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Long run relationships, Vertical Integration, and International competition: Can they explain regional construction cost differences?
KTH, School of Architecture and the Built Environment (ABE), Real Estate and Construction Management, Building and Real Estate Economics.ORCID iD: 0000-0002-1729-3933‎
2014 (English)In: Journal of Civil Engineering and Architecture, ISSN 1934-7359, Vol. 8, no 4, 378-387 p.Article in journal (Refereed) Published
Abstract [en]

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 that are intended to test 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 levels were tested on a predetermined number of projects from six cities in different regions. The semi-structured survey produces inconclusive results. Long run and collaborative relationship was prevalent in small region though respondents in this region did not draw strong connection between construction cost increase levels and the kind of observed relationship. In Stockholm region, short-term relationship was mostly prevalent. Vertical integration and foreign competition impacts on construction costs were not significant in either region.

Place, publisher, year, edition, pages
David Publishing Company, 2014. Vol. 8, no 4, 378-387 p.
Keyword [en]
Construction costs, competition, long-term relationship, vertical integration
National Category
Construction Management
URN: urn:nbn:se:kth:diva-144587OAI: diva2:714188

QC 20140923

Available from: 2014-04-25 Created: 2014-04-25 Last updated: 2014-09-23Bibliographically approved

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