Strategic Partnering - Essay Example

The growth pattern for construction industry in the United Kingdom has been volatile and unpredictable. Between 1998 and 2005 quarterly results showed the industry on a jagged course rising and plunging narrowly and even tumultuously on a few occasion. Overall, the graph shows a slow upward curve amidst the patchy quarterly movements. See figures 1 & 2 below: The progress in construction of commercial building structures shows better output than that of constructions for private/public use. Growth has been perceptibly significant in Wales and Scotland.

(RIC Construction Market Survey) The tremendous growth in communication and information technologies has had cascading effects on every industry and job profile. It would be nave to assume that construction industry in the UK or elsewhere could remain immune from the effects of globalization and the electronic systems. The changes have been fast enough to catch even the most seasoned veteran unprepared for the inputs necessary to address modern needs. At the moment, the United Kingdom construction industry is facing challenges from three quarters: total system revamp including taxation policy, shifting to the LSF system, and competition from Asian giants like China, India, and Korea.

(Hellerman Tyton) Of late there have been spates of news reports of estate agents taking over or partnering existing house-owners in prime locations, especially beaches, for redevelopment and residents are happy at the encouraging prospects of investing on resorts with potential for handsome returns. The economics of redevelopment and reaping rich dividends in the bargain are quite tantalizing.In some parts of the United Kingdom land is scarce and it makes good sense to redevelop properties in such locations in accordance with planning regulations with an eye on fruitful returns on investments.

Fiscally, the construction cost is within the means of someone earning average income with a little help from banks and other non-banking finance companies. Redevelopment scheme with prospects for income generation is currently a global phenomenon with potential for tie up with large tourist corporations. (UK coastal towns 'under development')In the present times when mergers and acquisitions are the order of the day in top business circles, the concepts of partnerships, alliances and joint ventures are crucial to maintain market presence and ensure survival.

The partnerships may be in the form of two or more individuals or firms coming together each with its own areas and functions of expertise and inputs playing complementary roles. For instance, the partnership of construction and finance industries help the client in financing his construction project without anxiety about financial requirements. The alliance of construction firms and software companies augment construction know-how with computer aided technologies useful for planning and designing purposes.

Partnership of construction industry with both finance and computer companies offer services and benefits resulting in fantastic economy of time and costs. (Navigant Consulting)Last but not the least, the concept of tie up between construction indu