Managing appropriately in construction power regimes: understanding the impact of regularity in the project environment

This paper investigates the impact of lean and partnering approaches to supply management in the construction industry. The paper outlines how the project environment that is endemic in the construction industry creates power regime structures that are often resistant to lean and partnering approaches to sourcing and business relationship management. Drawing on two case studies – one for mechanical and electrical products and the other for prefabricated restaurant subunits – the paper shows that what is appropriate in one context may not be an appropriate or realistic sourcing or business relationship choice in another. The paper concludes that only in supply chains with high levels of extended buyer dominance and/or interdependence, and with regular volumes, is a lean/partnering approach feasible.