How to improve the underperforming construction productivity by correcting its market failures? Globally, labor-productivity growth in construction has averaged only 1 percent a year over the past two decades, compared with growth of 2.8 percent for the total world economy and 3.6 percent in the case of manufacturing (McKinsey, 2017).

The most common market failures / problems in the construction industry are:


asymmetric information 
corruption 
industry fragmentation 
ismatch between the agents of risk allocations &amp; rewards
dependence on public-sector demand.


I found many organizational answers to this question: improve communication between agents, introduce shorter contracts, improve on-site execution, etc.

However, I personally think internalization would be a great choice: bringing together the agents (like Elon Musk did at Tesla). Then the agents could optimize on a vaster decision set, and the result would be Pareto-efficient. The big question is: how?

My question is: how can a decision maker improve the construction productivity? What would be the answer from an Economist point of view?
A great many things can be said on the question. But it might be worth pointing out that people have been building stuff for a very very long time, so maybe 1% productivity growth is not a bad result.

The most difficult is anti-corruption. You could compare the free press + independent judiciary + empowered investigative authorities within specified limits + free elections ... with the approach of President Xi, whose name is now entrenched in the Chinese constitution. 

However, it seems that you're more interested to motivate a specific theory. So perhaps you could develop that and come back with a question that is more aligned to what you want to know. For example, you could be additionally descriptive about what it is about Tesla's operations that might have broader lessons in construction? (Note that Tesla makes cars, not ports, not bridges and not roads.)