Impacts of information technology on the structure of construction

Abstract

Changes in the structure of the construction industry can be attributed in part to information costs being reduced over time. Co-ordination, inspection and the translation of client needs are facilitated, affecting employee incentives within firms, transactions between firms and the role of intermediaries. These aspects of information technology influence the optimal configuration of construction processes within each firm in the industry. Patterns of integration are seen as dependent on the interaction of aspects of information technology with attributes of each construction process. Geographic expansion, diversification or subcontracting, integration with materials supply and into real estate are considered. An emerging industry pattern with three types of firms: specializing, co-ordinating and local is indicated, while in the long run, a development towards individuals in project networks is foreseen.