A conceptual framework for managing the performance of construction supply chain

This paper conceptualises four different states of the construction supply chain (fragmented supply markets, process integration, work clusters, and pools of suppliers) as the result of intersecting two strategic dimensions: industrial ‘modes’ (i.e. from project to process) and the extent of integration in which partnership exists (i.e. from less to highly integrated supply chain). Improvement methodologies such as TQM and lean thinking provide management philosophy, methods and tools to improve the performance of the construction supply chain towards its ‘ideal’ practice (value creation). Since benchmarking is an important mechanism for managing performance in the construction industry, the actors in a construction supply chain need to identify and develop relevant value‐related (performance) measures and their impacts on gaining/maintaining partners' trust and their willingness to collaborate.