Effects of innovative contracts into the supply chain performance in the Peruvian construction industry

In today's business world, companies are forced to work in a very competitive environment. One way to succeed in this environment is the management of the supply chain. Therefore, Supply chain Management's techniques offer new approaches for companies looking to maintain their competitive advantages. This techniques demand trust, information sharing and coordination. Contracts are important means of coordination between actors operating in the same supply chain. An adequate design of a contract can improve the supply chain performance and its study is advocated by many academics. Construction is a particular industry in which the introduction of innovative management techniques has been slower. As a conclusion, relatively little is known about construction supply-chain management. However, the application of Supply Chain Management Techniques is expected to have an important impact in this industry, increasing the performance of the design, plan, and managing of construction projects. This study presents an evaluation of the effects observed in the supply chain performance when non-traditional contracts are applied to the Construction Industry, specifically in the interface between the Main Contractor and the Concrete Supplier. This new approach is based on the Supply Chain Management methodology and the recommendations of the Supply Chain Council. The approach is presented in a case study with a comparison between two large construction projects with the same Client, one using this approach and one without, identifying the effects observed in the projects as a result of the implementation of this contract, and the gaps that should be managed in order to maximize the benefits that this type of contracts may have in the Construction Industry in a specially complex project as the one described. Finally, the thesis project recommends some future needs in the Construction Industry, in order to plot a new theoretical base that allows the introduction of more and more contracts that consider the collaboration among the different actors as a mean for improving the competitive advantage of the supply chain against others in the same industry.