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This article examines the changes in the relationship between government departments and the UK construction industry brought about by the privatisation of the Property Services Agency (PSA). In particular, it shows that while there has been some encouragement for closer, and more long‐term, collaboration, in reality government departments seem to be stuck in a short‐term, win‐lose orientation. The article concludes by arguing that this is a product of four factors: the lack of experience among both purchasers and providers of long‐term partnership arrangements; the risk‐aversive nature of the Civil Service; the pressure on departments from ministers to minimise risk; and government guidelines on competitive tendering which make it difficult to enter into long‐term agreements.

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