Relationships among supply chain participants: The case of Australia and Malaysia

In the context of supply chain management (SCM) in construction, this paper discusses how relationships are maintained, it examines the implementation of SCM and how it can be used to identify and resolve problems, create better relationships and the understanding between trades and suppliers of services for construction projects. Maintaining long-term relationships are not generally considered a priority in both Australia and Malaysia, therefore, the possible advantage of the benefits of such relationships is not taken. The contracting structures and styles significantly affect the relationships between organisations and that procurement techniques and contractor selection is an imperative process in keeping strong relationships for the duration of the project or contract works. Through SCM, the above can be incorporated into construction projects as a new method of project delivery. SCM is an emerging concept in the construction industry and this paper found that the participants in the industry had little to no understanding of SCM principles. It is crucial for organisations to move away from traditional procurement and project delivery methods to promote SCM framework in order to stay competitive in the ever changing industry environment.