Long-run relationship, Vertical Integration and International Competition:: Can they contribute to explaining regional construction cost differences?
(English)Manuscript (preprint) (Other academic)
The existence of opportunistic behavior by contractors or sub-contractors in the bidding process encouraged by the governance structure of construction companies as well as the kind of relationship that exist between contractors and clients is thought to have some bearing on the rising construction cost observed in some regions of Sweden. Three hypotheses were formulated concerning the impact that long run relationship between contractors and developers, vertically integrated firms, and the increase of international competition could have on the construction cost increase. The hypotheses were tested by collecting data from a number of projects from six cities in different regions. The semi-structured survey produced inconclusive results. Long run and collaborative relationship was prevalent in small region though respondents in this region did not see a strong connection between construction costs increase levels and the kind of observed relationship. In the Stockholm region short-term relationships were mostly prevalent. Vertical integration and foreign competition impacts on construction costs were not significant in either region.
Construction costs, vertical integration, long run relationship, competition
IdentifiersURN: urn:nbn:se:kth:diva-47672OAI: oai:DiVA.org:kth-47672DiVA: diva2:455952
ProjectsDoctoral Thesis: Performance of Construction Projects
QS 20122011-11-112011-11-112014-01-21Bibliographically approved