The production process and the conduct of business in construction have undergone structural adaptations since the 1980s. The market strategy of most top contractors has changed. Before the internal market concept was introduced in Europe and globalization accelerated, the ambition of larger firms was to be among the top companies that controlled the sector, with the result that in certain branches a de facto cartel existed in those days. h is had several ef ects on the construction labour market. To give just one example, the procurement of public works became subject to bribery and corrupt pricing practices.
The introduction of free market principles (both in the European Union and within the World Trade Organization) brought a remarkable change, although formal national implementation of the European Union (EU) procurement rules was and still is poor and incomplete. Since the early 1990s, company management of the main contractors started to define territorial ambitions in European terms. The aim was and is to become a European leader and to compete at European scale. h is created a new wave of mergers and takeover. At the same time the traditional subcontracting, through a stable and cooperative division of labour in the production process, changed to a type of outsourcing that was much more cost-driven. Due to this competitive subcontracting the average size of Firms became smaller.
The production process and the conduct of business in construction have undergone structural adaptations since the 1980s. The market strategy of most top contractors has changed. Before the internal market concept was introduced in Europe and globalization accelerated, the ambition of larger firms was to be among the top companies that controlled the sector, with the result that in certain branches a de facto cartel existed in those days. h is had several ef ects on the construction labour market. To give just one example, the procurement of public works became subject to bribery and corrupt pricing practices. The introduction of free market principles (both in the European Union and within the World Trade Organization) brought a remarkable change, although formal national implementation of the European Union (EU) procurement rules was and still is poor and incomplete. Since the early 1990s, company management of the main contractors started to define territorial ambitions in European terms. The aim was and is to become a European leader and to compete at European scale. h is created a new wave of mergers and takeover. At the same time the traditional subcontracting, through a stable and cooperative division of labour in the production process, changed to a type of outsourcing that was much more cost-driven. Due to this competitive subcontracting the average size of Firms became smaller.
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