scholarly journals arget Cost Contracts and The Development of Collaborative Behaviours and Value for Money in The UK Construction Industry

2019 ◽  
Vol 4 (4) ◽  
pp. 7-15
Author(s):  
Smith A. ◽  
Wood Gerard
Keyword(s):  
Supply Chain ◽  
Construction Industry ◽  
Large Scale ◽  
Olympic Games ◽  
Research Paper ◽  
Value For Money ◽  
The Past ◽  
Target Cost ◽  
Procurement Strategy ◽  
The Uk

TCCs are seen to be a procurement model capable of achieving value for money through aligning the objectives of the parties to reduce costs. The use of Target Cost Contracts (TCCs) within the UK construction industry has increased dramatically over the past few years. TCCs have been employed successfully on recent large scale projects such as Heathrow Terminal 5, Crossrail Procurement Strategy and the 2012 Olympic Games and Paralympic Games Infrastructure. Due to the success of TCCs over recent years, many clients are now turning to them in a bid to obtain value for money. However, it seems that they do not always drive parties to minimise costs and provide value for money. This research paper investigates the extent to which TCCs promote collaborative behaviours and provide value for money within the UK construction industry. More particularly, the research explores the following: which projects TCCs should be used on and how the maturity of the design when agreeing the target cost can affect value for money; how setting both the target cost and the pain/gain mechanism can affect the incentivisation of the contractor to minimise costs; the extent to which TCCs promote collaboration between the contractor, client and supply chain; and what is required to manage a TCC post-contract to ensure that incentivisation is maintained. It has become apparent from the research that TCCs are complex procurement models which require extensive consideration and management to ensure parties are incentivised to minimise costs. The research reveals that although TCCs can promote collaborative behaviours and provide value for money, there is a prerequisite to doing so: developing and managing the TCC correctly to ensure that the objectives of the parties are aligned.

PERCEPTIONS OF THE RETENTION SYSTEM IN THE CONSTRUCTION INDUSTRY

2014 ◽  
Vol 1 (1) ◽  
Author(s):  
Priyanka Raina ◽  
John Tookey
Keyword(s):  
Supply Chain ◽  
Construction Industry ◽  
Building Industry ◽  
Anecdotal Evidence ◽  
Current Form ◽  
The Past ◽  
Retention System ◽  
The Us ◽  
Views And Perceptions ◽  
Industry Professionals

The retention system of withholding a portion of payment to contractors and subcontractors is a peculiar feature of the building industry. In the past decade or so there has been much discussion about the practice of retentions in the US and UK construction industries. Anecdotal evidence without concerted research suggests that problems exist within the practice in the New Zealand construction industry, which this study will address. Retention practice affects the whole construction supply chain, but the effect the practice has on each party varies significantly. Thirteen interviews were carried out with experienced construction industry professionals, including clients, contractors, subcontractors and consultants. An analysis of their recorded views and perceptions revealed diverse views. Most agreed that problems with retention are very serious, the worst affected being the subcontractors who do not have much control or say. However, they said, in the absence of any better alternative, the practice is working well in its current form. Further research will work out some alternatives to the traditional retention practice so as to create more balance and fairness for all the parties involved in the supply chain.

An overview of construction procurement methods in Australia

2017 ◽  
Vol 24 (4) ◽  
pp. 593-609 ◽  
Author(s):  
Farshid Rahmani ◽  
Tayyab Maqsood ◽  
Malik Khalfan
Keyword(s):  
Construction Industry ◽  
Historical Development ◽  
Design Methodology ◽  
Theoretical Concept ◽  
Decision Makers ◽  
Value For Money ◽  
Content Type ◽  
Public Projects ◽  
The Past ◽  
Project Participants

Purpose The purpose of this paper is to review the use of various construction procurement systems in the past and present, specifically within the Australian construction industry and to overview the historical development of procurement both globally and in the Australian context through the existing literature. Design/methodology/approach The paper is an in-depth literature review of various construction procurement systems used in the past and present, both in general and within the context of Australian construction industry. Findings The findings suggest that even though relationship-based procurement (RBP) systems offer significant benefits to all project participants, they are unproved by many decision makers because of lack of robust theoretical concept and inability in demonstrating value for money (VfM) for public projects, which would be one of the factors causing move away from RBP in the future. Originality/value This review is one of its kind. There is no such review done before within the context of Australian construction industry in such a detail. This review is a part of a recently completed PhD study.

scholarly journals Forgetting social value and other good practices in construction supply chains: Procurement in pandemics

2020 ◽  
Vol 10 (4) ◽  
pp. 221-233
Author(s):  
Greg Watt ◽  
Keyword(s):  
Supply Chain ◽  
Construction Industry ◽  
Narrative Analysis ◽  
Value Creation ◽  
Social Value ◽  
Supply Chain Collaboration ◽  
Structured Interviews ◽  
Social Value Creation ◽  
The Creation ◽  
The Uk

The construction industry is a major contributor to the UK economy and provides additional benefits for wider society including the creation of social value. The creation of social value is highly dependent upon the construction industry supply chain which can been described as fragmented, adversarial and wasteful. Supply chain collaboration has been improving in recent times with increased trust and communication helping to successfully deliver project requirements, including the creation of social value. However, progression in construction supply chain collaboration was made pre Covid-19, the consequential UK Government enforced lockdown, and resulting recession. As we are now in the immediate aftermath of the initial impacts of the pandemic, this paper aims to understand if the lockdown and proceeding recession has resulted in any supply chain procurement behaviour changes of Quantity Surveying professionals, and how such changes may impact upon social value creation. Semi structured interviews were conducted with seventeen main contractor Quantity Surveyors and the results analysed using narrative analysis. The results revealed that whilst there is a lack of supply chain collaboration generally, progress has been made in building trust and communication amongst the supply chain to help create social value. However, changes in supply chain management behaviours post pandemic now risk undermining social value creation in the construction industry.

The Latham Report and Its Aftermath

2020 ◽  
Author(s):  
The Rt Hon. Lord Justice Coulson
Keyword(s):  
Twentieth Century ◽  
Construction Industry ◽  
The Past ◽  
The Uk

A graph that indicated the health (and otherwise) of the construction industry in the UK in the twentieth century would make a startling sight: a bewildering series of peaks and troughs that often, but not always, mirrored the wider health of the UK economy. On occasions in the past, many have endeavoured to promote or otherwise help the construction industry, with a record of success that can only be described as mixed. Changing priorities amongst the senior judiciary have not always helped to encourage stability and certainty.

Construction supply chain integration: an elusive goal?

2005 ◽  
Vol 10 (4) ◽  
pp. 319-326 ◽  
Author(s):  
Geoffrey Briscoe ◽  
Andrew Dainty
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Construction Industry ◽  
Information And Communications Technology ◽  
Supply Chain Integration ◽  
Extensive Literature ◽  
Related Factors ◽  
Public And Private ◽  
Content Type ◽  
The Uk

PurposeTo empirically investigate the problems encountered in trying to integrate supply chains in the UK construction industry and to set these problems in the context of the extensive literature on supply chain management and partnering.Design/methodology/approachA brief review of current supply chain issues in the construction industry is provided. Three case studies of leading construction clients were carried out and these included public and private organisations from different sectors of the economy, public transport, information and communications technology and vehicle manufacturing. A large number of interviews were conducted with the various clients, their main contractors and key subcontractors and suppliers.FindingsThe findings reveal that the large number of supply chain partners and the significant level of fragmentation limit the levels of integration that are achievable. The interplay of environmental and procurement related factors renders the realisation of truly integrated supply chains very problematic and difficult to achieve. Nevertheless the paper identifies some key principles that do need to be followed if the elusive goal of integration is to be eventually realised.Research limitations/implicationsWhile the present cases were chosen to be representative, they may not necessarily reflect the experiences of all clients and contractors in the construction industry.Originality/valueThis paper adds another dimension to the extensive body of knowledge that already exists on supply chain integration. In particular, it focuses on construction, a large and important sector of the economy but one that does not receive as much research interest as the manufacturing and distribution sectors.

scholarly journals CHANGE IN UK CONSTRUCTION: MOVING TOWARD SUPPLY CHAIN COLLABORATION

2013 ◽  
Vol 19 (3) ◽  
pp. 422-432 ◽  
Author(s):  
Xianhai Meng
Keyword(s):  
Supply Chain ◽  
Construction Industry ◽  
Questionnaire Survey ◽  
Empirical Studies ◽  
Important Change ◽  
Current Status ◽  
Clear Understanding ◽  
Supply Chain Collaboration ◽  
Supply Chain Relationships ◽  
The Uk

The traditional adversarial relationship in the construction industry has been criticized by a larger number of researchers and practitioners. Following the success of the supply chain collaboration in other industry sectors, such as manufacturing, supply chain relationships in UK construction have been increasingly changing from the traditional adversarial to the collaborative, which is supported by a series of government reports for the industry reform. However, few empirical studies have been conducted to investigate the current status of supply chain relationships in a systematic way. Therefore, there is no clear understanding of how change has taken place in today's practice and whether or not the change is balanced. To bridge the gap, a questionnaire survey is carried out in the UK construction industry. Based on the analysis of more than 100 responses, it is found that the UK construction industry as a whole has experienced an important change and moved toward supply chain collaboration. On the other hand, an unbalance is found for the change movement. In addition to the questionnaire survey, a series of industrial experts are interviewed, which help to explore the specific characteristics of supply chain collaboration in construction and provide practical implications for collaboration strategy implementation.

End-to-End Tracing and Congestion in a Blockchain

2021 ◽  
pp. 68-91
Author(s):  
Kosala Yapa Bandara ◽  
Subhasis Thakur ◽  
John G. Breslin
Keyword(s):  
Supply Chain ◽  
Large Scale ◽  
Use Case ◽  
Item Recall ◽  
Architectural Style ◽  
Supply Chain System ◽  
Chain Management ◽  
Blockchain Technology ◽  
End To End ◽  
The Uk

Modern supply chain applications are complex systems that play an important role in many different sectors. Supply chain management systems are implemented to handle increasing complexity and flows of goods. However, most of these systems are also increasing the complexity of providing trust and a global view of transactions in a distributed supply chain system. Blockchain technology introduces a new architectural style to support the traceability and trust of transactions performed by participants in a network. This chapter uses this emerging technology to realize a supply chain use case from JLP Meats in the UK with improved transparency, trust, and end-to-end querying while discussing potential challenges of realizing large-scale enterprise blockchain applications. The process of farm-to-fork is implemented and tested for traceability, item recall, block analysis, congestion enabling food safety, and sustainable agriculture. Potential challenges are highlighted in complex supply chains that need heterogeneous trade compliance and scalability.

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