Haroglu, H and Leiringer, R (2010) Achieving whole-life value: The challenges of service-led construction. In: Egbu, C (ed.) Proceedings of 26th Annual ARCOM Conference, 6-8 September 2010, Leeds, UK.
Abstract
Major construction clients are increasingly looking to procure built facilities on the basis of added value, rather than capital cost. Recent advances in the procurement of construction projects have emphasized a whole-life value approach to meeting the client’s objectives, with strategies put in place to encourage long-term commitment and through-life service provision. Construction firms are therefore increasingly required to take on responsibility for the operation and maintenance of the construction project on the client’s behalf – with the emphasis on value and service. This inevitably throws up a host of challenges, not the least of which is the need for construction firms to manage and accommodate the new emphasis on service. Indeed, these 'service-led' projects represent a new realm of construction projects where the rationale for the project is driven by client’s objectives with some aspect of service provision. This vision of downstream service delivery increases the number of stakeholders, adds to project complexity and challenges deeply-ingrained working practices. Ultimately it presents a major challenge for the construction sector. This paper sets out to unravel some of the many implications that this change brings with it. It draws upon ongoing research investigating how construction firms can adapt to a more service-orientated built environment and add value in project-based environments. The conclusions lay bare the challenges that firms face when trying to compete on the basis of added-value and service delivery. In particular, how it affects deeply-ingrained working practices and established relationships in the sector.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | whole-life value; service-led; construction firm |
| Index terms: | construction sector, project complexity, construction project, built environment, face, strategy, working practice, commitment, construction client, construction firm, added value, capital cost, service delivery, operation and maintenance |
| Subjects: | production management, organizational theory, service delivery, management, maintenance engineering, accounting and finance, industry analysis, infrastructure and transport systems, practitioner, organization, economic analysis, psychology |
| Topics: | Business Strategy, Project Management, Research Practice, Roles and Professions, Urban Studies, Organizational Design |
| Descriptive scope: | 3 PCT |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here