Forming the Project Coalition
Abstract
A coalition is defined as interaction of two o more members who adopt common strategy toward a common goal. The client’s task is to find the firms which will provide resources required and adopt most convenient cooperation-model to fulfil project mission.
The client deals with the problem of asymmetry of information once, and what occurs most often, the suppliers knows more about its real competence in supplying required resources. The client needs a tools to investigate the supplier quality, reliability and price for resources. In the field of construction the asymmetry generates two problems defines as: Moral hazard and Adverse selection. Both are related to reliability of a supplier.
For procuring the construction services client can adopt following methods: In-house capability, Appointment, Concours, Competitive tendering. Each method is more convenient for different kinds of the project stages: design, construction erection, resources/materials supply, quality surveys, estate maintenance. Selection is also related to the size of the project, uncertainties, phase in the project life cycle.
Coalition for the project management can be set according to couple of models which were developed based on the modern construction projects: Separated project coalition, Integrated project coalition, Mediated project coalition, Unmediated project coalition. Criteria for selection are: the level of mission uncertainty, the client capabilities of knowledge and risk that can take in respect to budget. If the project is easy to perform the integrated route is the most appropriate, otherwise when large mission uncertainties occurs the separated or mediated coalitions are more appropriate.
The aim of the forming the project coalition is to find the best way of selecting suppliers by the client and also decide for the most effective way of cooperation between all participates of the project: designers, executors, suppliers. Particularly the client need to be sure of the appropriate selection of agents and their competency and trustworthy. Also in the given coalition model the suppliers has to be motivated to provide high-quality resources to successfully finish the project.
