Barriers to achieving the full intended residential value : The case of a large main contractor in Sweden

Abstract: Residential construction projects are complex. New trends such as globalization,urbanization, and sustainability put even more pressure on the capital intense andalready low marginal industry. In Sweden, the market is competitive. There are many large residential contractors active today. To stay competitive and gain market share, the contractors must deliver attractive apartments. However, what future residents value is not easily articulated or understood. The average home buyer makes home purchasing decisions based on individual and situational aspects, dependent on the life-cycle stage and mainly - not always according to rational choice theory. This analysis has through a literature review and interviews with stakeholders at a large Swedish contractor, gathered information on what is considered residential value, and if barriers to realizing them exist. Barriers were found and were namely a lack of information communication infrastructure making the lengthy and stakeholder-intensive projects with high staff turnover challenging to manage. Other barriers were classic split incentive dilemmas due to decentralization and goal misalignment. Other, ad-hoc decision-making, project members working in silos, and difficulties to articulate residential value.