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Research

28 ABR. 2018

Contractor management under changing procurement regimes

The market demands from the UK Government on the construction sector increased during rearmament and the early years of the Second World War. The main contractors diversified into this market, then diversified their workload in the market and through geographical coverage across the regions.

This restructuring of the sector only took place due to government changing the procurement regimes by first using the cost plus and then target cost contract, and then at a strategic level by controlling the procurement market.

The result was that work was concentrated in fewer hands and the largest contractors grew to increase their market share and hence capital concentration.

An historical approach is employed in this research, acknowledging the interpretation that occurs of events among the actors and commentators as well as the interpretation for analytical purposes. The findings have implications in the market of today, where the demands for urban and infrastructure renewal currently outstrips the capability and capacity of the largest main contractors. The management of these firms is reactive in the face of, and is not keeping pace with, the scale and complexity of client demands.

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