Construction Purchasing & Supply Chain Management

Contents......Page 4
Preface......Page 10
Acknowledgments......Page 15
1 Introduction to Construction Purchasing and Supply Chain Management......Page 16
Manufacturing Risks versus Construction Risks......Page 17
Types of Construction Projects......Page 22
Preconstruction Design and Contractor Selection......Page 24
Critical Elements for Best Practice Construction......Page 25
Supply Chain Management and Competitive Construction Operations......Page 28
Barriers to Supply Chain Management......Page 29
Traditional Construction Supply Chain......Page 31
Benefits of Supplier Partnerships......Page 34
Risks of Supplier-Contractor Partnerships......Page 35
Joint Venture Supply Chain Partnership......Page 36
Conclusion......Page 38
References......Page 39
2 The Construction Supply Sourcing Process and Procedures......Page 40
Objectives and Activities of Construction Supply Sourcing......Page 43
The Supply Management Process......Page 45
Complex, High-Value Projects......Page 47
Potential for Profit......Page 48
Competitive Strategy......Page 49
Supply Chain Strategy......Page 51
The Project Sourcing Plan......Page 52
Purchase Order......Page 54
The Subcontract Document......Page 56
The Sourcing Cycle......Page 57
Prime Contract......Page 58
The Subcontracting Sourcing Process......Page 59
Materials Purchasing......Page 61
Maintenance, Repair, and Operating Supplies......Page 62
Conclusion......Page 63
3 Construction Supply Chain Relationship Management......Page 64
Construction Supply Chain Relationship Management......Page 65
Subcontractor and Supplier Reduction......Page 66
Four Dimensions of Supply Chain Relationships......Page 67
Supplier Relationship Management Segmentation......Page 68
Strategic Supplier Relationship Management......Page 69
Strategic Source Performance Review Process......Page 71
Strategic Supplier Relationship Scoring System......Page 72
Conclusion......Page 74
Tier 1 Supplier Profile Example......Page 75
References......Page 77
4 Construction Supplier Selection and Evaluation......Page 78
Construction Sourcing Success Factors......Page 79
Strategic Selection......Page 81
Categorical Method......Page 82
Cost-Ratio Method......Page 83
Linear Averaging......Page 85
Advantages of Single Sourcing......Page 87
Long-Term Relationship Issues......Page 88
Grade......Page 89
Certification......Page 90
Conclusion......Page 91
5 Purchasing Subcontracting Services......Page 92
Preparation of the Bid Package or Request for Quotation......Page 95
Components of the Bid Package......Page 98
Pre-Bid Conference......Page 100
Submitting Bids by E-mail, Facsimile, and Telephone......Page 101
Contract Types......Page 103
Unit Price Contracts......Page 105
Cost-Plus Contracts......Page 106
Contract Negotiations......Page 108
Subcontractor and Supplier Quality Assurance and Quality Control Expectations......Page 110
Strategic Construction QA and QC......Page 113
Change Orders......Page 114
Conclusion......Page 115
References......Page 117
6 Construction Equipment Planning, Purchasing, and Leasing......Page 118
New Market Niche Ideas......Page 120
Cash-Flow Analysis......Page 123
Example: Motor Grader......Page 124
Financial Plan Analysis......Page 127
Implementation......Page 133
Disposal of Capital Equipment......Page 134
Purchasing New versus Used Construction Equipment......Page 139
Conclusion......Page 140
7 Construction Supply Chain Complexity, Profitability, and Information Sharing......Page 142
Construction Supply Chain Management......Page 143
Information Sharing......Page 144
Project Execution......Page 155
Conclusion......Page 157
References......Page 158
Public and Private Sector Heavy Construction and Horizontal Supply Chain Models......Page 160
The Components of the Heavy Construction Supply Chain Model......Page 162
Supply Chain Document Flows......Page 169
Supply Chain Money Flows......Page 170
Private and Public Sector (Vertical) Construction Supply Chain Models......Page 171
Supply Chain Money Flows......Page 175
Implementation of Construction Supply Chain Management......Page 176
Reference......Page 177
A: Joint Venture Agreement......Page 178
B: Subcontractor's Bid Package and Pre-Bid Invitation......Page 188
C: CD 300, Standard Form of Tri-Party Agreement for Collaborative Project Delivery......Page 206
D: Standard Form of Agreement Between Owner and Contractor for Integrated Project Delivery......Page 212
E: Construction Manager At Risk Contract......Page 220
A......Page 224
B......Page 226
C......Page 227
D......Page 229
E......Page 230
F......Page 231
G......Page 232
I......Page 233
L......Page 235
M......Page 236
O......Page 238
P......Page 239
Q......Page 240
R......Page 241
S......Page 242
T......Page 244
V......Page 245
W......Page 246
B......Page 248
C......Page 249
D......Page 250
G......Page 251
L......Page 252
P......Page 253
R......Page 254
S......Page 255
T......Page 256
Z......Page 257