Latham as half-way house: A relational competence approach to better practice in construction procurement

Cox, A and Townsend, M (1997) Latham as half-way house: A relational competence approach to better practice in construction procurement. Engineering, Construction and Architectural Management, 4(2), pp. 143-158. ISSN 0969-9988

Abstract

This paper is based on research being undertaken by the Centre for Strategic Procurement Management (funded by BAA) considering best practice in construction procurement. The primary aim of the study is to establish how supply chains in construction may be managed more efficiently and effectively. This involves the amalgamation of conventional views on industry problems and initiatives for improvement, the theoretical and empirical consideration of supply chain optimisation, the identification of best practices' in the procurement process, and the development of suitable change management strategies to allow organizations to move towards better practice. This paper discusses the limitations behind the current thinking for reforming the UK construction industry, and how Latham's team' approach will not succeed where clients adopt a traditional' approach to procuring their construction needs. There is a need to differentiate between process' and commodity' spend in construction. It is argued that the benefits of a collaborative approach can only be realized by those clients managing fit-for-purpose' supply relationships to satisfy their regular process requirements. An approach known as relational competence analysis is suggested as a methodology for helping clients to determine what is fit for their purpose.

Item Type: Article
Uncontrolled Keywords: industry structure; client; Latham; relational competence; supply relationships
Index terms: Latham, construction industry, best practice, construction procurement, strategy, change management, strategic procurement, procurement process, supply chain optimization, competence, methodology
Subjects: contractual arrangements, strategic project management, supply chain optimization, business, industry analysis, industry policy reports, personnel development, management, research methods
Topics: Procurement, Governance, Research Practice, Project Management, Business Strategy, Organizational Design, Human Resources, Supply Chain Management
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