Investigating the Vertical Integration State and Requirements In Iraqi Construction Sector

Abstract

The vertical collaboration is a partnering relation formulated among two specialist firms work in the same business with different specialties. This study examines the motives to involve in such relations, the criterion that must be considered while selecting a partner and the critical success factors for vertical collaboration during contracting and implementation. A questionnaire survey was designed to evaluate 23 motives for vertical partnering, selection criteria included (the financial capabilities, administrative capabilities, executive capabilities and the reputation of firm), the total number of criterion is 30 each one is related to a one of to a main criteria and the critical success factors was based on the pillars of partnering (trust commitment, communication, mutual targets, flexibility, sharing losses and profits and disputes resolution). It was found that the construction firms adopt vertical partnering to increase the coordination among professionals, the most effective criterion that lead a firm to select a specific partner is the availability of financial liquidity and bank accounts, the most critical factor for vertical partnering is to evaluate the possible critical points before any project initiation .