Achieving alignment of the objectives of the role players in a typical construction industry

Abstract

The nature of the construction industry and the complexities accompanying the sector of the economy globally, necessitates that role players review their positions continuously in an effort to stay abreast of the most modern best practice value chain developments, not only in terms of relationships formed within the upstream supply chain (client supply chain), but also within the downstream supply chain (main contractor/supplier supply chain). Not only is it a natural phenomenon for role players to shift their focus from best practise value chain development to a more relaxed state during a boom in the global economy, but also to shift their focus back to best practices during a slump in the global economy, in order to protect their margins and competitive position established during economic prosperity. To this extent, this dissertation offers an overview of the core aspects that cause misalignment between the objectives of the role players in the construction industry as well as the critical need for role players to proactively shift their paradigm in an effort to mitigate any potential effects the economy might have on role player relationships as well as on the productivity of the industry and the supply chain. Chapter 1 provides the overview, the problem statement and the primary and secondary objectives of the study, and in particular, achieving alignment of the objectives of the role players in a typical construction project. This is followed by a detailed literature study in chapter 2 that provides information regarding role player relationships and the alignment of objectives in the construction industry. This is supported by an empirical study in chapter 3 that links the practical state of affairs with the literature study. The dissertation then concludes by introducing recommendations and a generic project strategic model that can be implemented in an effort to achieve alignment of the objectives of the role players in a typical construction project.