Forming the Project Coalition
Project Coalition
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 process of procurement is used in the construction industry for selection and review of different suppliers and services. And the resource base is analysed based on the criteria such as price, value and reputation.
Client and suppliers
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.
• Moral hazard – How can the client be sure that the firm will fully mobilise its capabilities on the client’s behalf.
• Adverse selection – How the client be sure that the most enthusiastic offer of the requested resources is not also the most desperate.
Selection of appropriate procurement
Selection of the supplier depends on the level of the uncertainty and the resources required in the time of making decision. According to the Graham M. Winch selection method can be illustrated as function of level of dynamic uncertainty and level of mission uncertainty, see figure 1.1
