Identifying optimal business network configurations in construction project supply chains

The construction of a building, or other facility, is a complex, information dependent, prototype production process where conception, design and production phases are compressed, concurrent and highly interdependent, in an environment where there exists and unusually large number of internal and external uncertainties. This paper relates to a research project where Social Network Analysis (SNA) is used to gather data relating to transaction sets associated with the main functions of the project coalition. The paper looks at networks relating to contractual conditions, performance incentives and cost management information exchange. Analysis of the contractual relationship networks reveals significant differences in network path lengths depending on the model used to manage the supply chain. The experienced private sector client chose a non-bureaucratic model with exceptionally short path lengths; the comparable public sector model using a supply chain managing agent (SCMA), involving longer path lengths and less privity of contract between client and Tier 2. Performance incentives are tacit and relate to maintenance of workload in the non-bureaucratic private sector supply chain network; the public sector´s use of a SCMA required extensive use of contiguous performance incentives. Finally the cost management networks revealed (inter alia) that independent cost management functions are partly obviated by collaborative supply chain relationships.