Developing sustainable supply chains in the UK construction industry: A case study

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.

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

The Dynamics of Wage Relations in the New Europe ◽

10.1007/978-1-4615-4445-6_21 ◽

2000 ◽

pp. 267-278 ◽

Cited By ~ 3

Author(s):

Mark Harvey

Keyword(s):

Construction Industry ◽

Social Cost ◽

The Uk

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Comparing linear and circular supply chains: A case study from the construction industry

International Journal of Production Economics ◽

10.1016/j.ijpe.2016.06.008 ◽

2017 ◽

Vol 183 ◽

pp. 443-457 ◽

Cited By ~ 89

Author(s):

Mohammed Haneef Abdul Nasir ◽

Andrea Genovese ◽

Adolf A. Acquaye ◽

S.C.L. Koh ◽

Fred Yamoah

Keyword(s):

Supply Chains ◽

Construction Industry

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The Hidden Cost of Supply Chain Disruptions: Case Study of the UK’s Automotive Sector

SocioEconomic Challenges ◽

10.21272/sec.4(3).5-19.2020 ◽

2020 ◽

Vol 4 (3) ◽

pp. 5-19

Author(s):

Hubert Escaith ◽

Sangeeta Khorana ◽

William A. Kerr

Keyword(s):

Supply Chain ◽

Supply Chains ◽

Inventory Management ◽

Value Added ◽

Single Market ◽

Central Feature ◽

Automotive Sector ◽

Input Output ◽

The Uk

As the world economy has become increasingly integrated the spectre of transnational supply chains has become a central feature of globalisation. The smooth and unfettered working of transnational supply chains has facilitated efficiency increasing changes to business operations (such as just in time inventory management). The automotive sector worldwide has been at the forefront of internationally integrated supply systems. The European Union (EU) has, in part, been structured to reduce friction in Europe-wide supply chains through the single market. Transnational supply chains are at the heart of United Kingdom (UK) – EU trade, and the UK’s departure from the EU’s single market (Brexit) will increase friction in international trade. This case study of the UK’s automotive sector uses a social network approach to analyse supply chain linkages between the UK, EU and other trading partners, and how these could be impacted as a result of Brexit. We use data from Trade in Value Added (TiVA) and World Input-Output Database (WIOD) to map supply chains, estimate total value-added in exports and examine how Brexit is likely to impact the competitiveness of UK exports. Results confirm that the UK’s automotive sector is closely integrated with the EU. To offset the loss of UK’s export competitiveness after Brexit, trade facilitation measures complemented with a duty drawback scheme could be an option in the short run. Policy measures are, however, unlikely to replace the benefits of duty-free and frictionless access enjoyed under single market trading arrangements. This suggests that the UK automotive sector, which is primarily comprised of globally active firms, may have to reconfigure supply chain arrangements and in the long run alter how decisions pertaining to locations are made. Keywords: Brexit, global value chains, input-output linkages, WIOD.

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