Largely taken for granted within the UK construction sector has been a view that supply chain management theory is robust, relevant and reliable. As such it has formed a substantial aspect of previous and contemporary policy and government funded research. Despite this, the prevailing view of its development and diffusion over the last 15 years within the construction industry has been problematic.Coincidentally, prevailing debates within the supply chain management academic community point to the lack of unified theory, models of diffusion and strong connections to organisation theory. Using Straussian grounded theory; iterations between data and organisation theory provided a fresh perspective on the development and diffusion of supply chain management in construction. This inductive research provided contextually rich explanations for development and diffusion that explicitly connected with and drew upon robust, relevant and reliable theories of institutions, innovation diffusion, triads, quasifirms and mechanisms of organizational governance. These explanations challenge the simplistic assumption that chains and networks of organisations are holistically managed and controlled by any single organisation or institution in the construction industry. The paper therefore shifts the debate away from proselytising supply chain management towards research that explores rigor, relevance and reliability of supply chain management assumptions in construction. The paper also exposes the gap between industry practice and policy and, questions the extent to which policy and practice do, or should, constitute a recursive relationship.