Subcontracting and Cooperation Network in Building Construction - A Literature Review

Julio Y. Shimizu1 & Francisco F. Cardoso2

1M.Sc. Student, Civil Construction Engineering Department, Escola Politecnica, University of Sao Paulo. CNPq grants. Av Prof Almeida Prado, travessa 2, 83, Sao Paulo, SP, 05508-900, Brazil, phone +55 11/3091-5422, fax +55 11/3091-5544, julio.shimizu@poli.usp.br
2Ph.D. Assistant Professor, Civil Construction Engineering Department, Escola Politecnica, University of Sao Paulo. Av Prof Almeida Prado, travessa 2, 83, Sao Paulo, SP, 05508-900, Brazil, phone +55 11/3091-5469, fax +55 11/3091-5715, francisco.cardoso@poli.usp.br

Abstract

Owing to recent structural transformations in the construction sector in many countries like Brazil, production is much more subcontracted nowadays than in the past. Consequently, supply chain management became more important, including the management of subcontractors. Cooperation networks appear to be an advantageous way of supply chain organization, which is beneficial to subcontractors and building firms. Cooperation networks are consequences of strategic alliances between some agents of the supply chain. Such firms, organized together, cooperate, reaching better results than they would obtain individually. With the main focus on subcontractors and building constructors, this paper, based on a literature review, seeks to deal with the decision of make or buy (subcontracting) and to analyze its importance in the formation and development of cooperation networks in building construction. Brazilian current management practices that happen in constructor firm-subcontractor relationship are described, as well as a parallel with the case of Great Britain. About stimulating cooperation networks in the sector, some actions are also quoted. It can be said that supply chain integration in a cooperation network through strategic partnering is a key success factor for increasing competitive advantages in the sector.

Keywords

Supply chain management, subcontractor, cooperation network, lean construction, building construction.

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Reference

Shimizu, J.Y. & Cardoso, F.F. 2002, 'Subcontracting and Cooperation Network in Building Construction - A Literature Review' In:, Formoso, C.T. & Ballard, G., 10th Annual Conference of the International Group for Lean Construction. Gramado, Brazil, 6-8 Aug 2002.

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