Dynamics of Construction

Sequence of Argument
Situated Projects AIDA Operational Islands Governing Projects Coordinating Projects Cycle of Escalating Complexity

Map of Professions
Planners
Interior Designer

Landscape Architects

Engineers

Architects Contract lawyers Quantity Surveyors

Civil Structural Mechanical

Chartered Builders
General Practice Surveyors
Letting Agents

Accountants Finance
Housing Officers

Building Surveyors

Map of Functions (client)

Planners
Interior Designer

Landscape Architects

Engineers

Architects Contract lawyers Quantity Surveyors

Civil Structural Mechanical Chartered Builders

Accountants Finance
Housing Officers

General Practice Surveyors

Letting Agents

Building Surveyors

Map of Functions (Design)

Planners
Interior Designer

Landscape Architects

Engineers

Architects Contract lawyers Quantity Surveyors

Civil Structural Mechanical Chartered Builders General Practice Surveyors

Letting Agents

Building Surveyors

Accountants Finance
Housing Officers

Map of Functions (Construct)

Planners
Interior Designer

Landscape Architects

Engineers

Architects Contract lawyers Quantity Surveyors

Civil Structural Mechanical

Chartered Builders
General Practice Surveyors
Letting Agents

Accountants Finance
Housing Officers

Building Surveyors

Map of Functions (Project Management) Planners

Interior Designer

Landscape Architects

Engineers

Architects Contract lawyers Quantity Surveyors

Civil Structural Mechanical

Chartered Builders
General Practice Surveyors
Letting Agents

Accountants Finance
Housing Officers

Building Surveyors

Map of Functions (Facilities Management) Planners

Interior Designer

Landscape Architects

Engineers

Architects Contract lawyers Quantity Surveyors

Civil Structural Mechanical Chartered Builders Building Surveyors

Accountants Finance
Housing Officers

General Practice Surveyors

Letting Agents

Complexity
Technical novelty and variety Specialisation Fragmented Professional polarisation Interdependence Information Incomplete Information impacted

Construction Situations
Complexity

Uncertainty

Situation

Instability

Value Conflict

Uniqueness

Situation Pressures
Uniqueness Meaning of project
Expert power

Complexity
Whole vs part connectivity

Value Conflict
Big commitment Stakeholder Fragment and polarised Underbounding

Specialisation Many low value parts

Technical solutions Not viable

Instability
Other project Parent Organisation

Uncertainty
Technical context

Professional sponge For anxiety

Weather Ground New materials

Operational Islands

Transaction Governance
Number of Times done frequency Number Able to Do it uncertainty Asset specificity

learning

Bounded rationality

Complexity of task and Knowledge of task

opportunism

Transaction Costs
NOT production costs BUT Communications Coordination Management Contracting Learning to do it

Markets
Most efficacious when all necessary information is conveyed between parties by a price and this item information is sufficient

Hierarchies
Group extends bounds of rationality Easier information exchange: jargon, code Curbs opportunism Split into smaller sequential steps Handle unfolding events Disputes handled by authority Overrules bargaining by small numbers Accommodates quasi-moral and obligations

Hierarchies BUT
Administrative transactions high Internal groups develop separate goals Proliferation of specialist in control Sunk costs encourage old ways Communications distorted Leaders become distant: bureaucratic insularity Cooperation perfunctory

Information Impactedness
Uncertainty/ complexity

Small No. Of parties

Bounded rationality

Opportunism

Information Impactedness

Interdependency
Pooled

Sequential

Reciprocal

Cycle of Escalating Complexity

Incompleteness
Errors Belief in certainty Technical complexity Specialisation Organisational complexity Reciprocal Interdependence

Project Governance
Market Environment

Information Impactedness

Maladaptive behaviour

Coordination

Numerous & Complex Transactions

Opportunism
Bounded Rationality