Construction Purchasing & Supply Chain Management

by Benton

• ISBN13: 9780071548854
• ISBN10: 0071548858
• Edition: 1st
• Format: Paperback
• Copyright: 2016-01-01
• Publisher: MCGRAW HILL RYERSON

Summary

Solutions to all purchasing andsupply management problems in constructionThis guide offers hands-on solutions to today's purchasing andsupply management problems in construction. Using many charts,tables, and illustrations, the book shows how to develop a timeandcost-efficient supply chain system that is second to none.This expert resource covers just-in-time purchasing and e-purchasing,global sourcing, materials and inventory management,supplier selection and evaluation, transportation and logistics,equipment acquisition and disposal, bargaining and negotiations,total quality management, and more.

Author Biography

W.C. Benton, Ph.D., is the Edwin Dodd Professor.of Management and the Deann++s Distinguished Research Professor of.Operations and Supply Chain Management at The Ohio State.University.

Linda F. McHenry, Esq., is Vice President.and COO for Benton and Associates.

Table of Contents

Preface	p. ix
Acknowledgments	p. xiv
Introduction to Construction Purchasing and Supply Chain Management	p. 1
Manufacturing Risks versus Construction Risks	p. 2
Types of Construction Projects	p. 7
Preconstruction Design and Contractor Selection	p. 9
Construction	p. 10
Information Management	p. 10
Risk Management	p. 10
Critical Elements for Best Practice Construction	p. 10
Supply Chain Management and Competitive Construction Operations	p. 13
Barriers to Supply Chain Management	p. 14
Supply Chain Partnerships	p. 16
Traditional Construction Supply Chain	p. 16
Benefits of Supplier Partnerships	p. 18
Risks of Supplier-Contractor Partnerships	p. 20
Joint Venture Supply Chain Partnership	p. 21
Conclusion	p. 23
References	p. 24
The Construction Supply Sourcing Process and Procedures	p. 25
Objectives and Activities of Construction Supply Sourcing	p. 28
The Supply Management Process	p. 30
Supply Sourcing Dollar Responsibility	p. 32
Competitive Pressures	p. 32
Material Shortages	p. 32
Inflation	p. 32
Complex, High-Value Projects	p. 33
Potential for Profit	p. 33
Purchasing and Competitive Strategy Linkage	p. 34
Competitive Strategy	p. 34
Supply Chain Strategy	p. 36
The Project Sourcing Plan	p. 37
Purchase Order	p. 39
The Subcontract Document	p. 41
The Sourcing Cycle	p. 42
Construction Sourcing Documents	p. 43
Prime Contract	p. 43
Purchase Order	p. 44
Subcontract	p. 44
Leases and other Agreements	p. 44
Subcontracting versus Materials Purchasing	p. 44
The Subcontracting Sourcing Process	p. 44
Materials Purchasing	p. 46
Maintenance, Repair, and Operating Supplies	p. 47
Conclusion	p. 48
Construction Supply Chain Relationship Management	p. 49
Construction Supply Chain Relationship Management	p. 50
Subcontractor and Supplier Reduction	p. 51
Four Dimensions of Supply Chain Relationships	p. 52
Supplier Relationship Management Segmentation	p. 53
Preferred Supplier Relationship Management	p. 54
Strategic Supplier Relationship Management	p. 54
Strategic Source Performance Review Process	p. 56
Strategic Supplier Relationship Scoring System	p. 57
Conclusion	p. 59
Tier 1 Supplier Profile Example	p. 60
References	p. 62
Construction Supplier Selection and Evalution	p. 63
Construction Purchasing Mistakes	p. 64
Construction Sourcing Success Factors	p. 64
Sources of Supplier Information	p. 66
Strategic Selection	p. 66
Criteria for Supplier Evaluation	p. 67
Three Common Supplier Evaluation Systems	p. 67
Categorical Method	p. 67
Cost-Ratio Method	p. 68
Linear Averaging	p. 70
Single versus Multiple Sources	p. 72
Advantages of Multiple Sourcing	p. 72
Advantages of Single Sourcing	p. 72
Advantages of Dual Sourcing	p. 73
Long-Term Relationship Issues	p. 73
Cross-Sourcing	p. 74
Supplier Reduction	p. 74
Grade	p. 74
Hurdle	p. 75
Certification	p. 75
Conclusion	p. 76
Purchasing Subcontracting Service	p. 77
Preliminary Subcontracting Planning	p. 80
Subcontracting Source Selection	p. 80
Preparation of the Bid Package or Request for Quotation	p. 80
Components of the Bid Package	p. 83
Pre-Bid Conference	p. 85
Purchasing/Supply Management (Large Construction Organizations)	p. 86
Evaluation of Bid Packages	p. 86
Submitting Bids by E-mail, Facsimile, and Telephone	p. 86
Contract Types	p. 88
Lump Sum Contracts	p. 90
Unit Price Contracts	p. 90
Cost-Plus Contracts	p. 91
Design-Build Contracts	p. 93
Negotiated Contracts	p. 93
Contract Negotiations	p. 93
Awarding Major Subcontractors	p. 95
Subcontractor and Supplier Quality Assurance and Quality Control Expectations	p. 95
Strategic Construction QA and QC	p. 98
Change Orders	p. 99
Conclusion	p. 100
References	p. 102
Construction Equipment Planning, Purchasing, and Leasing	p. 103
Requisition	p. 105
Company Goals and Objectives	p. 105
New Market Niche Ideas	p. 105
Cash-Flow Analysis	p. 108
Economic Evaluation	p. 109
Example: Motor Grader	p. 109
Selection	p. 112
Financial Plan Analysis	p. 112
Implementation	p. 118
Expenditure Control	p. 119
Audits	p. 119
Disposal of Capital Equipment	p. 119
Purchasing New versus Used Construction Equipment	p. 124
Conclusion	p. 125
Construction Supply Chain Complexity, Profitability, and Information Sharing	p. 127
Construction Supply Chain Management	p. 128
Information Sharing	p. 129
Project Execution	p. 140
Conclusion	p. 142
References	p. 143
Construction Supply Chain Management Business Models	p. 145
Public and Private Sector Heavy Construction and Horizontal Supply Chain Models	p. 145
The Components of the Heavy Construction Supply Chain Model	p. 147
Public versus Private Construction Projects	p. 154
Supply Chain Document Flows	p. 154
Supply Chain Coordination and Information Flows	p. 155
Supply Chain Money Flows	p. 155
Private and Public Sector (Vertical) Construction Supply Chain Models	p. 156
Supply Chain Document Flows	p. 162
Supply Chain Coordination and Information Flows	p. 160
Supply Chain Money Flows	p. 160
Implementation of Construction Supply Chain Management	p. 161
Conclusion	p. 162
References	p. 162
Joint Venture Agreement	p. 163
Subcontractor's Bid Package and Pre-Bid Invitation	p. 173
CD 300, Standard Form of Tri-Party Agreement for Collaborative Project Delivery	p. 191
Standard Form of Agreement Between Owner and Contractor for Integrated Project Deliver	p. 197
Construction Management At Risk Contract	p. 205
Glossary	p. 209
Index	p. 233
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