Construction Supply Chain EconomicsConstruction Supply ChainEconomicsAlso available from Taylor & FrancisConstruction Supply Chain Management HandbookW. OBrien et al.Hb: ISBN 9781420047455Procurement in the Construction IndustryW. Hughes et al.Hb: ISBN 9780415395601Procurement SystemsD. Walker et al.Hb: ISBN 9780415416054Pb: ISBN 9780415416061Construction Project ManagementP. FewingsHb: ISBN 9780415359054Pb: ISBN 9780415359061Basics of Supply Chain ManagementL. Fredendall et al.Hb: ISBN 9781574441208Information and ordering detailsFor price availability and ordering visit our website .tandf.co.uk/builtenvironmentAlternatively our books are available from all good bookshops.Construction Supply ChainEconomicsKerry LondonFirst published 2008by Taylor & Francis2 Park Square, Milton Park, Abingdon, Oxon OX14 4RNSimultaneously published in the USA and Canadaby Taylor & Francis270 Madison Ave, New York, NY 10016Taylor & Francis is an imprint of the Taylor & Francis Group,an informa businessThis edition published in the Taylor & Francis e-Library, 2007.“To purchase your own copy of this or any of Taylor & Francis or Routledgescollection of thousands of eBooks please go to .eBookstore.tandf.co.uk.”? 2008 Kerry LondonAll rights reserved. No part of this book may be reprinted orreproduced or utilized in any form or by any electronic,mechanical, or other means, now known or hereafterinvented, including photocopying and recording, or in anyinformation storage or retrieval system, without permission inwriting from the publishers.The publisher makes no representation, express or implied,with regard to the accuracy of the information containedin this book and cannot accept any legal responsibility orliability for any efforts or omissions that may be made.British Library Cataloguing in Publication DataA catalogue record for this book is available from the British LibraryLibrary of Congress Cataloging in Publication DataLondon, KerryConstruction supply chain economics / Kerry London.p. cm.Includes bibliographical references and index.1. Building materials Purchasing Procurement.2. Business logistics Industrial organization economics.3. Construction markets industry structure management.4. Construction Firm behaviour.I. Title.TH437.L66 2007690.068'7dc222007012991ISBN 0-203-96248-6 Master e-book ISBNISBN10: 0415409713 (hbk)ISBN10: 0203962486 (ebk)ISBN13: 9780415409711 (hbk)ISBN13: 9780203962480 (ebk)Contents1Introduction to supply chain economics and procurement11.0Orientation11.1Rationale for text11.2Ideas explored in this text141.3Structure of text221.4A final word282The rationale for the modelling of procurement inthe construction supply chain312.0Orientation312.1Introduction322.2Background to policy analysis342.3Charting the government quest for improved industry performance: international analysis national studies and frameworks362.4National case study: Australian initiatives502.5Government economic models of performance782.6A final word833Supply chain theory and models863.0Orientation863.1Introduction873.2Supply chain terminology883.3Charting the supply chain movement1023.4Industrial organization economics1203.5A final word129viContents4Industrial organization economics methodology andsupply chain industrial organization approaches1324.0Orientation1324.1Introduction1334.2Industrial organization economics overview1334.3Key concepts of structure, conduct and performance1444.4Procurement relationships1604.5Chain organization1684.6Issues for procurement modelling using an industrialorganization economics approach1794.7A final word1845Project-oriented industrial organization economics supplychain procurement model1875.0Orientation1875.1Introduction1885.2Assembling the structural elements of the model1905.3Description of the behavioural characteristics of the model2105.4A final word2226Multiple project environment chain structural organization2276.0Orientation2276.1Introduction2286.2Projects and firms2356.3Types of suppliers, associations and commodityattributes2596.4Structural organization of supply chains atindividual firm level2786.5A final word2897Case study: complex core commodity supply chain fa?ade chain cluster2927.0Orientation2927.1Introduction2937.2Firm details2957.3Commodities and industrial market details3027.4Supplier types3157.5Procurement relationships318Contentsvii7.6Aggregated project supply chain organization:supply channels3367.7A final word3418Case study: simple and complex core and non-coresupply chain steel chain cluster3448.0Orientation3448.1Introduction3458.2Firm details3468.3Markets, commodities and competitors3478.4Supplier types3528.5Procurement relationships3558.6A final word3759Case studies: simple and complex core commodity supply chains mechanical services, formwork, concrete and mas