Making Better Decisions about Built Assets: Learning by Doing

Professor Craig Langston- ARC Linkage Project

Bond University is leading an Australian Research Council (ARC) Linkage Project into Making Better Decisions about Built Assets. The partners are The University of Melbourne, Deakin University, Williams Boag Architects and Assetic Australia. The research comprises $180,000 of funding from the ARC and about $180,000 of funding from the industry partners (plus in-kind support) over three years, concluding in 2012. The chief investigator of the project is Dr Craig Langston, Professor of Construction and Facilities Management in the Mirvac School of Sustainable Development at Bond University.

The research project aims to: (1) construct and disseminate a novel MCDA support model for making better decisions about built assets, (2) identify and prioritise the parameters that affect sustainable built asset performance, and (3) review the robustness of past asset decisions in the light of current performance to refine and optimise the tool. As it is not possible to test new decisions, a retrospective evaluation is adopted. In the process of meeting these aims it is necessary to develop protocols for tracking life cycle performance across case study buildings and investigate the match (or lack thereof) between initial stakeholder decisions and actual building performance over a 5-10 year period. The findings will be of benefit to all property industry stakeholders and help realize climate change adaptation targets in future building projects without undue lag.

MCDA stands for multi-criteria decision analysis. It reflects the undeniable fact that nearly every decision we ever make is based, either explicitly or implicitly, on multiple criteria. MCDA is essentially a methodology for identifying these criteria, weighting them according to their relative importance, and assessing them in light of actual or expected performance levels. The resultant weighted performance is accumulated across all criteria and leads to a single decision measure that represents best value. There is no limit to the number of criteria that may be involved.

The research has already developed an innovative matrix within which decisions can be interpreted. Known as iconCUR, it is a three-dimensional spatial cube defined by the key variables of condition (x-axis), utilisation (y-axis) and reward (z-axis). All existing property assets can be located within this matrix. Properties that exhibit low condition, utilisation and reward have close proximity to one corner of the matrix (coordinates x=0, y=0, z=0) while those that exhibit high condition, utilisation and reward have close proximity to the diagonally opposite corner of the matrix (coordinates x=5, y=5, z=5). Natural decay results in movement over time from the latter to the former, whilst capital investment has the reverse effect.

The iconCUR matrix uses MCDA to assess scores between 0 and 5 for the condition, utilisation and reward variables, and maps their position in three-dimensional space. The ‘distance’ between a property’s coordinates and any of the corners of the matrix indicates the strength of a future decision, and trends over time can be tracked, extrapolated (where no action is taken) or shifted (when positive action is taken). Using a two-dimension plane based on condition and utilisation alone, the types of decisions/actions can be determined. Whether these decisions/actions are worthwhile (and to whom) is governed by the third dimension of reward. The types of decisions that affect property assets are depicted in the property management matrix figure.
 

The combined (iconCUR) score is the average of the three coordinates. A new asset would start off close to 5 and reduce over time until some capital intervention occurs, when the score would increase, only to reduce gradually again due to natural decay and functional irrelevance. Over the full life cycle of the asset this effect gives rise to a series of gentle downward-sloping curves and sharp vertical rises (at points of intervention) until such time as the rationale for further investment is no more. It is at this point that disposal or complete reconstruction is necessary (end of life).

The research plan over the remainder of the grant period is to develop criteria and weights for each axis, incorporate multiple stakeholder views into the assessment of reward, and to validate the approach through a retrospective analysis of existing built assets. This project involves a group of twelve researchers looking at various research questions, propositions and hypotheses based around the iconCUR methodology, and working in collaboration with other colleagues from overseas. The outcomes of the research will be embedded into state-of-the-art software tools and made available to the property industry by Assetic Australia.

Bond University is privileged to be leading this research. New knowledge from this and other ARC projects is being integrated back into the curriculum for undergraduate and postgraduate study. Through this process it is hoped that Bond University graduates are able to take their place in the construction, facilities management, property and urban development industries to help achieve better and more sustainable outcomes for our world.

For more information about this research, click here.