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NEC Contracts has published Trust, Contracts and Outcomes: A Global Study of Construction Supply Chain Relationships, a major piece of exclusive research exploring the factors shaping supply chain relationships across the built environment. Drawing on the views of more than 1,000 industry professionals in the UK, Australia, Peru, Singapore and Hong Kong, the report provides a detailed picture of current attitudes to trust, collaboration and contracting, and the gap between where the industry stands and where professionals believe it needs to be. The research paints a clear picture
commercial pressure. On average, respondents estimated that only 58% of projects they had worked on in the last three years were delivered on schedule and to budget. Poor estimating and job costing (42%), uncontrolled changes in project scope (39%) and late as the biggest causes of business disputes globally.
contractual pressures make project agreed poor supply chain relationships risk business continuity. Public sector respondents offered a
WG206
The data highlights persistent adversarial dynamics across the industry. 61% of respondents globally agreed that built environment projects create inherently adversarial supply chains, with just 11% disagreeing. 68% agreed that commercial and
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notably more optimistic picture. Only 49% agreed that supply chains are inherently adversarial, compared to managers working for main contractors and 69% for civil engineers. Fewer in the public sector (56%) also agreed that disputes are an inevitable part of complex project supply chains, These more positive views are likely sector clients who have actively worked with collaborative contracts on major programmes, and point to what becomes possible when collaborative approaches are consistently applied. Despite the broader challenges, the
research reveals strong belief in the value of collaboration. 83% of respondents agreed that trust between parties is critical to successful project outcomes.
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