Miller, C J M; Packham, G A and Thomas, B C (2002) Harmonization between main contractors and subcontractors: a prerequisite for lean construction? Journal of Construction Research, 3(01), 67–82. Journal of Construction Research, ISSN 1609-9451
Abstract
It is maintained that processes such as lean construction can reduce costs within the construction process. These costs often arise due to a lack of harmonization between contracting parties. Historically, the relationship between contractors and subcontractors has been transactional in nature, with both parties seeking to secure value added at minimal cost. Despite this fact, evidence suggests that mutual cooperation that can supersede a traditional cost led approach offers a new hope for prosperity in the construction industry. This paper provides preliminary case study research, highlighting that the competent implementation of lean construction should include the full integration of the small subcontracting firm. Thus, it is argued that harmonization between contractors and subcontractors is a prerequisite for lean construction. The paper finally posits that new practices will continue to have only a limited appeal to small subcontracting firms if they continue to facilitate contractor opportunism instead of reducing the transaction costs of all parties.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | subcontracting; small firms; harmonization; new processes; transaction costs; lean construction |
| Index terms: | opportunism, transaction cost, lean construction, journal, evidence, integration, construction process, subcontractor, cooperation, case study, main contractor, contracting party, subcontracting, construction industry, implementation |
| Subjects: | practitioner, organization, research dissemination and communication, evaluation and assessment methods, contractual arrangements, psychology, financial analysis, building construction, business, data collection methods, industry analysis, organizational analysis |
| Topics: | Research Practice, Cost Management, Roles and Professions, Site Management, Organizational Design, Procurement, Supply Chain Management |
| Descriptive scope: | 5 PCTEA |
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