Civil Engineering Reference
In-Depth Information
Nevertheless, project management is often seen in terms of a single
project carried out by one fi rm and its supply chain, assuming the project
will be barely affected by the existence of other projects. This is an
oversimplifi cation, according to Sacks (2004), Hossain and Ruwanpura
(2008) and Pellegrinelli (2011), and runs in the face of reality, where
many projects impact on each other in an uncoordinated, unplanned
way, leading to unanticipated diffi culties. Antoniadis, Edum-Fotwe and
Thorpe (2011) pointed out the need to understand the nature of the
various connections between all construction fi rms, including those in
the vicinity of the project but not directly involved. Firms working on
other projects in the area may affect progress and the capacity of the
local construction supply market to meet demand.
A project must be viewed in the context of the supply market, which
is comprised of potential tier 1 and tier 2 contractors and many other
layers of specialist construction fi rms, as well as component and mate-
rial suppliers, each with their own expertise and skills to offer in an
ever-changing construction market. It can be seen as a system consisting
of organisations operating in a business environment, in which multi-
project fi rms struggle to allocate resources between competing projects,
and that Engwall and Jerbrant (2003) refer to as the 'resource allocation
syndrome'. This defi nes the framework of systems theory, which identi-
fi es the concepts needed to understand and manage the procurement
and production of the built product. In one systems-theory approach
there are six interdependent and interacting concepts; they are: decision
making, goals, the product, resources, people and the process. A full
discussion of systems theory lies beyond the scope of this topic, but it
is this systems approach that creates order in what would otherwise
appear to be a complex, chaotic, unstructured, unpredictable and ever-
changing situation. Instead it simplifi es, defi nes and prioritises the
issues that need to be dealt with. This theoretical approach lies behind
the practical applications used to solve the management issues as and
when they arise at each stage in the procurement process.
The client and the supply chain
Even modest construction projects involve large investments and risk.
When construction projects as large as the infrastructure for the London
2012 Olympics are undertaken, they comprise multiple and diverse large
and small projects, which together form a programme. As a client, it is
