Seamless Supply Chain

Supply Chain Management: An International Journal
A seamless supply chain management model for construction

Peter E.D. LoveZahir IraniDavid J. Edwards
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Peter E.D. LoveZahir IraniDavid J. Edwards, (2004),"A seamless supply chain management model for construction", Supply
Chain Management: An International Journal, Vol. 9 Iss 1 pp. 43 - 56
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Introduction
Research paper
A seamless supply chain
management model for
construction
Time and schedule overruns, quality deviations

and poor health and safety continually plague
projects in the Australian construction industry
(CIDA, 1995; DIST, 1998). The habitual
nature of these aforementioned problems has
spurned numerous government-initiated
investigations. Findings emanating from these
investigations have been critical of the
industry's fragmented nature, lack of
coordination and communication between
participants, adversarial contractual
relationships, lack of a customer-supplier focus,
price-based selection, and ineffective use of
technology (e.g. APCC, 1997; DISR, 1999).
Such inadequate organizational and
management practices have contributed to
unnecessary costs, time waste, increased errors,
and misunderstandings between design
consultants and contractors (Love and Sohal,
2002). Ultimately, this has resulted in conflict,
rework, and in some instances litigation
occurring. The Australian government in close
consultation with various professional bodies
have recommended that the industry requires
reform, if improvements in quality, productivity
and performance are to be achieved (CIDA,
1994; DISR, 1999). This need for radical
improvement is not restricted to Australia
alone, as several other countries have received
similar calls, for example, Finland (KTM,
1996; Silen, 1997), Hong Kong (Grove, 1998;
Tang, 2001), Norway (Haugen, 1999), Sweden
(Kommerskollegium, 1996), Singapore
(Construct 21 Steering Committee, 1999) and
the UK (Latham, 1994; Egan, 1998).
Fundamentally, calls for improved
collaboration, integration, communication and
coordination between customers and suppliers
throughout the project supply chain have been
the leitmotiv of the published reports. Although
reports were critical of the industry, problems
encountered are not insuperable.
Several supply chain management (SCM)
initiatives such as alliancing/partnering, and
Peter E.D. Love

Zahir Irani and
David J. Edwards
The authors
Peter E.D. Love is a Professor in the We-B Centre, School of
Management Information Systems, Edith Cowan University,
Perth, Australia.
Zahir Irani is a Professor in the Department of Information
Systems and Computing, Brunel University, Uxbridge, UK.
David J. Edwards is a Lecturer in the Department of Civil
and Building Engineering, Loughborough University,
Loughborough, UK.
Keywords
Construction industry, Supply chain management,
Integration, Team working
Abstract
Presents a holistic approach to construction project SCM.
Specifically, a seamless project supply chain management
(SCM) model is proposed that integrates the design and
production processes of construction projects. The proposed
model was subjected to validation by a sample of industry
practitioners and their comments are presented and
reflected upon. Direction for future research is provided and
such work aims to: explore the legalities of implementing
the model; develop an appropriate benchmarking framework; explore the use of quality function development; and
probity issues when selecting project team members.
Electronic access
The Emerald Research Register for this journal is available at
www.emeraldinsight.com/researchregister
The current issue and full text archive of this journal is
available at
www.emeraldinsight.com/1359-8546.htm
The authors are most grateful to the two anonymous

referees and the editor, Dr Andrew Fearne, for their
helpful constructive comments, which helped
improve this manuscript. Finally, we would like to
acknowledge the financial support provided by the
Australian Research Council.

Volume 9 . Number 1 . 2004 . pp. 43-56
# Emerald Group Publishing Limited . ISSN 1359-8546
DOI 10.1108/13598540410517575
43

Volume 9 . Number 1 . 2004 . 43-56
Peter E.D. Love, Zahir Irani and David J. Edwards
incentive-based contracting have been

sporadically implemented to ameliorate
construction project performance. Such
initiatives have often been used in conjunction
with traditional practices for managing and
controlling the project supply chain and as a
result, performance improvements have been
limited to the sub-process level (Vrijhoef and
Koskela, 2000). Moreover, as total quality
management (TQM) has not been practiced as
a philosophy by construction organizations
(specifically in Australia), many have been
unable to develop the vernacular skill and
experience required to effectively utilize the
tools and techniques needed to improve SCM
(Love and Sohal, 2002). Rather than apply
specific SCM initiatives in a fragmented ad hoc
manner to address project-orientated problems,
it is proposed that a holistic approach to project
SCM in construction is needed. Bearing this in
mind, a seamless project SCM model that
integrates the design and production processes
of a construction project is presented and
discussed.
Defining project SCM in construction

While many retail and manufacturing
organizations are capitalizing on implementing
SCM by attaining maximum business process
efficiency and effectiveness through intra and
inter organizational relations, the construction
industry has been slow, or perhaps even
reluctant, to employ the concept (Love, 2000).
The reasoning for the poor up-take of SCM in
construction is outside the scope of this paper.
However, longstanding efficient
supplier-contractor relations that are subject to
vulnerability due to the temporariness of
projects and the one-off nature of the product
are considered to be a major contributing factor
(Akintoye et al., 2000).
Consequently, construction project SCM
definitions have not been forthcoming in the
literature (Agapiou et al., 1998; Akintoye et al.,
2000; Love, 2000). Though Vollman et al.
(1998) have suggested that construction SCM
should be seen as an integrated set of practices
aimed at managing and co-ordinating the entire
chain from raw materials to end customers. As
no definition for project SCM in construction
exists, the following is proffered:
. . . the network of facilities and activities that
provide customer and economic value to the
functions of design development, contract
management, service and material procurement,
materials manufacture and delivery, and facilities
management.
Overview of supply chain management in

construction
Definitions of SCM applicable to general
industry (particularly retail and manufacturing)
abound in the literature. For example, Johnston
(1995) defines SCM as:
If the construction industry is to move from an

adversarial environment to one that is founded
on collaboration then it should openly embrace
SCM (e.g. Barker et al., 2000).
. . . the process of strategically managing the

movement and storage of materials, parts and
finished inventory from suppliers, through the firm
to customers.
SCM practice in construction

Whilst the application of SCM philosophies is
embryonic within the construction industry,
organizations are beginning to comprehend its
intrinsic value (Akintoye et al., 2000; Vrijhoef
and Koskela, 2000; Love, 2000; Dainty et al.,
2001). Pearson (1999) suggests that SCM has
replaced partnering in the UK construction
industry. However, Pearson (1999) reports that
only a few UK clients (BAA, the Ministry of
Defence, and Tesco) and contractors (Balfour
Beatty, and Tarmac) use SCM as an integrative
part of their business strategy for procuring
their projects. Furthermore, Pearson (1999)
notes that these clients and contractors have
Kranz (1996), on the other hand, suggests that

SCM is:
. . . the effort involved in producing and delivering
a final product from a supplier's supplier to the
customers' customer.
Fundamentally, SCM aims to increase the

transparency and alignment of a supply chain's
coordination and configuration, regardless of
functional or organisational boundaries
(Cooper and Ellram, 1993). Therefore, SCM
recognizes interdependency in the supply chain
and seeks to improve its configuration and
control base by integrating inter and intra
organizational business processes.
44

Volume 9 . Number 1 . 2004 . 43-56
service quality (Hoxley, 2001), and purchasing

behaviour (Dubios and Gadde, 2000). Yet,
there is a clear dearth in research that takes a
holistic approach to SCM as applied to
construction projects (e.g. Barker et al., 2000).
reduced their supplier base; established and

nurtured relationships with suppliers; organized
training programmes to encourage a
cooperative approach to problem solving; and
developed systems for rating suppliers
performance on quality, speed and prices. In
doing so, clients and contractors hope to derive
greater discounts from a smaller number of
firms by supplying each with a greater volume
of work. In particular, Pearson (1999) states
that these firms involve suppliers at an early
stage in the project so as to acquire their
expertise about design and procurement issues.
In particular, Wong and Kanji (1998) have
suggested that when SCM is adopted in
conjunction with partnering and TQM, major
misailments that often plague construction
projects can be successfully addressed.
Similarly, Wong and Fung (1998) indicate that
SCM must be an integral part of a quality
management objective (and that the main
contractor must develop an enabling structure
and efficient communication system for
effective relationship management within their
projects. This is because the contractor is
invariably at the interface of the design and
production process.
The separation of the design and production
process in projects has been widely criticised
during the last 50 years or so (e.g. Simon
Report, 1944; Banwell, 1964; Latham, 1994;
and Egan, 1998). Consequently, there have
been endless calls to ``bridge this gap'' by
creating a seamless supply chain whereby the
interface between various phases of the project's
life cycle are integrated with one another. Love
et al. (2000) have suggested that each
organization involved with a project is both a
customer and supplier and therefore
consideration should be given as to how each
party can add value throughout the supply
chain (Figure 1). Indeed, according to
Lamming (1996), value should be given more
attention in a process rather than its cost.
Most research has tended to focus on specific
operational and tactical aspects of the supply
chain such as client-contractor relations
(Akintoye et al., 2000), contractor
subcontractor/supplier interface (Vrijhoef and
Koskela, 2000), rework (Love et al., 1999),
environmental performance (Ofori, 2000),
design management (Khalfan et al.., 2001),
Propagation of a seamless project SCM

model
To improve communication and minimize the
barriers to information flow in projects, Love
et al. (1998a) proposed that traditional project
structures, used for procuring projects, should
be replaced with a horizontal organization
structure founded on a multi-disciplinary team
approach. This implies that individuals and
groups work together concurrently rather than
sequentially, to design and develop both
product and process, and to ``jointly'' identify
materials and equipment required for
production.
In Figure 2 each team member maintains a
direct contact with the client throughout the
design development process. In addition, the
project SCM model has been designed to
stimulate collective learning, teamwork and
influence the development of a vibrant
psychosocial system. A fundamental
presupposition is that each organization
implements a form of TQM philosophy and
strives toward attaining `ìndustry best
practice''. The proposed project SCM model
illustrated in Figure 2 offers a collaborative
working arrangement where the design and
conflict resolution solutions are developed in a
concurrent style. Essentially, team members
perform better when the responsibility for
project development is shared (Nesan and Holt,
1999). This may have a positive effect on
reducing overall development time by limiting
design iterations, variations and sacrifices in
quality. The proposed model attempts to bring
together, in a holistic and integrated framework,
various design management and procurement
practices that are being implemented in a
piecemeal fashion within the construction
industry.
The project facilitator
A project facilitator (also often referred to as a
project manager) should oversee negotiations,
45

Volume 9 . Number 1 . 2004 . 43-56
Figure 1 Customer-supplier interface in the project supply chain
2000). As the leader of the project, the

facilitator faces the challenge of realising
maximum team potential without implying
any hierarchical authority (Graham, 1996).
This can be, however, a difficult and
demanding task to undertake, especially
when strict time and cost schedules must be
adhered to.
Value management should be undertaken
prior to the production of the project's detailed
design and documentation stage so as to
minimise the impact of any change orders or
design rework that may be initiated by the
client, at a later stage. While some best
practice projects have demonstrated the
benefits of embracing value management
(Green, 1996), Australian clients have tended
not to embrace it because it is considered an
additional cost (Love, 2002a, b). Needless to
say, value management can enable the project
team (e.g. design consultants, quantity
surveyor (QS), main contractor and service
subcontractors) to evaluate the project's
functionality, cost, constructability and
method of construction.
As the project progresses through the various
stages of design development, the project
facilitator should undertake an audit and sign-off
each design stage as they are completed so that
the client's expectations are met and are
documented accordingly. The auditing process
should also form an integral part of a
benchmarking process. The establishment of a
series of benchmarks at specific interfaces could
be used to enable empowered clients (i.e. those
who are experienced) and project participants to
compare pre-defined metrics, which may include
monitor resources used and periodically

evaluate design progression on the client's
behalf during the design development phase
(Smith and Jackson, 2000). Instead of assuming
single point responsibility, it is proffered that
accountability for the design development
process is divided equally among the project
team. Shared accountability should improve the
quality of contract documentation produced
because team members are encouraged to
ensure that changes, if any, are coordinated and
errors and omissions are identified earlier in the
development process.
The effective implementation of the model
in practice requires a leader who can
coordinate and integrate activities and
resources throughout the entire procurement
process. Previous research suggests that an
independent project facilitator can effectively
stimulate and develop inter-organizational
communication between project participants
and therefore improve project performance
(Ofori, 2000). In this instance, the project
facilitator acts as a conduit through which
two-way communications would flow between
project team and client. Responsibilities
would include identifying the client's strategic
needs, and initiating and managing the design
development process. As mentioned above, it
is during the design process that the most
important decisions are made. Therefore,
necessity dictates that the client commission
an experienced project facilitator to effectively
plan, organize, lead and control the project
from inception, where strategic needs are
defined through to completion and possible
operation of the facility (Smith and Jackson,
46

Volume 9 . Number 1 . 2004 . 43-56
Figure 2 A seamless project supply chain management model
On completion of the audit, the client must

be given the opportunity to sign-off on a
complete set of project information. Once
reviewed and accepted, the decision to proceed
to the following stage is taken. At this juncture,
the client and project team will sign all the
drawings as the agreed set, and thus avoid any
unnecessary ambiguity of intention. In essence,
the client should be made aware that design
alterations are costly and could delay project
completion. If changes (variations) are required
the number of request for information (RFI)

raised, time to respond to RFIs, number of
rework incidences by value, etc. against what has
been found to be best practice performance.
However, effective benchmarking requires
organizations to view the exercise as a positive
process of improvement rather than one that
``negatively'' exposes organizational weakness (Li
et al., 2001). Benchmarking is after all a process
of continuous learning and adaptation that results
in the development of an improved organization.
47

Volume 9 . Number 1 . 2004 . 43-56
their expertise was being sought at this point

and that their input would be remunerated. No
guarantee of being selected for the project
should be provided to any subcontractor and/or
supplier tendering for the works.
An empowered client could specify that
consultants will be benchmarked, especially for
documentation quality produced, so as to
provide a mechanism for monitoring their
performance (Li et al., 2001). Incentives, such
as repeat work or a possible share in cost savings
made could be used as a basis for encouraging
an improved level of service quality. By using
the same project team members where possible,
a ``partnering culture'' founded on cooperation
and teamwork would be allowed to flourish (Li
et al., 2000). Such a culture would also provide
a paradigm for collective learning to take place
within the project (Love et al., 2002). That is,
the project team would develop knowledge by
working collectively as a whole; a symbiotic
``cohesive'' mass of professionals working
towards a common objective. On an
inter-personal level, individuals within the team
could learn about themselves and their team
members' requirements. Over time, the project
team members would exchange learning
experiences and develop new skills and
capabilities as well as enhance existing ones. In
doing so, the project team would learn to learn
together.
then they should be reviewed and authorized

using a systematic and structured scope and
change programme.
Together with the client, the project
facilitator would develop a functional brief
before selecting other project members. The
brief then constitutes the basis for defining
project activities and acts as a basis for
appointing the architect, engineering
consultants and QS. Once the architect,
engineers and QS have been selected, a fully
augmented design brief, concept and schematic
drawings and cost plan would be developed in
conjunction with the client and project
facilitator.
Project team selection
Traditional price-driven selection procedures
would not be used as they can limit the
flexibility of designers and contractors to
explore innovative avenues that can result in
optimal performance. Furthermore, traditional
price-driven selection procedures are deemed to
be ineffective, when used to ensure that clients
procure their buildings for the least possible
cost for a less than best product (Holt et al.,
2000; Walker et al., 2002). Ideally, the project
team selection process would use weighted
pre-qualification criteria, past performance and
a process of intensive negotiation. For example,
a reputable architect would be awarded
increased weightings for certain criteria such as
experience, qualifications of personnel, quality
of service provided, quality management,
current workload, strategic alliances, and so on
(Wong et al., 2001). The architect with the
highest aggregate weighting would then be
selected and subsequently, a fee would be
negotiated along with an employment
specification and contract.
Contractors who have the capability of
undertaking the project or who have worked
with the project facilitator and/or the design
consultants would be selected in a similar
manner, though their input will not be required
until the concept and schematic stage had been
completed. The contractor may also be given
the opportunity to recommend to the client (at
this stage in the project) key service
subcontractors and suppliers who they had
formed a strategic alliance with. The client
should notify subcontractors and suppliers that
Building a cohesive project team

By applying and utilizing quality function
deployment (QFD) (in conjunction within
information and communication technologies
(ICTs), any existing cultural, behavioural and
organizational barriers between disciplines
could be eliminated. Integral to the successful
implementation of the proposed model is the
ability of team members to become
customer-focused early in the project. Here
QFD will enable team members to understand
customer requirements exactly. Early team
member assimilation and QFD
implementation, may also stimulate a high
degree of commitment and an increased level of
motivation among team members.
The QFD process begins by analyzing and
listening to customers to determine the
characteristics of the products. Through
detailed discussion during the design process
48

Volume 9 . Number 1 . 2004 . 43-56
each customer's needs and preferences are

defined and broken down into categories called
customer attributes. Customer attribute
information forms the basis for a matrix called
the house of quality. By building a matrix of
customer requirements the multi-disciplinary
team can use customer feedback to make
design, engineering and production decisions.
The matrix assists the team to translate
customer attribute information into specific
operating goals. The important product
characteristics and goals for improvement are
jointly agreed on and detailed in the house of
quality matrix. This process encourages
different disciplines with disparate goals to work
collectively and results in a better
understanding of one another's goals:
ultimately the team becomes customer focused
(Karma et al., 2000).
For teamwork to flourish within a
multi-disciplinary environment, all members
need to pursue common goals. It is therefore
vital that the project facilitator formulates these
goals in conjunction with team members at the
project's outset. Once these principal goals have
been collectively agreed, the project team will
establish a group mission, a series of project
objectives, milestones and a number of critical
success factors and performance indicators.
But, perhaps more importantly the goals that
are established need to be realistic.
Consequently, progress toward them should be
seen to be a significant motivation factor for all
team members. Implicitly, project performance
is intricately linked with the team's
cohesiveness. Cohesiveness is the extent to
which individuals or groups are attracted to a
team and desire to remain in it (Levine and
Moreland, 1990). The degree of group
cohesiveness is a complex phenomenon that
results from combining the net attraction or
repulsion for each member (Kast and
Rosenzweig, 1985). As values, norms and
attitudes invariably differ, instances of
attraction or repulsion will occur. Hence, in
extreme circumstances a highly functional, or
dysfunctional, team may evolve.
If each individual and group aligns their goals
with that of the project organization (e.g. time,
cost, quality, client satisfaction, innovation),
then behaviour will most likely be functional
from an organizational perspective.
Nevertheless, each participating individual and

group will invariably have sub-goals that they
will pursue (e.g. marketing, turnover, survival,
training). These may clash with one another,
and may not be compatible with those of the
project. It is therefore important that the project
facilitator aligns these sub-goals with those of
the project so that a win-win scenario is
nurtured. The likelihood of the project team
becoming cohesive will be increased through
the use of a multi-disciplinary approach
Though excessive levels of team cohesiveness
may have dysfunctional consequences such as
tendencies to negatively stereotype outsiders,
team illusions of invulnerability, complacency,
and team isolation.
The nature of a project organization can have
an adverse affect on project effectiveness
because of inherent ambiguity in role and task
orientation experienced by individuals and
groups (Katz, 1982). Therefore, the proposed
model attempts to eliminate individual role
ambiguity through the use of a
multi-disciplinary `èntity'' team relationship.
Each team member is empowered with
responsibility and encouraged to be creative
and innovative. Team members are made aware
that they are solely accountable to the project
facilitator during the design process. This point
of accountability subsequently transfers to the
main contractor when the process of novation
has taken place. As the degree of cohesiveness
between members becomes explicit, role and
task orientation will evidently become
multi-functional.
Communication has been linked to team
effectiveness, the integration of work units
across organizational levels, characteristics of
effective supervision, job satisfaction, and
overall organizational effectiveness. In fact,
organizations are essentially complex
communication processes that create and
change events (Shockley-Zalaback, 1991).
Consequently, improved organizational
communication will play a significant part in
determining the effectiveness of the proposed
model in improving project performance. The
degree of communication effectiveness is
essentially a product of the project team's
ability to gel as a cohesive unit. The utilization
of ICTs within projects should enable team
members to have greater accessibility to one
49

Volume 9 . Number 1 . 2004 . 43-56
another. This may enable a greater degree of

interaction between team members and thus
contribute to an effective communication
process in the project. ICTs have an important
role to play, as information can be stored more
efficiently and decision making enhanced.
Moreover, ICT can act as an interface between
functional disciplines, facilitating rapid
information exchange, and shared information.
Improving information flow throughout the
procurement process, especially during the
design process, should minimize variations and
rework. As variations and rework are
minimized, perhaps even eliminated, then a
greater degree of client satisfaction should be
attained.
Design development
The client would be encouraged to be actively
involved in the design process, as a committed
client can play a crucial role in assuming
responsibility for initiating, directing and
maintaining the momentum of a project (Ofori,
2000). During the design process the project
facilitator would essentially assume the role of a
pseudo-design manager. In doing so, a
design-planning scheme should be established
to determine the logical sequence for
information transfer among project team
members, thus avoiding any unnecessary
assumptions about the project that may occur.
In conjunction with QFD, tools such as the
analytical design planning technique (ADePT),
which utilise the design structure matrix
(Steward, 1981) can be used to identify missing
information, variations in the quality of
information exchange between participants and
thus can prevent costly design iterations (Austin
et al., 2000). Essentially, ADePT focuses on
efficient planning and management of design,
by scheduling design tasks on the basis of their
information requirements, thereby producing a
detailed programme of the optimised design
process. Prior to, and during, the
commencement of the detailed design and
documentation phase of the project, individual
project team members would be responsible for
the following:
.
the architect would present ideas on how
the client's requirements can be best met
aesthetically and functionally and provide
the detailed design documentation;
the engineers would design and develop the

structural and services capabilities required,
and in conjunction with the architect
provide detailed design documentation;
the QS would produce cost plans,
undertake life-cycle costing analysis and
cost checks as the design is developed
through its various stages;
the contractor and subcontractors
(including hydraulics, mechanical and
electrical subcontractors) would develop
and plan workable production strategies,
schedules, work methods using the last
planner concept (see below);
the key suppliers would propose material
and equipment alternatives; and
if a development project, then property and
marketing specialists organize tenant's or
potential purchasers.
Each member of the project team should be

encouraged to use computer aided
design/engineering (CAD/CAE) technologies
linked to electronic document management
systems (EDMS). By using linked CAD/E and
EDMS most facets of the product development
process can access the same design from
different disciplines by using a common
CAD/CAE database. Hence, the proposed
linked systems will support communication and
information transfer, exchange, retrieval, and
storage throughout the production process.
Noteworthy, there must be a convenient
platform on which different organisations
involved in procuring a project can work and
communicate simultaneously. For example, in
the case of architects and engineers, this
platform could be an advanced form of
CAD/CAE, which has solid and parametric
modelling capabilities. Increasing evidence
suggests that utilizing CAD/CAE can lead to
major reductions in rework and design time
(Karma et al., 2000).
Production process
Throughout the production process, the project
facilitator would assume an active coordination
role to ensure that the project runs smoothly
and specifically encourage the implementation
of lean production principles, which include the
reduction of activity cycle times and process
variability, and optimisation of resource flows.
50

Volume 9 . Number 1 . 2004 . 43-56
example, an architect fails to provide approvals

for shop drawings; this can delay the fabrication
process, and the delivery of materials to site,
which may have an impact on the project's
critical path. As the available float disappears
from the schedule, increasing pressure is placed
on people involved within that specific chain to
minimise the delay's impact. This can further
exacerbate the situation and increase the
likelihood of errors being made as people work
harder to meet the program dates. Thus,
Ballard and Howell (1997) state that if the
traditional approach to planning worked
perfectly then did would always match should.
The ``last planner'' is responsible for the
operational planning of the production process
(Ballard, 1994). So, stabilising the work
environment begins by learning to make and
keep commitments to doing what should be
done, only to the extent it can be done. As the
foreman is typically the last planner in a project
they should select only those activities that can
and will be done rather than those activities that
should be done to compensate the project's
schedule (Howell et al., 1993).
Working closely with subcontractors will
enable the foreman to determine the resources
needed for what can be done (Ballard, 2000). If
what should be done is addressed instead, then
the site workforce may inherit the uncertainty
and variation of workflow that have not been
prevented. Resultantly, a high degree of
non-productive time and a de-motivated
workforce may transpire. The ``last planner
approach'' shields the site workforce from
up-steam variation and uncertainty and
therefore improves the ability to control
capability and variability of the workface.
The architect and engineering consultants

would be novated to the main contractor. In
other words, the architect and engineering
consultants' contract with the client is
discharged and substituted with a contract with
the contractor. The commencement of this
process varies depending on the client's
requirements. For example, design consultants
could be novated to the contractor when the
design is anywhere from 20 per cent to 80 per
cent complete (Love et al., 1998b). In doing so,
the main contractor would accept the risk and
assume single point responsibility for the
project. At this point it is proposed that a QS
would act in an advisory capacity to the client,
project facilitator and main contractor. It is
envisaged that the main contractor would offer
a guaranteed maximum price to complete the
project with any savings shared between
themselves, the client and possibly the
designers, key subcontractors and suppliers.
The key subcontractors and suppliers would be
invited to submit a competitive price to
undertake the work. In this case the QS would
act as the client's auditor, and would have
preliminary benchmarks for budgeting the
works. The main contractor would be
responsible for selecting the remaining
subcontractors and suppliers, although
preference would be given to those with whom
the main contractor had formed a strategic
alliance.
Contractor and subcontractor interface
Poor planning and coordination on the
contractor's behalf can directly influence the
resource planning of subcontractors. So, the
project team, specifically the contractor and
subcontractor, need to ensure that any remedies
used to overcome project deviations cause
minimal disruption and delays. In deriving
effective remedies to reduce variability and
stabilise the flow of work activities, the
traditional approach to project planning needs
to be re-examined (Koskela, 2000). According
to Ballard and Howell (1997), the traditional
approach to project planning is effective for
informing people about what should be done, as
it is used to monitor and enforce conformance
of ``did'' to ``should''. This can work well until
something goes wrong and then a chain
reaction of unforseen events can unfold. For
Model validation: practitioners'

perspectives
The validation process sought expert opinions
on the validity of the model presented in
Figure 2 for improving the performance of the
projects. Semi-structured interviews were
undertaken with six industry practitioners who
had a combined total of 100 years industry
experience. These being a consultant project
manager, a project architect, a project QS, a
construction manager, mechanical and
51

Volume 9 . Number 1 . 2004 . 43-56
pragmatic solution to resolving a complex

problem how to improve project
performance? The architect was opposed to the
model as it threatened the architect's traditional
role in the project delivery process. The idea of
being novated to a contractor was not
appealing, as it was suggested that the design of
a building would be compromised. Moreover,
the architect stated that quality control and
supervision of the project would be jeopardised
and that the shift in responsibility would inflate
the project's cost.
While the architect made some pertinent
observations, these issues have been given due
consideration in the model's development. For
example, the contractor would only be selected
for the project if they were quality assured.
What is more, audits in conjunction with a
proactive programme would ensure that quality
is built into the project and supervision
improved. Arguably, the project's initial cost
may be inflated, but it is suggested that this
additional cost would far outweigh the costs
associated with changes, rework and schedule
growth. Likewise, the idea of a novated
contractual strategy received a degree of
scepticism from the M&E consultant and
contractor. This was primarily because they
were not familiar with this approach, despite its
increasing popularity (Chan, 1994; Love et al.,
1998b). The contractor pointed out that there
were a number of disadvantages that could be
foreseen with this arrangement, which
included:
.
The demand for an experienced contractor
who is able to manage the design and
construction process. However, this point
can be addressed using a stringent
pre-qualification process.
.
The contractor assumes responsibility for
design omissions, errors and any other
problems that may have arisen during the
design. The inclusion of the contractor
during the design will enable them to
obtain a full understanding of how the
design has progressed. In addition, the
contractor can concentrate on developing
their construction programme and methods
prior to commencement on-site.
electrical (M&E) engineering consultant, and a

foreman for a mechanical subcontractor.
Unfortunately, several experienced clients were
unavailable to comment on the validity of the
proposed model.
Each interview was conducted on a
one-to-one basis so as to stimulate conversation
and break down any preconceived ``mental''
barriers and presuppositions that may have
existed between the interviewer and
interviewee. The interviewee was allowed to
talk freely without interruption or intervention.
Using this approach the interviewer acquired a
clearer picture of their perspective while
avoiding introducing any bias.
Validation of findings
Interviewees were generally open-minded and
enthusiastic about the proposed project SCM
model identified in Figure 2, especially the
notion of creating a multi-disciplinary team
during the project's formative phases. The use
of value management was identified as being
extremely important by the QS, though it was
pointed out that it was often difficult to
persuade clients to pay for this service. The
notion of identifying client's strategic needs,
then developing a brief was identified as being a
logical and systematic approach to take during
the design process. Although, the architect
would have resented the fact that a project
facilitator had an active role in developing the
client's brief. Challenging the traditional role of
the professional will always create a degree of
resentment, but it is something the industry
must do if the performance of projects is to be
improved.
The consultant project manager was familiar
with the QFD process and had used this
technique in previous projects. Other
interviewees were unaware of this technique
and how it could be used as part of the project
scoping strategy. The concept of QFD has only
recently begun to penetrate construction, so it
could be a while before it is regularly used in
projects (Love and Sohal, 2002). Every one of
the interviewees agreed that the model could
stimulate teamwork and a collective learning
environment, especially if the same team were
used on another project. With the exception of
the architect, all the other interviewees
considered the project SCM model to be a
The consultant project manager and QS

considered the idea of using a novated contract
52

Volume 9 . Number 1 . 2004 . 43-56
as challenging and possibly rewarding way to

procure projects. It was suggested that the model
would certainly improve communication,
especially if ICTs were used in an integrated
manner. Considering the interviewees'
comments, it is suggested that the prosed model
is a valid approach that could potentially
improve project performance. However, before it
is effectively implemented in practice,
construction organizations must adopt a
customer-value focus founded on TQM so that
inter-organizational relations can be established
and a best practice culture nurtured.
Issues relating to the selection of project

team members if a public sector client were
to adopt the proposed SCM model.
Currently, public sector client's are subject
to public accountability so issues relating to
probity should be explored.
Clients' reactions to the model need to be

obtained as they ultimately pay for the delivery
of the product that is being procured. The
validation process was limited to the viewpoints
of six experienced industry practitioners, and
therefore it is acknowledged that the opinions
sought are not representative of the `èntire''
industry. Consequently, the proposed SCM
model needs to be exposed to a wider
population to gain feedback on its validity so it
can be refined and made suitable for
implementation within the project supply chain.
Implications for future research

The proposed SCM model has taken a
pragmatic approach to integrating design and
production processes in construction but
requires further development in several areas
before it can be applied in an industrial setting.
Areas requiring further research include:
.
The legal issues surrounding the allocation
of risk and responsibility specifically design
liability. According to Gaafar and Perry
(1999) the extent of liability is not
necessarily dependent on who does what,
but rather who accepts liability? So in this
instance further research is needed to
explore the ramifications of adopting a
novation contractual strategy proposed in
the project SCM model.
.
The design and development of a
benchmarking framework, in particular
metrics, for evaluating the interface
between project life-cycle phases.
.
Exploring how architects and engineers
can utilize QFD in an integrated
and systematic way. As noted above,
the technique is not currently being
used by practitioners to assist them during
the design process (Love and Sohal,
2002), hence, the palpable benefits of
QFD need to be explored more
definitively. Several researchers have
provided demonstrable evidence that
QFD is effective in construction (e.g.
Mohamed, 1995; Karma, 1999;
Abdul-Rahman et al., 1999), yet it
remains an enigma as to why it has not
been embraced more widely.
Conclusion
Supply chain management is an emerging
concept in the construction industry. In this
paper, a holistic SCM is proposed that can be
used to procure construction projects. The
proposed model is not radically different from
some of the forms of design and construct
procurement systems that are currently being
used within the industry. The main difference
lays in the emphasis that is placed on
inter-organizational collaboration, cooperation
and learning. In essence therefore, the new
approach proposed represents a move towards
assimilating a symbiotic project team entity. It
signifies a definite positive move away from the
traditional fragmented project team where
professionals within it aspire to disparate goals
and objectives. If such a model were to be
implemented, it would have to be client-driven,
that is, by either public or experienced private
clients and initially managed by the project
facilitator who would act as a catalyst for the
novation process. Therefore, it is necessary they
are educated about the potential time and cost
savings that could be acquired through
implementing the project SCM model. If a
significant reduction cost savings can be
achieved, clients may well invest these savings
into other facilities and thus use the same
project team to deliver their future projects.
53

Volume 9 . Number 1 . 2004 . 43-56
Once experienced clients have acquired the

benefits of the proposed model, then small and
occasional clients may follow suit.
Consequently, this may significantly improve
the performance and productivity of the
construction industry, its services to
construction clients and its contribution to
gross domestic product.
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56
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Supply Chain Management: An International Journal

A seamless supply chain management model for construction

To cite this document:

About Emerald www.emeraldinsight.com

Time and schedule overruns, quality deviations

Peter E.D. Love

The authors are most grateful to the two anonymous

Supply Chain Management: An International Journal

A seamless supply chain management model for construction

Supply Chain Management: An International Journal

Peter E.D. Love, Zahir Irani and David J. Edwards

incentive-based contracting have been

Defining project SCM in construction

Overview of supply chain management in

If the construction industry is to move from an

. . . the process of strategically managing the

SCM practice in construction

Kranz (1996), on the other hand, suggests that

Fundamentally, SCM aims to increase the

A seamless supply chain management model for construction

Supply Chain Management: An International Journal

Peter E.D. Love, Zahir Irani and David J. Edwards

service quality (Hoxley, 2001), and purchasing

reduced their supplier base; established and

Propagation of a seamless project SCM

A seamless supply chain management model for construction

Supply Chain Management: An International Journal

Peter E.D. Love, Zahir Irani and David J. Edwards

Figure 1 Customer-supplier interface in the project supply chain

2000). As the leader of the project, the

monitor resources used and periodically

A seamless supply chain management model for construction

Supply Chain Management: An International Journal

Peter E.D. Love, Zahir Irani and David J. Edwards

Figure 2 A seamless project supply chain management model

On completion of the audit, the client must

the number of request for information (RFI)

A seamless supply chain management model for construction

Supply Chain Management: An International Journal

Peter E.D. Love, Zahir Irani and David J. Edwards

their expertise was being sought at this point

then they should be reviewed and authorized

Building a cohesive project team

A seamless supply chain management model for construction

Peter E.D. Love, Zahir Irani and David J. Edwards

Supply Chain Management: An International Journal

each customer's needs and preferences are

Nevertheless, each participating individual and

A seamless supply chain management model for construction

Supply Chain Management: An International Journal

Peter E.D. Love, Zahir Irani and David J. Edwards

another. This may enable a greater degree of

the engineers would design and develop the

Each member of the project team should be

A seamless supply chain management model for construction

Supply Chain Management: An International Journal

Peter E.D. Love, Zahir Irani and David J. Edwards

example, an architect fails to provide approvals

The architect and engineering consultants

Model validation: practitioners'

A seamless supply chain management model for construction

Supply Chain Management: An International Journal

Peter E.D. Love, Zahir Irani and David J. Edwards

pragmatic solution to resolving a complex