The Solution Behind the Revolutionizing of the Dutch Construction Industry

The Solution Behind the Revolutionizing of the Dutch Construction Industry

By Dean Kashiwagi, Jacob Kashiwagi, Abraham Kashiwagi, Kenneth Sullivan

June 2013

This paper analyzes what changed the Dutch construction industry from a heavy owner regulated and controlled to a culture of minimum control and oversight. It is a movement from a top down culture (management, direction and control) to a bottom up culture (alignment of expertise). The impact of the revolutionary change includes: 1) minimizing the value and use of regulatory contracts, owner contract administration, regulatory inspection; 2) minimizing owner construction management; 3) minimize the use of owner expertise and decision making; 4) using performance information to improve vendor performance instead of regulating vendor performance. The changes in the Dutch construction industry have confirmed the non-traditional concepts of information measurement Theory (IMT), the Industry Structure model and the best value Performance Information Procurement System (PIPS). It also validated a new “nontraditional” research model which emphasizes the deductive logic approach, using simplistic concepts combined with documented test results and working with industry visionaries to run confirmation tests rather than working with large industry groups to gain a consensus before running industry tests.

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