2 Department of Building Technology, Faculty of Built and Natural Environment, Ho Technical University

9.1 Introduction In today’s world, the biggest technological trend is using smart mobile devices and applications (Apps). Smart mobile devices such as smartphones and tablets (Fredholm and Gunnarsson, 2013, Perera et al., 2017) with their accompanying Apps have revolutionized how individuals or groups of people carry out their daily activities. Using these devices and Apps has made the execution of works or activities easier and more efficient than before (Aghimien et al., 2018). Due to this, more than 60% of the world’s population has integrated the use of smart mobile devices and apps into their daily activities (BankmyCell, 2020). Despite their size being small, smart mobile devices and their accompanying apps have transcended their primary use of voice and text communication and now carry out diverse and complex functions such as data and information management, location tracking, video communication, accessing e-mails and reading materials for educational purposes, among several others. (Oza, 2019; Sanou, 2013; Sarwar and Soomro, 2013; Sinha, 2019). Sarwar and Soomro (2013) defined a smart mobile device as a portable device with various features and functionality that enables users to execute various activities easily. Islam et al. (2010) also defined smart mobile device Apps as the software that run on a mobile device and execute certain tasks or work for the user. According to Oza (2019), Sarwar and Soomro (2013), and Sinha (2019), smart mobile devices and apps provide their users with wireless voice communication, messaging, and easy access to and management of data and information, among others. Therefore, it is no surprise that 67.95% (5.28 billion) of the world’s population own and use mobile devices (BankMyCell, 2020). Smart mobile devices and Apps may be utilized in every part of life and business. The broad functionality scope, as well as

DOI: 10.1201/9781003340348-11

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the immense benefits associated with the use of smart mobile devices and Apps, have encouraged many industries and businesses to integrate the use of smart mobile devices and Apps in their processes and activities to improve their overall performance in productivity and efficiency (Accenture Digital, 2015; Yankah and Owiredu, 2016). Industries such as the manufacturing, retail, and services industries have been recognized for the integration of smart mobile devices and Apps in the execution of their works and productivity has increased greatly (Changali et al., 2015; Kakreja, 2020; Yankah and Owiredu, 2016). The construction industry has also integrated smart mobile devices and Apps into their activities and processes (Ackabah, 2018, Doster, 2014), even though the integration has been slow as compared to the other industries, such as the manufacturing and services industries (Adjei and Eyiah-Botwe, 2016; Yankah and Owiredu, 2016). The slow integration can be attributed to the low confidence construction professionals have in the functionality of construction-related Apps (Chun, 2018) and the complex and labour-intensive nature of the construction industry (Khelifi and Hyari, 2016). Over the years, the conventional usage of smart mobile devices such as smartphones and tablets (Perera et al., 2017) with their Apps have revolutionized the personal and work lives of almost every individual or industry in the world. These smart mobile devices and Apps have made life and work easier, more efficient, and more productive than before (Azhar and Cox, 2015).

9.2 Research method This research on smart mobile device apps in construction was undertaken by searching for and analyzing construction Apps. The study has three stages: stage 1 research subject familiarization, stage 2 literature searches for construction Apps, and stage 3 analysis and categorization of Apps. The first part included learning about the research subject and using the information to create keywords to help in the literature search for constructionrelated applications. Studying and reading literature on the research subject, “smart mobile device applications in construction,” provided insight into the topic. Extensive research was conducted on printed sources, including books, academic articles, and blogs. The results of the search were sorted by reading and analyzing their titles and abstracts to build a connection between the research subject and the publications. The literature searches done in the second part of this research consisted of creating search strategies utilizing the keywords created in the first phase to identify different construction-related smart device applications. These keywords included “smart mobile device applications in construction,” “applications connected to construction,” “smartphone applications for construction,” and “top construction applications.” The purpose of

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designing and using these search algorithms was to sift through many research articles and weblogs providing smart mobile device application information. Various databases were used to search these articles and blogs as part of the literature search. This list includes academia.edu, researchgate.com, pdfdrive.com, scholar.google.com, and google.com. These databases were chosen because they are valuable research resources. There are articles, books, and blogs on most subjects. Moreover, such sources produced some positive search results. The search methods comprised keywords used in connection with certain construction professions and the operating systems of smart mobile devices (i.e., Android and iOS). Because the applications being searched for were connected to construction, the use of the phrase construction profession was combined with the descriptors. Hence, each App had a unique descriptive word. The descriptive adjectives for a particular App were chosen based on the building professions most likely to use it. Four descriptors were therefore provided to the Apps: “Apps for Contractors or Project Managers,” “Apps for Architects,” “Apps for Civil Engineers,” and “Apps for Quantity Surveyors.” These four professionals were used because they are the most prevalent construction industry. Android and iOS were chosen as the operating platforms since they are the world’s two most popular mobile platforms. The construction-related apps retrieved from the platforms were classified based on their titles. Also, duplicate Apps and offline Apps that were retrieved were removed and therefore excluded from further analysis. In addition, Apps that were not compatible with smartphones and tablets were deleted. In the databases specified for the search, a total of 240 apps for smart mobile devices used in construction were located. These apps were then screened by deleting any duplicates referenced in the discovered articles and weblogs. After completing the filtering procedure, 38 duplicates were eliminated. Consequently, 202 construction-related applications remained for the categories stated in Table 9.1.

Table 9.1 Summary of Apps found for the four categories of construction professionals No

Categories

Final Apps after cleaning

1 2 3 4 TOTAL

Apps Apps Apps Apps

51 51 45 55 202

for for for for

Contractors or Project Managers Architects Civil Engineers Quantity Surveyors

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9.3 Mobile apps for built environment professionals 9.3.1 Apps for contractors and project managers Two of the construction professionals that play a pivotal role in the execution of a construction project are the project manager and the contractor. According to Haughey (2020), a project manager is a professional tasked with the overall responsibility of ensuring that a project is completed on time, within budget, and of the required quality through good planning, designing, and execution of the project-related works. The project manager in a typical construction project represents the client and manages the project. Construction projects generally start with project managers. According to Olatunji et al. (2014), project managers’ major duties and responsibilities are: • • • • • • •

Offering advice on the selection of the consultant team and the contractors. Issue instruction and information on the client’s behalf. Validate payments of executed works. Contribute to the review of project designs, documents, tenders, and contracts. Develop a project execution plan inclusive of the selected procurement process. Coordinating project team members (consultant and construction team) by ensuring that they fulfil their roles and responsibilities accordingly. Tracking and inspecting project work on-site to ensure that it conforms to the project designs and specifications.

A contractor is an individual or organization appointed by the client to execute construction works. The contractor is responsible for planning, coordinating, and executing project works within the established time and budget and of the required quality (Tobias, 2019). Contractors are usually appointed after completing the design (Designing Buildings Wiki, 2020). In some large construction projects where the appointed contractor (general/prime contractor) lacks the appropriate workforce or expertise in executing specialized works, sub-contractors can be appointed by either the client or the general contractor to execute these works (LetsBuild, 2018). Some of the main roles and responsibilities of the contractor, according to Kayser (2016) and Olatunji et al. (2014), include: • • • •

Planning the project works to complete the entire project on time. Coordinating and supervising the construction team (artisans and labourers) so they carry out their roles and responsibilities. Offering advice on the selection of subcontractors. Tracking and inspecting project work on-site to ensure that it conforms to the project designs and specifications.

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Jonas Ekow Yankah et al. Obtaining suitable materials for the construction project. Planning resource allocation to project activities.

From the above roles and responsibilities, we can see that the project manager and the contractor have similar roles and responsibilities on a fundamental level (Gilliland, 2019), with all being management-based roles and responsibilities. Therefore, the same Apps can be used to execute works for the project manager and the contractor. However, the project manager operates on a higher level (overseeing the entire project) whiles the contractor operates on a lower level (overseeing the construction aspect of the project). Hence, these two construction professionals were considered together in this research paper. Smart mobile Apps for project managers and contractors are crucial for the smooth execution of planning and coordination activities in the construction project (Vilmate, 2020). With these Apps, successful project completion and delivery can be achieved with minimum or no setback (Esben, 2012). As a result, many industry leaders and companies have come to realize the huge benefits that accompany the use of construction management-based Apps to assist project managers in the performance of their daily project activities (Liu et al., 2019; Vilmate, 2020). The primary benefits that come with the use of project management-based Apps include mobility whiles working and ease of access to project information at any time and at any location (Career Addict, 2018, IOM, 2018). Other benefits, according to Brookins (2020), Career Addict (2018), Salesforce (2017), Vilmate (2020) and Workep (2019), include easy collaboration between internal project parties such as the design team and the construction team, and external project parties such as government agencies, material vendors, plant lessors, and others, better communication and document sharing between project stakeholders, efficient management of project resources, efficient delegation and coordination of project tasks, and better scheduling and tracking of project activities and their progress. Therefore, with the use of project management Apps, high efficiency, productivity, and speed with fewer mistakes and setbacks can be achieved by project managers and contractors any time they execute their project-related tasks. The continuum of Apps useful for construction contractors and project managers is listed in Table 9.2. Table 9.2 Apps for construction contractors/project managers Tasks/Activities/Functions

APPS

Communication and collaboration between internal and external project parties

• • • • • •

SmartBidNet for Construction Site Boss Project Plan 365 WhatsApp Batiscript Lite PlanGrid (Continued)

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Table 9.2 (Continued) Tasks/Activities/Functions

APPS

Creating, sharing and viewing, and saving project documents, plans, and models

• • • • • • • • • • • • • • • • • • • • • • • • • • • •

Management of project resources Planning, scheduling, tracking, and inspection of project tasks

Compute calculations Safety on the construction site

• • • • • • • • • • • • • • • • •

Bridgit Closeout Procore Autodesk BIM 360 Field Fieldlens iConfirm On-Site Planroom Wrike Project Planning Pro Aconex Mobile Evernote Microsoft Office Dropbox Good Reader Tooltracker Contractor Foreman CoConstruct Fieldwire GoCanvas ArchiSnapper Hubstaff Aconex Field Timeero BuilderTREND Site Diary Google Keep Prontoforms Toodledo Pulser-Field Construction and Punch List Google Photos TSheets Archi Report Onsite Punchlist Construction Manager iNeoSyte Construction Master Pro All-in-One Calculator Handyman Calculator Decibel Ultra Pro Red Cross First Aid Fall Safety Pro Safety Meeting App Safety OHSA Heat Safety Tool eWeather HD Heat Index

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9.3.2 Apps for architects According to Hubbard (2018), an architect is a licensed professional who designs building drawings to suit a client’s needs. According to Olatunji et al. (2014), the architect is tasked with total responsibility for the design of the construction project and is the first professional whom the client contacts for the translation of his desire or need into feasible drawings and specifications which conform to statutory standards and laws (Anyanwu, 2013). The roles and responsibilities of an architect are numerous, spanning from the beginning of the construction project to the completion of the work. Some of the main and fundamental roles of an architect, according to Olatunji et al. (2014), include: • • • •

Preparing the concept design and detailed design. Reviewing designs produced by other designers (specialist designers). Inspect the ongoing construction works to ensure that it conforms to the architectural designs produced. Advising on the rectification or correction of defects.

In the modern world, the architect no longer needs to use manual techniques in carrying out his/her roles and responsibilities. Even though most architects employ the use of computer-based applications (desktop apps) when executing most of their design works, they are limited in terms of location (working only at the location of the computer) and mobility (freedom to move around whiles working), thus reducing overall productivity and efficiency (iOM, 2018; Sattineni and Schmidt 2015). However, smart mobile devices can aid in making their work easier and communications faster no matter the location, thus increasing productivity and efficiency and reducing the overall time spent executing work and responsibilities (Massachusetts Technology Corporation, 2013). Integrating smart mobile devices and Apps in executing architectural works has many benefits. These benefits include aiding the architect in producing designs and concepts at any location or time, thus increasing productivity (KNOWARTH Technologies, 2017; Sattineni and Schmidt, 2015), easy sending and receiving of designs from other professionals (Chun, 2018), better communication or information exchange with other construction professionals (Ferrada et al., 2014; Novotny, 2019), easy reporting and recordkeeping of up-to-date site activities and inspections (Azhar and Cox, 2015). Table 9.3 presents a list of Apps that are useful for the architectural profession.

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Table 9.3 APPS for architects Tasks/Activities/Functions

APPS

Creating and editing designs, drawings or plans, and architectural surveys

• • • • • • • • • • • • • • • • • •

Communicating, creating, keeping, and sharing construction documents with construction professionals.

Creating and sharing pictures, field reports, todo-lists, and inspection notes

Accessing information using an architectural app Calculating values for the execution of various activities

• • • • • • • • • • • • • • • • • • • • • •

GoBIM FingerCAD Autodesk Sketchbook Graphisoft BIMx A360 (formally AutoCAD 360) Autodesk FormIt 360 Morpholio Trace Concepts Scala Architectural Scale iRhino3D CamToPlan RoomScan AutoCAD WS AndCAD Rilievo Tracing Paper Lite TurboViewer Autodesk Sketchbook Express Pro Cad touch Drawvis MagicPlan PlanGrid Autodesk BIM 360 Autodesk BIM 360 Field iBlueprint Aconex Mobile Batiscript Lite Microsoft Office Dropbox Good Reader WhatsApp ArchiSnapper Archi Report iNeoSyte Site Diary Evernote Google Photos Toodledo Google Keep Revit Keys

• All-in-One Calculator • Construction Master Pro • Handyman Calculator (Continued)

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Table 9.3 (Continued) Tasks/Activities/Functions

APPS

Safety on the construction site

• • • • • • • •

Red Cross First Aid Fall Safety Pro Safety Meeting App Safety OHSA Heat Safety Tool Heat Index Decibel Ultra Pro eWeather HD

9.3.3 Apps for quantity surveyors Aje and Awodele (2006) defined a quantity surveyor as a trained professional who specializes in carrying out and solving problems relating to construction cost, contractual issues, management, and communication in a typical construction project. Nnadi and Alintah-Abel (2016) and Yeshwanth (2015) also defined a quantity surveyor as a construction professional who has been trained as a construction cost consultant and whose main role is to manage all the cost aspects in a construction project. The quantity surveyor’s role does not end after the project as it can span throughout the whole life of the infrastructure (Mbachu, 2015; Olanrewaju and Anahve, 2015). Therefore, we can say that quantity surveying is a very special profession and a crucial part of the development process in the construction industry (Osubor, 2017). The quantity surveyor’s role in a construction project will be the main focus from start to completion. The roles and responsibilities of a quantity surveyor are many, spanning from the beginning of the construction project to the completion. Some of the main roles of a quantity surveyor, according to Nnadi and Alintah-Abel (2016), Olatunji et al. (2014), Olanrewaju and Anahve (2015), and Yeshwanth (2015) are: • • • • • •

Advising the client on the cost implications of executing the architect’s designs. Calculating or estimating the quantities and/or cost of the various project activities. Examining or reviewing submitted tenders and contract documents. Advising on and resolving legal and contractual disputes relating to the project. Inspecting and valuing completed work and arranging for payments. Preparing the Bills of Quantities and other contract documents.

Most of the roles of the quantity surveyor are cost or finances-related and communication based and thus have to be carried out with high accuracy for

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the successful completion of the project to be realized. The use of smart mobile devices and apps by quantity surveyors has numerous benefits. Some of these benefits include increased accuracy and productivity through the use of precalibrated cost calculators for cost-related roles (Smith, 2001 as cited in Agyekum et al., 2015), better communication or information exchange with other construction professionals and the client (Ferrada et al., 2014; Jordi et al., 2014; Novotny, 2019) and easy reporting and recordkeeping of up-todate site activities and inspections (Azhar and Cox, 2015). These benefits show how the full integration of smart mobile devices and Apps in quantity surveying roles will, in the long run, enhance accuracy and productivity in construction (Liston et al., 2000, as cited in Agyekum, 2015). Table 9.4 presents some Apps useful for performing quantity surveying tasks. Table 9.4 Apps for quantity surveyors Tasks/Activities/Functions

APPS

Calculating or estimating the quantities and/ or cost of project activities for the project and making invoices

• • • • • • • • • • • • • • • • • • • • • • • • • • • • •

Creating and sharing pictures, field reports, to-do-lists, and inspection notes

Building Calculator Construction Calculator All-in-One Calculator QS Toolbox My QS MagicPlan Joist JobFLEX Handyman Calculator Leveler Construction Master Pro Roofing Calculator Concrete Calculator DEWALT Mobile Pro Painting Job estimator A Estimate All Pro Material Estimator Calculator Tradies App Home Builder Pro-Calcs Drywall Calculator Pro Quick service Estimates Invoice Maker Project Estimator Mobile iNeoSyte Aconex Field Site Diary Google Photos GoCanvas Pulser-Field Construction and Punch List • Google Keep • Toodledo • WhatsApp (Continued)

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Table 9.4 (Continued) Tasks/Activities/Functions

APPS

Preparing, updating, saving, sharing, and viewing contract documents

• • • • • • • • • • • • • • • • • • • • • • •

Safety on the construction site

Procore Microsoft Office iConfirm Bridgit Closeout Aconex Mobile Batiscript Lite Evernote Fieldlens Dropbox Good reader On-Site Planroom Bluebeam Revu Contract maker PRO Contract Maker Elite Turbo Viewer Red Cross First Aid Fall Safety Pro Safety Meeting App Safety OHSA Heat Safety Tool Heat Index Decibel Ultra Pro eWeather HD

9.3.4 Apps for civil engineers The civil engineer is one of the fundamental members of a typical construction team. The civil engineer’s work or roles span from building construction (residential and non-residential buildings) to civil works such as highway construction, dam construction, and tunnel construction, among others. (Jaiyeola, 2017). Olatunji et al. (2014) defined a civil engineer as an engineer who provides design drawings which show the locations, sizes and details of structural elements in their appropriate scales, to enable the fabrication, installation, and connection of the elements in a reasonable sequence by a reasonably competent general or subcontractor who is familiar with the techniques of construction for the specified materials. From this, we can see that the definition of Olatunji et al. (2014) encompasses all the main roles of a civil engineer. However, in building construction works, the civil engineer’s designs are based on the architectural drawings produced by the architect. But, in civil works, the civil engineer can be the main professional on the project who designs and supervises the project from start to completion. In recent years, many civil engineers have turned to computers and their related software for aid in executing their project design roles (Jaiyeola, 2017).

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Even though computers may cut down the extensive work carried out by civil engineers, mobility (working at any location) is hindered (iOM, 2018). Smart mobile devices and Apps, on the other hand, can help execute the civil engineer’s roles without hindering mobility (ability to move about and work freely), thus increasing productivity and efficiency and reducing time, money, and manpower spent on executing civil engineering tasks (Asmaa and Heba, 2014; Massachusetts Technology Corporation, 2013). There are many benefits of using smart mobile devices and Apps for civil engineering works. Some of the benefits include the production, analysis, and sharing of quality project designs, easy solving equations for civil works project resources optimization, efficient communication with other project professionals, modelling, designing practice, easy reporting and recordkeeping of up-to-date site activities and inspections, no matter the location of the civil engineer (Asmaa and Heba, 2014, Azhar and Cox, 2015, Ferrada et al., 2014, Jaiyeola, 2017, Novotny, 2019). These benefits show that the full integration of smart mobile devices and Apps in civil engineering roles will enhance accuracy and productivity in construction projects. The list of Apps helpful in executing civil engineering tasks is presented in Table 9.5.

Table 9.5 Apps for civil engineers Tasks/Activities/Functions

APPS

Creating and editing designs, drawings, or plans and making design analysis

• Engineering Codes and Standards • Beamdesign • Framedesign • AndTruss2D • Concrete Mix Design • EpicFEM • DAKO PRO Civil Engineering • Steel Profiles • Steel Shapes for Metal Fabrication and Construction • PlanGrid • Autodesk BIM 360 • Autodesk BIM 360 Field • iBlueprint • Aconex Mobile • Batiscript Lite • Microsoft Office • Dropbox • Good Reader • TurboViewer • WhatsApp • iConfirm

Communicating, creating, viewing, and sharing construction documents, inspection notes, and others with construction professionals.

(Continued)

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Table 9.5 (Continued) Tasks/Activities/Functions

APPS

Creating and sharing pictures, field reports, to-do-lists, and inspection notes

• • • • • • • • • • • • • • • • • • • • • • • •

Calculating civil engineering and other construction parameters

Safety on the construction site

iNeoSyte Site Diary Evernote Google Photos Toodledo Google Keep Civil Engineering Pack Civil Sutra ISOLIDMECH Steel beam Design Calculator Metal Weight Calculator Bend Allowance Calculator Engineering Unit Converter All-in-One Calculator Construction Master Pro Handyman Calculator Red Cross First Aid Fall Safety Pro Safety Meeting App Safety OHSA Heat Safety Tool Heat Index Decibel Ultra Pro eWeather HD

9.4 Discussions This research demonstrated the significant potential of smart mobile device Apps in various sectors, including the construction industry, in terms of simplifying labour, increasing productivity, and enhancing efficiency. However, the acceptance and use of construction-related apps in the Construction Industry are slower than in other industries. Furthermore, with the slow pace of the integration and uptake of information communication technology generally in the developing countries of the world (Agyekum, 2015), the positive contributions of timeous adoption of these technological devices and software may take a long time to be realized. For project managers and contractors, with the reported delays in project execution by contractors (Owusu, 2020: Shahsavand et al. 2018), studies have proposed the adoption of modern and efficient digital tools (Slowy 2022), which will positively impact the flow of project information, making collaboration between partners easier, therefore, reducing potential information miscommunication, and that will, in turn, lead to higher productivity and efficiency. The Apps are likely to provide easy access to relevant project information at the right time and from any location to stay on track rather than incurring

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the cost of travelling intermittently with its attendant distractions to ongoing activities. When mobile Apps are involved in a project, it becomes easy and convenient for project team members to communicate with partners and major stakeholders. It also makes it easier to do consultations on a progress report or discuss matters arising without restrictions, even if the professionals are in different locations (Career Addict (2018), Salesforce (2017), Workep (2019)). With access to the range of Apps listed, the design team can seamlessly work with the construction team, regulatory authorities, suppliers, and other relevant project stakeholders conveniently for the project’s successful outcomes (Brookins, 2020; Vilmate, 2020). Architecture companies might profit from investing in tools that assist them in managing requirements and project modifications and provide realtime insight into projects. These solutions would help them reach their objectives of profitability and efficiency and presumably make them more optimistic about the future. The App provides freedom and enables an architect to move about while working, enhancing overall productivity and efficiency. The Apps greatly assist the architect in producing designs and concepts from any location and at any time (Sattineni and Schmidt, 2015), the convenience of sending and receiving designs from other professionals and better communication or information exchange with other construction professionals, easy reporting and recordkeeping of up-to-date site activities and inspections (Azhar and Cox, 2015; Chun, 2018; Ferrada et al., 2014; Jordi et al., 2014; Novotny, 2019). According to Slowy (2022), when architectural firms fall behind in using current and efficient digital technologies, it has a detrimental effect on the flow of project information, making cooperation difficult. If lack of communication or misunderstanding impedes productivity and efficiency, clients may choose to deal with companies that have prioritized contemporary technologies. The quantity surveyor’s role in completing the project cannot be underrated. A project’s success depends on the accuracy of measurements and the calculation of rates. In situations where the Quantity Surveyor (QS) gats his values wrong, that signals trouble for the project. Indeed, with the App, the QS can effectively make use of pre-calibrated cost calculators for cost-related roles and efficiently communicate and share information with other stakeholders on the project. (Smith, 2001 as cited in Agyekum et al, 2015 Ferrada et al., 2014; Novotny, 2019), With the introduction of simulations in civil engineering design and execution, Apps have become an indispensable tool from which civil engineers will receive significant advantages. In terms of the production of quality project designs, the ease of solving equations for civil works, the optimization of project resources, effective communication with other project professionals, and the modelling of various design scenarios, Apps will be of immense benefit. It is therefore anticipated that the full integration of smart mobile devices and applications in civil engineering roles will increase precision and productivity in construction projects. (Asmaa and Heba, 2014; Azhar and Cox, 2015; Ferrada et al., 2014; Jaiyeola, 2017; Novotny, 2019)

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9.5 Conclusion Several mobile Apps have been developed suitable for the built environment profession, such as architecture, civil engineering, project management, and quantity surveying. The wide variety of Apps makes it useful in executing numerous tasks/activities/functions that built environment professionals may need to undertake. The use of these Apps by the built environment professionals provides many benefits. These benefits include a faster and more efficient tendering process, faster and more accurate construction estimations and calculations, efficient communication between construction professionals, and faster production of construction drawings, designs, documents, and plans anywhere and anytime. The benefits of using smart mobile devices and Apps undoubtedly reduce resource wastage and increase the overall performance of built environment professionals working on construction projects. This chapter presents the continuum of Apps for selected built environment professionals and shows the variety and enormity of Apps available for construction professionals. These Apps listed in this chapter are further disintegrated and narrowed down to specific professions within the built environment to make identifying and selecting the specific profession easier. The methodology used to obtain these is also presented to guide professionals who intend to identify new Apps that were not previously available when we searched for the Apps or are not listed in the continuum of Apps in this chapter. This chapter has identified, summarized, and categorized smart mobile device Apps useful for built environment professionals. It also maps the Apps to functions/tasks/activities of the professionals that the Apps can be used to perform. It, therefore, serves to guide the professionals in selecting appropriate Apps for specific functions/tasks/activities they intend to undertake. Thus, the chapter provides valuable guidance to professionals in the built environment, such as architects, quantity surveyors, civil engineers, and project managers/contractors, in integrating Apps into the performance of their functions.

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10 Systemic Capacity Building of Built Environment Professionals for Construction 4.0: A Review of Concepts Aba Essanow Afful, Godwin Kojo Kumi Acquah, and Benjamin Baah Kwame Nkrumah University of Science and Technology, Ghana

10.1 Introduction Ammar and Nassereddine (2022) have noted that the complex nature of the construction industry (CI) and its heavy dependence on information requires the adoption of new and emerging technologies to augment and efficiently undertake activities. The CI is seen to sit at a crossroads. First, it is economically vital to the prosperity of nations and a key player that affects the everyday lives of its occupants. Yet, it lags behind other major industries in technological advancements and is a major contributor to environmental depletion and degradation (Hosseini et al., 2018; Vasista and Abone, 2018). This is attributed to the complex nature of the CI with many developing countries still following traditional labour-intensive practices (Ezcan et al., 2020; Ozumba, and Shakantu, 2018). This slow-paced adoption nature of the CI is also evident in the challenges to adopting sustainable construction practices which have shown great potential for mitigating the adverse impact of construction on the environment (Dixit et al., 2021). In this, some construction firms have been cited to exist in the warp of time, stuck between the old order and craft-based processes, and the modern ICTdriven advancements (Moshood et al., 2020). The challenges facing the CI span a multitude of reasons including the disconcerting decline of productivity, high turnover rates of workers, low research and development levels, and the inefficient and insufficient transfer of knowledge from one project to another (Ezcan et al., 2020; Maskuriy et al., 2019; Offei et al., 2019). These challenges have compelled the industry to evolve from being technology-resistant to one that is gradually embracing its adoption and use (Osunsanmi et al., 2018). An industry known to be the source of many innovations, particularly for the CI is the manufacturing industry. From the many innovations, the CI has adopted from the manufacturing industry, this chapter, therefore, focuses on the concept of Industry 4.0 and its application within the CI. In a more general scope, the DOI: 10.1201/9781003340348-12

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identification of capacity needs would bring to the fore, the missing knowledge, skills, values, systems, and social processes that set the preconditions for the adoption of Construction 4.0 globally.

10.2 Industry 4.0 within the construction industry Many great scientific and technological advances have been made in the 21st century thanks to the advent of Industry 4.0 which focuses on the employment of cyber-physical and computer systems towards generally improving productivity and minimizing losses (Bahrin et al., 2016; Forcael et al., 2020). The introduction of Industry 4.0 coined by the German Federal Government to highlight the Fourth Industrial Revolution is a stage in the industrial revolution, enabling the full integration between people and digitally controlled machines. This industrial revolution has been highlighted to transform the lifecycle process of products and production systems by increasing the connectivity and interaction among parts, machines, and humans. Consequently, the CI has benefitted from this progress resulting in the term Construction 4.0 (Kozlovska et al., 2021). As a budding concept in this industry, it has quickly garnered popularity over the past few years, and this trend does not seem to be slowing down (García de Soto et al., 2022; Hossain and Nadeem, 2019). Pioneers of this concept have opined that the CI could transform into a technology-driven industry through the adoption of ideas and technologies of Industry 4.0. One key driver pushing the adoption of Construction 4.0 is its prospects for attaining sustainable development goals in the CI. Construction 4.0 as a term was first coined by Rolan Berger in 2016 (Berger, 2016) and was based on the need for construction firms to adopt a digitalized approach to activities (Berger, 2016; Forcael et al., 2020). This term embraced four key themes although, since its adoption, other concepts have been added (Zabidin et al., 2020). Its four primary themes include automation, connectivity, digital data, and digital access (Berger, 2016). As a fairly new concept, its definitions have dynamically evolved over the past six years although it can still be defined as a meta-concept embracing the four identified themes (El Jazzar et al., 2020; Karmakar and Delhi, 2021). In this vein, Sawhney et al. (2020) have defined Construction 4.0 as a “transformative framework” encompassing three transformations: digital technologies; industrial production and construction; and cyber-physical systems as seen in Figure 10.1. Digital technologies common to Construction 4.0 include building information modelling (BIM), augmented reality (AR), virtual reality (VR), big data and analytics, artificial intelligence (AI), unmanned aerial systems, common data environment (CDE), cybersecurity, blockchain, cloud-based project management, and laser scanner (Adepoju, 2022; Ibrahim et al., 2019; Lekan et al., 2021). On the other hand, within the cyber-physical systems category, technologies include the Internet of Things (IoT), robotics and automation, sensors, additive manufacturing, equipment with sensors,

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Figure 10.1 Construction 4.0 framework.

workers with wearable sensors, and actuators among others (Adepoju, 2022; El Jazzar et al., 2020; Forcael et al., 2020; ). These technologies have provided construction firms with new opportunities for increasing their competitive edge, improving the quality of their work, reducing losses, and completing construction projects on time and within the scope in addition to offering clients value for money on construction projects (Lekan et al., 2021; Zabidin et al., 2021). More importantly, towards the attainment of sustainability goals in the CI, these technologies have proven to be valuable and have increased the prospects of making sustainable decisions in the built environment (BE) (Alaloul et al., 2020). 10.2.1 Challenges of Construction4.0 adoption The CI rife with issues of project delays, cost overruns, health and safety issues, poor research efficiency, enormous waste production, and disregard for occupant comfort has over the years been a focus of researchers and practitioners in a bid to find long-lasting solutions to these problems (Hadi, 2020; Yap et al., 2019). Presently, several advanced technologies commonly seen in the manufacturing industry are being exported for architectural and construction applications. Notwithstanding, contrary to the other industries, the CI had been criticized to be slow to adopt new technologies. Further, Gerbert et al.

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(2016) have noted that the construction sector has not undergone any significant or major disruptive transformation. Some have attributed this to the uniqueness of construction projects as opposed to manufacturing products and outputs. This unique feature of construction outputs has presented a challenge for the direct adaptation of technologies which are otherwise used in other industries. As put forward by Dalenogare et al. (2018), Frank et al. (2019), Gattullo et al. (2019), and Stock and Seliger (2016) other industrial sectors, including aerospace, automotive, and aeronautics, have undergone radical disruptive changes in their processes by adopting digital technologies to improve on their quality and levels of productivity. Industry 4.0 has allowed for a connection between the embedded system production technologies and smart production processes to radically transform the industry, production value chains and business models. Craveiroa et al. (2019) revealed that this industrial transformation has by far been driven by the shift towards a physical-to-digital-to-physical connection aided by the use of augmented reality systems, sensors and controls, additive manufacturing, cognitive and high performance computing, simulation systems, advanced materials, and autonomous robots, among other notable technologies. These technologies have without a doubt been proven to improve productivity levels but have faced major challenges characterized by the poor adoption of sensor systems, smart materials, digital technologies, and intelligent machines. The application of Industry 4.0 birthed the term Construction 4.0 and has been projected to reduce project delays, manage the complexity of construction projects.

10.3 Capacity building for Construction 4.0 Much like capacity, the process of capacity building (CB) is geared towards attaining a specific objective. CB is viewed as a multi-dimensional and dynamic process as seen from the literature on the subject (Bevan et al., 2020; Stoll, 2010). Placing CB in the context of the CI, it can be defined as the conscious and managed process that maximizes the contribution of the CI to meet the national construction demand while providing value to clients and society at large (Bevan et al., 2020). From this view, CB is thus considered an all-embracing approach to developing the CI with the involvement of all needed stakeholders, comprising clients from both the public and private sector, BE professionals, suppliers, material manufacturers, regulatory bodies, and even research institutions (Bevan et al., 2020; Kissi et al., 2016). Although the advent of Construction 4.0 has allowed for increased research on the concept, research directions are centred on the technologies themselves and their practical application in a particular sphere of the CI. Very little effort has been made to identify the capacity needs and directions

Systemic Capacity Building 197 for holistic CB of individuals (professionals and practitioners), organizations (construction firms), and systems for Construction 4.0 adoption in the BE (Stoll, 2010). Additionally, Sang et al. (2018) indeed posit that several studies on CB remain in the field of traditional construction projects. As the literature on Construction 4.0 gains prominence in the CI, the technologies required for efficient adoption, drivers, barriers, and approaches to its integration in the CI have also been explored although much of the literature remains in its infancy. With many of these studies highlighting the complexities of Construction 4.0, very little effort has been given to building capacities of individuals, firms, and systems to adopt Construction 4.0. It is thus important to explore what CB means towards adopting Construction 4.0. What capacity needs have been identified in the building industry to integrate Construction 4.0? 10.3.1 Construction 4.0 capacity needs With Construction 4.0 being a front runner in mitigating or eliminating some of these identified problems, there is valid criticism that the capacities required to adopt this innovation may be lacking. Towards conceptualizing the term capacity several authors have provided several meanings depending on the message being conveyed and the issues being addressed. Stoll (2010) however provides a more specified definition, describing “capacity” as the ability of individuals, organizations, or systems to perform functions efficiently or effectively. Kululanga (2012) built on this definition adding that it encompasses the relationships, skills, abilities, knowledge, values, resources, behaviours, and conditions that allow individuals, firms or systems to innovatively, effectively, and sustainably carry out functions towards the attainment of development objectives. This differs from the term competence, thought to be interchangeable with capacity. Whereas capacity explores the ability to function effectively, efficiently, and innovatively based on skills, resources, systems, and the environment (Kissi et al., 2016), competence explores solely the skills, abilities, and attitudes required to deliver intended results (Kululanga, 2012). 10.3.2 Capacity building for Construction 4.0: A systems approach Indeed, there is a consensus on the different dimensions of CB, although these dimensions may be named differently or comprise several different components. This information allows the study to establish a solid foundation for building the capacities of BE professionals founded on the systems approach. For instance, while several of the publications focused on CB of the individual, some revealed approaches to CB from an organizational perspective, and yet still others argued for CB from an industry perspective. Aggarwal et al. (2007) in their study advocated for a knowledge-based learning approach to acquiring technical skills. Their study pushed for the acquisition of practical skills from a systemic viewpoint allowing trainers to

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fragment skills development into constituent parts. Other studies on building organizational capabilities (Napathorn, 2021) have recognized the relationship between individuals and the overall ability of the firm to meet its goals. In this, Ahuja et al. (2018) and Gull and Idrees (2021) have for instance identified that the performance of the organization is founded on the “invisible asset” of capacities to transform the inputs into outputs of greater worth. In these studies, they distinguish between competence and capacity hinting and the need to build both within a firm. Echoed in other similar studies (Ebekozien et al., 2021), CB has been defined on the individual, project, and organizational dimensions, particularly in project-based firms. The industry-based approach to CB is revealed in studies by Gazman (2013) and Peltokorpi et al. (2021). By establishing a relationship between the firm and the industry for knowledge generation and diffusion, Boamah et al. (2021) established the interdependency of these two levels towards developing a capacitated construction workforce. 10.3.3 Capacity building dimensions for Construction 4.0 As already seen, CB can be simply put as the process which strengthens the management and governance of an organization so it can effectively and efficiently achieve its objectives and fulfil its vision and goals (Beesley and Shebby, 2010). More specifically, building capacities for the adoption of Construction 4.0 means that the firm should have 1 2 3 4

a sufficient number of staff who possess the needed knowledge and skills on Construction 4.0 technologies; an appropriate and adequate technical and management system; suitable physical infrastructure, and ample financial and other resources.

In this view, CB for Construction 4.0 is not limited to the training of personnel but may include a complete overhaul of existing systems, remodelling the existing physical infrastructure, recruiting new personnel and improving the efficiency of the use of existing resources. As Harsh (2010) rightly asserts, CB can be viewed as a change process that allows for the alignment of beliefs, and new or re-defined practices and principles to meet desired growth targets. In Construction 4.0 adoption at the organizational level, CB requires a deliberate and planned change to be effective. It has been noted that some organizations make the mistake of training staff and personnel in new skills without necessarily following up to ensure these skills are being appropriately utilized (Fixsen et al., 2013). Others have been criticesed to focus on training their personnel without addressing fundamental issues in other areas such as outdated compertized systems or the lack of physical infrastructure to support the advent of Construction 4.0 techniques. By this then,

Systemic Capacity Building 199 staff who are well trained do not have the opportunity to implement their new skills or put into practice their innovative ideas. It is thus suggested that the best practices to sustainable CB towards the adoption of Construction 4.0 should include long-term, multi-level approaches, coaching, and feedback. This study delves into four key dimensions of CB where needs may be identified and addressed towards the adoption of Construction 4.0 globally. They are the types of CB, levels of CB, stages of CB, and outcomes of CB. These dimensions are not be contextually bound and thus allows for a global perspective on CB for Construction 4.0. 10.3.4 Types of capacity for Construction 4.0 This study identifies four types of capacity for the successful adoption of Construction 4.0. They are: human, organizational, structural, and material. •

•

The human capacity includes both the intellectual capacity as well as the will to implement the needed changes for adopting Construction 4.0. Human capacity refers to how well equipped the individuals are to successfully utilize and adopt Construction 4.0 technologies and techniques. Equipping individuals – in this case BE professionals – with the needed education and training as well as continuous professional development can prevent losses associated with the inefficient adoption of Construction 4.0. For instance, artificial intelligence and worker sensors may play a significant role in enhancing human capacity by bridging knowledge gaps and boosting productivity. The interest, patience, and persistence of professionals are also considered in this type of capacity. Do professionals have the needed persistence to see to the adoption of Construction 4.0 techniques? Are professionals patient enough to allow for long-term continuous growth plans to be satisfied? Organizational capacity involves the interaction, communication, and collaboration among the people within the organization. This type of capacity allows for a thorough assessment of the needs of construction firms to successfully adopt Construction 4.0 into their systems. Adoption of smart equipment, laser scanning, cloud computing, and incorporation of the IoT in an organization will aid in the collection of data that improves the company’s capacity for decision-making and aids in the selection of competent employees. At this level, CB may be challenging, given the traditional manner of project delivery, the competing organizational priorities and the lack of coordination among related initiatives (Aliagha et al., 2015). Furthermore, the casual nature of employment further deteriorates CB initiatives at this level (Mazhar and Arain, 2015). Employers are unwilling to train employees because many companies employ professionals on a project basis (Ene et al., 2016). Employers are, thus, understandably reluctant to invest in developing their employees for fear the relationship will not last long enough for

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Aba Essanow Afful et al. them to recoup their investment (Gazman, 2013). This is often cited as a key barrier to the successful implementation of Construction 4.0. Structural capacity exists independent of the people working within the firm. It takes a broader perspective assessing elements like the practices, procedures, and policies. In this, the structural capacity should allow for the dissemination of technology towards the adoption of Construction 4.0. For instance, digital techniques and layers such as BIM, and cloudbased common data environment are transforming the ways and systems of communication and decision making. Building stronger structural capacities allow for effective decision-making towards the adoption of Construction 4.0 techniques and methods. Material capacity explored the various fiscal resources, materials, and equipment needed to meet organizational goals and implement change. For example, digital tools like big data analytics and cloud based production management may aid in the enhancement of processes, the reduction of material waste, and improvement of quality standards.

The various types of capacity identified are interdependent and growth in one area is largely dependent on the growth in another (Napathorn, 2021). Thus, while many studies have turned their CB initiatives on only one type of capacity, all four types must be properly aligned and subsequently addressed if the CI is to meet its goals for change. 10.3.5 Levels of capacity building for Construction 4.0 In addition to the type of capacity to be developed, the different levels of CB must be looked at. The various levels identified are information, skills, structures, and processes. For Construction 4.0 to be successful, the development and dissemination of requisite information, as well as the skills of individuals, must be addressed. The structures needed to efficiently promote the adoption of Construction 4.0 technologies and policies and existing processes must be addressed holistically. As the CI moves through the various stages of CB towards adopting Construction 4.0, there is a need for new information, increasingly sophisticated skills and knowledge, updated structures, and sophisticated processes. 10.3.6 Stages of capacity building for Construction 4.0 Harsh (2010) identifies four stages of CB. This study thus asserts that a successful CB for Construction 4.0 is stringent on the identified stages They are: Exploration, Emerging Implementation, Full Implementation, and Sustainability. •

Exploration. Here, certain key actors identify the need for change, determine the desired capacity and identify the needed knowledge, skills,

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•

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structures, and processes required to achieve the desired capacity. At this stage, it is important to evaluate the current capacities of the professionals to ensure the needed skills, systems, infrastructure, and other resources are adequately provided to ensure the adoption of Construction 4.0. Emerging Implementation. Harsh (2010) identifies three steps: (1) the participation of employees in training programs and development activities; (2) the building of new knowledge, updating technological and physical infrastructure for Construction 4.0 adoption, provision of resources and learning to use the available resources effectively; and (3) applying the new knowledge and utilising the new systems. Full Implementation. At this stage, professionals can integrate the new information and skills and subsequently refine their construction practices based on the changes evaluated. At this stage Construction 4.0 can be said to be in full swing as professionals would have been successful in adopting the systems, techniques and technologies required for their daily activities. This stage requires a continuous evaluation of the CB activities and feedback from this stage can help inform key actors on the impact and consequences of Construction 4.0 on construction practices. Sustainability. This final stage involves the “consistent and pervasive” use of refined skills and practices. Here, firms and individuals can demonstrate their capacity and ability to analyse and modify practices for continuous improvement in the adoption of Construction 4.0. Again, any further refinement of innovation to Construction 4.0 practices can be done at this stage. This then allows the modification of Construction 4.0 technologies and practices to suit the context (region or country) within which it is being adopted.

10.3.7 Outcomes of capacity building for Construction 4.0 Finally, as professionals are taken through the CB, one of three types of outcomes can occur: developmental (first-order change), transitional (secondorder change), and transformational (third-order change) (Lammert et al., 2015). Developmental changes occur as a result of the improvement of a skill or process. Thus, the improvement of construction-related skills and processes underpins the developmental changes evident from the adoption of Construction 4.0. Transitional outcomes mostly evident in firms occur when an organization begins moving from its initial state to a new desired state. Transformational outcomes are achieved when there is a shift in culture and beliefs among members of the organization that results in significant differences in organizational structures and processes (Lammert et al., 2015).

10.4 Conclusion This chapter explored the concept of Industry 4.0 and its application within the CI. With the rise of research into promoting the adoption of Construction

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4.0 globally, there is little focus on understanding the deficit in capacities for its adoption. Too often, approaches to building capacities of personnel have narrowly focused on the training needs of individuals without adequate attention to the other aspects of CB. This chapter adopted the systems approach to CB, postulating that the CI is systemized in nature and thus CB solutions within the industry should be approached from a systems approach. This perspective may represent, arguably, the most important contribution of CB to CI, that is, systems recognition of the importance of thinking about contributions at individuals, organizational, industrial, and state levels as part of a broader picture rather than as discrete parts for CB. The findings of the study have, thus, revealed that building the capacities of BE professionals to adopt Construction 4.0 should be addressed as part of a broader framework, interdependent on the other dimensions of CB holistically.

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11 Competitive Intelligence Features and Competitive Advantage of Construction Firms in the Fourth Industrial Revolution Matthew Kwaw Somiah1, Clinton Aigbavboa2, and John Frank Eshun3 1

Faculty of Built and Natural Environment, Takoradi Technical University, Ghana; University of Johannesburg, South Africa 2 University of Johannesburg, South Africa 3 Faculty of Built and Natural Environment, Takoradi Technical University

11.1 Introduction Firms not responsive to the environment risk being marginalized in competition (Tahmasebifard, 2018; Tuan, 2016). The advent of the Fourth Industrial Revolution (4IR) has brought about enormous transformations in how businesses are transacted in and across many industries, and the construction industry is no exception (Schulze, 2019). The 4IR transcends mechanization, using power tools, plant and equipment, digitization/automation, which characterized the first, second, and third industrial revolutions, respectively (Schulze, 2019; Schwab, 2016). The 4IR builds on the first, second, and third revolutions as it fuses technologies to impact firms’ production, management, and governance. It exponentially maximizes productivity and minimizes costs (Schwab, 2016). In the construction industry, the advent of the 4IR has resulted in using technologies in every facet of projects. Industry professionals fuse computational technologies in procuring works, goods, and services. Phenomenal about the 4IR is the downsizing of productivity inputs with its attending job losses, disrupted industry value chain, stagnant or decreasing pay for labour, and folding up of non-competitive firms (Schwab, 2016). However, the absence of a responsive competitive intelligence (CI) framework for competitive advantage (CA) in the 4IR has worsened the plight of many construction industry firms, especially construction firms in developing economies. Whereas CI features such as market intelligence, social and strategic intelligence, technological intelligence and competitors’ intelligence (see Jasima et al., 2020; Tahmasebifard, 2018) are known in previous studies. There is a lack of studies that integrate entrepreneurs’ behavioural intelligence into a CI framework and examines the relationship between CI features and DOI: 10.1201/9781003340348-13

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construction firms obtaining a CA in the construction industry in the era of the 4IR. It is in light of this that this present study seeks to examine the relationship between CI features and construction firms obtaining a CA in the construction industry in the era of the 4IR, a case study of Ghana. Ghana was chosen for the study because it is a developing nation which has become a preferred destination for construction businesses for many foreign firms hence heightening the competition in the industry among indigenous and foreign firms. Besides, its construction industry shares many characteristics with many developed countries. CA of firms connotes the ability of firms to do better than benchmarked firms in terms of market share, stakeholders’ satisfaction, profitability, and sales share in a given industry (Ade et al., 2017; Lall, 2001). Regarding this current study, CA is measured by sales share advantage, market share advantage, differentiation advantage, and stakeholders’ satisfaction in the relationship with the best-performing firms in the construction industry in Ghana (CIG) (see Ade et al., 2017; Flanagan et al., 2005; Wang, 2014). Whereas CI is information about the present and future behaviour of suppliers, competitors, customers, government, technologies, market, and general business environment (Ahmed et al., 2014; Jasima et al., 2020; McGonagle and Vella, 2002; Tahmasebifard, 2018; Yap et al., 2014). Whereas intelligence on the present behaviour could be easily established with certainty same cannot be said about intelligence on future behaviour. Thus, there is the need for continuous intelligence gathering in a competitive industry to always obtain credibly and up-to-date information to assist in decision-making (Jasima et al., 2020). A CI process begins with defining the information needed by a firm in decision making through the gathering of information, analysis of information and then distributing the information to be used by the management of a firm (Ahmed et al., 2014). With the CI theories advanced by Jasima et al. (2020) and Tahmasebifard (2018) forming the theoretical foundation for this current study, the CI features encapsulate market intelligence, technological intelligence, and competitors’ intelligence. This contextual definition of CI is consistent with the definitions found in earlier studies such as Ahmed et al. (2014), Gainor (2014), Gilad (2008), Jasima et al. (2020), McGonagle and Carolyn (2003) and Tahmasebifard (2018). Also, this current study redefined the frontier of CI by integrating entrepreneurs’ behavioural intelligence to market intelligence, technological intelligence, and competitors’ intelligence and examined the influence of each CI feature on construction firms’ CA in the construction industry in the 4IR. According to Johns and Van Doren (2010) and Tahmasebifard (2018), well-informed firms are in a better position to “outsmart,” “outsell,” and “out-negotiate” the competition, thus having a CA over firms that do not incorporate CI into their operations. Though CI is an essential tool in gaining CA (Ahmed et al., 2014; Somiah et al., 2020), there is a lack of research that examines the relationship between features of CI (market intelligence, technological intelligence, competitors’ intelligence

Competitive Intelligence Features 209 and entrepreneurs’ behaviour intelligence) and firms’ CA in the construction industry in the era of the 4IR. Hence, this chapter examines the relationship between CI features and construction firms obtaining a CA in the construction industry in the era of the 4IR, a case study of Ghana. Specifically, this chapter sought to achieve the objective to examine the relationship between CI features and the CA of construction firms in the CIG in the Fourth Industrial Revolution (4IR). Construction firms undertake building and civil engineering work in Ghana’s construction industry. The firm could be local, foreign or in partnership. This definition is consistent with the provisions of the Public Procurement Act, 663 of the Republic of Ghana and amended Act 914 (Republic of Ghana, 2003; 2016). The remaining section of this research has been broadly organized under literature review, methodology, results, discussions, and conclusions.

11.2 Competitive intelligence CI is a tool through which firms obtain CA (Ade et al., 2017). Intelligence informs firms’ strategic positioning in competition (Ahmed et al., 2014). It involves using legal and ethical means to collect and develop data on competition, competitors, and the industry at large and using the information for firms’ advantage in competitive markets (McGonagle and Vella, 2002; Tahmasebifard, 2018). However, as to the specific factors or features that constitute CI, researchers have expressed varied views since the inception of CI studies depending on, according to McGonagle and Vella (2002), the nature of competition, the characteristics of the market as well as competitors in the market (industry). 11.2.1 Theoretical background In explaining the CI features for CA in the 4IR, the five forces competitive theory by Porter (1980; 1985) and the CI models by Jasima et al. (2020) and Tahmasebifard (2018) were employed. According to Porter (1980; 1985), CA is derived from firms’ intelligence informed by strategic position against five generic competitive forces; namely: the bargaining power of suppliers, threat of new entrants, threat of substitute products or services, bargaining power of buyers, and rivalry among existing firms. A fair intelligence on the five forces guides firms to strategically position themselves in a competitive industry to gain CA (Mekic and Mekic, 2014), and the construction industry is no exception. However, this theory is not without limitations. The theory overlooked technological intelligence as a CI feature for CA. Most significantly, in this era of the 4IR, technological intelligence has become an essential CI feature as it has disrupted the traditional way of conducting business (Schwab, 2016). In affirmation, Sewdass and Du Toit (2014) argued that, among others, technology intelligence is an essential CI feature for CA. In addressing the technological intelligence limitation, Jasima et al. (2020) and Tahmasebifard

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(2018), in separate studies, modelled CI features to include market intelligence, technological intelligence, and competitor intelligence. However, none of the models considered entrepreneurs’ behavioural intelligence a CI feature. 11.2.2 Entrepreneurs’ behavioural intelligence Entrepreneurs’ behavioural intelligence refers to the information on the skills and abilities of firm owners that grow the firm beyond birth, survival, and growth and sustain the firm’s CA in a competitive industry (Wickramaratne et al., 2014). It involves intelligence on firm owners’ business acumen, innovativeness, problem-solving, and critical thinking (Zainol and Al Mamun, 2018). Intelligence on firm owners’ opportunity recognition (Zainol and Al Mamun, 2018), conceptual thinking, relationship competencies, and networking of firm owners (Ahmed et al., 2014), and firm owners’ influence in the industry (Badaoui and Chettih, 2017; Grzybowska and Łupicka, 2017; Sauzet, 2015), innovativeness (Dimitratos et al., 2014), opportunity seeking and initiation (Behling and Lenzi, 2019), creativity, and networking (Kruger and Steyn, 2020). The following section highlights some success features of CI for CA.

11.3 Survey of features of CI for CA in the existing literature Since the 1970s, when CI studies gained much prominence in strategic management, one of the lead contributors was Porter. Porter, in the 1970s and 1980s, advanced that five CI features are essential for CA: intelligence on the threat of substitute services, bargaining power of suppliers, the threat of substitute products, the threat of new entrants, bargaining power of buyers, and rivalry among existing entities (Porter, 1979; Porter, 1980; Porter, 1985). This assertion by Porter became the bedrock for many CI studies. Gilad built on the argument by Porter by advancing that features of CI include intelligence on the environments, suppliers, customers, potential business relations, and technologies (Gilad, 1989). Mekic and Mekic (2014) affirmed the features of CI by arguing that intelligence on the threat of substitute services, bargaining power of suppliers, the threat of substitute products, the threat of new entrants, bargaining power of buyers and rivalry among existing entities are essential CI features influencing CA (Mekic and Mekic, 2014). Sauzet (2015) articulated similar views but broadened the spectrum when the author argued that success features of CI include intelligence on the business environment, influence, protection, political, bargaining power of customers, socio-culture, substitutes, bargaining power of suppliers, the barrier to entry, and economic intelligence. In Badaoui and Chettih to CI studies, the researchers argued that CI is a function of information protection, intelligence, and influence (Badaoui and Chettih, 2017). Thus, it could be deduced from the literature reviewed that Badaoui and Chettih (2017) affirmed protection, influence, and intelligence as earlier

Competitive Intelligence Features 211 advanced by Sauzet (2015). However, Moghaddam et al. (2014) redefined the CI features. They termed market intelligence, competitor intelligence, social intelligence, strategic intelligence and technology intelligence to reflect the features advanced by Porter and that of previous studies. In the view of Ahmed et al. (2014), technological intelligence, competitors’ risks, technical intelligence, competitors’ threats, and market opportunities are success features of CI for CA. A keen look at the view by Ahmed et al. (2014) reveals a large similarity with the view of Porter. Tuan (2013) opined that social intelligence and organizational behaviour intelligence are success features of CI. Moshabaki et al. (2011) theorized that features of CI include leadership and strategy, customer, systematic approach, networking, culture orientation, process orientation, and learning creativity and growth. Flanagan et al. (2005) identified CI features to include intelligence on collaboration between trade unions, a collaboration between employers’ federations, trust between project actors, selfemployment rate of the industry, unionization rate of the workforce, and fragmentation rate of the industry. In contrast, intelligence on government regulations was found to be an essential feature of CI by Flanagan et al. (2005) and Lall (2001). According to Nemutanzhela and Iyamu (2011), the features of CI include intelligence on accessibility, power, management, enrolment, and capacity. Schwab (2016) argued that intelligence on the workforce’s talent, transparency, culture, customer expectations, collaborative innovation, product enhancement, and organizational forms are success features of CI. Thus, it could be seen that there have been emerging trends concerning the features of CI as the years elapse, with some of the views being closely associated. Hence, synthesizing the views advanced by the various researchers gave a more holistic framework that guided this current study. As a result, this study conceptualizes the main features of CI for CA in the construction industry in the era of the 4IR: market intelligence, technological intelligence, competitors’ intelligence, and entrepreneurs’ behavioural intelligence. 11.3.1 Market intelligence Market intelligence encapsulates relevant internal and external information about the industry within which a firm operates. It includes the bargaining power of suppliers, threat of new entrants, threat of substitute products or services, and rivalry among existing firms (Mekic and Mekic, 2014; Porter, 1979; Porter, 1980; Porter, 1985; Sauzet, 2015); bargaining power of buyers (Nemutanzhela and Iyamu, 2011; Sauzet, 2015); accessibility (Nemutanzhela and Iyamu, 2011); business relations (Flanagan et al., 2005; Moshabaki et al., 2011; Sewdass and Du Toit, 2014); the existence of industry fragmentation (Flanagan et al., 2005); and competitors’ risks and market opportunities (Ahmed et al., 2014).

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11.3.2 Technological intelligence Tahmasebifard (2018) states that technological intelligence influences a firm’s CA. It consists of information about the technology usage and capacity of firms in competition in the industry. This includes: technological capacity (Moghaddam et al., 2014; Nemutanzhela and Iyamu, 2011); technical intelligence (Ahmed et al., 2014); and talent of the workforce (Schwab, 2016). 11.3.3 Competitors’ intelligence This encapsulates general information about rivals in the industry. It includes management and capacity (Nemutanzhela and Iyamu, 2011); organizational behaviour (Tuan, 2013); leadership and strategy (Moshabaki et al., 2011); process orientation, and learning creativity and growth (Moshabaki et al., 2011); and product enhancement (Schwab, 2016). 11.3.4 Hypothesis As informed by the literature reviewed main features of CI consist of market intelligence, technological intelligence, competitors’ intelligence, and entrepreneurs’ behavioural intelligence, whereas the outcome of CA consists of market share, profitability, stakeholders’ satisfaction, and sales share. Thus, this current study tests the following hypothesis: H1: market intelligence has a positive and significant influence on competitive advantage in the construction industry in the era of the 4IR; H2: technological intelligence has a positive and significant influence on competitive advantage in the construction industry in the era of the 4IR; H3: competitors’ intelligence has a positive and significant influence on competitive advantage in the construction industry in the era of the 4IR; H4: entrepreneurs’ behavioural intelligence has a positive and significant influence on competitive advantage in the construction industry in the era of the 4IR; H5: overall competitive intelligence has a positive and significant influence on overall competitive advantage in the construction industry in the era of the 4IR.

11.4 Methodology This study adopted a two-stage approach to research. The first stage was a literature review which aided in identifying the features of CI as well as the

Competitive Intelligence Features 213 outcome variables of CA in the CIG. The second stage was using a structured questionnaire to seek the views of 667 respondents on features of CI and the outcome variables of CA in the CIG. The common criteria for selecting the respondents were that: a respondent should be an owner or a practitioner with a building and civil engineering construction firm or contractor. The construction firm should have belonged to the Association of Building and Civil Engineering Contractors of Ghana (ABCECG); the respondent should have worked in the Ghanaian construction industry for at least five years and have experience or knowledge of the issue under investigation. Where experience means work experience and knowledge means knowledge acquired by work experience over some years and by formal education. Firms registered with ABCECG were used for the study because it is the only association with the core mandate to offer a common and united front for operations in the construction industry and to dialogue effectively with the government through the sector ministry for the development and growth of the industry and Ghana at large. Hence, their members were used for the study. The association had a population of 1,267 construction firms (contractors), according to the ABCECG secretariat in March 2017. In determining the sample size for the study, Neuman’s (2006) principle was followed, which suggests that for a population of around 1500, at least 20% should be sampled. Thus, 254 construction firms were sampled, and within each firm, owners or chief executive officers and practitioners were targeted since the information being solicited may not be common to all construction workers. All 667 practitioners were used for the study. This sample size of 667 practitioners was considered very good (see Aigbavboa, 2014; Neuman, 2006). The targeted respondents were asked to rate the 15 identified CI features and 4 outcome variables of CA based on a 5-point scale, where 5 denotes very influential, 4 influential, 3 neutral, 2 not influential, and 1 not very influential based on their experience and/or knowledge. Blank space was provided for the participants to suggest further CI features and outcome variables of CA that were not captured in the questionnaire. However, since the suggestions received from the respondents were similar and closely associated with the 15 CI factors and 4 CA variables, the 15 CI features, and the 4 CA outcome variables were used for the study. Before administering the questionnaire, pilot research was conducted to pre-test the survey. Feedback from the pre-test led to subsequent modifications of the questionnaire before a final version was produced. This, among others, helped improve the questionnaire’s internal validity. The 15 CI features and 4 outcome variables of CA contained in the final version of the study questionnaire were arrived at following the literature findings and the outcome of the pilot research, which preceded the final questionnaire design. The final questionnaire was self-administered with the help of 20 trained field workers for three months (May to July 2019), and a 100% response rate was recorded. By self-administering the questionnaire, the researcher has the

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opportunity to clarify questions that respondents may need further clarification on. Self-administering the questionnaire led to a high turnout. 11.4.1 Data analysis The initial section of the survey included some items for collecting respondents’ demographics in Table 11.1. This included respondents’ job roles in the firm, work experience in the construction industry, and gender. Descriptive statistics (percentages and frequencies) aided in analysing the respondents’ demographics. The demographics suggested gender and role diversity in addition to a high level of experience, with only 7.80% of the respondents with five years of experience. This attests to the quality of data given out by the respondents. It also suggests that the respondents of this study have significant experience in the field of the survey. Hence, they will be better able to provide the needed information based on their experience and knowledge. In all, the profile of the respondents assures the value and reliability of responses. Both exploratory and confirmatory factor analysis were employed in investigating the correlations among independent construct (CI features) and dependent construct (construction firms’ CA). The establishment of

Table 11.1 Respondents’ demographic characteristics Main variables

Specific variables

Frequency(N)

Percentage (%)

The job role of respondents

Quantity surveyor Contract manager Chief executive officer Procurement manager Project manager Civil engineer Construction engineer Architect Total 5 years 6 to 10 years 11 to 15 years 16 to 20 years Above 20 years Total Male Female Total

109 45 119

16.34 6.75 17.84

105

15.74

40 209 20

5.99 28.36 2.99

40 667 52 80 92 215 228 667 510 157 667

5.99 100 7.80 11.99 13.79 32.23 34.18 100 76.46 23.54 100

Working experience in Ghana

Gender

Competitive Intelligence Features 215 statistical relationships among the independent and dependent constructs was made possible with the help of the IBM SPSS Statistics 23 and Amos 22.0 software. Before the statistical evaluations, the internal consistency was checked. The consistency check was performed to ascertain the reliability of the data and its measure. This aided in establishing whether or not the variables mirror the construct intended to be statistically measured (Ameyaw, 2014). Thus, Cronbach’s alpha subjected the data set to reliability scrutiny. The data set’s overall value for Cronbach’s alpha was 0.789, greater than the recommended 0.70 (Eybpoosh et al., 2011; Oyedele, 2013). This suggested a good internal consistency and reliability of the data obtained from the field survey. Thus, the five-point scale system adopted for the questionnaire design was reliable. Using varimax rotation with Kaiser Normalization, exploratory factor analysis was performed on the data set to establish the magnitudes of the scales. The sampling adequacy was proved by measuring the Kaiser–Meyer–Olkin (KMO). Available literature recommends that the value of the KMO must be greater than 0.5 (Field, 2013; Kissi et al., 2016). The KMO value was 0.843, which was greater than 0.5 and Bartlett’s Test of Sphericity was extremely substantial (p 0.80 > 0.90 > 0.90 > 0.90 > 0.90 > 0.05 < 0.08 < 0.05

396.609 142 2.793 0.000 0.940 0.920 0.940 0.961 0.961 0.953 0.295 0.052 0.040

GFI values greater than 0.9 and AGFI values greater than 0.8 often represent an acceptable fit (Scott, 1995). The normed fit index (NFI) is 0.940; NFI values greater than 0.9 suggests an acceptable fit (Bentler and Bonnet, 1980). Comparative fit index (CFI) values near 0.90 or more represent a satisfactory model fit (Baumgartner and Homburg, 1996). CFI value (0.961) satisfies the recommended CFI measure. Incremental fit index values (IFI) greater than 0.9 is recommended (Meyers et al., 2006). An IFI value of 0.961 indicates an acceptable fit. Tucker Lewis Index (TLI) values greater than 0.9 can be interpreted as a good fit (Bentler and Bonnet, 1980). Thus, the model is acceptable at the recommended level of 0.90 or greater. Root mean square error of approximation (RMSEA) below 0.08 and root mean square residual (RMR) below 0.05 is regarded as acceptable (Browne and Cudeck, 1993; Hair et al., 1998). 11.4.2 Assessment of common method bias Each independent construct significantly influences the CA of firms in the GCI. According to Cohen (1989), path coefficients with absolute values of less than 0.10 may indicate an insignificant impact, values around 0.30 signifies medium impact or influence and values of 0.50 or more a large influence. A standardized regression weight (β) greater than 0.7 while being twice its standard error, associated with a good overall model fit, offers evidence and support for the convergent validity of the final model (Bagozzi and Yi, 1991). A check was performed to see if the standardized error for each item was less than its (β) two times. Eventually, all standardized errors were satisfactory. More so, the factor weightings ought to be statistically significant (Gerbing and Anderson, 1988), which signifies that the absolute value for the critical ratio (C.R.) should be greater than

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Figure 11.1 Final model competitive intelligence features.

+/−2.58 for a 0.001 significance (Byrne, 2001; Kline, 2005). In this study, all factor weightings can be considered significant, as they are well above the 1.96 criteria, thus providing extra support for a good model fit (Table 11.3).

Competitive Intelligence Features 219 Table 11.3 Standardized Regression Weights Path (Causal relationship) CA CA CA CA CPA1 CPA2 CPA3 CPA4 CPA5 CPA6 CPB1 CPB2 CPB3 CPB4 CPB5 CPC1 CPC2 CPD1 CPD2 CA1 CA2 CA3 CA4