Analysing construction project coalitions: exploring the application of social network analysis

Abstract

The construction industry is currently in transition as a result of innovations in procurement and project management approaches, in particular, the utilization of supply chain management, and technology or work clusters in the context of partnering relationships between project coalition actors and the client organization. These new strategies require an analytical method that deals with actor interdependence and provides an appropriate level of detail and quantitative data in relation to the non‐linear, complex, iterative and interactive process that construction projects comprise. The construction project is conceptualized as a number information exchange networks, classified according to the principal project functions and supported by performance incentive and contractual relationship networks. The point centrality of the project actors within these various networks provides quantitative data and graphical representation of the governance of construction projects and the changes brought about by innovations in procurement and project management techniques. Social network analysis (SNA) provides an important new quantitative approach in the comparative analysis of procurement and project management of construction projects. SNA enables traditional project coalition management approaches to be compared with those associated with innovative management approaches. Quantitative analysis relates to the appropriateness and effectiveness of both financial incentives and contractual conditions involved in the governance of construction projects.