How to improve the underperforming construction productivity by correcting its market failures?
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.)