Effective collaboration in construction – the importance of managing power

The search to find new ways of improving performance in the construction industry led to the introduction of collaborative working and, after fifteen years the question is has this approach delivered the expected improvements. The management of collaborative relationships is often underpinned by trust as a governance mechanism. However, owing to the practical problems of operating in the public sector combined, with the natural disposition of human behavior, the risk of opportunism and exploitation remains, requiring additional governance mechanisms to be put in place. However these mechanisms can only be realised if there is a position of strong buyer power. Therefore, the purpose of this thesis is to consider what impact buyer / supplier power has on collaboration and the consequent benefits delivered. Research has been carried out on a case study involving four projects from the Birmingham Construction Partnership using interviews and a questionnaire. It was found that levels of collaboration were not affected by marginal differences in power, but rather by agency factors and trust. However, the conclusion drawn is that the buyer must retain a strong position of power in order to ensure the buyer obtains a good apportionment of value generated by collaboration