Task:
Choose any two of the following five essay questions. Prepare a 1000-2000 word essay for each of your chosen questions.
1. Consider the relationship between ‘new orders’ and ‘output’ in the construction statistical series published by the UK Office for National Statistics (ONS). Discuss the extent to which new orders data are a robust predictor of future construction output, identifying the key shortcomings and explaining how new orders data could be improved.
2. Consider the short to medium-term outlook (over the next two to three years, up to end-2026) for new private housing construction in the UK, published by the RICS, Glenigan, the Construction Products Association (CPA), and other commentators. Explore and analyse the primary factors, including political, economic, and social influences, that are projected to shape upcoming housing growth trends. Assess their potential impacts on the housing sector. Narrow down and justify the three factors you consider most critical, supporting your choices with substantial reasoning.
3. Consider transaction costs in the construction sector. Explain their impact on the tendering process and on how a market price for new construction work is determined. Discuss other factors – beyond price – that influence contractors’ bid prices, and the effects they may have on the bidding process and subsequent outcomes.
4. Market concentration is generally measured as the share in output of the larger firms in a given industrial sector. A study by Zhao et al (2019)* uses data from the Engineering News Record’s (ENR’s) lists of Top 250/225 International Contractors to provide assessments of market concentration and competitiveness in the international construction market. Discuss the advantages and disadvantages of using ENR data for this purpose, explaining how this data could be improved for assessing international construction market concentration.
5. Many industry commentators believe that construction suffers more from corruption than many other industries. Discuss the opportunities for ‘supply-side’ corruption in construction tendering, and explain the potential economic impacts, including the impacts on prices charged to clients.
* Zhao, Z-L., Guo, X-L. and Chang, R-D. (2019) ‘Market Concentration and Competitive Intensity of the International Engineering Contracting Industry’ Journal of Construction Engineering Management 145(5): DOI: 10.1061/(ASCE)CO.1943-7862.0001650
Guidelines
Answer only any two of the five questions. Make clear which question number you are answering in each case, and begin by reproducing the text of the question at the beginning of each answer.
After satisfying yourself that you understand what was covered in the lectures about each topic, carry out some further reading to find what other writers have said on these issues. The assignment will involve following up recommendations for further reading provided in the lectures to get a broader view of the specific topics of the questions you choose. It is important that any statements you make are backed up by the literature on the topic and that any statements made about recent thinking are backed up with references to research. Credit will be given for proper citation of sources (see further under Formatting and referencing below).
Each essay should be organized into sections with headings and paragraphs that follow a logical flow. You should include a clear introduction to the topic at the beginning and clear conclusions at the end. You are expected to demonstrate the depth of your understanding and your ability to explain concepts and relate different sources of information into a coherent piece of writing that responds to the specific question.
Formatting and referencing
For your submission you should compile both of your essays into one single document. However, at the end of each essay, you should provide a list of journal papers, conference papers, books and other references in alphabetical sequence listed by authors’ surnames (under a heading of ‘References’). Only list articles you have actually cited; do not compile a bibliography. Use only authoritative, published sources.
Credit will be given for citing appropriate references. Please ensure that you cite papers properly, using the Harvard System (see http://libguides.reading.ac.uk/citing-references). You may draw on data covered in lectures, but you should locate the original data source and cite that. Do not cite lecture notes or slides.
For the page layout, use single-spacing and 2.5 cm margins. For the font, use 12 pt Times New Roman.
