Skip to main content

Cooperative Engagement to Define and Deliver Client Value in the Construction Industry

  • Conference paper
  • First Online:
Modelling Value

Part of the book series: Contributions to Management Science ((MANAGEMENT SC.))

Abstract

Relations in the construction industry are traditionally of arms-length, and client value is realized by contractual arrangements. Partnering, as a concept of strategic and project alliances, has been suggested to change the adversarial behaviour by moving towards a more cooperative climate. In the consumer market there are recent examples of changes from firm-centric view of value creation to a co-creation view, with intimate interaction between consumer communities and producers to jointly define and deliver value. The case study has an explorative purpose of describing a cooperative contracting engagement of a local Swedish contractor, when engaging in a recent project. The result shows the opportunities of applying the building blocks of improved interactions to reach co-creation of value: dialogue, access, risk-benefit and transparency. The early and interactive involvement of the contractor with the developer and end-user established project objectives valued and favoured by all parties before the procurement. Important capabilities of the contractor included project management, cooperative behaviour and design and calculation, and a strive to have a pleasant and friendly realisation of the project.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 129.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 169.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Akintoye, A., McIntosh, G., & Fitzgerald, E. (2000). A survey of supply chain collaboration and management in the UK construction industry. European Journal of Purchasing and Supply Management, 6(3–4), 159–168.

    Article  Google Scholar 

  • Anderson, J. C. & Narus, J. A. (1998). Business marketing: Understand what customers value. Harvard Business Review (November–December), 53–65.

    Google Scholar 

  • Barlow, J., Cohen, M., Jashapara, A., & Simpson, Y. (1997). Towards positive partnering. Bristol: Policy Press.

    Google Scholar 

  • Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.

    Article  Google Scholar 

  • Black, C., Akintoye, A., & Fitzgerald, E. (2000). An analysis of success factors and benefits of partnering in construction. International Journal of Project Management, 18, 423–434.

    Article  Google Scholar 

  • Briscoe, G., Dainty, A. R. J., Millet, S., & Neale, R. (2004). Client-led strategies for construction supply chain improvement. Construction Management & Economics, 22(2), 193–201.

    Article  Google Scholar 

  • Chan, A. P. C., Chan, D. W. M., & Ho, K. S. K. (2003). An empirical study of the benefits of construction partnering in Hong Kong. Construction Management & Economics, 21(5), 523.

    Article  Google Scholar 

  • Cheung, S.-O., Ng, T. S. T., Wong, S.-P., & Suen, H. C. H. (2003). Behavioral aspects in construction partnering. International Journal of Project Management, 21(5), 333.

    Article  Google Scholar 

  • Cox, A., & Thompson, I. (1997). “Fit for purpose” contractual relations: determining a theoretical framework for construction projects. European Journal of Purchasing and Supply Management, 3, 127–135.

    Article  Google Scholar 

  • Dubois, A., & Gadde, L.-E. (2002). The construction industry as a loosely coupled system: Implications for productivity and innovation. Construction Management and Economics, 20(7), 621–631.

    Article  Google Scholar 

  • Egan, J. (1998). Rethinking construction: The report of the construction task force. London: DETR.

    Google Scholar 

  • Eisenhardt, K. M. (1989). Building theories from case study research. Academy of Management Review, 14(4), 532–550.

    Google Scholar 

  • Eriksson, P. E. (2006). Procurement and governance management – Development of a conceptual procurement model based on different types of control. Management Revenue, 17(1), 30–49.

    Google Scholar 

  • Eriksson, P. E. (2008). Procurement effects on coopetition in client–contractor relationships. Journal of Construction Engineering and Management, 17(1), 30–49.

    Google Scholar 

  • Eriksson, P. E., Nilsson, T., & Atkin, B. (2008). Client perceptions of barriers to partnering. Engineering Construction and Architectural Management, 15(6), 527–539.

    Article  Google Scholar 

  • George, A. L., & Bennett, A. (2005). Case studies and theory development in the social sciences. Cambridge: MIT Press.

    Google Scholar 

  • Gullmander, D., Wennberg, B. Å., & Jonsson, L. (2010). Byggprojekt som samhällsbyggen – en ny produktiv samverkansform. Degerfors: Samarbetsdynamik AB.

    Google Scholar 

  • Hedman, J., & Kalling, T. (2003). The business model concept: Theoretical underpinnings and empirical illustrations. European Journal of Information Systems, 12(1), 49.

    Article  Google Scholar 

  • Hobday, M. (1998). Product complexity, innovation and industrial organisation. Research Policy, 26(6), 689.

    Article  Google Scholar 

  • Holt, G. D., Love, P. E. D., & Li, H. (2000). The learning organisation: A paradigm for mutually beneficial strategic construction alliances. International Journal of Project Management, 18(6), 4125–4423.

    Article  Google Scholar 

  • Kadefors, A. (2004). Trust in project relationships – Inside the black box. International Journal of Project Management, 22(3), 175.

    Article  Google Scholar 

  • Larson, E. W. (1995). Project partnering: Results of study of 280 construction projects. Journal of Management in Engineering, 11(2), 30–35.

    Article  Google Scholar 

  • Love, P. E. D., Irani, Z., Cheng, E., & Li, H. (2002). A model for supporting inter-organizational relations in the supply chain. Engineering Construction & Architectural Management (Blackwell Publishing Limited), 9(1), 2.

    Google Scholar 

  • Lutz, J., & Gabrielsson, E. (2002). Byggsektorns struktur och utvecklingsbehov. Stockholm: Byggkommissionen.

    Google Scholar 

  • Miles, L. D. (1961). Techniques of value analysis and engineering. New York: McGraw-Hill.

    Google Scholar 

  • Ng, S. T., Rose, T. M., Mak, M., & Swee Eng, C. (2002). Problematic issues associated with project partnering–the contractor perspective. International Journal of Project Management, 20(6), 437.

    Article  Google Scholar 

  • Nord, T., Tykkä, S., McCluskey, D., Bajric, F., Bouriaud, L., Hugosson, M., et al. (2011). Role of policies and national programmes on innovations in timber-frame construction. In G. Weiss, P. Ollonqvist, & B. Slee (Eds.), Innovation and the forest sector – How do policies and processes fit?, Wallingford, UK: CAB International.

    Google Scholar 

  • Normann, R. (2000). Service management: Strategy and leadership in the service business. Chichester: Wiley.

    Google Scholar 

  • Normann, R. (2001). Reframing business – when the map changes the landscape. Chichester: John Wiley & Sons Ltd.

    Google Scholar 

  • Normann, R., & Ramírez, R. (1994). Designing interactive strategy. From value chain to value constellation. Chichester: John Wiley & Sons.

    Google Scholar 

  • Peteraf, M. A. (1993). The cornerstones of competitive advantage: A resource-based view. Strategic Management Journal, 14, 179–191.

    Article  Google Scholar 

  • Porter, M. E. (1980). Competitive strategy: Techniques for analyzing industries and competitors. New York: Free Press.

    Google Scholar 

  • Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance. New York: Free Press.

    Google Scholar 

  • Porter, M. E. (1991). Towards a dynamic theory of strategy. Strategic Management Journal, 12, 95.

    Article  Google Scholar 

  • Prahalad, C. K., & Ramaswamy, V. (2003). The new frontier of experience innovation. MIT Sloan Management Review, 44(4), 12–18.

    Google Scholar 

  • Prahalad, C. K., & Ramaswamy, V. (2004a). Co-creation experiences: The next practice in value creation. Journal of Interactive Marketing, 18(3), 5.

    Article  Google Scholar 

  • Prahalad, C. K., & Ramaswamy, V. (2004b). Co-creating unique value with customers. Strategy & Leadership, 32(3), 4–9.

    Article  Google Scholar 

  • Riksbyggen (2010). 40-punktsprogram för miljön. Riksbyggens strategi “Det goda miljöföretaget”. Downloaded 2010-12-31 (www.riksbyggen.se/Om-Riksbyggen/Miljo/Miljoprogram)

  • Rooke, J., Seymour, D., & Fellows, R. (2004). Planning for claims: An ethnography of industry culture. Construction Management & Economics, 22(6), 655.

    Article  Google Scholar 

  • Sawhney, M., Prandelli, E., & Verona, G. (2003). The power of innomediation. MIT Sloan Management Review, 44(2), 77–82.

    Google Scholar 

  • SOU (2002). Skärpning gubbar! Om konkurrensen, kvaliteten, kostnaderna och kompetensen i byggsektorn. In: Byggkommissionen Stockholm, Ed. Fritzes Offentliga Publikationer.

    Google Scholar 

  • Thomke, S., &Von Hippel, E. (2002). Customers as innovators: A new way to create value. Harvard Business Review (April), 74–81.

    Google Scholar 

  • von Hippel, E. (1988). Sources of Innovation. New York: Oxford University Press.

    Google Scholar 

  • Williamson, O. E. (1988). Transaction cost economics: The governance of contractual relations. Journal of Law, Economics, & Organization, 22, 232–261.

    Google Scholar 

  • Winch, G. (1998) Zephyrs of creative destruction: understanding the management of innovation in construction. Building Research and Information, 26(4), 268–279.

    Google Scholar 

  • Winch, G. (1989). The construction firm and the construction project: A transaction cost approach. Construction Management & Economics, 7(4), 331.

    Article  Google Scholar 

  • Yin, R. K. (2003). Case study research: Design and methods. Thousand Oaks: Sage.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Tomas Nord .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2012 Springer-Verlag Berlin Heidelberg

About this paper

Cite this paper

Nord, T. (2012). Cooperative Engagement to Define and Deliver Client Value in the Construction Industry. In: Jodlbauer, H., Olhager, J., Schonberger, R. (eds) Modelling Value. Contributions to Management Science. Physica-Verlag HD. https://doi.org/10.1007/978-3-7908-2747-7_6

Download citation

Publish with us

Policies and ethics