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CSM80004 International Construction

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CSM80004 International Construction

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Course Code: CSM80004
University: Swinburne University Of Technology

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Country: Australia

Oppurtunities Of Construction Contractors That Want To Implement Sustainable Construction At An International Level.
Write a report of publishable quality that takes an in-depth look at the way the construction industry is operating in the , and what are the Oppurtunities of sustaianable construction for global contractors.

The construction sector and creation of buildings play a significant role in society. Not only do buildings provide a means to have a good standard of living for the people of a country, but also adds crucial economic benefits as well. On the other hand, the same sector is also highly responsive to be using natural resources at a fast pace, consuming enormous energy, emission of greenhouse gases on a global level, pollution in air and creation of enormous wastes. In the Middle East, of late there has been an increasing concern about the negative effects of the construction industry and its associated activities on the country’s environment and resources. The construction industry in the UAE is growing fast with a huge number of international construction companies entering the market to offer high-end technology and innovative construction services (Ding, 2014). As a ripple effect this is also enhancing the standard of living and opportunities for local construction company owners in UAE to grow, learn, compete and also act as local collaborators and suppliers for these international traders. But, there is less focus given on adopting additional methods and strategies to increase the quality of the environment by making changes in building design and construction methods. The concept of sustainability’s now being realized as a necessity for internal construction business and is needed for long-term sustenance.
Green construction essentially signifies the approach which considerations are made by construction companies to reduce the use of resources and emission of wastes and consumption of energy during the entire work cycle of these constructions. These are commonly known as green building (Wang and Rivard, 2012). Sustainable construction and green building are concepts which give global as well as local constriction companies and to the entire construction, industry ways to develop positive approaches to environmental resources. Such practices put a lot of emphasis in using sustainable construction sites, projects, efficient in water use, conservation of energy, use of energy in an effective manner, materials which are resource efficient to be used, minimization of waste, ventilation and many other standard practices.
Company Overview
Royal BAM Group is a very popular company associated with civil and construction activities in Europe since 1886.  The company is from Holland. The firm has unified with many collaborators and is distributing its services in two main lines of business – constructions and civil engineering activities. The firm actively works as a PPP or public-private partnerships. Royal BAM Construction Company has made a noteworthy contribution to its native nation. This brand makes the famous Amsterdam Aajx football club space along with Bataafsche Aanneming Maatschappij (Baminternational, 2018).
The main feature of this construction company is its widely networked branches and units in different countries where it operates. The firm believes in being close to its customers, and the presence of Royal BAM is there in the Middle East, USA, Africa and Australia as well. It provides high quality and highly innovative construction solutions supported by technology and knows how to varied places in the world. The main philosophy of the brand is to help the customers have a real value for their investments. To achieve this company philosophy, Royal BAM works closely with the customers (Jarrah, 2015). They believe in creating and maintaining a lasting partnership by offering high quality and outstanding construction services. Be it creation, maintenance, using innovation and expanding work Royal BAM has gained quite a lot of popularity with its plethora of impressive construction projects. The firm has very experienced skilled employees with over 21,000 workforce delivering thousands of quality projects delivered each year globally.
Research Question
The main reach question here being addressed is how sustainable construction is embraced internationally and what opportunities the international builders are getting in implementing the concept in an international scenario.
Research method
The qualitative and descriptive research method is chosen in order to undergo this research report. This method is simple and can take help and reference from research made by other researchers in published journals and books.
For this secondary research data is used and these are the data which another researcher has generated on their research on the same subject. Here no interview or survey is made.  In order to get data research has explored many countries where international construction developers are working and how they are addressing the sustainability concept.
Literature Review
Construction Industry in the Middle East
Construction sector in the Middle East with special mention to Dubai suffered setbacks in the year 2009. This was in succession of the financial crisis faced by the entire world which also increased the debt crisis for Dubai. A large number of construction projects which was planned were hence paused. High gas and oil revenues which then occurred during the time san between years 2008 till preset has been helping Middle East One again witness its tourism sector expanded. This flourishing expanding sector and re-exports and entry of a large number of global traders to UAE have helped the country’s the economy recovered well. By the year 2012, the confidence of the customer was back, and activities in relation to the real estate once again picked up along with heightening of prices. Overall the construction sector is in an advantageous position (Liu, Zhao, and Yan, 2016).
Source – Norton Rose Fulbright
However, now the mindset of people has changed post the huge financial crisis the world experienced back in 2008-2008 (Kibert, 2017). Today cautiously investments are being made, and the focus is increasing on retails, infrastructure, commercial projects, and the hospitality sector. The Middle East construction industry is on a positive upward trend in recent years. Low oil costs although creating practical challenges for the nation as the hydrocarbon sector is contributing to around 34.3% of the minimum GDP in the year 2014 (Driessche, 2015). The expansion of tourism sector with more occurrences of international events such as Expo 2020 is creating large opportunities for the government to invest further in enhancing the infrastructure of transportation even in the middle of imbalances in the political arena in the nation (Glavinich, 2014). UAE today is considered a safe haven for entrepreneurs in a construction company to enter the market and grow exponentially. Construction activities are ongoing for UAE.
Opportunities for sustainable construction for global contractors
The concerns on the effects of construction-related activities on the environment are increasing exponentially, and measures are also being taken in order to take up sustainable construction methods as a best practice for mitigating risks. These sustainable measures can involve legal structures, technological, cultural and managerial practices, and processes (Hill and Bowen, 2015). The entire construction sector is experiencing a severe amount of pressure for adapting to environment-friendly strategies and responsible actions toward the environment in order to enjoy competitive advantages. However, in order to implement the environment managerial systems in the construction sector, there are different barriers and challenges as well. Construction sustainability hence is not an easy process and rather a dilemma faced by major players in the construction industry.  
In this report, Royal BAM Group construction sustainable actions in the Middle East in Kuwait are being researched. Data was collected using a case study related to this company’s construction projects from the perspective of the researcher (Roberts, 2017). This is a descriptive quantitative research methodology where data is collected from secondary sources like journals and books explaining different case studies. The construction enterprises must develop robust and high innovative strategies for an environmental manager for being in compliance with the sustainability requirements and also take advantages from the varied opportunities which arise from the integration of the best practices (Baloi, 2016).
The construction sector also plays a very big role in the development of the country by both means economically and socially. It is the construction sector which plans, develops, manufactures, designs and builds, modifies and maintains the construction environment and it includes manufacturers and vendors supplying raw materials, construction materials, contractors, customers, consultants, marketers, and uses of the developed facilities. Sustainable construction is considered as a sustainable development subset which is applied to the entire construction sector. It is defined as the building and the responsibly related management of a construction environment which is built based on resource efficiency and environment-friendly principles. There are concerns over the deterioration of the environment which has been going on from a very long time till recent times (Shen, 2015). The principles of sustainable construction to be followed by global construction develops are focused on the following:

Maximized re-use of resources
Minimize consumption of the resource
Use recyclable and renewable resources
Natural environment protection
Development of a non-toxic and healthy ambiance.
Development of a quality environment (Calautit and Hughes, 2016).

Construction businesses that operate globally get enormous opportunity to embrace three primary dimensions- social, environmental and economical in comparison to the conventional industrial process where the main focus of economic growth, durability, and utility. Social dimension helps developers address the various issues and concerns in relation to the improvement of the quality of life of the people in the country where the firm constructs infrastructure (Yoon and Tello, 2014). Economic dimensions are addressing the different economic issues such as job creation, enhancement of competition, lowering maintenance and operational costs, high quality safe and secured work environment leading to better employee welfare and productivity (Stavins, 2016). The global construction firms can also contribute immensely to the country by embracing environmental dimensions such as focusing on eco-friendly design, construction, maintained, operated, and deconstruction attitudes in order to lower the negative impacts on the environment. These negative impacts on the event are air based emissions, water resource use, water discharges, use of land and many others.
The global construction entrepreneurs and builders are benefitting from adopting sustainable measures. These are beneficial to products as well as processes. The benefits to the work processes involve saving of material by reusing, recycling and transforming wastes to valuable uses and creating safe work conditions, cost reductions of the activities engaged with discharges, management of waste, transportation, lowering energy use in production (Opoku and Fortune, 2015). The benefits the builders are getting in terms of products are the high quality of construction, lower cost of the life cycle and using safe construction processes. All these together are acting in favor of these global construction firms who are developing a better brand image for themselves with their contributions to environmental protection and responsible use of resources.
International enterprise over last few years has given a lot of efforts in the enhancement of the level of energy efficiencies in new building construction and in enhancing existing building development. Building development industry has huge potential for the achievement of energy efficiency, co2 reduction in developed and developing nations in the world. Currently, the construction sector contributes to around 40% of the energy demands in the entire world and third contributions to co2 emissions (Lombard, 2018). As the population is rising all over the world, so is the demands for high-end comforts rising and hence the time spent by people in buildings are more. This means a large amount of energy consumption is consistently being made all over the world. All these factors are opportunities for global construction leaders and developers for detecting energy efficient building construction and innovating technologies based on energy efficiency in order to enhance sustainable development practices and achieving targets of energy efficiency in organizations (Kuznik, David and Johannes, 2014).
There has been fast-paced development and innovation made in technologies which encourage energy to be used efficiently in areas such as building raw materials, passive development measures, and sensors. Designing building systems in the environmentally friendly way and serving multiple functionalities will change the varied facets of sustainability-related problems. Construction developers in the international business need smart integration in between civil, architecture, mechanical, environmental, electrical and structural policies, engineering, economic, and social sciences (Farid, Khubhai and Hallaj, 2014). Responsible urbanization best practices at both the micro and macro level help developers lessen the varied negative impacts of the building environment. The main focus is at the macro level in the sustainability factors for the planet to sustainability micro-elements, neighborhoods, and municipality and to distinct buildings, materials, components and space occupied by individuals. Changes made in building design give the enormous opportunity for builders to use a multidisciplinary approach and enhance life quality of individuals, corporations and the wider community and society. It gives ways towards holistic thinking in every sector (Sharma, Tyagi, and Buddhi, 2014).
Strategies of Company to Diversify Engagement in Global Market
Green Building
One of the major strategies Royal BAM global construction company is adopting is green building in order to diversify itself better in the world of sustainable construction. The Middle East like all other nations in the world takes responsibility of implementing such concepts and encourages and welcomes any enterprises which adopt environment-friendly process while developing and building infrastructure. Green building is the characteristics and quality of structures which are built on the lines of methodologies and principles which aids sustainable constructions. A green building is a health facility which is specifically designed and also built in a restored effective manner based on ecological principles and techniques. Officials also define green building as the process used for enhancing efficiency in which buildings will be using water, energ6 and materials and lower impact of the building on environment and human health using a better design, construction, siting, maintenance, operations, and removal thus completing the entire life cycle of building development (Tunji-Olayeni, Mosaku and Oyeyipo, 2018).
The main elements of a green building are having sustainable sites, effective water use, conservation of energy, materials, and resources, quality of indoor environmental and conservation resource design methods and approaches adopted by entrepreneurs who work in global instruction industry and environment. In order to implement this, there are varied global environmental assessment method and tools which are used for the life cycle of a building. The assessments are made from a design, construction, operations, and maintenance all using the green building concept and method. Green design impacts the health of individuals and environment positively, enhances the productivity of occupants, enhances organizational marketability, lowers operational costs and aids in the development of a sustainable community in the world (Cuervo and Pheng, 2015).
Sustainable Constructions
Global construction developers strategize to create green buildings based on sustainable principles of constructions all of which is addressing economic, ecological and social concerns of buildings. Such concepts of green building are a common element of a suitable construction methodology (Williams & Dair,  2017). A sustainable construction sector aims in attaining sustainability, and it is a procedure which initiates before even planning, and design stages of a construction project are made. Such methods are consistently maintained even when construction is completed, and workers have even left the site. In all different phases of the construction process and designing the principles are used for effective decision making. Such principles are used for the evaluation of elements and resources in all the aspects of construction made from the stage of planning to disposal. Resources are developed and build in a responsible manner during the building lifecycle including the materials, land, energy, water and the ecosystem (Chan and John, 2013).
Assessment for Environment Building
There are advanced building assessment tools which are used by the Royal BAM group when it is making constructions in different countries in the world. There are industry standard assessments tools which are formed by experts which aims in listing the different criteria of the environment and the basis in which performances of buildings are analyzed, evaluated and checked. Assessment tools like these are used by builders and developers in every stage of the project. Pre-design criteria are met and based on that construction building designs are made. Such building assessment tools help enhance the level of construction goes high. The tools are subdivided into two different groups (Saleh and Alalouch, 2015). First, the assessment tools are aided in presenting various performance-based indicators and design options which firms have (Ogunlana and Sukhera, 2013).  Secondly, the tools offer rating methods in order to rate the performance level of buildings.
Impact of International Market Strategies on Local Construction Industry
Whenever an international product manufacturer or service provider enters into a new market in the international lands, there is an impact which is witnessed in the local industry as well. In recent years in the Middle East, there has been developed in the local construction industry (Parkin, 2017). Talks of sustainability, challenges and future opportunities are happening everywhere in the nation. Cities will, as per World urbanization report of the UN be growing significantly in coming years and will be able to accommodate new entrants, jobs and various other demands. This will indeed make local resources, society and environment be affected by its pressure.  This is in addition to the benefit an international construction business is providing by hiring local talent and improving the quality of life of the local people. With the progress in urbanization and new legislation formed by the government, a huge number of independent construction companies are predicted to be growing in the Middle East local market (Cañas-Guerrero, Mazarrón, Calleja-Perucho and Pou-Merina, 2014). There will be new developers, consultants, contractors, entrepreneurs who are going to make equal or even more investments in embracing new building development techniques and embracing sustainable construction design know how. Management of construction waste and managing the effect of such projects in the context of environmental quality will help local constraints find ways to change and uplift their brand image along with making valuable contributions to life in their host country.
Sustainability today is much more than a mere marketing tool. The main focus of every company is the client, the environment, and resources. Even customers today are realizing that sustainability does not mean brands are using advertising jargons to attract their attention. Rather it is a project which runs parallel and in alignment with every construct project. Sustainable design in initial phases and use of holistic approaches are implemented even by local construction firms, and this is a reflection of the sustainability implemented by international brands entering ad operating in the Middle East. The approach in which sustainability will be implemented varies significantly from one employer to another. Large developers in connection industry are noticed to be taking a holistic approach, involving more consultants at initial phases and aiming to go beyond the basic green building criteria set by the government (Chen and Messner, 2014). A small development, on the other hand, has constraints as they have an internal target rate of return. Especially during times when sale plateau is often experienced and prices of constructions industry materials and technology increasing recently. A lot of local construction developers in Middle Eat are using areas basic standards for getting green building as a mode of work practices and achieving a basic building completion accreditation.
Unique Regional Challenges are being experienced by local construction companies in the Middle East (Saleh and Alalouch, 2015). In the Middle East, the subject of sustainability poses great challenges to the industrial players in the region.  The entire region is prone to very extremes of weather conditions, and this makes cooling down a high priority function. Hence, sustainable potentialities often are kept aside under such circumstances. Local construction companies in the Middle East, however, are taking initiatives to get involved in sustainability mater right from an early phase of the project lifecycle.
The positive effects of the sustainable construction industry in the Middle East
Middle East urban society and environment have a huge natural potential for embracing the opportunities of sustainable development. The region is showcasing ever-increasing urbanization and a very high density of population. There are natural potential Middle East countries for the construction of a neighborhood which is highly economics and scaled energy systems. The heritage of the system with its conventional models of business and building development is also acting as a guide to design methodology concept creation and implementation (Abdul-Rahman, Loo and Wang, 2015). These new age designs are based on energy efficiency concepts and are highly effective in creating opportunities for construction companies to boost their image as a corporate and socially responsible firm. The country has enormous solar as well as wind resources which give potentials for a renewable energy system to be employed and integrated in an effective manner in order to protect and enhance the environment.
The country is also experiencing positive effects where there are sustainable development initiatives by government bodies, non- government bodies and varied professional bodies in the region which opens new opportunities on which the firm can capitalize on. It is related to the building of the environment, and the efforts and interests are all leveraging on the sustainable development regulations developed by the government (Abidin and Powmya, 2014).
Moroccan government, for instance, has notified the launch of a national charter for the sustainable environment development. Similarly, UAW, Jordan, and Egypt have also begun the introduction of energy efficient standard criteria for building development.  NGOs or non-governmental organizations in Qatar, Jordan, and UAE have established green building methodology in their countries as they target in the promotion of sustainable design and development for the local construction industry as well as global entrants (Gundes and Aydogan, 2016). Green building rating systems are introduced which rates building the design on sustainability concepts. Saudi Arabia and Emirate governments are also engaging in the commissioning of many pilot projects related to sustainable design. Many organizations are also providing a related financial incentive for making their building designs energy efficiency.  Varied renewable energy systems on a small scale are developed in order to make them viable commercially.
Enormous positive development, as well as opportunities, are created in developing nations like the Middle East. The country is fast emerging as a nation which promotes suitable development in varied sectors (Han, Kim, Jang and Choi, 2015). However, it is possible to achieve sustainable decision making in order to overcome the challenges given above. The nature of the challenges which the country faces needs the construction sector to achieve sustainable development, an initiative to bring a change in their present status quo and also collaborations made between different governments, professional bodies, NGOs and the public. The country needs to learn from its varied experiences which it receives from global construction company sustainable approaches (Gundes and Aydogan, 2016).
The negative effects of a sustainable construction industry
Sustainable development is not a simple process. For the construction industry in the Middle East, it has been experienced that there is an in general insufficiency in the framework of urban development in many of its cities and regions. There are fewer instances found on the precedents in regional sectors in the country in relation to activities related to energy conservation, water conservation, resource conservation, and waste management. These are highly concerning issues resulting from increased international construction activities occurring in the Middle East. There is a rising consumption of energy in the buildings with increased scarcity of water and the increased generation of waste which is not managed carefully. It is leading to a chaotic negative situation in the country.
There is a challenging environment for countries like the Middle East to build individual buildings owing to the arid and heat in the region. There is a rapid rise in city development using energy resources which are found existing under the sand. The cities require a high amount of quality energy in order to make the region habitable in nature. The form of the buildings is mostly imported. These were not responsive to the environment, and the primary habitability relied on climate and energy-intensive tools like air conditioning sites for humans to survive.  Green building forms, on the other hand, are not entirely depending on fossil fuel uses. Hence these can help reduce the consumption of energy in the Middle East countries (McIntosh and McCabe, 2016).
Advantages of Local Construction Firms
There have been a huge amount of infrastructure related works occurring in UAE. A large number of airport, roadway and port-related projects continued in the country owing to the new international construction companies are entering the Middle East local markets. The infrastructure of UAE has boosted the market of UAE impressively about its international ranking. The first advantage has been the occurrences of large-scale projects in the country. These economic issues do possess an international effect on the building industry (Jawad, Abdulkader, and Ali, 2016). Nations are exposed to fluctuations in its import and export, issues in currency and credit crunch situations. Hence such nations require health economic progress to be occurring and the building sector is an industry which plays a pivotal role in this. The opportunities of the local construction in the Middle East are varied and multiple. The second benefit to local construction companies is that there are numerous new employment opportunities which have opened up due to international constriction companies entering regional markets. The countries are now filled with jobs, and one can use the construction field to develop a career and build a life upon. With increased job opportunities in the local country, more and more local talent is recruited thus promoting a large portion of the citizens in the country to a higher standard of living. The UAW construction market is growing positively and consistently with increased investments from major governments, a large number of new projects in hospitality, healthcare, education, residential and leisure industries. The varied investors and construction developers take a lot of additional care in making sustainable efforts to lower resource usage, emission of carbon gases and management of wastes.
Another benefit of international constriction companies entering Middle East diversification of the host companies and traders. Diversification of the assets, knowledge resources and making actions and strategies to combat world issues like environmental conservation are helping host enterprises compete with global firms at an altogether new level (Fu, Ho, Sui and Li, 2013). There can be for example negative completion in two or more than two construction companies in the host country. But, the entrance of a global competitor balances out such negative competition and make firms more competent to handle global concerns. One another advantage worth mentioning is the new opportunities to get exposed to new skills and technologies used by global enterprises. This knowledge is shared to host companies thus making their quality of internal workforce resource and knowledge higher. This opens up an enormous opportunity for local talent to boost their knowledge and skill set.
The main element in the mission of the Royal BAM group is quality performances. The next recommended focus can be the maximization of profits and client satisfaction levels. This is supposed to be the recommended mission statement for every sustainable organization in the world which is focused on taking performance indicators seriously. The element of sustainability in organizational mission statements will help firms develop and distribute support for sustainable construction in local, regional firms as well. One of the most deterrent reasons for less growth and poor implementation of sustainable construction is low awareness in the world. Not all business organization and customers understand the concept properly. And that is why not all construction companies are adopting sustainability as their core mission and vision (Noah and Bradley, 2016).
There are also areas such as poor government support which is needed to be further enhanced in order to increase sustainable work practices in the construction industry at an international level. There are fewer laws and regulations implemented to drive sustainable constructions. All these are needed to be changed. The benefit of sustainable construction is realized all over the world with increased environmental quality, life quality, and benefits to local companies. Hence more emphasis must be given to every challenge faced by the firms and solutions must be found to encourage green growth.
Conclusion and Recommendations
The sustainable construction process is the total responsibility of the entire construction industry. Activities related to construction such as sustainable activities, design, operation, constriction, maintenance, modernization, rehabilitation and dismantling all have crucial effects on the environment. The huge use of natural energy, resources, air pollution, soil and land pollution, water resource use are all examples of the impacts of environmental depletion. Enormous challenges, as well as opportunities, are out there for global construction firms like Royal BAM group for adopting sustainable constriction. However, it is difficult and challenging for organizations to balance out sustainability-related objectives and economic progress. Adoption of sustainable construction as a means of running a business and as a norm will help the firm’s environment better (Du Plessis, 2014). Adoption of sustainable constriction practices with adherence to environmental protection, enhance sites and work conditions, sustainable buildings all drives firms to better productivity and profitability.
Sustainable constriction is a complex engineering and system, and it needs merging of political, technical, economic and social elements.  The development of green buildings in the Middle East is still in a very preliminary phase. Hence there is a requirement for a significant effort and support from the government as well as the private sector.  The range of knowledge and use environment-friendly construction is growing but not at a fast pace. Hence efforts are needed for enhancing the know-how and concept for both the private sector and the government by using workshops, training, and technology in favor.
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