creating value for project stakeholders in the construction process

Horizontal integration that is common place in the construction industry tends to fragment the supply chain, resulting in an unstable production environment occasioned by high unpredictability, much rework, low profits and eventual low level of value creation in the process. Therefore, an increased level of integration of interfaces and processes has been canvassed. The purpose of supply chain management is to achieve the expected increased level of integration of the whole supply chain. Supply chain management has long been advocated as a means of improving the performance of supply chains in construction. This research study reports on an investigation into the impact of supply chain management on value creation in the South African construction industry. The research discovered that collaborative working is already in the industry and contractors consider supply chain management important for project success.Here construction supply chains were approached from the relationship view point.