ABSTRACT
Construction efficiency is measured according to cost of construction, while maintaining the built quality. The efficiency of the buildings themselves is more complex and depends on the contribution of the new built output to economic growth, a measure that depends on the use building owners or users make of the new built stock and that is not dependent on the buildings per se. Construction itself must have a labour force whose productivity is comparable, though not necessarily equal, to that in other industries. The wages paid are determined by the supply and demand for labour. Few activities impact on local and national communities more than construction projects, and the planning process reflects democratic values. Labour productivity can be improved with the use of plant and equipment. Capital deepening is the result of investment in plant and machinery. In construction, firms tend to hire plant and machinery and therefore invest in equipment only on an ad hoc basis.
