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Contractors and Developers in the Building Industry: A dog in a leash or...? Susse Laustsen, Ester Jensen, COWI A/S and Per Langaa Jensen, Technical University.

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Presentation on theme: "Contractors and Developers in the Building Industry: A dog in a leash or...? Susse Laustsen, Ester Jensen, COWI A/S and Per Langaa Jensen, Technical University."— Presentation transcript:

1 Contractors and Developers in the Building Industry: A dog in a leash or...? Susse Laustsen, Ester Jensen, COWI A/S and Per Langaa Jensen, Technical University of Denmark

2 Dominating theoretical position in studying SME’s: •SME’s = ’simple structures’ –Direct interventions as the dominating coordinating mechanism. •Emphasis on development of competencies –to qualify the owners to include aspects concerning occupational health and safety in their decision making

3 Focuses in studying SME’s Simple structur  Direct intervention: Competencies of the owner Accountants Labour inspection Clients Labour Markets Organisations Vocational training centres

4 Our theoretical point of departure; A contextual approach •Main focus on the context in which the small building contractor works •Only marginally on the processes within the enterprise. •We delimit our focus to the contractual relation between the client and the small building contractors

5 Basic questions behind the research •How does an ’up-stream’ strategy in OHS regulation actually function in successful cases involving small enterprises? •‘Up-stream’ strategy: –Formulate demands on other units in the value chain Developer Subcontrator1Subcontrator2Subcontrator3

6 6 A strategy for improving OHS at building sites •The building trade in DK aspire to create better OHS at the building site by formulating demands concerning OHS to all actors involved in the building process •The labour market parties within the building trade agreed (in 2005) on a proposal to attain higher working condition standards at building sites. •Putting demands on: •The client •The advisor employed by the client •The planers •The building enterprises (subcontractors) •The employees

7 The aim of the study •What are the impact of the clients' demands to occupational health and safety in small building enterprises. –What are the restraints for the client in formulating these demands? –How are the demands perceived by the small building contractors, and how do the demands affect the tendering process and the execution phase? –Are there special constraints for the small building contractors, which could cause severe problems? –Can these barriers be minimised by reformulating the demands?

8 Demands to the client Draw up an OHS policy, comprising: •The OHS standard aimed at. • How the client intend to reach these aims. • How the client intend to fulfill his duties according to law. • The demands to be fulfilled by the others involved. • How the client intend to control that they fulfill the duties. Where relevant these aims have to bee taken into consideration when selecting subcontractors including their ability to fulfill these demands.

9 Demands to the enterprises Has a policy on OHS assuring that all levels of the enterprise: • Fulfill their duties according to law • Have the necessary qualifications within OHS • Participates actively in maintaining and improving a high OHS standard • Presents the same demands to subcontractors.

10 10 Design of the study Case studies - in total 20 cases Analyse experiences on working with demands on OHS formulated in tenders : •10 developers formulating demands •Min. 15 smaller construction firms (<50 employees) Analyse barriers to developers for formulating demands •10 developers not formulating demands to OHS in tenders

11 11 The sample 1 DeveloperTypeNumber Formulating OHS-demands Private2 State institution4 Municipality2 Private, partly owned by the state1 Joint venture state and municipality1 No OHS-demands Private chain of shops3 Developer2 Non-profit housing association1 Municipality1 Developer within an independent organisation1 Private real-estate company1

12 12 The sample 2 Type - tradeNumber of employed Master builder 2,5 – 10 2,5 Master painter5 Carpenter7 Carpenter and construction manager 9 Carpenter10 Demolition 11 – 20 15 Sunlight protection and windows15-20 Earth and landscape 15-20 Master carpenter20 Scaffolding20 Electrician 21 – 30 24 Equipment25 Landscape25-30 Asbestos removal 31 - 50 43

13 Analysis: Three ideal types Ideal typeAbbriviation 1The interested and Engaged DeveloperIED 2The Compliant DeveloperCD 3Developers believing that Other Know Best OKB

14 Results 1.Motives behind clients engagement

15 Motives behind clients engagement •The agreement •Legislation and inspection •Production philosophy •Risk reduction Legitimacy Economy

16 Effects in the small enterprise •Non •Better planning •Better risk assessment •Better pratice

17 Results 1.Motives behind clients engagement 2.Understanding the relation

18 Results •Recommendations on how to work with the clients' demands. –Clients: •How to formulate demands •Strategies to follow –Small enterprises: •How to make a tender •Activities to be taken

19 Understanding the relation •Principal – agent: –No explicit monitoring and no reprisal

20 Basic principles behind the ’demand model’ •Principal – agent – theory •The principal: –Is interested in having a task conducted •The agent: –Is willing and able to conduct the task •How does the principal ensure that the agent adjust to the interests of the principal?

21 •The Contract: –Defines the relation between contribution and reward •Contract-types –Output-contract –Behavioural-contract •Control pivotal for compliance •Occupational health and safety is typically related to behavioural contracts •Assumes a symmetry in competencies AgentPrincipal Control is neglected Limited OHS-competence at the agents organisation

22 Reparation PrincipalAgent AM-agent

23 Bygherren må sikre en netværks- organisering, hvis det skal lykkes Form for organisering MarkedHierakiNetværk Basis KontraktAnsættelseSupl. styrker Kommunikation PrisRutinerRelationer Konfliktbeh. JuraOrdreOmdømme Fleksibilitet HøjLavMiddel Forpligtigelse Lav→ HøjMiddel Tone PræcisionFormelÅben og gensidig Kobling Uafh.AfhængigGensidig

24 Konsekvenser for bygherren •Ressourcer til pædagogisk arbejde •Mere vedvarende relation

25 Hvad sker der i samspillet Isomorfisme (’efterligner’) 1) TvangsmæssigtMan gør hvad de siger for at slippe for sanktioner 2) EfterligningMan gør som de gode, fordi så er man selv god 3) NormativtMan gør det, fordi det er godt

26 Overvejelser hos bygherren Struktur Opgaver Procedurer, hjælpemidler og værktøjer Aktører

27 Kompetencer hos bygherrens sikkerhedskoordinator •Viden om byggeprocessen og relaterede regler mm. •Synlighed •Identificere og fastholde god adfærd •Forandre uhensigtsmæssig adfærd •Indlevelse •Politiske spil også internt i egen org. •Pædagogik

28 Konklusion •Modellen med bygherre krav om arbejdsmiljø kan fungere •Men den sætter specielle krav til bygherren: –Forståelser –Ressourcer

29 Understanding the relation •Principal – agent: –No explicit monitoring and no reprisal •Network relation –Complementary competencies –Trust relations

30 Conclusions •Contractual demands (might) have an impact •But the basic frame used in rhetoric (principal – agent) is not acted out in practice. •A net-work based understanding a better frame for development of actions: –Complementary competencies –Trust relation •Recommendations: –The client: extra resources, new relations –The small: new competencies, possibilities for learning

31 Results 1.Motives behind clients engagement 2.Understanding the relation 3.Recommendations for practice

32 Thank you


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