Reducing Construction Execution Conflict While Increasing Productivity: The Link between Internal Integration and Financial Performance
Publication: Journal of Legal Affairs and Dispute Resolution in Engineering and Construction
Volume 15, Issue 1
Abstract
The construction environment is fractious. The sector underperforms globally with low profitability and a significant contributing factor to these poor financial outcomes is the characteristics of the construction supply chain. The result of the unique nature of construction projects, which consist of multiple contractors, subcontractors, and suppliers all vying to reap the maximum financial benefit during the project’s life, is a bespoke supply chain for each new project. There is little research evaluating how the construction supply chain affects productivity at the aggregated firm financial level. The aim of this paper is to address this dilemma by putting forward a model to deliver business outcomes to minimize this fractious nature and improve performance. By reviewing the operational, management, and supply chain literature, the authors propose a model to enhance company financial performance by integrating the compound constructs of strategy, process, and information. The literature has not arrived at a theory for integration, remains disjointed, and cannot elaborate on either what to integrate or how to integrate. A novel approach that links the three compound constructs of strategy, process, and information, and their component parts, direct to financial outcomes has the possibility of modernizing construction management, unifying the literature, and ultimately increasing productivity in construction through reduced disputes and better resource allocation.
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Data Availability Statement
No data, models, or code were generated or used during the study.
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Journal of Legal Affairs and Dispute Resolution in Engineering and Construction
Volume 15 • Issue 1 • February 2023
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© 2022 American Society of Civil Engineers.
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Received: Mar 14, 2022
Accepted: Jul 21, 2022
Published online: Oct 18, 2022
Published in print: Feb 1, 2023
Discussion open until: Mar 18, 2023
ASCE Technical Topics:
- Bibliographies
- Business management
- Construction engineering
- Construction management
- Contracts and subcontracts
- Dispute resolution
- Engineering fundamentals
- Financial management
- Freight transportation
- Information management
- Infrastructure
- Legal affairs
- Logistics
- Personnel management
- Practice and Profession
- Productivity
- Project management
- Supply chain management
- Transportation engineering
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