Governance of Construction Project Networks - A case study of construction projects with a manufacturing company as client

Abstract

The construction industry is known for working in projects consisting of many actors specialized within different areas. However, these actors are dependent on and affected by each other within the project network, and project network governance is therefore an important aspect in the execution of projects. The client has a key role in governing this network, establishing structures that the other actors should adapt to. Due to the client´s importance in construction projects, their knowledge and experience have a major impact on the outcome of projects and how the other actors distribute their time performing different activities. Even though it is not uncommon that construction projects are governed by clients from another industry and therefore lack knowledge and experience of the construction industry, research of such projects is lacking. Therefore, finding literature investigating how such projects are organized, governed, and executed is challenging. Further, literature on how entire networks are governed, how governance is applied, and how it affects the organizational work in the projects is also lacking. Bearing this in mind, this master thesis aims to increase knowledge about how project network governance is applied and influences project execution in construction projects governed by clients from other industries than construction. To do so, a case study was done investigating three of the observed organization’s key projects using a qualitative research approach. 11 deep interviews with respondents who have a leading role representing key actors within the projects was conducted, complemented by 5 observations in one of the projects. The study outlines that the observed organization applies a systemic approach but practices strict control and is heavily involved in decision making, which requires a lot of time and hinders progress since the studied organization lacks knowledge related to construction projects. Therefore, knowledge needs to be sourced from external actors. Both decision mandate and overall role descriptions are unclear to many actors within the project network. Further, all investigated actors in the projects spend time on activities related to coordination, communication, and information sharing, especially related to decision making. By highlighting the importance for organizations to be aware of the construction process and the effects of applied governance practices, even though it is not the main business area, the construction process can be more effective, leading to economical, timely and other resourceful gains, not least as construction projects usually are related to big investments.