Exploring ‘Lean’ Opportunities for Improving Supply Chain Transaction Governance in South African Construction Projects

Fidelis Emuze1, Kirsten Joseph2 & Erich Pretorius3

1Associate Professor and Head, Department of Built Environment, Central University of Technology, Free State, Private Bag X20539, Bloemfontein, 9300, South Africa Tel: (051) 507 3089 Fax: (051) 507 3254, E-mail: femuze@cut.ac.za
2B. Tech Graduate, Department of Built Environment, Central University of Technology, Free State, Private Bag X20539, Bloemfontein, 9300, South Africa Tel: (051) 507 3082 Fax: (051) 507 3254, E-mail: kirstenojoseph@gmail.com
3B. Tech Graduate, Department of Built Environment, Central University of Technology, Free State, Private Bag X20539, Bloemfontein, 9300, South Africa Tel: (051) 507 3082 Fax: (051) 507 3254, E-mail: erichpretorius@ymail.com

Abstract

Transaction governance dictates how members of a construction supply chain (SC) work together for the delivery of a project. This practice is the same in South Africa where many problems have stalled the achievement of expected value for the client. In an attempt to understand the problem better, an exploratory study that assessed ‘how do transaction governance structures between SC members affect project delivery in South African construction’ was conducted in 2015. Using a single case study research design that was underpinned by the review of relevant literature as a starting point, it was observed that project parties in the case project have not moved away from the practice where the contract data form the basis of interaction among them. The study shows that optimum risk allocation approach that is evident in profit / reward sharing and collaboration is hindered by traditional view of transaction governance that is plagued with mutual distrust and antagonism. In other words, there appears to be a major scope for the introduction of integrated (lean) project delivery method that will foster collaboration and a culture of teamwork that favours improved project performance in South Africa.

Keywords

Construction, Governance, Supply Chain, South Africa

Files

Reference

Emuze, F. , Joseph, K. & Pretorius, E. 2016, 'Exploring ‘Lean’ Opportunities for Improving Supply Chain Transaction Governance in South African Construction Projects' In:, 24th Annual Conference of the International Group for Lean Construction. Boston, USA, 20-22 Jul 2016.

Download: BibTeX | RIS Format