Project procurement as a market

When building and construction markets are analysed it is often at the project level, with markets defined by sector or structure type, procurement method or contract, size, complexity or other characteristic. Projects within a defined market are then grouped together to establish its importance, detached housing for example, or high-rise commercial. A distinction can be made, however, between a market made up of similar types of projects and the market for a single project. Such a market is created by a client as they go through the procurement process. This paper introduces the idea that procurement of a project creates a identifiable, though temporary, market for goods and services, and that such a market has distinctive characteristics that make it both interesting, as a source of testable hypotheses and further research, and important in developing our understanding of the industry and its dynamics. The research the paper reports on shows that the idea of project procurement as a mechanism for creating a market can utilise the elements of industry structure and competitive analysis that have traditionally been applied at the firm level. The paper concludes that this allows a new perspective on issues such as collusion, ruinous competition and cost uncertainty associated with the typical single price, sealed bid auction used for procurement in the building and construction industry

Innovation, Procurement and Construction Industry Development

The implications for analysis of innovation in construction of theoretical developments in industrial organisation are considered in this research, as an attempt to outline a new approach to construction innovation incorporating the ideas found in knowledge based, technology centred models. The paper firstly summarises characteristics of the construction industry, focusing on their effects on innovation, before surveying some of the ideas about the sources of innovation and the expansion and application of knowledge. Construction can be seen as an industry with limited scope for knowledge externalities, where the procurement methods used by the industrys clients do not pay for innovation. The following discussion uses recent developments in the research on the economics of innovation and industrial organization theory, such as research intensity and the endogenous sunk costs in competitive, fragmented, low research intensity industries. The effects on R&D of procurement methods and on industry structure are discussed, with a focus on the appropriability of innovations and the role of the client on the Heathrow Terminal 5 project. The paper concludes that the procurement methods used for building and construction projects appears to be a determining factor in the level of innovation in the construction industr

Graham Ive and the methodology of construction economics

© 2015 Taylor & Francis. Graham Ive’s central contribution to our methodological debate was his insistence on the firm as the analytical unit. Ive argues we should reject theories if the aspect of construction we are examining does not satisfy the assumptions of a particular theoretical model. We see this in his rejection of neoclassical economic theories in the two topics discussed in this paper: the adoption of innovations in construction; and microeconomic analysis as it relates to price determination in the market for construction. The former requires studying not just participants in the building process, but also participants in the innovation process, and the latter uses post-Keynesian pricing theory where prices are set according to mark-up procedures and vary with costs, but not directly with demand. This is in contrast to the general equilibrium, perfectly competitive price setting of neoclassical economics. Ive and his collaborators show a way towards better research in their emphasis on theory and the insistence that for construction economics the analytical units are the industry and the firm, not the project. Ive’s concern is that the processes involved in organizing the production of buildings should be seen as a distinctive and defining element of our analysis of the industry

Nonthrombogenic, Biodegradable Elastomeric Polyurethanes with Variable Sulfobetaine Content

For applications where degradable polymers are likely to have extended blood contact, it is often important for these materials to exhibit high levels of thromboresistance. This can be achieved with surface modification approaches, but such modifications may be transient with degradation. Alternatively, polymer design can be altered such that the bulk polymer is thromboresistant and this is maintained with degradation. Toward this end a series of biodegradable, elastic polyurethanes (PESBUUs) containing different zwitterionic sulfobetaine (SB) content were synthesized from a polycaprolactone-diol (PCL-diol):SB-diol mixture (100:0, 75:25, 50:50, 25:75 and 0:100) reacted with diisocyanatobutane and chain extended with putrescine. The chemical structure, tensile mechanical properties, thermal properties, hydrophilicity, biodegradability, fibrinogen adsorption and thrombogenicity of the resulting polymers was characterized. With increased SB content some weakening in tensile properties occurred in wet conditions and enzymatic degradation also decreased. However, at higher zwitterionic molar ratios (50% and 75%) wet tensile strength exceeded 15 MPa and breaking strain was >500%. Markedly reduced thrombotic deposition was observed both before and after substantial degradation for both of these PESBUUs and they could be processed by electrospinning into a vascular conduit format with appropriate compliance properties. The mechanical and degradation properties as well as the acute in vitro thrombogenicity assessment suggest that these tunable polyurethanes could provide options appropriate for use in blood contacting applications where a degradable, elastomeric component with enduring thromboresistance is desired