Abstract for: A Dynamic Policy Model to Manage Temporal Performance Amongst Contracting Firms in a Competitive Situation
Studies have been conducted to measure competitiveness in the construction industry. Such research has focused on all levels from the national picture to individual projects. While useful, the results are limited in that they present a snapshot picture at one point in time. Moreover, they do not suggest how under-performance might be improved. The research reported here is part of a large collaborative study to evaluate sustained competitiveness in the UK construction industry. It enhances previous research in that a system dynamics model of contracting firms operating in competition is used to not only measure each firm's temporal performance by means of a dynamic competitive index, but it can also suggest high leverage policies which mitigate against under-performance. The model structure is described and simulated scenario runs presented. Besides the contribution to strategic policy making at the level of the contracting firm, the exemplar shows that the system dynamics methodology could have significant utility in the field of construction management.