Systemic competition between high and low ‘social cost’ labour: a case study of the UK construction industry

Author(s):  
Mark Harvey
Buildings ◽  
2021 ◽  
Vol 11 (6) ◽  
pp. 260
Author(s):  
James Ellis ◽  
David John Edwards ◽  
Wellington Didibhuku Thwala ◽  
Obuks Ejohwomu ◽  
Ernest Effah Ameyaw ◽  
...  

This research explores the failure of competitively tendered projects in the UK construction industry to procure the most suited contractor(s) to conduct the works. Such work may have equal relevance for other developed nations globally. This research seeks to teach clients and their representatives that “lowest price” does not mean “best value”, by presenting a case study of a successfully negotiated tender undertaken by a small-to-medium enterprise (SME) contractor; SME studies are relatively scant in academic literature. By applying the “lessons learnt” principle, this study seeks to improve future practice through the development of a novel alternative procurement option (i.e., negotiation). A mixed philosophical stance combining interpretivism and pragmatism was used—interpretivism to critically review literature in order to form the basis of inductive research to discuss negotiation as a viable procurement route, and pragmatism to analyse perceptions of tendering and procurement. The methods used follow a three-stage waterfall process including: (1) literature review and pilot study; (2) quantitative analysis of case study data; and (3) qualitative data collection via a focus group. Our research underscores the need to advise clients and their representatives of the importance of understanding the scope of works allowed within a tender submission before discounting it based solely on price. In addition, we highlight the failings of competitive tendering, which results in increased costs and project duration once the works commence on site. These findings provide new contemporary insight into procurement and tendering in the construction industry, with emphasis on SME contractors, existing relationships, and open-book negotiation. This research illustrates the adverse effects of early cost estimates produced without first securing a true understanding of project buildability and programming. Our work concludes with a novel insight into an alternative procurement option that involves early SME contractor involvement in an open-book environment, without the need for a third-party cost control.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chris Newman ◽  
David Edwards ◽  
Igor Martek ◽  
Joseph Lai ◽  
Wellington Didibhuku Thwala ◽  
...  

PurposeIndustry 4.0 is predicted to be a game-changer, revolutionizing commercial and manufacturing practices through improved knowledge utilization and efficiencies. The barriers however, are significant, and the construction industry remains notoriously slow to take up innovations. This study reviews the research work in Industry 4.0 as it relates to construction, and examines a leading UK-based construction firm to ascertain the prognosis for Industry 4.0 roll-out in terms of the impediments and opportunities.Design/methodology/approachA multistage mixed philosophies and methods approach was adopted for this study. First, an interpretivist epistemological lens was used to synthesise extant literature as a means of contextualizing the present study. Second, an empirical case study using a post-positivist stance and inductive reasoning was conducted to explore practitioner acceptance of Industry 4.0 in the UK construction context.FindingsFindings from the literature review indicate studies in Industry 4.0 to be a relatively new phenomenon, with developed countries and Germany in particular leading in the field. The range of opportunities are many, but so too are the barriers to enablement. Findings from the case study provide real-world corroboration of the review; practitioners are sanguine about Industry 4.0's potential to reinvigorate the construction industry, but also note that implementation remains curtailed by residual managerial practices dependent on ‘human interaction’. At present, much of the focus of industry practitioners is on the implementation of building information modelling (BIM), often at the expense of other more advanced technologies within Industry 4.0.Originality/valueResearch in Industry 4.0 is limited, with the emphasis being on technology application. This paper, by contrast, maps the totality of work carried out so far and presents an assessment of Industry 4.0's progression, potential and degree of uptake within the UK construction industry.


2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sa’id Namadi Ahmed ◽  
Christine Pasquire ◽  
Emmanuel Manu

Purpose Extensive research on the importance of collaborative working (CW) and aligning stakeholders’ interests in construction has been widely conducted. But often the practice of commercial actors during CW has often been overlooked, particularly within the UK setting, where scholars have lamented on the lack of industry-wide collaboration. This study aims to explore the factors affecting commercial actors in CW, specific to the UK construction industry. Design/methodology/approach The research used a context-based approach to seek stakeholders’ perspectives on the key factors affecting commercial actors in CW within the UK. Semi-structured interviews with individuals (contractors, cost consultants, designers among others) from construction and infrastructure organisations were conducted, using multiple case study investigations. The collected data was analysed using a case study approach, and principles of inductive thematic analysis to identify the key factors. Findings Findings from the analysis identified “institutional” factors such as transactional cost economic influence, the prevailing construction model influence and professional related drivers. Key drivers within these factors include commercial background and training, custom and practice, misaligned interests in projects, clients’ perception of consultants, cost-driven environment, conventional procurement protocols and bureaucratic functions. Originality/value In conclusion, these factors continue to affect CW with undue influence on commercial actors in the UK, thus preventing performance improvement demanded by successive UK Government reports. The context-based approach applied in this study is expected to provide some insight in construction management research, especially from a commercial perspective in the UK, to gain an understanding of how these factors are manifesting.


2021 ◽  
Vol 13 (6) ◽  
pp. 3127
Author(s):  
Martin Loosemore ◽  
Jemma Bridgeman ◽  
Hugh Russell ◽  
Suhair Zaid Alkilani

Homelessness is a serious and growing problem in the UK, exacerbated by the COVID-19 crisis. The latest figures estimate that 160,000 households are at risk of the worst forms of homelessness. Employment is widely recognised as being critical to reducing homelessness, yet there has been no research into the role that the construction industry, as a major UK employer, can play in reducing this problem. The aim of this paper is to address this gap in knowledge and contribute to the emerging social procurement debate in construction by exploring the role that construction employment can play in reducing the risk of homelessness. Mobilising Sen’s and Nussbaum’s capabilities empowerment approach, an in-depth case study is presented of a construction employment program in Wales, UK, which was aimed at supporting young people who had experienced or who were at risk of homelessness. Contributing to the emerging social value and social procurement debate in construction and drawing on documentary analysis and interviews with young people who were homeless or at risk of homelessness who went through the program, findings indicate that these young people became empowered in ways which reduced their risk of homelessness. It is concluded that the capabilities empowerment framework is valuable in explaining how employment in the construction industry can reduce the risks of homelessness for disadvantaged youth with a care-experienced background or who were known to the criminal justice system.


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