Business 2.0 (July, 2007)

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Extra info for Business 2.0 (July, 2007)

Example text

In this chapter the characteristics and limitations of current approaches to construction procurement in the UK are considered. Sub-sub- Contractor Materials Contractor Materials Ccmfractor 4 l Contractor 5 Materials STRUCTURE RE-ASSEMBLED FOR EACH PROJECT 1 Contractor 6 Needs: high final price to maximise profit. Needs: high fees, acceptable quality. Needs: low cost, good quality. Potential for conflict and additional costs at each interface. 3: Existing Industry Structure. Needs: Payment on time.

In short, it would seem that the problems described are an integral part of the industry culture, which itself continually reinforces the attitudes to those problems, and further perpetuates the adversarial culture. The vicious circle continues. 15 It contended that various recessions since the Second World War have forced contractors to end their historic practices of 'vertical integration'. Consequently, they have shed craftsmen, so that many 'main contractors' no longer undertake work directly.

27 Rougvie, A. (1987) op. cit. 28 Potts, K. F. (1995) Major Construction Works: Contractual and Financial Management, Harlow: Longman. 29 Rougvie, A. (1987) op. d r . 30 Ibid. 31 Potts, K. F. (1995) op. cit. 32 Construction Round Table (1995) Thinking about Building, London: Business Round Table Ltd. 33 Rougvie, A. (1987) op. cit. D. (1996) Designing and Building a World-Class Industry, Reading: Centre for Strategic Studies in Construction. 35 CIRIA (1983) Special Report 100: 'Management Contracting', London: CIRIA 36 Potts, K.

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