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Contractors and Developers in the Building Industry: A dog in a leash or...?
Susse Laustsen, Ester Jensen, COWI A/S
andPer Langaa Jensen, Technical
University of Denmark
Dominating theoretical position in studying SME’s:
• SME’s = ’simple structures’– Direct interventions as the
dominating coordinating mechanism.
• Emphasis on development of competencies– to qualify the owners to include
aspects concerning occupational health and safety in their decision making
Focuses in studying SME’s
Simple structur Direct intervention:Competencies of the owner
Accountants
Labour inspection
Clients
Labour Markets
Organisations
Vocationaltraining centres
Our theoretical point of departure;A contextual approach
• Main focus on the context in which the small building contractor works
• Only marginally on the processes within the enterprise.
• We delimit our focus to the contractual relation between the client and the small building contractors
Basic questions behind the research
• How does an ’up-stream’ strategy in OHS regulation actually function in successful cases involving small enterprises?
• ‘Up-stream’ strategy:– Formulate demands on other units in the
value chain Developer
Subcontrator1 Subcontrator2 Subcontrator3
6
A strategy for improving OHS at building sites
• The building trade in DK aspire to create better OHS at the building site by formulating demands concerning OHS to all actors involved in the building process
• The labour market parties within the building trade agreed (in 2005) on a proposal to attain higher working condition standards at building sites.
• Putting demands on:• The client• The advisor employed by the client• The planers• The building enterprises
(subcontractors)
• The employees
The aim of the study
• What are the impact of the clients' demands to occupational health and safety in small building enterprises. – What are the restraints for the client in formulating these demands?– How are the demands perceived by the small building contractors, and how do the demands
affect the tendering process and the execution phase?– Are there special constraints for the small building contractors, which could cause severe
problems? – Can these barriers be minimised by reformulating the demands?
Demands to the client
Draw up an OHS policy, comprising:• The OHS standard aimed at. • How the client intend to reach these aims.• How the client intend to fulfill his duties according to law.• The demands to be fulfilled by the others involved.• How the client intend to control that they fulfill the duties.
Where relevant these aims have to bee taken into consideration when
selecting subcontractors including their ability to fulfill these demands.
Demands to the enterprises
Has a policy on OHS assuring that all levels of the enterprise:
• Fulfill their duties according to law• Have the necessary qualifications within
OHS• Participates actively in maintaining and
improving a high OHS standard• Presents the same demands to
subcontractors.
10
Design of the study
Case studies - in total 20 cases
Analyse experiences on working with demands on OHS
formulated in tenders :• 10 developers formulating demands • Min. 15 smaller construction firms (<50 employees)
Analyse barriers to developers for formulating demands• 10 developers not formulating demands to OHS in tenders
11
The sample 1
Developer Type Number
Formulating OHS-demands
Private 2
State institution 4
Municipality 2
Private, partly owned by the state 1
Joint venture state and municipality 1
No OHS-demands
Private chain of shops 3
Developer 2
Non-profit housing association 1
Municipality 1
Developer within an independent organisation 1
Private real-estate company 1
12
The sample 2
Type - trade Number of employed
Master builder
2,5 – 10
2,5
Master painter 5
Carpenter 7
Carpenter and construction manager
9
Carpenter 10
Demolition
11 – 20
15
Sunlight protection and windows 15-20
Earth and landscape 15-20
Master carpenter 20
Scaffolding 20
Electrician
21 – 30
24
Equipment 25
Landscape 25-30
Asbestos removal 31 - 50 43
Analysis: Three ideal types
Ideal type Abbriviation
1 The interested and Engaged Developer IED
2 The Compliant Developer CD
3 Developers believing that Other Know Best
OKB
Results
1. Motives behind clients engagement
Motives behind clients engagement
• The agreement• Legislation and inspection• Production philosophy• Risk reduction
Legitimacy
Economy
Effects in the small enterprise
• Non• Better planning• Better risk assessment• Better pratice
Results
1. Motives behind clients engagement
2. Understanding the relation
Results
• Recommendations on how to work with the clients' demands.– Clients:
• How to formulate demands• Strategies to follow
– Small enterprises:• How to make a tender• Activities to be taken
Understanding the relation
• Principal – agent:– No explicit monitoring and no reprisal
Basic principles behind the ’demand model’
• Principal – agent – theory• The principal:
– Is interested in having a task conducted • The agent:
– Is willing and able to conduct the task• How does the principal ensure that the
agent adjust to the interests of the principal?
• The Contract:– Defines the relation between contribution and reward
• Contract-types– Output-contract– Behavioural-contract
• Control pivotal for compliance • Occupational health and safety is typically
related to behavioural contracts • Assumes a symmetry in competencies
Control is neglected
Limited OHS-competence at the agents organisation
Reparation
Principal Agent
AM-agent
Bygherren må sikre en netværks-organisering, hvis det skal lykkes
Form for organisering
Marked Hieraki Netværk
Basis Kontrakt Ansættelse Supl. styrker
Kommunikation Pris Rutiner Relationer
Konfliktbeh. Jura Ordre Omdømme
Fleksibilitet Høj Lav Middel
Forpligtigelse Lav → Høj Middel
Tone Præcision Formel Åben og gensidig
Kobling Uafh. Afhængig Gensidig
Konsekvenser for bygherren
• Ressourcer til pædagogisk arbejde• Mere vedvarende relation
Hvad sker der i samspillet
Isomorfisme (’efterligner’)
1) Tvangsmæssigt Man gør hvad de siger for at slippe for sanktioner
2) Efterligning Man gør som de gode, fordi så er man selv god
3) Normativt Man gør det, fordi det er godt
Overvejelser hos bygherren
Struktur
Opgaver
Procedurer, hjælpemidler og værktøjer
Aktører
Kompetencer hos bygherrens sikkerhedskoordinator
• Viden om byggeprocessen og relaterede regler mm.
• Synlighed• Identificere og fastholde god adfærd• Forandre uhensigtsmæssig adfærd
• Indlevelse• Politiske spil også internt i egen org.• Pædagogik
Konklusion
• Modellen med bygherre krav om arbejdsmiljø kan fungere
• Men den sætter specielle krav til bygherren:– Forståelser – Ressourcer
Understanding the relation
• Principal – agent:– No explicit monitoring and no reprisal
• Network relation– Complementary competencies– Trust relations
Conclusions
• Contractual demands (might) have an impact• But the basic frame used in rhetoric (principal – agent)
is not acted out in practice.• A net-work based understanding a better frame for
development of actions:– Complementary competencies– Trust relation
• Recommendations:– The client: extra resources, new relations– The small: new competencies, possibilities for learning
Results
1. Motives behind clients engagement
2. Understanding the relation
3. Recommendations for practice
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