Firm Characteristics and Strategies
Tay (1994) summarized the construction industry as one that is characterized by activities which are discontinuous, dispersed, diverse and distinct; referring to how the industry is made up of a diverse range of trades and disciplines that are interconnected to deliver a project. For instance, to construct a relatively simple two storey bungalow, one would need a team of consultants, a team of contractors to work on different trades and disciplines and a range of suppliers. Hence, construction quality of a project depends on not just one firm but a multitude of firms. Each firm in this value chain exercise their own judgement on the time-cost-quality tradeoff decisions on their respective works; with each firm’s decision contributing towards the overall construction quality of the project.