Harmonisation and Lean Construction: Acknowledging theRole of the Small Subcontracting Firm

It is maintained that processes such as lean construction can arguably reduce costs within theconstruction process. These costs primarily arise due to a lack of harmonisation betweencontracting parties. Historically, this relationship has been transactional in nature, with bothparties seeking to secure value added at minimal cost. Despite this fact, evidence suggests thatmutual co-operation that can supersede a traditional cost-led approach offers new hope forprosperity in the construction industry. This paper provides preliminary case study research,highlighting that the competent implementation of lean construction can only reduce transactioncosts if the small subcontracting firm is fully integrated into the process. Thus, it is argued thatharmonisation between large and small firms is a prerequisite for lean construction. The paperconcludes that new practices will only have limited appeal to small subcontracting firms if theycontinue to facilitate contractor opportunism instead of reducing the transaction costs of allstakeholders involved in the construction process.[...]