Inter-organisational relationships in the construction process

There is growing demand for the construction industry to lower cost and improve performance, emulating the automotive industry where they have adopted new inter-organisational relationships, like partnering and lean production. Specialist trade contractors (STCs) carry out 80% of the construction work, so any improvement must include them. This research study revolves around exploring and understanding the integration of STCs and how new inter-organisational relations affect them. It is therefore an exploratory research study based on grounded theory developed by (Glaser & Strauss 1967). The principal aim is to begin to build a theoretical foundation on how inter-organisational relations relate, using multi-methods of research, the findings were then enhanced through cross methodological triangulation. The first part of the study involved carrying out a qualitative in-depth investigates into what are the key restraints to STCs raising their performance, identifying Design, Finance and Continuity of work as the key areas for improvement. The second part involved comparing Construction to the Automotive industry. Having identified design as a key area, a study using. 'Q' methodology was used to uncover the players understanding of design and what value they placed on it. The study identified architects, who see the design process as their domain, as being the key area for adding value to a project. They regard functionality and aesthetics as the most important areas before buildability and cost. Through a case study form of enquiry, Partnering and Lean Production methods were applied to the case study, a light steel framing contractor as this discipline was identified as the closest STC to manufacturing. Although both applications indicated benefits, lead production offered greater improvements to performance as it evaluated the process. Partnering also, indicated positive findings, where companies dealt fairly with each other, developed teamwork and did not have to resort to contractual conditions. Although openness and fair dealings were observed, when it came to disclosing sensitive cost data this was refused as companies considered disclosure would affect their competitive position. Understanding value from the case study became paramount in evaluating performance. In order to overcome this a value model, benchmarked against traditional construction methods, was undertaken to define value.