Johannes T. Voordijk

Supplier-contractor collaboration in the construction industry : A taxonomic approach to the literature of the 2000-2009 decade

Purpose – Recent developments in the construction industry resulted in an increased importance of collaboration with and managing of suppliers by prime contractors. The focus of this study is on getting insights into existing knowledge on this topic and the gaps in this knowledge base. The goals of this study are threefold: to verify the current state of, to gain insights into, and to provide suggestions for supplier-contractor research. Design/methodology/approach – The current state of supplier-contractor research in the construction industry is verified through a taxonomic approach to the literature on buyer-supplier research over the last decade (2000-2009). The method followed consists of the following three steps: journal selection, initial article selection and final article selection. Findings – Supplier-contractor research in the construction industry is still a relatively under-researched phenomenon. The major topics discussed in the identified articles are aspects of partnering (conditions, characteristics and barriers/obstacles) and (sub)contracting/procurement issues (practices, selection criteria, performance and characteristics). Research limitations/implications – This study concludes that future research should focus on longitudinal studies, testing organisational barriers to partnering, the benefits of partnering in practice, conditions under which the formation of collaborative relationships between suppliers and contractors takes place, and experiences with this formation process. Practical implications – In practice, contractors do see a need to develop closer and more collaborative relationships with their suppliers. This study highlights the topics that need to be addressed to achieve these goals. Originality/value – This study is a literature overview of relatively scarce research on collaborative relationships between suppliers and contractors in the construction industry.

Modular Approaches in Dutch House Building: An Exploratory Survey

In many European countries, changing housing policies are now offering clients more influence over the final building. This means that construction firms need to adopt concepts that have a greater customer focus. The electronics, software and automobile industries, and others, have dealt successfully with the trade-off problem that exists between, on the one hand, offering customer variety and, on the other, minimising manufacturing costs by developing product platforms. This paper presents the results of a field study in which opportunities, limitations and external restraints on the implementation of platform-based approaches in the Dutch house building industry are explored. Based on a cross-sectional analysis, the perceptions of architects, construction firms, suppliers and municipalities are compared. Specific attention is paid to the roles to be fulfilled by these various actors. The study shows that while all the actor-groups agree that a platform-based approach could deliver substantial improvements in the house building process, substantial changes are still necessary to realise this. The implications for each actor-group are then described.

Assessing buyer-supplier relationship management: a multiple case-study in the Dutch construction industry

The objective of this paper is to shed light on obstacles to, and opportunities for, increasing the effectiveness of construction firms in managing buyer-supplier relationships. More specifically, the focus is on assessing the maturity level of buyer-supplier relationship management by construction firms. First, on the basis of a literature review and discussions with industry experts, five constructs were defined and, on the basis of these constructs, a measurement tool was developed. Following this, the maturity level in terms of the five constructs was assessed by applying the measurement tool in 19 Dutch construction firms. The results demonstrate a large potential for improved management of buyer-supplier relationships. Although there are major factors impeding, there are, at the same time, developments stimulating the effectiveness of managing buyer-supplier relationships. A useful next research step would be to determine the optimum portfolio of relationship types between contractors and suppliers in the construction industry

Levels of Interorganizational Trust in Construction Projects: Empirical Evidence

Interorganizational trust is important, especially in an industry characterized by constantly changing combinations of organizations working on temporary projects, as in the construction industry. However, little is known about the factors influencing trust in this setting. This study aims to begin to fill that gap by studying trust in their counterparts, as expressed by principals and contractors engaged in construction projects. The findings show that the temporal embeddedness of the relationship (past and expected future relationships) is strongly positively related to the level of trust. Moreover, this study finds that the tendering procedure used and the delivery system employed influence the level of trust of the contractor but not that of the principal. Practical implications and suggestions for further research are drawn from these results

Designing a tool for an effective assessment of purchasing maturity in construction

Purpose – Prime contractors spend up to 90 per cent of a construction projects turnover on buying goods and services, and thus suppliers have a large impact on project performance. Therefore, the purchasing function management of the prime contractor has a large influence on the overall performance: the more developed (i.e. mature or professional) this function is, the greater its positive contribution. The purpose of this paper is to develop and test a quick scan purchasing maturity tool by applying a design science research method. Design/methodology/approach – The maturity tool is developed by applying Hevners framework for design science research. In this framework, foundations drawn from the available knowledge base are used to develop the new tool. Scientific justification of this new tool and approval of its approach for construction practice is obtained through testing it in the specific context of a case company. Findings – The tool provides a company with insight into its current level of purchasing maturity and possibilities for improving performance by increasing this level. Originality/value – The conciseness and the limited time required to use the tool are major advantages over existing alternatives for construction practice.

Contracting dynamics in the competitive dialogue procedure

Purpose – The competitive dialogue (CD) aims to align complex demands of principals with possible solutions that contractors have to offer. It is, however, unclear how formal and informal structures and processes in the CD are interrelated. The purpose of this paper is to provide insights in to the development of and the relationship between interaction processes during negotiations and commitments in terms of formal and informal contracts during a CD‐procured project.Design/methodology/approach – Based on a case study of a complex construction project, an event‐driven explanation is provided of the sequence in which a discrete set of critical events occur.Findings – Critical events show that problems of understanding are caused by differences between the formal legal and the informal psychological contract of one of the parties involved. During all phases of a project, the parties involved oscillate between negotiations and commitments, depending on whether there is understanding or not. Negotiations and...

Towards a decision support tool for real estate management in the health sector using real options and scenario planning

Purpose – Uncertainties affecting health organizations inevitably influence real estate decisions since real estate is required to facilitate the primary health process. The purpose of this study is to develop a decision support tool that supports health organisations in defining what flexibility they need in order to develop a flexible real estate strategy and to adapt to future uncertainties. Design/methodology/approach – The research is being conducted from a design science perspective. By addressing the needs of real estate managers in health, research relevance is reached. By applying scientific knowledge when developing the tool, rigor is achieved. Findings – Major elements of the decision support tool developed are real options to describe flexibility and its consequences for corporate real estate management, and the backcasting scenario planning method. Social implications – The application of the tool by health organisations can increase the professionalization of real estate management and improve the match between current and future demand and supply of real estate, adding to the effectiveness and efficiency in healthcare in general. Originality/value – This is the first tool developed using the real options approach that provides real estate managers in health a systematic insight into the various types of flexibility needed for the future

Balanced Framework for Measuring Performance of Supply Chains in House Building

Despite its importance, performance measurement of supply chains of house building firms has not received much attention yet in academic literature. The objective of this study is to develop a framework to measure this performance. In a first step, a comprehensive framework is developed composed of five primary perspectives on the performance of supply chains in house building (i.e., financial, customer, internal business, external business, and innovation) with 35 corresponding performance indicators. In the second step, the practical value of the proposed supply chain performance indicators is evaluated on its level of clarity, measurability, and relative importance based on the feedback of senior purchasing managers of construction firms active in house building. The evaluation shows that the framework and its intended use are highly supported by these managers. In the final step, the management team of a medium-sized construction firm active in house building used the framework to assess the firm supply chain performance relative to their competitors. It was concluded that the tool was easily filled in and very helpful for gaining insights in the supply chain performance of the firm

Formal and informal contracting processes in the competitive dialogue procedure: a multiple case-study (on-line)

The competitive dialogue (CD) procedure aims to align the complex demands of principals with possible solutions that contractors have to offer. It is, however, unclear how formal and informal structures and processes in the CD are interrelated and how they determine its effectiveness. The major question in this study is how informal and formal contracting processes differ between projects procured through the CD and comparable projects that are traditionally procured. In a theoretical framework, it is shown that both the negotiations and the commitment stages consist of a formal part (formal bargaining/formal legal contract) and an informal part (informal sense-making/informal psychological contract), and that these dynamically interact as problems of understanding are identified and resolved. These elements and their interactions are studied in four comparable construction projects. The results of this multiple-case study show that commitments and negotiations can substitute for one another, whereas the formal and informal processes within these stages are complementary. Problems of understanding are key in the development of both formal and informal contracts

Formal bargaining and informal sense making in the competitive dialogue procedure: An event‐driven explanation

Purpose – The purpose of this study is to provide insights in how formal bargaining and informal sense making interact and solve problems of understanding between principal and contractor during procurement through the competitive dialogue (CD) of a complex construction project. Design/methodology/approach – In an in-depth case study, a process approach is taken to study how formal bargaining and informal sense making interact in a discrete set of critical events during negotiations in the procurement stage. Findings – The critical events show that problems of understanding arise due to risk aversion and differences in expectations by at least one of the parties involved. In most of the events observed, aspects of the project context are behind the development of problems of understanding. Practical implications – Negotiations develop in either positive or negative cycles. If managers of both the procuring authorities and the contractors are aware of these cycles, they might be able to influence and use them to their mutual benefit. Originality/value – By studying the dynamics in interaction processes between principal and contractor during the procurement stage obstacles and preconditions for an effective CD are shown