Organization, Technology & Management in Construction: An International Journal
ISSN 1847-5450 print / ISSN 1847-6228 online
udc 62:658(05)

<<Table of Content

5. Roine Leiringer & Stuart D. Green:

In search of high value construction: adding value through Service-led projects

Abstract:

The uK ConstruCtion industry is inCreasingly exhorted to operate on the basis of adding value externally rather than focus on cost efficiency. Industry champions and policy setters advocate the need for construction companies to refocus firm orientation and add services to their traditional core product business. Major clients look to procure built facilities on the basis of added value, rather than capital cost. These trends towards ‘high value construction’ embrace design, production and facilities management and emphasise the need for the sector to shift its attention away from product delivery towards the satisfaction of clients’ needs. In consequence growing emphasis is given to whole
life considerations and to the service dimension of projects. Of particular interest in this emerging commercial landscape is the concept of service-led projects. These projects are seen to provide a radically different context where the whole rationale for the project is driven by the client’s business strategy and objectives for a new or enhanced service to its own customers. As such they are characterised by a localised ‘vision’ driven by downstream service delivery. Arguably this introduces a new realm of project complexity given the way in which the number of stakeholders increases. The paper examines the persuasive appeal of this vision and the difficulties that individual firms face in making such a transition. The case is made that the ideas of adding value and service-led construction projects have emerged in parallel with broad-
er trends within manufacturing at large. Particular focus is given to how this new context challenges deeply-ingrained working practices in construction and why it presents a major challenge for the sector.

Keywords:

service-led projects, high value construction, integrated solutions