1. © Graham M Winch III : Mobilising The Resource Base1 III : Mobilising the Resource Base mobilising the resources required to deliver the project mission forming the project coalition motivating the project coalition the dynamics of the supply chain appropriate transaction governance –flows across a technologically separable interface

2. © Graham M Winch III : Mobilising The Resource Base2 Appropriate Transaction Governance asset specificity frequency uncertainty opportunism bounded rationality learning appropriate governance mode

3. © Graham M Winch III : Mobilising The Resource Base3 5 : Forming the Project Coalition When people seldom deal with each other, we find that they are somewhat disposed to cheat, because they can gain more by a smart trick than they can lose by the injury which it does to their character Adam Smith

4. © Graham M Winch III : Mobilising The Resource Base4 Forming the Project Coalition the principal/agent problem in construction –adverse selection –moral hazard procuring construction services the formation of project coalitions selecting resource bases improving procurement practice

5. © Graham M Winch III : Mobilising The Resource Base5 Procuring Construction Services four selection options –in-house capability –appointment –concours (competition) –competitive tendering supplier selection methods –level of uncertainty at selection –point in project life-cycle

6. © Graham M Winch 6 Supplier Selection Methods level of dynamic uncertainty level of mission uncertainty at supplier selection high low design services execution services in-house capability in-house capability appointment concours competitive tender competitive tender appointment early late concours

7. © Graham M Winch III : Mobilising The Resource Base7 Formation of Project Coalitions three options –separated routes : trades and general contracting –integrated routes : turnkey –mediated routes : construction management the formation of firm contract –a life-cycle perspective procurement route risks –from a client perspective

8. © Graham M Winch III : Mobilising The Resource Base8 Separated Project Coalition 1: Traditional Trades Contracting client roofers masons carpenters architect / surveyor other traders

9. © Graham M Winch 9 Separated Coalition 2: General Contracting client consultant quantity surveyor main contractor domestic sub- contractor operative workforce architect nominated sub- contractor

10. © Graham M Winch III : Mobilising The Resource Base10 client operative workforce turnkey contractor sub- contractors Integrated Coalition: Turnkey in-house professionals

11. © Graham M Winch III : Mobilising The Resource Base11 Mediated Coalition: Construction Management construction manager client trade contractors architect consultant quantity surveyor

12. © Graham M Winch 12 Clients Risks Associated with Different Project Coalitions min max min low high mission uncertainty clients realisation risk clients conception risk clients specification risk integrated separated mediated

13. © Graham M Winch III : Mobilising The Resource Base13 Criteria for Selecting Resource Bases in-house –no choice appointment –certification and reputation concours –open or invited competitive tendering –tendering code of practice

14. © Graham M Winch III : Mobilising The Resource Base14 The Formation of Firm Contract when risk passed to the supplier early contracts –low value contracts –high value decisions late contracts –much higher value contracts –lower value decisions

15. © Graham M Winch III : Mobilising The Resource Base15 The Formation of Firm Contract early late dynamic uncertainty integrated general contracting management contracting design and manage construction management trades contracting

16. © Graham M Winch III : Mobilising The Resource Base16 Improving Procurement Practice e-procurement partnering –raising transaction frequency and enabling learning best value –appropriate price/quality ratios

17. © Graham M Winch 17 Appropriate Price / Quality Ratios in Competitive Tendering min max high low uncertainty importance of price importance of quality quality / price ratio