Abstract This paper will provide an introduction to the argument that there is considerable evidence of poor thinking within the construction industry. The failure to understand the circumstances that are facing industry players will prevent clients, contractors and suppliers from achieving their own objectives. The current problems are further compounded by the advice espoused by the government‐sponsored industry reports advocating generic approaches. In response to these problems the paper will provide practitioners with a theoretical framework for understanding: the structure of the industry and its constituent supply chains; the attributes of buyer and supplier power; the appropriateness of certain relationships according to the firm's power position within the construction supply chain; and, the circumstances where the recent industry initiatives and an integrated supply chain approach may be implemented with success.
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