Subcontractor perspectives on supply chain alliances

Abstract

Since the publication of the Egan report in 1998, there has been a strong and consistent emphasis on the need to integrate the project delivery process via partnering and strategic alliancing agreements throughout the UK construction industry. However, given the continued reliance on subcontracting within the sector, future performance improvement also requires an acceptance of the benefits of supply chain partnering and integration from the small-to-medium size businesses who carry out the majority of construction work. This paper presents the findings of a research project that examined subcontractor perspectives on supply chain alliances. The study has uncovered serious concerns among subcontractors that point towards a fundamental mistrust and scepticism within existing supply chain relationships. These have the potential to inhibit further improvements in the efficacy of the project delivery process. A range of attitudinal change requirements for integrating smaller companies into the drive for continuous improvement are identified. It is suggested that leading clients should take responsibility for engendering the necessary attitudinal change throughout their supplier networks if further performance improvement is to be realized within the sector.

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