INTRODUCTION

Men make their own history, but they do not make it just as they please; they do not make it under circumstances chosen by themselves, but under circumstances directly encountered, given and transmitted from the past. The tradition of all the dead generations weighs like a nightmare on the brain of the living. The aim of this paper is to present an analysis of the contemporary contracting system in the UK construction industry; in order to do this, it will be necessary to take to heart Marx's (1968 p 97) famous aphorism on Louis Bonaparte - the British contracting system is a product of its history, and the critical juncture in that history occurred in the later years of the industrial revolution. The analysis will cover both building and civil engineering which have many commonalities, but also important differences. After indicating what is meant by a contracting system, the paper will explore some dimensions of the history of the British system before coming on to examine the causes and results of the recent period of rapid change in the system. The paper will close with an appraisal of the contemporary issues, particularly those raised by the Latham Report, and the attempts to reform the system which are presently under way, together with an assessment of the implications of the UK government's current policy for public sector procurement . As will be shown, the contracting system forms the rules of the game by which firms mobilise resources towards projects to meet client demands. Thus any understanding of how projects are organised must be based in an understanding of how the contracting system, or systems, from which those projects draw their resources are organised. This paper forms one of five which explore the institutional context of the five projects selected for study by the Groupe, and the institutional background of the actors which participate in those projects.