Contractors and Developers in the Building Industry: A dog in a leash or...?

1. Contractors and Developers in the Building Industry: A dog in a leash or...? Susse Laustsen, Ester Jensen, COWI A/S andPer Langaa Jensen, Technical University of Denmark

2. Dominating theoretical position in studying SME’s: • SME’s = ’simple structures’ • Direct interventions as the dominating coordinating mechanism. • Emphasis on development of competencies • to qualify the owners to include aspects concerning occupational health and safety in their decision making

3. Vocational training centres Labour Markets Organisations Labour inspection Accountants Focuses in studying SME’s Clients Simple structur  Direct intervention: Competencies of the owner

4. Our theoretical point of departure;A contextual approach • Main focus on the context in which the small building contractor works • Only marginally on the processes within the enterprise. • We delimit our focus to the contractual relation between the client and the small building contractors

5. Basic questions behind the research • How does an ’up-stream’ strategy in OHS regulation actually function in successful cases involving small enterprises? • ‘Up-stream’ strategy: • Formulate demands on other units in the value chain Developer Subcontrator1 Subcontrator2 Subcontrator3

6. The building trade in DK aspire to create better OHS at the building site by formulating demands concerning OHS to all actors involved in the building process The labour market parties within the building trade agreed (in 2005) on a proposal to attain higher working condition standards at building sites. Putting demands on: The client The advisor employed by the client The planers The building enterprises (subcontractors) The employees A strategy for improving OHS at building sites

7. The aim of the study • What are the impact of the clients' demands to occupational health and safety in small building enterprises. • What are the restraints for the client in formulating these demands? • How are the demands perceived by the small building contractors, and how do the demands affect the tendering process and the execution phase? • Are there special constraints for the small building contractors, which could cause severe problems? • Can these barriers be minimised by reformulating the demands?

8. Demands to the client • Draw up an OHS policy, comprising: • The OHS standard aimed at. • How the client intend to reach these aims. • How the client intend to fulfill his duties according to law. • The demands to be fulfilled by the others involved. • How the client intend to control that they fulfill the duties. • Where relevant these aims have to bee taken into consideration when selecting subcontractors including their ability to fulfill these demands.

9. Demands to the enterprises • Has a policy on OHS assuring that all levels of the enterprise: • Fulfill their duties according to law • Have the necessary qualifications within OHS • Participates actively in maintaining and improving a high OHS standard • Presents the same demands to subcontractors.

10. Design of the study Case studies - in total 20 cases Analyse experiences on working with demands on OHS formulated in tenders : • 10 developers formulating demands • Min. 15 smaller construction firms (<50 employees) Analyse barriers to developers for formulating demands • 10 developers not formulating demands to OHS in tenders

11. The sample 1

12. The sample 2

13. Analysis: Three ideal types

14. Results • Motives behind clients engagement

15. Motives behind clients engagement • The agreement • Legislation and inspection • Production philosophy • Risk reduction Legitimacy Economy

16. Effects in the small enterprise • Non • Better planning • Better risk assessment • Better pratice

17. Results • Motives behind clients engagement • Understanding the relation

18. Results • Recommendations on how to work with the clients' demands. • Clients: • How to formulate demands • Strategies to follow • Small enterprises: • How to make a tender • Activities to be taken

19. Understanding the relation • Principal – agent: • No explicit monitoring and no reprisal

20. Basic principles behind the ’demand model’ • Principal – agent – theory • The principal: • Is interested in having a task conducted • The agent: • Is willing and able to conduct the task • How does the principal ensure that the agent adjust to the interests of the principal?

21. The Contract: Defines the relation between contribution and reward Contract-types Output-contract Behavioural-contract Control pivotal for compliance Occupational health and safety is typically related to behavioural contracts Assumes a symmetry in competencies Control is neglected Limited OHS-competence at the agents organisation

22. Reparation Principal Agent AM-agent

23. Bygherren må sikre en netværks-organisering, hvis det skal lykkes

24. Konsekvenser for bygherren • Ressourcer til pædagogisk arbejde • Mere vedvarende relation

25. Hvad sker der i samspillet

26. Overvejelser hos bygherren Struktur Aktører Opgaver Procedurer, hjælpemidler og værktøjer

27. Kompetencer hos bygherrens sikkerhedskoordinator • Viden om byggeprocessen og relaterede regler mm. • Synlighed • Identificere og fastholde god adfærd • Forandre uhensigtsmæssig adfærd • Indlevelse • Politiske spil også internt i egen org. • Pædagogik

28. Konklusion • Modellen med bygherre krav om arbejdsmiljø kan fungere • Men den sætter specielle krav til bygherren: • Forståelser • Ressourcer

29. Understanding the relation • Principal – agent: • No explicit monitoring and no reprisal • Network relation • Complementary competencies • Trust relations

30. Conclusions • Contractual demands (might) have an impact • But the basic frame used in rhetoric (principal – agent) is not acted out in practice. • A net-work based understanding a better frame for development of actions: • Complementary competencies • Trust relation • Recommendations: • The client: extra resources, new relations • The small: new competencies, possibilities for learning

31. Results • Motives behind clients engagement • Understanding the relation • Recommendations for practice

32. Thank you