16
feature
hot topic
from adversarial to aligned – the case for change in supply chain
relationships and why collaboration can’t wait
Strong supply chain relationships have always been central to successful construction projects. Yet new research suggests that, despite decades of industry effort, adversarial behaviours remain deeply embedded and continue to undermine delivery. Rekha Thawrani OBE, Global Director at NEC Contracts explains how trust and collaboration are now construction’s most valuable assets...
The construction sector has never been short of challenges, but a new global research report from NEC Contracts suggests that one issue sits at the heart of many of them: the way supply chains work together. Trust, Contracts and
Outcomes: A Global Study of Construction Supply Chain Relationships is one of the most comprehensive investigations to- date of how trust and collaboration shape project outcomes and where the industry believes improvement is most urgently needed. The fi ndings are both a wake-up call and a roadmap for change. A sector under pressure
The report draws on the views of more than 1,000 built environment professionals across the UK, Australia, Peru, Singapore and Hong Kong, and confi rms what many experience daily: that project delivery remains inconsistent.
Respondents estimated that only 58%
of projects they had worked on in the past three years were delivered on schedule and to budget. This means more than four in ten projects missed at least one of these fundamental measures of success. The feedback mirrors fi ndings from a recent Guardian survey of senior UK council offi cers in which 64% reported delays on building projects. Three key drivers of instability
were identifi ed in the NEC research: poor estimating and job costing (42%), uncontrolled scope changes (39%), and late payment culture (33%). These issues are not new, but the data shows how signifi cantly they continue to aff ect performance. Moreover, the fact that parties often
operate competitively rather than cooperatively is also widely acknowledged.
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