Civil Engineering Reference
In-Depth Information
View of the Olympic Stadium from the North of the Olympic Park with crowds
enjoying the action on the large screens (photo courtesy of AECOM).
This chapter gives an overview of the theoretical challenges facing
both buying and supplying organisations, to give an insight into the
thinking behind the development of PSE for delivering procurement on
large construction programmes. From a general approach to managing
the supply market, the chapter goes on to consider the relationship
between the client and construction in general. This leads to a discus-
sion on the distinction between projects and programmes and where the
role of the client fits in with the supply chain. The chapter concludes
with the issues of outsourcing and subcontracting and a discussion on
understanding and managing conflict in construction.
Managing the supply market
In industries, where firms carry out several stages in the production
process, from sourcing raw materials to delivering finished goods to
customers, the organisation of production is hierarchical. Departmental
managers within the same firm collaborate through rules, procedures
and levels of authority (or hierarchies) to ensure a steady production
flow. This is very much in contrast to the way construction production
is organised and managed on site. Because the construction industry is
fragmented into many specialisms and disparate organisations, it can be
