The participants will be introduced to three procurement chain models that are being practiced in the construction industry: Specialty Contractor Procurement Model, General Contractor Procurement Model, Owner Procurement Model. The proposed new model suggests methods to eliminate waste and inefficiency in the supply chain.
Sub-Contractor vs. General Contractor Material Purchasing
Description
Duration: 1 Day
Instructor: Dr. Perry Daneshgari
Procurement in the construction industry has primarily been a function of the specialty contractor. Currently, a few general contractors have attempted to purchase material directly from manufacturers. This operational philosophy has its roots in bulk-purchasing & vertical integration. Cost & indirect effects of direct purchasing on the project owner were not clearly defined. This workshop is based on a research commissioned by The Electrical Contracting Foundation to investigate the prevailing, existing, & alternative models of procurement to determine which model offers the best value to the end- customer. The workshop introduces a new & more efficient procurement model, which will help decrease cost & increase profits for all the stake-holders. The participants will be introduced to three procurement chain models that are being practiced in the construction industry: Specialty Contractor Procurement Model, General Contractor Procurement Model, Owner Procurement Model. The proposed new model suggests methods to eliminate waste and inefficiency in the supply chain. Contractors can capitalize on the procurement methods suggested in this model to more effectively work with suppliers and customers. The workshop participants will be able to use this knowledge to assess both the weaknesses and strengths in their procurement management practices. By reducing the cost associated with procurement, contractors will be in a position to outperform competition and increase profitability.
