A Critical Review of the Safeguarding Problem in Construction Procurement: Unpicking the Coherent Current Model

Christine Pasquire1, Saad Sarhan2 & Andrew King3

1Professor of Lean Project Management, Head of the Centre for Lean Projects, School of Architecture Design and the Built Environment, Nottingham Trent University, Nottingham NG1 4BU, Tel: +44 (0)115 848 2095, christine.pasquire@ntu.ac.uk
2PhD Student, MSc Civil Engineer, Centre for Lean Projects, School of Architecture Design and the Built Environment, Nottingham Trent University, United Kingdom, Nottingham NG1 4BU, Tel: +44 (0)7961757059, sarhan_com@hotmail.com or saad.sarhan2012@my.ntu.ac.uk
3PhD, Programme Leader for MSc Quantity Surveying, Centre for Lean Projects, School of Architecture Design and the Built Environment, Nottingham Trent University, Nottingham NG1 4BU, Tel: +44 (0)115 848 2511, andrew.king@ntu.ac.uk

Abstract

The construction industry has, over a long period, been criticised for its short term “hit-and-run” relationships which are focused on win-lose situations and poor performance. Despite the wide recognition of these problems the industry persistently resists the radical demanded of it. This paper attempts to investigate why this might be the case by reviewing prevailing safeguarding practices within the current commercial systems and structures through literature review and industry observation. Findings reveal that clients and decision makers often tend to safeguard their project-specific assets, against opportunism and exploitation, through the deployment of formal contractual arrangements and governance structures. These arrangements and structures typically dominate the management of the project delivery often to the detriment of the project itself; but because there is a belief that interests are safeguarded, clients and decision makers feel they have taken the best course of action. This goes a long way to explaining the coherence of the current construction model and provides the basic information for preparing a route to the radical change required to move to lean methodologies.

Keywords

Waste, Procurement, Contracts, Opportunism, Transaction Cost Economics.

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Reference

Pasquire, C. , Sarhan, S. & King, A. 2015, 'A Critical Review of the Safeguarding Problem in Construction Procurement: Unpicking the Coherent Current Model' In:, Seppänen, O., González, V.A. & Arroyo, P., 23rd Annual Conference of the International Group for Lean Construction. Perth, Australia, 29-31 Jul 2015. pp 309-318

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