The Implication of Partnership Success Within The UK Construction Industry Supply Chain

The concept of partnering in construction seems to be the subject of the decade within the industry. Large construction companies in developed countries such as Japan and USA use partnership sourcing with suppliers, clients and even competitors as a strategic choice to improve their effectiveness, innovativeness and competitive edge. But above all, these relationships can create harmony that can lead to increase returns for all parties.
The construction industry in the UK tends to be fairly fragmented and adversarial parties are increasingly trying to use alliances and partnering techniques to add value to their projects. While the material procurement services process is not the only factor known to contribute to the effectiveness of the construction industry, it has always been identified as an important causal factor. Nevertheless, Supply Chain Management has taken a low priority in the construction industry thinking and in particular its importance in determining business success.
Partnering is currently held by many as the way forward in construction. There is a belief that this form of procurement will produce 'win-win' results for clients, contractors and suppliers. This paper will illustrate the implication of partnering success in the supply chain. It will outline partnership success in other industries, particularly in the manufacturing industry, and show what lessons are to be learnt from this success in order to be successfully implemented within the construction industry supply chain.