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Japanese contractors have been successful in adopting total quality management (TQM) practices in their domestic operations. By examining Japanese contractors in a foreign country, the research presented in this paper shows that the implementation of TQM in the construction industry is constrained by national markets where the clients, subcontractors and site operatives are not imbued with the same quality culture. The location‐bound nature of the production process, competitive bidding which emphasises cost, dependence on subcontractors and the non‐direct link between the main contractors and site operatives are some of the constraining factors. Nonetheless, as demonstrated by the Japanese contractors, TQM routines can still be implemented, provided local norms and contracting practices are accommodated.

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