How to Increase Coordination and Integrate Supply Chain Management in Construction

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How to Increase Coordination and Integrate Supply Chain Management in

Construction

Siri Stenmark

Industrial and Management Engineering, master's level 2021

Luleå University of Technology

Department of Social Sciences, Technology and Arts

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Abstract

The construction industry is known for its ineﬃciency, with projects exceeding budgets and not completing on time. It is claimed that these problems stem from the industry’s characteristics and aﬀect the project’s success. Research has increased within the field of construction supply chains and construction supply chain management as a way to increase coordination and improve project performances. However, the industry and the companies within have a long way to go before construction supply chain management is integrated. This study presents problems that are manageable for a general contractor and what enabler can be implemented to facilitate the integration of construction supply chain management and coordination.

The study investigates a Swedish project and its current situation, where the collected data from interviews belong to either people, processes, or contexts. The study identifies 22 problems and 21 enablers from interviews, literature, and frameworks. Early on in the study, it is noted that problems are linked and affect various disciplines. Consequently, if one problem arises it affects other disciplines. Therefore to understand the problems origin and connections will the opted analysis provide their association to each other and their belonging to either the construction or supply process. Based on the belonging, the problems are sorted if they are considered manageable for a general contractor and relate to either organizational efforts, management of the information flow, or relationships. The study also provides proposed applications for information and communication technology.

Furthermore, initial steps towards integrating construction supply chain management for a general contractor this is done by initiating ’supply chain integration’ and develop integrating processes, products, and services. It is recommended that this should be done by mapping the current state of the supply and construction process, identifying individuals who are familiar with supply chain methods, and involve them in works for improvement. The second step is to develop an organizational and team culture that is open for change and supports integration. Once the culture has been established, more eﬀort and resources can be added towards building relationships and develop construction supply chain collaborations.

Proposed enablers are among several to develop selection criteria to determine suppliers and subcontractors and adapt resources such as time and money accordingly. Since subcontractors are responsible for the supply process, it is recommended that goals and evaluation criteria for these actors should be developed based on supply chain performances and form the basis for evaluating subcontractors.

This study confirms previous studies where the general contractors’ ability to cooperate and their practices are aﬀected by the owners’ demand and preferred methods. Therefore it is required that the general contractor’s ability to adapt accordingly is increased. Consequently, the need for new management principles that are highly adaptive and easy to use is demonstrated. The compiled results indicate an imbalance of responsibilities and a lack of ownership for changing the industry and showing the need for new management principles. Which leaves the question, who is responsible for changing the industry?

Even though this is a complex question, as indicated in the study, there are actions that a general contractor can take to integrate construction supply chain management and increase coordination.

Keywords: Construction integration, construction supply chain, information and communication technology (ICT), coordination.

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Sammanfattning

Byggbranschen är känd för sin ineﬀektivitet, med projekt som överstiger budgetar och inte slutförts i tid. Det hävdas att dessa problem härrör från branschens egenskaper och påverkar projektets framgång.

Forskningen har ökat inom områdena ’construction supply chains’ och ’construction supply chain management’ som ett sätt att förbättra samordning och projektprestanda. Däremot har branschen och företagen en lång väg kvar att gå innan ’construction supply chain management’ är integrerad. Denna studie presenterar problem som är hanterbara för en totalentreprenör och vilka möjliggörare (Eg. Enablers) som kan implementeras för att underlätta integration av ’construction supply chain management’ och samordning.

Studien undersöker ett svenskt projekt och dess nuläge, där den insamlade informationen från intervjuer tillhör antingen människor, processer eller kontext. Studien identifierar 22 problem och 21 möjliggörare från intervjuer, litteratur och teoretiska ramverk. Tidigt i studien noteras de att problem är kopplade och påverkar olika discipliner. Följaktligen, om ett problem uppstår påverkar det andra discipliner.

För att förstå problemens ursprung och kopplingar kommer därför den valda analysen att ge deras associering till varandra och deras tillhörighet till antingen bygg- eller leveransprocessen. Baserat på tillhörigheten sorteras problemen om de anses vara hanterbara för en totalentreprenör och relaterar till antingen organisatoriska insatser, hantering av informationsflödet eller relationer. Studen presenterar även föreslag på applikationer för informations- och kommunikationsteknik.

De första stegen mot att integrera ’construction supply chain management’ för en totalentreprenör är att initiera ’supply chain integration’ och utveckla integrerade processer, produkter och tjänster. Det rekommenderas att detta görs genom att kartlägga det aktuella tillståndet för leverans- och byggprocessen, identifiera individer som är bekanta med ’supply chain’metoder och involvera dem i förbättringsarbeten.

Det andra steget är att utveckla en organisations- och lag kultur som är öppen för förändring och stöttar integration. När kulturen har etablerats kan mer ansträngningar och resurser fördelas på relationer och ’construction supply chain’ samarbeten. Föreslagna möjliggörare är bland flera för att utveckla urvalskriterier för att bestämma leverantörer och underleverantörer och anpassa resurser som tid och pengar därefter. Eftersom underleverantörer ansvarar för leveransprocessen rekommenderas det att mål och utvärderingskriterier för dessa aktörer utvecklas utifrån prestanda i försörjningskedjan och utgör grunden för utvärdering av underleverantörer.

Denna studie bekräftar tidigare studier där entreprenörernas förmåga att samarbeta och deras praxis påverkas av ägarnas efterfrågan och föredragna metoder. Därför krävs det att den entreprenörens för- måga att anpassa sig därefter ökas. Följaktligen demonstreras behovet av nya ledningsprinciper som är mycket anpassningsbara och enkla att använda. De sammanställda resultaten indikerar en obalans mellan ansvarsområden och bristande ägande för att förändra branschen och visar behovet av nya ledningsprinciper. Vilken lämnar frågan, vem är ansvarig för att ändra branschen? Även om detta är en komplex fråga, vilket indikeras i studien, finns det åtgärder som en totalentreprenör kan vidta för att integrera ’construction supply chain management’ och öka samordningen.

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Acknowledgements

This report is dedicated to all women; To the women who came before me and made way for me and my possibilities, to those who walk beside me today, and to the women who are yet to come. May we

never stay within the lines of definitions which we ourselves never determined.

First, I would like to acknowledge my supervisors Ahmed and Athanasios. Thank you, Ahmed, for the enormous support and possibility of collaborating with Titan for the thesis. Knowledge is a concept which means a lot to me. It can be shared, lost, replaced, and sometimes misplaced. However, it also represents strength, and it can never be stolen. Therefore, thank you, Athanasios, for the knowledge you have given me during the past few years. It is a valuable gift that I will cherish for many years to come. Furthermore, I would like to thank all of the participants in the interviews and classmates who have supported this thesis with feedback.

I would also like to thank my family, who has been supporting me for my entire education. Especially my mother, words can only confide me when I try to explain why I’m grateful for her. Therefore, I’d say it in the only way I can - Tack älskade mamma för allt du gett mig, och allt du kommer att ge. Utan dig att jag inte varit något. I would also like to thank my sister. Her strength, motivation, and devotion have no limits. She is and will always be my soldier.

Good friends are rare, and they are the family that you have determined. Therefore, I would like to acknowledge Josefine, Lovisa S, Fanny, Felicia, Isabella, Fadomo, Matty, and Y-bordet. Thank you for the love and support. Also, my education and this thesis would not have been completed without the help from my beloved Kosmos, who unfortunately was not able to stay to see it be completed. Her support, devotion, and love will never be forgotten. Last but not least, I would like to thank my future husband, Benjamin and his family.

Siri Stenmark, Luleå May 2021

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Glossary

construction coordination is understood to be the act of dynamic communication, information, exchange, and collaborative workflows among project participants toward a mutual goal (Lavikka, Smeds, & Jaatinen, 2015). 1, 2

construction supply chain management the strategic management of information flows, activities, task, and processes, involving various networks of independent organizations and linkages (upstream and downstream), which produce a value that is delivered to the owner in the form of a finished project (Benton & McHenry, 2010). 2, 8

enablers is defined as a way to give people competence and power to achieve a purpose, i.e., mechanism or procedure (Chen, Hall, Adey, & Haas, 2020; Arshinder & Deshmukh, 2008). 2

supply chain a network formed of firms involved by complex activities and multi processes (Othman &

Rahman, 2010). 2

Acronyms

BIM building information modeling. 1, 2, 12, 17 CAD computer-aided design. 2, 12

CSC construction supply chain. 1, 2, 6, 7, 9, 10, 12–17, 21, 23, 25–30, 32, 35, 36

CSCM construction supply chain management. 1–3, 7, 8, 19, 20, 26, 28, 30, 32–34, 36, 37 CT communication technology. 1, 2, 12

GC general contractor. 1–3, 5, 7–10, 12, 18–21, 24–34, 36, 37, 49

ICT information and communication technology. 1–3, 10, 12, 13, 17, 19–24, 26–29, 31–33, 35, 36, 38, 43 IT information technology. 1, 2, 7, 10, 12, 20

MC main contractor. 2 MTO make-to-order. 1, 2, 37

RFI request for information. 2, 18, 22, 23, 30, 33

SC supply chain. 1, 2, 6–8, 10, 19, 20, 25–28, 32, 34–36, 38 SCM supply chain management. 2, 6–9, 19, 30, 32, 38

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1 Introduction

The construction industry has diﬃculties communicating with members in projects which leads to low construction eﬃciency, delayed construction, and a severe waste of resources (Chen, Hall, Adey, & Haas, 2020; Thunberg, 2016). The main reason construction schedules and costs are unpredictable is the lack of coordination among supply chain members, project stakeholders, and organizations (Chen et al., 2020).

Collectively, communication, information, and coordination go by the term construction coordination (Lavikka, Smeds, & Jaatinen, 2015), if construction companies can manage them successfully, it can result in a completed project in time and within budget. Since the mid-’90s, research has increased within construction supply chain (CSC) to understand the industry and its characteristics. Furthermore, it proposes remedies that combat the diﬃculties of coordination (Chen, Hall, Adey, & Haas, 2020; Segerstedt

& Olofsson, 2010). CSC originates from the traditional definition commonly used in the manufacturing industry, known as supply chain (SC). The latter mentioned philosophy advocates building and main- taining relationships to secure competitive advantages such as shorter lead times and a higher perceived customer value (Fawcett, Ellram, & Ogden, 2014). Currently, these aspects are not integrated within the construction industry.

The Swedish construction industry is vast ranging from residential housing, private, and public building works. In 2017, the Swedish construction industry employed over three hundred thousand people (SCB, 2017). Furthermore, the construction industry is classified as an essential industry in Sweden, meaning that the industry maintains or secures vital factors crucial to the society’s fundamental needs, values, or safety (MSB, 2020). Thus, CSCM and construction coordination are vital topics for the active companies within the industry and society since they help boost the economy and generate job opportunities.

Consequently, if construction projects are ineﬀective, will a large part of the population be aﬀected.

Some academic researchers argue that coordination and integration of CSC are challenging to achieve since the construction industry and its SC has additional characteristics compared to the traditional one. CSC characteristics have been noted by Briscoe & Dainty (2005), who argues that relationships are challenging to build and maintain since construction projects are considered temporary and included in highly fragmented organizations. Furthermore, they are considered a make-to-order (MTO) SC, with every project resulting in creating a new product or prototype (Segerstedt & Olofsson, 2010). Additionally, the scope of construction projects adds to the complexity of management and coordination. Collectively the industry’s characteristics increase the complexity of managing them (Mello et al., 2016; Segerstedt &

Olofsson, 2010; Thunberg, 2016).

A common area of both construction and manufacturing chains is the flow of information that travels through the chains. Besides e-mails and data storage mediums are building information modeling (BIM) commonly used in the construction industry. This technology ensures that information regarding shop drawings and project changes is available for project participants. BIM is just one of the many and various types of construction management technologies that can provide vital information regarding projects. Commonly in academic papers, these types of technologies are referred to as information and communication technology (ICT). ICT include the sub-categories information technology (IT) and communication technology (CT), which respectively are diﬀerentiated on the basis of whether information is shared, or communication is occurring. IT are used when one refers to platforms or databases which monitor construction and SC activities throughout the project’s lifetime (Deng et al., 2019). Additionally, according to Rimmington & Pasquire (2015) IT does not ensure that communication will occur. Instead, it set the scene for the storage of information. On the other hand, CT refers to technologies that ensure communication, such as telephones or computers (Rimmington & Pasquire, 2015).

Nowadays is ICT an integrated practice used during construction projects that aim to aid planning and coordination. Consequently, it plays a significant role in the material flow and the project’s outcome.

Research on how ICT can help CSCs has increased. From how to enable visual representation, which can aid in communication with the customer, i.e., owner (Deng et al., 2019), to the ability to link and integrate various ITs and ICTs to ensure coordination and cooperation (Zhao, Tian, & Yang, 2020).

There will always be several sides to a story, and the construction industry’s ability to coordinate, communicate, inform and collaborate, is no exception. As indicated by the previously mentioned studies and literature, there is an interest to link various ICTs and suggest applications that could aid and increase coordination in CSCs. At the same time, researchers still argue that project participants require more traditional processes for information and communication (Loosemore, 2014). Even though these studies are diﬀerentiated, they form a general picture of the current situation. Simply, construction projects

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require both technical applications and management principles that focuses on softer aspects to improve the information flow. Enablers is defined as a way to give people competence and power to achieve a purpose, i.e., mechanism or procedure (Chen et al., 2020). With previous researchers identifying how to enable smooth production, planning, and material flow (Thunberg, 2016), to categorizing enablers based on previous literature and studies (Chen et al., 2020).

Currently, theories regarding enablers, ICT, and CSCM are still relatively young, and there is not a lot of literature that aims to understand problems in construction. Therefore, this thesis is positioned as an initial step to understand and identify problems relating to interactions, processes, and context between project participants from a general contractor’s perspective. Since the general contractor (GC) is responsible for coordination in construction project (O’Brien et al., 2009), it is important to understand their perception of problems that occur. By interviewing a Swedish academic who research construction supply chain management (CSCM) and the eﬀect of ICT, and employees who work at a GC can problems be identified. After that, by utilizing the framework by Thunberg (2016) can the origin of these problems be identified. Lastly, based on the origin and linkages of the identified problems can conclusions regarding the GC’s ability to manage them be discussed.

1.1 Problem Description

Titan Konstruktion subsequently referred to as Titan, is a newly developed construction company established in Luleå. The company has continuously grown during the past few years, and recently they landed a big client with high demands on the project. The project is on its way, and currently, they are working on the site. During the project’s lifetime, the company has noticed the need to evaluate how information is shared and identify how coordination can be established. Not only does Titan need to consider the high demands from the client and inter-organizational coordination, but also they need to co-coordinate with various companies who are also working on site. Additionally, the company needs to handle the eﬀect of the Covid-19 pandemic. Despite the pandemic the construction industry has been maintained, however, there are still reasons for concerns since work is expected to halt as soon as supply chains are disrupted by a shortage of subcontractors, materials, and contract commitments (Parada, 2021).

Collectively, the problems and obstacles presented in the previous section provide a unique opportunity to investigate people, processes, and context from Titan’s perspective. More specifically the internal organization’s perceived problems. It also generates the possibility of identifying problems, barriers, and enablers that could have a beneficial role in adopting CSC and ICT, and suggest remedies and potential strategies for GCs.

1.2 Purpose

The main purpose of this report is to identify problems and their related enabler, and determine if they are manageable for a GC. There is also a need to determine how the information flow should be managed.

To fulfill the purpose of the thesis has three objectives been developed, these are as follows:

O1: Identify and map logistical problems and linkages in the construction industry O2: Identity enabling processes of adopting ICT

O3: Identify limitations and potential improvements for current practices and ICT

Objective one aims to identify and map logistical problems and linkages in the construction industry. By combining problems identified in interviews with an expert and a GC’s employees and compare them to theoretical frameworks can these problems be more visible and their linkages can be explained. As stated in section 1.1 Problem Description, the studied company is in need to examine how information is shared trough ICT. Therefore objective two and three aim to provide suggestions for adopting ICT and current practices based on the state of the studied project. Respectively objective two provides how GCs can adopt new technologies and ICT. Meanwhile, objective three aims to specify current limitations of these areas and suggest practices to ease information sharing.

1.3 Research Questions

Since CSC is considered to have a positive aﬀect on projects success it is necessary to determine aspects that are manageable for GCs and what is out of reach. Therefore, Q1 aims to provide an answer to what processes are necessary for adopting CSC. It is well known fact that the construction industry battles with fragmentation that aﬀects communication and information sharing, therefore the discussion is taken

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further and answers to how these areas can be improved is done by answering Q2. Collectively, these questions aim to answer how coordination and integration can be increased.

Q1: How can general contractors develop the necessary processes for adopting construction supply chain management?

Q2: How to improve communication and information sharing in construction supply chains?

1.4 Limitations of Scope

In this study only one project is investigated. Usually, the execution and planning phases coincide and in- tersect in a construction project. Where the obtained data is collected during this time period. The scope is also further limited since the studied GC is located in Sweden, specifically in Luleå. Strictly speaking, the study aims to identify and explore how participants of a project perceives the current situation of a construction project. The thesis does not include the perspective of subcontractors, suppliers, or clients.

The main area that the study focuses on the GC, and their perception of problems and limitations of current practices. Lastly, it is an overwhelming task to present actual algorithms for ICT since these areas are highly complex. Therefore the scope is to understand the need for potential applications and methods adopted by a GC, and developed suggestions for future research.

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2 Literature Review

This section aims to describe the theoretical concepts utilized in this thesis. First, an overview of construction projects and management is presented. Second, traditional theories regarding supply chain management is displayed. After that, these concepts are applied to the context of construction.

2.1 Construction Project Management

First, the chapter provides an explanation of construction projects. Where the construction project can be described as two separate processes that come together for the completion of on-site activities, figure 2.1. Thereafter the following sections explain the problems of the Swedish construction industry to provide a general knowledge of roles, context, and typical procurement routes and the opted terminology.

The rest of section 2.1 explain phases of construction projects, roles, responsibilities, interactions, process and context which provide an introduction to construction.

Figure 2.1: Visual presentation of the supply and construction process in a construction project retrieved from Thunberg (2016).

Martin Rudberg, a professor of construction logistics and management at Linköpings University, states in the pod series developed by Assadi (2019) that the construction industry operates in two ways. The first one relates to on-site activities and is considered more project-driven, i.e., the construction process.

The second one is the supply chain, which is regarded as more process-driven. i.e., the supply process . Furthermore, there is a gap between these operations, that needs to be managed by policies and rules.

(Assadi, 2019)

2.1.1 The Swedish Construction Industry

Landin (2011) provides an overview of Swedish academics and their perception of the construction industry. The literature presented are short papers on certain topics written by these academic researchers.

In the paper "Traditional, industrial or industrialized construction?" a description of the industry is presented. It is as follows: the construction industry is a collective term for a heterogeneous industry that includes small, medium, and large companies that produce both services and products. Furthermore, this short paper argues that applying generalized solutions to fit the entire industry is wrong and often leads to mistakes because business within the industry are so diversified. (Landin, 2011)

Not only is the industry vast, but it is also old. According to Bröchner, Josephson, & Kadefors (2002), the Swedish construction industry has a long history, from the historical apprenticeship to the increased growth of academics which consequently changed the industry. As a stepping ground, the authors utilized the historical advancements and prior research within Swedish construction to identify the impact of local

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culture and its ability to collaborate. The authors found that the control of the centralized state and weak professional identities have been influential. Furthermore, the analysis indicated prevalent personality traits in Sweden congruent with a national management style based on low power distance, loose control, and low uncertainty avoidance. These tendencies can be traced to the development of specific quality and collaboration practices. In the Swedish context, collaboration is informal, and preferences to avoid conflict are clear, especially with team partners. The lack of interest in formal partnering arrangements may be due to the lack of visible eﬃciency and justifying resources for traditional systems which improve relations are considered complex. The authors emphasize the need for approaches that productively manage conflicts and consider international perspectives and the need for a more comprehensive representation of stakeholders, which should be a part of decision procedures. (Bröchner et al., 2002)

2.1.2 Roles in Construction Projects

The client, synonym with the owner, initiates the project and has both operational and execution responsibilities. The latter mentioned include decisions concerned with the commitment of resources at the beginning of work stages and decisions involved with approval at the end of work stages. Furthermore, operational responsibilities include identifying basic requirements and constraints, appointing the planning supervisor and the consultant team, develop a strategic brief, provide information for the project brief, appointing the contractor and principal contractor, and fulfilling duties under the various contracts.

A representative represents the client’s interests. This might be an employee or a consultant to the client whose purpose is to act as a primary interface between the various parts of the client organization and the project team members. These include some of the earliest appointments in the process. (Hughes &

Murdoch, 2001)

The construction industry is vast and how responsibilities are divided becomes just as a complex question.

Usually, in legal terms, the diﬀerentiation is between the forms of contract and procurement. Therefore a clarification on the diﬀerence between these forms is due since these forms lay the foundation for how parties in a construction project cooperate and occur in combination with each other (Borga, n.d.).

There are contracts between the client and the building contractor (entreprenör, translated by Skanska (2017)). During tendering, several builders submit a price based on documents provided to them by the client, i.e., procurement (upphandling, translated by Skanska (2017)) (Hughes & Murdoch, 2001).

Where the type of contract (entrepenadform, translated by Skanska (2017)) refers to what responsibility a building contractor has regarding the function of what is to be built, usually a diﬀerentiation between the contracts are made based on the commitment and include planning and, or building works (Borga, n.d.). Technically, there are three categories. However, strictly these can be divided into two categories:

construction contract and design build contract (Lawline, 2017). However, there are many other and various names for contract works depending on the legal framework, project, organization and geographic placement. According to Hughes & Murdoch (2001) a builder who is contracted to do the entire building work is commonly known by one of the following titles: building contractor, contractor, general contractor, the main contractor, where the general contractor (GC) employ all the necessary skills, providing all of the materials, plant, and equipment and undertaking to build what the client had designed (Hughes &

Murdoch, 2001).

To employ all the necessary skills, contractors can establish business relations by hiring subcontractors and suppliers. Subcontractors are usually distinguished from a supplier by including labor as part of the agreed services. A supplier is a person or organization that supplies goods to the client. In some cases, suppliers are defined according to what service or goods they provide. (Hughes & Murdoch, 2001) The typical flow of material and procurement starts with interactions between members in the project.

The initial step is to select suppliers and requesting submits and quotes. If the owners or architects do not specify the suppliers, the subcontractors can use the quotes to evaluate and choose the suppliers themselves. The submits, which generally include shop drawings, product data, samples, manuals, and reports, are forwarded to the GC’s engineers for approval. The submits can then either be denied or approved. If rejected, the process of submitting starts again. On the other hand, it can be approved or approved with minor revisions needed. The revision and re-submission process can be iterative and could take weeks to months in the planning phase. In appendix C the figure C.1 displays the flows of material planning, procurement, and delivery management process in a general construction project. Furthermore, the flow chart provides additional information regarding the type of procured product and the involved actors. (Cheng et al., 2010)

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2.1.3 Planning of Construction Projects

According to Thunberg (2016) the project management body of knowledge (PMBOK) defines construction project management as the application of knowledge, skills, tools, and techniques to project activities to meet project requirements (...) through the application and integration of the project management processes of initiating, planning, executing, monitoring and controlling, and closing. Furthermore, the meaning of the terms "project manager" and "construction manager" diﬀer depending on the context, for example, the project and, or country (Ezeldin & Alhady, 2018). Although the definition arguably diﬀers, the crucial part of project management is establishing clear and achievable objectives and delivering these objectives within the scope, on time, and within the budget (Thunberg, 2016).

Consequently, construction planning is recognized as essential to limit the potential for later construction delays and cost overruns. Johansen & Wilson (2006) divides project planning in construction into two phases, pre-construction planning and on-site planning. Pre-construction planning refers to the planning process, including selecting the project team, creating the project documentation system, initiating the purchasing of materials, and developing the time schedules and milestones. However, the on-site planning is more operationally focused on the daily operations and includes ensuring that planned activities can be fulfilled, schedule adherence, material procurement, and weekly meetings. Furthermore, planning and on-site planning should not be considered to be isolated events. Instead, the on-site planning process is primarily aﬀected by decisions made in the pre-construction planning phase (Thunberg, 2016).

The life cycle of a typical construction project consists of the following stages: (1) conceptualizing, (2) engineering and design, (3) supply sourcing, (4) construction, (5) implementation, and (6) utilization.

However, in reality, these stages are not mutually exclusive or independent, where many of the stages occur concurrently. (Benton & McHenry, 2010)

Additionally, an essential aspect of planning is the coordination of work between other participants in the project. The central element is to establish common grounds, views, and values on project goals.

According to Johansen & Wilson (2006), this should be done early in the project.

2.2 Supply Chain and Management in General

This small section describe SCs in general terms and explain how SC theories are utilized in the manufacturing industry and the terminology debated in literature. After this section, will section 2.3 begin with a more detailed explanation of what diﬀerentiate CSC compared to the manufacturing supply chain.

A supply chain is described as a network formed of firms involved in complex activities and multi processes, from the perspective of the focal firm material travels from upstream suppliers downstream towards the customer. Meanwhile, information travels and is being shared both up and down through the chain.

Management of these aspects, activities, and relationships is supply chain management. It is defined as the design and management of seamless, value-added processes across organizational boundaries to meet the real needs of the end customer. (Othman & Rahman, 2010; Fawcett et al., 2014)

The main idea behind the concept of supply chain management (SCM) is to ensure that the supply chain and its actors achieve value and win on the integration. Adoption of SCM provides cooperative advantages and improved customer value and satisfaction. However, before adopting SCM, firms must become supply chain-oriented and understand that the entire supply chain, not only the focal firms, is creating value for the end customer. SCM includes information sharing, risk sharing, cooperation, customer service focus, integration, long-term relationships, coordination, supply chain orientation, and developing trust, commitment, vision, interdependence, identifying the supply chain leader, and top management support (Mentzer et al., 2001; Fawcett et al., 2014).

Lastly, one discussion which Thunberg (2016) emphasizes is what distinguishes logistic management from SCM. By comparing their respective definition, Thunberg found that logistic management is, in fact, a part of SCM. The reason for why that is can be found in Mentzer et al. (2001) article. The results show that personal perceptions color the topic, and no view is more correct than another. However, their perspective is that logistics is a sub-set of SCM and that logistics activities cross both the SCM and the operations management sphere (Mentzer et al., 2001).

An industrial approach to achieve coordination in the supply chain is, according to Arshinder & Deshmukh (2008) is to use indexes. The authors proposed a model of supply chain coordination index based on four indexes: (1) supply chain contract, (2) information technology, (3) information sharing, (4) joint decision making. The authors argue that it is required to evaluate improvement in performance measures

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qualitatively or quantitatively by using coordination mechanisms (Arshinder & Deshmukh, 2008).

2.3 Supply Chain and Management in Construction

This section begins with a more detailed explanation of what diﬀerentiates CSCs compared to manufacturing ones. Continuously throughout the chapter aspects of SCM is presented and begins with how to integrate and implement construction supply chain management (CSCM), to definitions and initiation of SCM. Ending with the aﬀect of suppliers, logistical problems and their placement.

2.3.1 Supply Chain

CSC and its characteristics diﬀer from traditional SCs in the following areas: product demand, production variability, buﬀering, capacity planning, structure, information flow, and collaboration. The structure of CSC is highly fragmented, with low entry barriers, transient locations, low interdependence, and predominately focus is on local markets. Compared to manufacturing SCs which are highly consolidated, have high entry barriers, fixed locations, and focus on global markets. Furthermore, CSC information flows are recreated several times between trades, there consists a lack of sharing across firms, it is considered to be slow, and there is a lack of IT tools to support the chain. In the manufacturing case, which aims to have a high integration and willingness to share information, special SCM tools have been developed (factory planning, scheduling, procurement, and SC planning). Collaboration is an adversarial practice in the CSC. Meanwhile, manufacturing SC maintain and develop long-term relationships, share benefits and incentives. (O’Brien, Formoso, & Ruben, 2009)

Furthermore, according to Serpell & Heredia Rojas (2004) the construction production system diﬀers as well and presents the following characteristics:

• The construction product is for a single client most of the time.

• The product changes for each project.

• The place, equipment, and methods of production change for each project.

• Construction personnel have a high rotation index during the construction time and between projects.

• Not all the parts and materials can be stored at the site.

• It is not easy to take advantage of economies of scale and learning.

CSC consists of all construction processes, from the client or owner’s initial demands, through design and construction, to maintenance, replacement, and eventual demolition of the projects. It also consists of organizations involved in the construction process, such as client or owner, designer, GC, subcontractor, and suppliers. CSC is not only a chain of construction businesses with business-to-business relationships but also a network of multiple organizations and associations, which includes the flow of information, the flow of materials, services, or products, and the flow of funds between the owner, designer, GC, subcontractors, and suppliers. The flow of information and transitions are many and various (Xue, Li, Shen, & Wang, 2005)

To successfully implement CSC, the GC must first consider the possibility of integrating CSC. It is essential to note the definition of supply chain integration and supply chain collaboration. Although they are used interchangeably through literature, they are diﬀerent. Supply chain collaboration refers to collaborative or cooperative relationships between customers and suppliers as supply chain members or supply chain partners. Meanwhile, supply chain integration is concerned with integrated processes of product or service delivery. It shows the scope and strength of linkages between supply chain processes.

(Bäckstrand & Fredriksson, 2020)

In a conference paper, the authors Serpell & Heredia Rojas (2004) proposed a generic application methodology of SCM to the construction sector by adapting the manufacturing SCM experience and development to the particular characteristics of construction. As part of this research, a survey was carried out to more than 50 companies in the construction sector. The paper proposes a framework for implementing the concepts and principles of supply chain management in construction companies and, in this way, to take advantage of the benefits that SCM can provide. The method for implementing SCM in construction follows the Deming cycle, also known as the PDCA cycle (plan – do – check – act), visible in figure 2.2.

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More information regarding the initial analysis of the SC is placed in appendix C.6 and C.7. (Serpell &

Heredia Rojas, 2004)

Figure 2.2: Main steps of the SCM implementation methodology (Serpell & Heredia Rojas, 2004).

2.3.2 Supply Chain Management

In literature there are several various definitions for CSCM. In some cases, the definition for the manufacturing industry is used. However, Benton & McHenry (2010) defines construction supply chain management (CSCM) as the strategic management of information flows, activities, task, and processes, involving various networks of independent organizations and linkages (upstream and downstream), which produce a value that is delivered to the owner in the form of a finished project. This definition provide clarity to the definition because the final customer for a GC is the client, not the end-user like the manufacturing industry. Upstream activities from a GC or main contractor’s perspective involve the project owner and engineering/design teams to prepare for the construction process since information flow downstream to suppliers. The downstream activities include material suppliers and subcontractors who interact with the prime contractor to carry out the task of building the project. (Benton & McHenry, 2010)

Vrijhoef & Koskela (2000) identified four significant SCM roles in construction, dependent on whether the focus is on the supply chain, the construction site, or both. In role 1, the focus is on improving the interface between site activities and the supply chain. The goal is to reduce costs and the duration of site activities. In this case, the primary consideration is to ensure dependable material and labor flows to the site to avoid disruption to the workflow. Role 2, improving the supply chain, focus on the supply chain to reduce costs, especially those relating to logistics, lead-time, and inventory. Material and component suppliers may also adopt this focus. The third role, role 3, transferring activities from the site to the supply chain, focuses on transferring activities from the site to earlier stages. The last one, role 4, integrates site and supply chain, where the focus may be on the integrated management and improvement of the supply chain and the site production. Thus, site production is subsumed into SCM.

Clients, suppliers, or contractors may initiate this focus. (Vrijhoef & Koskela, 2000)

These roles have gained a fifth role during the past few years. As noted by Bäckstrand & Fredriksson (2020) describe role 5 is as: managing the site and the supply chain as an integrated domain to accomplish integrated supply-chain planning and clear roles and responsibilities among actors.

2.3.3 Planning

As mentioned in previous sections, the construction industry can be seen as two processes, the supply process and construction process, displayed in figure 2.3, whereas they both follow diﬀerent logics. The latter mentioned an engineering-to-order (ETO) logic focusing on the building’s design and how to execute that design and involves two primary actors: the developer who initiates construction and the main contractor who organizes and executes. As for the supply process, which mainly follows make-to-order (MTO), assemble-to-order (ATO), or make-to-stock (MTS) logic. (Bäckstrand & Fredriksson, 2020;

Thunberg, 2016)

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Figure 2.3: Relationship between a construction project, and its construction process and supply process (Bäck- strand & Fredriksson, 2020).

On the one hand, construction planning puts more effort into planning MTO and ATO suppliers, who have longer lead times. The main contractors would like to avoid delays in construction products due to late deliveries. On the other, because the MTS type suppliers have products available in inventory, a construction site’s management tends to exert minimal effort in planning MTS deliveries, resulting in less transport efficiency (i.e., many small deliveries). (Bäckstrand & Fredriksson, 2020)

Consequently, supply chain performance varies between suppliers’ logic. Furthermore, the logic also generates conflicting goals between actors in CSCs. Whereas contractors may wish for just-in-time supply in small batches, MTS suppliers such as merchants usually want to deliver full trucks and minimize dis- tances. In contrast, MTO producers typically want to keep set-up costs down and produce materials in large batches. Displaying the lack of focus construction planning has on CSC. In construction planning, the main contractors, i.e., GC focuses on the construction production where they schedule on-site production activities to meet the developer’s deadlines (Thunberg, 2016), and develop a baseline schedule for the construction production. (Bäckstrand & Fredriksson, 2020)

Based on the schedule, the purchasing organization sets up contracts with suppliers. The site management call oﬀ the materials in accordance with the progress of production (Cheng et al., 2010; Benton &

McHenry, 2010). Usually, the various suppliers and logistics service providers in the CSC perform their own planning in accordance with the GCs general planning (O’Brien et al., 2009). Collectively the body of literature seems to be on the same page regarding coordinating between various actors in the CSC, where GC is responsible. Furthermore, this involves the coordination of site management and ensure resources for logistical activities on-site.

According to Vrijhoef & Koskela (2000) when waste and problems surface in CSCs, it is due to the actions, actors, and activities that occurred in the chain’s previous stages. Hence, the root cause of the waste is rarely found in the activity where the problem was encountered. Instead, they are generated earlier.

Collectively, dealing with the arises of problems falls on into the GC domain, i.e., establish coordination (Vrijhoef & Koskela, 2000). Thunberg et al. (2017) identified and categorized common on-site problems from a SCM perspective and traced the origin of these problems. Via literature review in combination with semi-structured interviews, the authors identified four on-site problems:

1. Material flows and originates in the supply chain

2. Internal communication originates in the construction project process

3. External communication originates in the supply chain-construction process intersection 4. Complexity construction originates from the project as a whole

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In line with Vrijhoef & Koskela (2000), Thunberg et al. (2017) concluded that on-site problems often originate from construction companies’ lack of supply chain orientation and argues that problem stems from previous stages.

2.4 Relationship Management

This section starts oﬀ with theories regarding relationship management for the manufacturing industry.

Thereafter are theories regarding relationship-building eﬀorts and the GCs responsibilities in relation to these explained and presented. After that, will this section present how relationships can be developed, what harm them and how to develop trust. Lastly, as an aspect of relationship-building is information sharing presented in subsection 2.4.1 and begins by explaining construction information sharing and IT.

The chapter then moves on to entail how and what aﬀects these areas, such as organizational strategies and usage of ICT, and how to adopt new technologies. The chapter end with how coordination can be achieved by presenting theories regarding coordination and risks in CSCs.

A conference paper developed by Solaimani et al. (2015) displays generic critical success factors for the traditional SC and collaboration. The paper utilizes an extensive systematic literature review of SC and collaboration. The results indicate that enablers and barriers for collaboration are co-related to the type of collaboration one has with supply chain members. The authors distinguish generic archetypes of collaboration in a given SC by the so-called 4C-Model. The generic critical factors: (1) strategy (collective policy/decision making, customer-centric added-value, long-term strategic vision, common (strategic) objectives), (2) leadership (commitment and participation, collaborative mindset, open and continuous communication, project management), (3) Organization (trust, collective learning, mutuality), (4) Prac- tices (Infrastructure for information exchange, joint planning, forecasting, reward systems, investments, and risk). However, the type of success factor and their relevancy depends on the type of 4C-Model. The full model is displayed in appendix C, figureC.4 and C.5 (Solaimani et al., 2015)

In line with Solaimani et al. (2015), a core process of the traditional SC is that no relationship is created equally, and neither should they. According to Fawcett et al. (2014), some relationships merit much more attention and resources than others. The relationship intensity continuum provides a visual representation of various relationships. At the far left are transactions relationships. These are considered arm-length relationships and cost-driven. Furthermore, they are not a part of the strategic alliances. In contrast, strategic alliances are at the far right of the spectra and are closely scrutinized and carefully managed.

An important factor is not only the investment in terms of resources but more a matter of time, where strategic alliances take a longer time to achieve and maintain. However, there are other aspects to consider. Even though resources and time vary between the relationships and the main focus is on the strategic alliances, are all partnerships considered important to the company, and its SC. Strictly, what the spectra provide is the chance to adapt the strategy accordingly. Trust is another aspect of SC and is considered a fundamental part since it promotes risk-taking, information sharing, and shared resources.

Aspects of trust are that it is diﬃcult to build when the power of the relationship is asymmetrical.

However, trust is the fundamental part of information sharing and building relationships (Fawcett et al., 2014).

Kim & Nguyen (2018) identified factors aﬀecting CSC relationships by performing a two-step SEM model to test the hypothesized relationship between the supply chain relationship traits and project performance.

The study’s objective was to identify the success factors for partnering and the factors that lead to the traditional adversarial relationship or unsuccessful partnering. The findings indicated that the supply chain relationship traits have a significant positive impact on the project performance. Collaboration was the most predominant trait for supply chain relationships and played a prominent role in bringing a good project performance. However, the connections will be improved gradually when the parties start with the integrated team culture characterized by collaborative working rather than conflict confrontation and fragmentation. Collaborative working requires joint decision-making whose purpose is to adopt a more productive strategy and to find mutually agreed solutions. Additionally, to improve supply chain relationships must risks and benefits be shared between project participants. (Kim & Nguyen, 2018) In the construction industry has the GC the primary responsibility to coordinate and establish long-term relationships with subcontractors and suppliers (O’Brien et al., 2009). However, some research indicates that building relationships in the construction industry is a diﬃcult task. The underlying reason is due to the characteristics of the industry (Segerstedt & Olofsson, 2010). However, studies that incorporate both the construction industry and their ability to build and maintain relationships emphasize trust.

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In a literature review provided by the authors Gad & Shane (2014) an overview of theories regarding trust in construction projects is presented. In the compiled literature, the authors presented factors aﬀecting trust development, including management support, communication, reliance, and reputation that improve the ability to build trust (Gad & Shane, 2014). In line with Gad and Shane, Khalfan et al. (2007) stressed the importance of project culture and management support, based on a case study of internal organization and their ability to display problems where individuals require a supportive culture which aims to solve problems. Furthermore, the authors emphasize that any approach in building trusting teams has to accept the construction industry’s commercial realities, i.e., the eﬀect on profits (Khalfan et al., 2007).

Ryciuk (2017) identified factors related to trust formation in construction supply chains. The author’s purpose was to identify the observable trust indicators in inter-organizational relations in construction supply chains and factors closely related to trust and their observable indicators. The research was based on qualitative and quantitative studies conducted among construction companies. The main result is factors associated with trust. More specifically, the authors identified seven general themes and their respective trust indicator:

Inter-organizational

Trust is mainly based on knowledge, evidence of trust, and the traits of the trustee such as his or her skills or reliability, which in turn relates to factors as honesty, reliability, integrity, dependability, promise- keeping, and behavior consistent with expectations.

Partner characteristics

Factors refer to traits assigned to business partners, including good market opinion and a well-known brand, and having a similar approach to business practice and the realization of construction projects.

Furthermore, it requires the correct assessment and choice of business partners.

Relationship formalization

Refers to the existence of in-depth contracts, standards, and procedures mainly in cooperation with large enterprises. It is also connected with the realization of large and complicated construction projects whose scope extends the time of completion and reduces the likelihood of building trust and more personal or long-term relationships.

Cooperation course

The factor is based on observable indicators pointing to characteristics that are typical for partnerships.

The indicators refer to: shared planning, treating the construction project as a common goal, mutual constructive problem solving, sharing knowledge and experience, long-term cooperation, being attached to business partners, being fond of partners, and declaration of willingness to continue the cooperation.

Poor bargaining position

Visible indicators refer to declared dependence on business partners, terms of cooperation being dictated by business partners, ease of being replaced by other entities, and a perceived lack of fair distribution of profits. Poor bargaining position means that the relationship between partners is asymmetrical (the stronger party can influence the weaker party’s activities).

Goodwill manifestations

The factor refers to a situation where partners do favors for one another and perform services beyond the specifications of their agreement. Performing services beyond contractual stipulations is a sign of goodwill trust, which is characteristic of partnership and long-term relationships.

Specific investments

Are investments dedicated to a given partner that cannot easily be transferred to a diﬀerent entity and, as a result, lose their value when the cooperation ends. This factor expresses mutual investment commitment. Mutuality and membership in the same construction associations and organizations signify a higher level of inter-organizational relationships formed and should increase trust and engagement into the inter-organizational relation.

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2.4.1 Information Sharing

Besides the responsibility to maintain relations and building trust, the GC has to ensure communication and coordination. Besides internal communication, external communication becomes vital when establishing relationships with various supply chain members and ensuring coordination on-site (O’Brien et al., 2009). According to Vrijhoef & Koskela (2000) information sharing in CSC has three aspects. The first is information sharing support technology and refers to the hardware or technology, i.e., ICT. The second aspect is information content and is the content that is sent to participants in the supply chain.

Lastly, information quality is merely the quality of the information that is shared (Vrijhoef & Koskela, 2000).

However, there are additional facets of information sharing. According to Hitt, Miller, & Colella (2015), the first one is the frequency and duration of contact between actors, which refers to the amount of information sharing. Additionally, the direction of information and communication medium aﬀects how messages are perceived (Hitt et al., 2015). Construction projects have changed due to new technologies which support information sharing advancements and provide new ways for information and communication to be shared. ICT is used from the initiation to the end of construction projects. Usage of ICT in the industry varies, to mention common ones are computer-aided design (CAD) and BIM but there are many more. These are used in the interfaces of the project and between project participants. Furthermore, ICT has encouraged geographical dispersion and is a retreat for face-to-face contact with more asynchronous communication (Rimmington & Pasquire, 2015). In line with, Loosemore (2014) who argues that there are still project participants who prefer face-to-face meetings and communication.

Information and communication are required internally and externally to organize and carry out projects.

Internal communication between construction project members is aﬀected by the frequency. Whereas the incompatibility of communication within project teams is due to the inadequacies of communication between individuals, team diversity and the use of ICT are exacerbated. (Flyvbjerg, 2009; Rimmington

& Pasquire, 2015)

Figure C.2, in appendix C shows the flow of information from a form of communication. There is a need to distinguish between IT and CT, since IT is essential in construction projects to store information.

However, its use does not necessarily mean communication has to take place. Rimmington & Pasquire (2015) explored the impact of usage of ICT in construction projects. The study results indicated that there is still tension and conflicts in the human-electronic and human-human communication interfaces.

Furthermore, the authors propose increasing the use of ICT at the expense of soft systems communication.

Also, the authors claim that electronic information transfer is beneficial for storing information, but prioritizing urgent and vital information is diﬃcult. (Rimmington & Pasquire, 2015)

For inter-organization communication required in the industry, strategic ICT adoption is needed for the industry level, and organizational strategies must align with the industry-wide strategy. IT enhanced communication, or using ICT, includes generating, coding, processing, storing, and communicating information. Thus, enhanced communication protocols, i.e., accepted behavior, rules, or procedures, are required to define accepted methods of conducting these processes. (Ahuja, Yang, & Shankar, 2010) Furthermore, Ahuja et al. (2010) argues that strategic adoption of ICT requires all the supply chain members to follow the accepted communication methods or communication protocols. The authors developed a strategic model for enhancing ICT diﬀusion in building projects. The model’s framework includes three levels of study, i.e., industry, organization, and people. On the organizational level, the framework consists of planning, design, and implementation to enforce IT-usage and includes in three steps, displayed in appendix C, figure C.3. Step 1 in the framework consists of subtopics such as knowledge, persuasion, and decision. The organization needs to establish an increased understanding of all actors, organizational needs, obstacles, and influence of the senior management for strategic ICT adoption for building project management (BPM). Step 2-7 is the planning and execution of cross-function teams, divided into characteristics of technical and non-technical entities, each with its management function. The last step, step 8, includes the upkeep and cyclic process by updating and changing said ICT strategy. (Ahuja et al., 2010)

Pala et al. (2014) determined the usage of ICT usage of members. An online questionnaire survey was conducted to gather information about supply chain management operations, supplier relationship management, and the ICTs used by contractor firms to manage their extended supply chain tiers. The findings indicated that the majority of ICTs are used between tier 1 supply chain firms, and there is an inconsistency in the number of technologies adopted with the extended supply chain tiers. Despite

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having a high involvement relationship with tier 2 downstream firms, findings indicate that there is a lack of usage when it comes to ICT and aﬀects the ability to manage the organizations, personal, and technological interactions with these firms (Pala et al., 2014).

Furthermore, Dixit et al. (2020) investigated perceived barriers, benefits, and enablers of adoption of ICT. The result indicates that the highest perceived barriers were: lack of government regulations in the adoption of ICT, unwillingness to change by senior construction professionals, poor management of the supply chain, cost of implementation or initial cost of implementation of ICT infrastructure. The last factor has the highest barrier effect, where larger firms can invest and pay the initial costs. Mid-ranked barriers were lack of ICT understanding, lack of expertise, and fear of data protection. The highest-ranked benefit of adopting ICT was simple procurement and supply chain management. Where bad control of the supply chain was also one of the main obstacles to adopting ICT, the highest-ranked enabler was top management should serve as a role model for the whole company in adopting ICT. Furthermore, providing training to construction professionals on this software and equipment is also considered to be important. Neutral responses were given to providing training to construction professionals on this software and equipment. The authors argue that the attributes of ICT tools should be more efficient and risk-free’ indicates that ICT software’s cost should be included in the task price. (Dixit et al., 2020) Bäckstrand & Fredriksson (2020) investigated how coordination affects supply chain performances by opting for a multiple methods approach. The objective was to identify how information availability differs between suppliers and their delivery pattern and how suppliers acted to improve information availability.

The authors found that there are two aspects to consider. Due to the loose couplings and the lack of understanding among main contractors of the value of information sharing, suppliers with continuous supply have an information advantage due to their presence on-site. Second, the supplier can enhance their information availability by increasing their service oﬀering to customers. Furthermore, the authors identified two types of information which was perceived as essential: (1) information about delivery and transport conditions (e.g., turning circles, kind of machinery needed to unload, exact addresses of the gate, and phone numbers of the freight or goods receiver), and (2) updated time plans or delivery schedules (i.e., fulfilling the IQ dimensions or relevance and timeliness) that can be accessed remotely (i.e., with the suitable modality and the IQ dimension of accessibility), instead of current updates, which are made on Post-It notes at the local on-site project oﬃce. (Bäckstrand & Fredriksson, 2020)

Chen et al. (2020) examined current literature regarding construction supply chain coordination from the past 20 years via a systematic review. Three enablers for construction coordination were found: (1) contractual enablers (including subtopics on relational contracts and incentive models), (2) procedural enablers (including subtopics on multiagent knowledge sharing systems and the last planner system), and (3) technological enablers (including subtopics on linked databases for design coordination, design for manufacturing software platforms and automated monitoring technologies). The result of the study showcases each enabler and its main features. Contractual enablers support the integration of the workflows based on trust-binding partnerships. Procedural enablers help streamline workflows and develop collective intelligence by encouraging stakeholders to share information. Technological enablers support the process automation of material components tracking and digitization of component design. (Chen et al., 2020).

According to Briscoe & Dainty (2005) and their case study on construction coordination, there are eight critical attributes for which needs to be considered and managed: (1) Communication, (2) Information flow, (3) Mechanisms for problem resolution, (4) Engineering added value in projects, (5), Alignment of supply chain systems, (6) Ensuring high-quality standards, (7) Securing commitment to the client and the project objectives, and (8) Establishing long-term supply chain relations. Collectively these make up three practices for integrating CSC in construction companies. The first is exchange and information flow needs which has to be established. Integration requires eﬀective communication systems throughout the supply chain’s tiers to ensure excellent and reliable information flows and problem resolution mechanisms.

Furthermore, the study provides examples where the client exhibited a lack of trust in its supply chain associates, which was most apparent in financial transactions. The second factor which has to be managed is, systems and process needs, which concentrate on ensuring that all parties in the supply chain know client processes and, ideally, can align their systems to those of the client. The study indicates an unbalance between various owners and their responsibility to align supply chain members. Some owners showed little interest in the systems operated by their second-tier suppliers mainly, and they were content to allow the main contractor to ensure the quality standards. The failure to integrate systems and processes jeopardizes quality standards and can result in innovative opportunities being missed, with

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contractors and suppliers loath to incur any associated risks. The third and last practice is collaboration needs. These needs focus on co-coordinated working and securing the commitment essential to delivering better value for clients. Such conditions will usually embrace partnering relationships. The study indicates that relationships do not require contractual agreements to be successful. However, the collaboration needs are aﬀected by the owner’s adopted methods, which were irregular, aﬀecting procurement and coordination. (Briscoe & Dainty, 2005)

Ting, Bamgbade, & Mohd Nawi (2020) examined construction supply chain risks by performing a simpli- fied systematic literature review of published articles between 2000-2018. They identified trends of risks in construction supply chains. The first one relates to the involvement of suppliers, subcontractors, and manufacturers earlier in the planning and design phases. This is to ensure that all parties are engaged in the project and reduce the risk of non-compliance. Second, outsourcing should be done when the main contractor does not have expertise within an area of the supply chain, for example, transportation.

However, even though outsourcing has given the main contractor the ability to share risks, it increases the industry’s risk of fragmentation. Resulting in an expanded obstacle to implement CSC processes and develop relationships. Lastly, BIM is widely believed to facilitate knowledge sharing for construction projects and is strongly recommended as a data source for the CSC members to create, share, and use data together. (Ting et al., 2020)

How to Increase Coordination and Integrate Supply Chain Management in Construction