Working out a rational institutional framework for the development of the construction industry

It has long been recognized that contracting procedures and contracting practices have had a major effect on the efficiency and performance of construction projects (World Bank, 1984). In order to face the demands of the Economic and Monetary Union, coupled with the globalization of the construction market, unprecedented institutional reforms pertaining to the construction industry and related sectors in Portugal have been implemented. However, a recent study (E & T, 2000) has emphasized the lack of an adequate information flow among the different parties of the construction process. This paper is part of a wider research project that attempts to investigate the impact of contractual arrangements, and of the role of the client's representative on the performance of construction projects in Portugal. The methodology comprises a questionnaire supported by a literature review, and in-depth interviews with client's representatives, consultants and top managers of construction enterprises. The first part of the research, which is presented here, reviews the Portuguese legal regime on the construction industry activity concerning both the construction and design stages, and the property market. Additionally, the insights gained from a pilot study are also presented. Preliminary findings are that the functions of the client's representative are not clarified in the Portuguese legal regime, and its role is not well perceived by both clients and other contributors to the construction process.