The big picture

Environmental issues are global and we breathe the same air all over the world. Things are somehow connected. Important to understand and discuss structures and mechanisms in society that govern the construction sector.

Governance
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Building permit is a result of a societal and political process, but why do we have a building permit process and how is it linked, more or less direct, to politics, laws, national and regional mechanisms of power, national and regional employment plans etc.

The construction sector, based on its contribution and actions, has a responsibility for sustainable and efficient development of society It needs professionals with an understanding of governing and managing structures that interplay and set the agenda for construction.
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A smaller picture
Construction happens in society, it is not an entity in itself. It needs, among other things, interaction, decisions and finance from the surrounding society to keep going and to have someone to deliver to. The construction sector provides society with infrastructure, housing, jobs, pollution etc, all construction activities happen in society and are intervened with policies for finance, banking systems, environmental codes, labour markets etc.

Why construction governance?

Construction Governance is derived from the notion that construction is an activity directly related to development of society and that there is a need to better understand the complexity of governance on construction. Most research and development within the field of construction is being done on project, firm and business level. Governance concerns looking inwards to understand the sector better whereas there is a need to also look outwards, to understand how society and construction interact and how governing mechanisms set the stage, or not, for construction. It is the context for the construction sector that is in focus rather than the construction sector in context.

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Do we need this?
Governance issues have become more important as organizations and companies develop their ways of doing business at the same time as society, represented by governments and authorities, aim to on the one hand control the sector and on the other hand stimulate entrepreneurship and development. A balance directly related to the efficiency and transparency of the construction sector. Laws

A lot to understand
Regulations Authorities roles and actions Policies Politics Behaviour Culture Traditions Institutions Professional organizations Corporate strategies Rationale behind business drivers, social drivers etc People | Gran Lindahl 6

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The term governance

Governance - what is it?

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A general term, a word that describes that something is steered/ruled by something else Derived from Greek

Kubernao to steer

A term as general as it always needs to be defined A term in focus in research since about 20 years Not a new term, its the character of the phenomena that has changed

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The term governance

A general term, a word that describes that something is steered/ruled by something else Derived from Greek

Kubernao to steer

A term as general as it always needs to be defined A term in focus in research since about 20 years Not a new term, its the character of the phenomena that has changed

Government and governance

So, what the heck is it?

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Government & Governance 1

Government
Authoritative and hierarchical steering and control

Governing actors
Governments
National, regional and local

Government agencies
Authorities, governmental bodies Governance
Self organizing with no state intervention
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Organizations in society Corporate, business

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Government & Governance 2

Government
Politics Authorities Political programs

Governing mechanisms
Governmental/state hierarchy
Steering

Private market
Competetition

Governance
Other approaches
Actors, actions Institutionalized phenomena

Civil society
Dialogue

Networks
Dependencies
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Networks
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Societal level
Governance emerge as society struggle to mobilize financial resources A question of legitimacy New Public Management

Complexity on societal level

National politics moves
up to Europe and the global society down through delegation and decentralisation to counties and regions out to companies through privatisation

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Critique of the state

An issue of legitimacy
Bureaucracy Economy/finance Efficiency

Critique of the state

An issue of legitimacy
Bureaucracy - competition
The planning process

Economy/finance - PPT, concessions Efficiency - lean

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De- or centralisation
Macro processes
Decentralization - Centralization Interference - Guidance

Corporate Governance
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Corporate level
Governance emerge as a way to both enable innovation and to control processes A question of accountability Corporate governance

Corporate governance
A process where there is
Appropriate structure Qualified members/actors Formal guidelines Clear delegation of authority Accountability, transparence, responsibility Process tools
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Process tools
Mission statements Business plans/activity plans Performance measurements systems
Q-systems, ISO

Lack of governance
Fannie Mae Freddie Mack Enron Worldcom Barings bank Lehman brothers ?
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Management tools Financial authority

Controllers, auditors
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So!

(the mini description)

Break?

Governance is either:

Direct regulations
and/or

More or less articulated assumptions/descriptions of how we shall do things

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The regulatory context

Structures the range of actions that can be taken
Legal systems Construction regulations Zoning regulations Labour market regulations Procurement policies
(Winch, 2002)

Governance and responsibility

Performance regulation Belgium France

Great Britain Spain The Netherlands

Prescriptive regulation

Germany Responsibility of the state Responsibility of the actors

(Winch, 2002)

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Governance and responsibility

Performance regulation Belgium France

Great Britain Spain The Netherlands

Sweden Prescriptive regulation Germany Responsibility of the state Responsibility of the actors
(Winch, 2002)

The end of governance for today

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