The Construction Commons. A new institutional economics perspective on collaborative project resources

This chapter introduces ‘The Construction Commons’ as a novel economic collaboration model in construction, rooted in New Institutional Economics and inspired by Elinor Ostrom’s work on common-pool resources. While much research for economic collaboration in construction is informed by game theory, new institutional economics advocates for a more comprehensive approach that includes social, legal, and institutional factors influencing economic activities. The construction commons concept is characterized by a shared financial resource pool, pluralistic decision-making, and collective financial outcomes, aiming to steward collective project resources effectively. The chapter elaborates on new institutional economics, highlighting its relevance to construction management through an emphasis on transaction costs, contractual arrangements, and property rights. It then describes the construction commons in detail, drawing parallels with natural resource management and emphasizing the importance of shared ownership, democratic governance, and sustainable resource allocation. Through a short case study of an Integrated Project Delivery project in Vancouver, Canada, the chapter illustrates the practical application of the construction commons principles, showcasing how they foster shared ownership, transparency, and equitable outcomes. The chapter concludes by exploring the potential of blockchain technology in scaling and governing construction commons, suggesting a promising future for decentralized and digital collaborative project delivery.

Routledge Handbook of Collaboration in Construction