Governance In Project Configured Supply Chains- A Case Study Of Failures In Architectural, Engineeering And Construction Supply

Abstract

This case study covers a Danish architectural, engineering and construction supply network for a specific building project. Failures in supply are used as indicators of the governance forms employed. The following governance forms are present; internal integration and hierarchy, SCM-efforts, subsystem deliveries and contracting per project. The case exhibits a very uneven integration upstream: Three engineering design areas are integrated with production and the client function. Amongst supplies, the architectural design is the most ‘clean-cut’ knowledge supply, whereas the supplies are integrated knowledge, material, workforce and management subsystem deliveries (the building core produced of pre-cast concrete, the elevator supply and the kitchen supply). Further 17 deliveries draws on more than 50 materials and component suppliers. The case project generated 160 failures over three months. The economic expenses were 8 pct. of the product costs. Most of the failures were generated in the knowledge stream and then occasionally transformed into the material stream. None of the mobilised governance forms were able to entirely prevent failures, especially subsystem delivery and internal integration was underperforming.