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The development of an improvement plan is also outlined as the basis for implementing innovation strategies that are not only aligned to business performance measures but also consistent with the overall business goals and strategic objectives. Knowledge management is vital for innovation and as part of an on-going research project, the 'Excellence' model is being explored as a tool to facilitate the introduction and assessment of knowledge management initiatives necessary to drive innovation for continuous business improvement.

In building construction the demands on the execution are generally regarded as relatively low. Alternative tenders offered by executing companies show that this is not applicable for all constructed facilities in general. These tenders often represent more economical and sometimes innovative alternatives for the execution of the constructed facility that is the subject of the tender. While the clients appreciate alternative tenders by the companies, which mostly refer to the process innovation of types 2 and 3 of the above mentioned typology, they stress at the same time that there are few possibilities for them and that the executing companies often do not have the capacities of time and staff to be able to work it out.

Journal of Construction Engineering and Management, Vol. 112, No. 2, pp 178-191. Tatum, C. B. (1989), Organizing to Increase Innovation in Construction Firms. Journal of Construction Engineering and Management, Vol. 115, No. 4, pp 602617. ; Polley, D. , and Venkataraman, S. (1999), Innovation Journey, New York: Oxford University Press. Wakasugi, R. (1 Why are Japanese Firms so Innovative in Engineering Technology? Research Policy, 2 1, pp 1- 12. Winch, G. (1998), Zephyrs of Creative Destruction: Understanding the Management of Innovation in Construction.

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