Supply chain structures in construction: views from Malawi

Abstract

The fragmented nature of the construction industry is well documented. The resolve of clients to procure public works based on competitive pricing, especially in developing countries, is notable. The management of projects is affected by procurement and supply chain structures in the construction industry. This premise led to a qualitative study, which examined how supply chain structures influence the procurement of public works in Malawi. The study elicited views from clients, consultants, contractors and suppliers. The research reveals that the traditional procurement method, based on the lowest price, is the preferred method used; as such, in Malawi public works project performance depends on the design and supervision team. As a result, the management of the parties to a project is crucial to successful outcomes, although it appears that the short-term nature of most relationships has marginalised the realisation, as the continuous reliance on a single method of procurement tends to hinder collaborative working arrangements that could lead to improved performance in Malawi.