Value Chain Management in Construction: Controlling the Housebuilding Process

Christian T. Lindfors1

1Researcher, Department of Construction Management and Economics, The Royal Institute of Technology, Drottning Kristinas väg 30, SE-100 44 Stockholm, Sweden,


Managing the complexity of the housebuilding process, in terms of differentiating between value and non-value adding activities, forms part of the current work in the research project ‘Value chain management in construction’. The research project includes an investigation of the possibilities for improvement in the value chain, in terms of time, cost, and quality within a major housebuilding company in Sweden. One hypothesis is that project success is linked to the extent to which the company is able to manipulate its value chain to add value for the customer, whilst improving its internal management. In order to be in a position to understand the true extent and complexity of a project process, extensive functional models have been created using a computer-based tool. This first pass through the organisational infrastructure has produced detailed ‘as-is’ models of the functions needed to perform a project. Other techniques and tools have been used during this first mapping of the process, for instance analysis and auditing of company specific documentation and structured interviews with process actors. The preliminary results of this project already point to areas of considerable scope for improvement, which are under examination.


Value chain management, process modelling, process initiatives, housebuilding, information flows, Total Commitment



Lindfors, C.T. 2000, 'Value Chain Management in Construction: Controlling the Housebuilding Process' In:, 8th Annual Conference of the International Group for Lean Construction. Brigthon, UK, 17-19 Jul 2000.

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