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Construction Supply Chain Management
By: Alkan Bektur
Term ProjectManagement 602
Dr. Mohsen Attaran Winter 2012
Table of Contents
Concept of Supply Chain Management.......................................................................................................2
Supply Chain Strategy in Construction Industry.........................................................................................3
Critical Elements for Best Practice Construction.........................................................................................4
Importance of Using Information Technology in Construction Supply Chain.............................................5
Managing Risk in Construction Supply Chain.............................................................................................5
Lean Construction Supply Chain.................................................................................................................6
Construction Supply Chain Management – Private Sector and Public Sector Business Models..................7
Case Examples............................................................................................................................................8
Examples of Success...............................................................................................................................8
Examples of Failures.............................................................................................................................11
Implementation Issues...........................................................................................................................12
Pitfalls...................................................................................................................................................13
Public Works Construction Case Study “Bakersfield Metropolitan Sanitary Landfill Module 2 Liner Installation Construction”......................................................................................................................14
Vision for Future Practice..........................................................................................................................18
References.................................................................................................................................................19
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Concept of Supply Chain Management
One of the most significant paradigm shifts of modern business management is that individual
businesses no longer compete as solely autonomous entities, but rather within supply chains. In
this emerging competitive environment, the ultimate success of the business will depend on
management’s ability to integrate the company’s intricate network of business relationships.
(Drucker, 1998)
Supply chain should contribute to the global competitiveness of a business by contributing
distinctive competence and cross-functional integration to achieve a high degree of cooperation
and consistency within the entire supply chain.
The Council of Supply Chain Management Professionals (CSCMP) defines supply chain
management as follows: “Supply Chain Management encompasses the planning and
management of all activities involved in sourcing and procurement, conversion, and all logistics
management activities. Importantly, it also includes coordination and collaboration with channel
partners, which can be suppliers, intermediaries, third-party service providers, and customers. In
simple terms supply chain management is the management of relationships across the network of
businesses which are involved in making a product or delivering a service to the end customer.
These different businesses will seek to maximize their profits for their own interest, but a
successful supply chain requires all the parties to consider the interests of the remaining players
in the supply chain to maximize the benefits for the entire chain. This requires the relevant
information to be available to all partners in the supply chain in order to be able to make
cognizant decisions that will create competitive advantage to the whole chain instead of
individual decisions that sub-optimize local interests. This is generally dependent on developing
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and maintaining close relationships with key customers and suppliers. This is the most critical
aspect of supply chain management.
Figure 1 - Supply Chain Management (Douglas, 2008)
Like products, services have supply chains, although they may be less concerned with the flow
of the physical product and more concerned with the flow of work and information. Services use
inventory, and so they rely on product supply chains to provide that inventory, but they also rely
on intangible work, information, and financial flows. (Schroeder, Goldstein, & Rungtusanatham,
2011)
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Supply Chain Strategy in Construction Industry
Construction supply chain management can systematically reduce sources of uncertainty through
the active cooperation of all entities in the supply chain in four functional areas: preconstruction
design and contractor selection, construction, information management, and risk management.
The paradigm of construction supply chain management can play a significant role in developing
relationships within the supply chain that reduce the exposure to contractual claims disputes.
If we take the prime contractor as our focus point, the upstream activities within the CSCM
involve the project owner and the engineering/design teams who prepare the necessary design
and construction specifications for the construction process. The downstream activities include
the material suppliers and the subcontractors. Substantial coordination is required between the
suppliers, the sub-contractors and the prime contractor as project partners to carry out the task of
building the project. A prime contractor cannot produce high-quality projects without quality
materials and well-informed subcontractors, pushing quality responsibility down to its
subcontractors and material suppliers.
Ideally supply chain management represents a win-win utopian goal for circular benefits. Each
company in the supply chain obtains its own profitability and success by creating customer value
in terms of a functional, high quality project at an acceptable price. Each organization within the
supply chain can reduce its own costs and increase its project performance through supply chain
management, thereby enabling the supply chain to deliver value to the project owner. The
satisfied project owner in turn rewards the supply chain with loyal contracting power, allowing
profitability to be transferred back down throughout the supply chain. This in turn fosters further
supply chain integration and responsiveness, causing the cycle to repeat. (Benton & McHenry,
2010)
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Critical Elements for Best Practice Construction
The critical elements of a successful project implementation can be listed as follows (Potts,
2008);
Clear project definition
Clear objectives
Realistic targets
Adequate risk evaluation
Experienced client and prime contractor
Good forecasting on demand
Effective sponsor and strong leadership
Good communication and openness
Adequate stakeholder management
Management focus targeting the right goals
Importance of Using Information Technology in Construction Supply Chain
There have been many significant changes in the construction sector within the past decade. The
relentless development of computer power and the growth of World Wide Web and knowledge
management have changed the industry for good. The improvements in geographical information
system (GIS) and its wide availability also changed how the construction projects are completed.
Yet the same fundamentals apply – clients wish to obtain their projects within budget and within
the time and to the necessary quality.
In the construction industry, the greatest opportunity for improvement lies in the optimization of
the construction site and construction process. An individual contractor may be usefully engaged
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for only 30% to 40% of their time, often due to incorrect or mislaid materials, wrong
specifications, or missing compatibility information (Peat & McCrea, 2007). These problems can
be solved, at least in part, by improved information flows which can be achieved by available
information technologies.
Managing Risk in Construction Supply Chain
The potential for liability in any business has a direct correlation to the relationships in that
business, that is, dealings with other businesses, employees, and the general public. Disputes
between customers, subcontractors, and suppliers almost always occur because of poor initial
communications and attempts to shift risk unfairly through egregious contractual provisions.
Disgruntled employees negatively affect productivity. As ambassadors for the employer,
dissatisfied workers can be detrimental to customer relationships. In construction, employees on
the jobsite have substantial interactions with the project owner and other entities in the supply
chain. Liability that stems from accidents is unfortunate and hard to predict; however, it can be
reduced and managed through safety programs that foster a safe work environment. The
paradigm of CSCM can play a significant role in developing relationships within the supply
chain that reduce the exposure to contractual claims disputes. This development of relationships
works to minimize accidents and create an overall environment of productive employees.
Lean Construction Supply Chain
A generic methodology of supply chain management can be deduced combining and
generalizing the commonalities of different supply chain management methods. In a way, the
supply chain management methodology bears resemblance to the Deming Cycle (Figure 2).
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Generically, the methodology of supply chain management consists of four main elements: (1)
Supply chain assessment, (2) Supply chain redesign, (3) Supply chain control, and (4)
Continuous supply chain improvement. (Vrijhoef & Koskela, 1999)
Figure 2 Generic supply chain management methodology compared to the Deming Cycle
The first step is to assess the current process across the supply chain in order to detect actual
waste and problems. The issue here is to find the causality between the waste and problems, and
locate their root causes. This step is not always easy to implement as the consequences of certain
construction decisions can be hard to predict and very complex. However, once the causality is
understood, and having found out about the root causes, the next step is to redesign the supply
chain in order to introduce structural resolution of the problems. This includes redistribution of
roles, tasks and responsibilities among the actors in the supply chain, and a review of procedures.
The next step is to control the supply chain according to its new configuration. An important part
of the control is the installation of a monitoring mechanism to continuously assess how the
supply chain operates. This includes systems to measure and estimate waste across the supply
chain process, and feedback systems to discuss and evaluate underlying problems. The objective
is to continuously identify new opportunities, and find new initiatives to develop the supply
chain. In fact, this continuous improvement implies the ongoing evaluation of the supply chain
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process, and the recurring deployment of the previous three steps: assessment, redesign and
control.
Construction Supply Chain Management – Private Sector and Public Sector
Business Models
The private construction projects are generally financed by commercial banks. Engineers and
architects usually collaborate on the design phase of projects in this segment. The bids are
packaged and categorized by system, such as mechanical, electrical, or structural. Typically more
than 70 percent of the bid items are subcontracted to specialty contractors. The construction
management is the predominant project delivery system. Generally high level of expertise is
needed and pricing is based on competitive bidding. 35 to 40 percent of the all annual
construction dollar figure in the U.S. is accounted in private construction projects. The financing
of public sector projects are generally provided by federal, state or local governments or some
combination of these.
Compliance with the Davis Bacon Act and related statutes is one important difference between
public and private projects. This Act requires that prevailing wages be paid to workers on all
federal government construction contracts over $2,000. Prevailing wage laws also apply to
construction projects with federally assisted funding. Davis Bacon provides that both prime
contractors and subcontractors pay workers employed directly on the site not less than the local
prevailing wages and fringe benefits paid on projects of similar character (Benton & McHenry,
2010). Most local governments enforce this Act on all projects no matter what the funding source
is.
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Public agencies require the prime contractor to submit performance and payment bonds. The
proofs of insurance, comprehensive general liability insurance, worker’s compensation, and
other coverage are typically required from the prime contractor as well. These upfront
requirements can prevent small construction firms to expand into bigger public construction
markets as prime contractors.
The flow of payments is one of the more attractive features of the public construction market.
The project owner is the state or local government and not vulnerable to bankruptcy in the same
sense as private owners.
Case Examples
Examples of Success
As a result of significant population growth over the past 15 years traffic congestion became a
problem within metropolitan Bakersfield area. To address the concerns of increasing traffic
congestion and future population growth, the City of Bakersfield, County of Kern, California
Department of Transportation (Catrans), and the Kern Council of Governments (Kern COG)
have identified regional road improvement projects which are commonly known as the Thomas
Roads Improvements Program (TRIP). During the federal transportation funding approval
process in 2006, former 22nd District Congressman William M. Thomas secured $630 million for
these projects. The trip projects will be funded from a combination of sources totaling
approximately $1.3 billion. Federal funds provide 43 percent of the total cost, County of Kern
and City of Bakersfield local funds provide 30 percent and the State funds provide 27 percent.
(City of Bakersfield Public Works). The construction projects started in 2007 and are scheduled
to continue until 2018.
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The collapse of the housing market and the economic recession had affected the local
construction industry in the Kern County area. Kern County has one of the highest
unemployment rates within the State and unemployed construction workers contribute to the
problem, so when the TRIP projects were to start construction late 2007 local construction
companies (significant local presence with offices within Kern County) were full of anticipation.
However one can still observe the idle construction equipment at various construction staging
lots throughout Kern County. So why did the local major roads construction projects failed to
trigger construction employment for local construction companies?
Below is the list is major TRIP construction projects and their prime contractors with the low bid
amounts. (Construction Bid Board, Inc.)
Project Name Prime Contractor Low bid Amount
Mohawk Street Extension (Westside parkway Phase 1)
Security Paving $27.7 million
Mohawk Street to Allen Road(Westside Parkway Phase 2)
Security Paving $76.6 million
North beltway / 7th Standard Road widening
Griffith Company $30.3 million
State Road 178 / Fairfax Road Interchange
Security Paving $29.0 million
State Road 99 / 7th Standard Road widening
Security Paving $13.3 million
7th Standard Road / BNSF grade separation
Granite Construction $11.9 million
Table 1 - TRIP projects (completed or in progress) and their costs
As can be seen from the table Security Paving Company received total of $146.6 million
construction projects out of the total of $188.8 million that was bid. Security Paving Company is
headquartered in Sun Valley and up until recently had almost no presence within Kern County.
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Griffith Company and Granite Construction Company which have been the major players in the
local construction industry for a long time were only able to receive 22% of the bids
cumulatively. This case example can be listed as a failure of the local companies or the success
of Security Paving Company. There are various reasons to the late success of Security Paving
Company, but one of the major contributors to this is an effective use of their construction
supply chain management supplemented by their lean construction process.
A typical major road construction project bid tally consist of various pre-assembled items
(typically upwards of 100 distinct item categories) such as drainage pipes and guard railing etc.
However majority of the cost is associated with generic construction materials such as gravel,
asphalt, concrete etc. that is needed in bulk quantities. In fact, 40% to 50% of the cost is granular
material costs (gravel for the road, sand for concrete etc.) and asphalt costs. Therefore having a
reliable and consistent granular material supplier provides a tremendous advantage in such
projects. Most local gravel pits in Kern County area are small operations and have significant
problems with providing quality material consistently and reliably. Realizing this Security
Paving Company obtained its own gravel mining pits and through vertical integration started to
mine the granular material for its own operations with its own personnel and equipment. This
allows them to allocate adequate resources to the projects based on priorities and reduces
material quality control costs and waiting time therefore reducing overall costs. In addition they
were able to successfully negotiate lucrative agreements with their asphalt suppliers. As the
number of projects they were constructing increased they were able to take advantage of
economies of scale to further decrease the costs they negotiate with their suppliers.
Construction companies with fully paid off construction equipment are considered to have an
advantage in bidding process as they do not have to consider the additional equipment costs.
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However, Security Paving Company, which rents all its construction equipment, has shown that
effective use of an equipment rental supplier, which can provide a very wide range of equipment,
can provide additional advantages as the contractor can utilize lean construction using
specialized high efficiency equipment instead of trying to get the work done with what they
already own.
Examples of Failures
Below is a transportation construction project that failed miserably mainly due to supply chain
issues. The case example was obtained from a recent LA Times newspaper article (Lin II &
Allen, 2012), and shows the importance of proper supply chain management in time-critical,
high public-impact projects such as road maintenance projects in the California interstate road
network.
“A routine California Department of Transportation road repair project gone awry backed up
traffic for about 25 miles Sunday, forcing drivers to endure delays of five hours or more and
sparking a furious political backlash that has put Caltrans on the defensive.
On Thursday, Caltrans offered its most detailed account yet of what went wrong, saying that a
series of errors ranging from a delay in getting concrete shipments to removing too much worn
pavement contributed to what they admit was a "horrible situation." But the explanations and
repeated apologies from road officials did little to calm the anger of thousands of motorists who
had to wait. Several area politicians have demanded investigations, and Caltrans has transferred
the engineer who oversaw the project.
The traffic was so bad that many drivers had no choice but to urinate on the side of the freeway
or in bottles. Some people missed flights and important appointments. Debra Hotaling, who was
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trying to get home to L.A. from a weekend in Palm Springs with her teenage daughter and a
friend, said it was the worst traffic she had ever seen. A trip that should have taken two hours
lasted from about noon to 8 p.m. Frantic to escape the freeway, motorists sped on the shoulders
and nearby dirt roads, she said. One driver of a Camry simply shot off into the desert. Some
people who ran out of gas on the freeway placed signs on their cars asking not to be towed.
The backup occurred at the worst possible time — the Sunday westbound rush from desert
resorts to L.A. — and the most horrible spot: along the remote, narrow mountain pass that is a
key connection point between Los Angeles and Palm Springs and Arizona.
It all started with what should have been routine overnight road construction — tearing up worn
slabs of concrete on the 10 Freeway and replacing them with fresh pavement. The first problem
was that Caltrans staff failed to inform the agency's public information office that roadwork was
planned for that night, Caltrans spokeswoman Michelle Profant said. The concrete slabs were
being replaced on a roughly three-mile stretch of the westbound 10 in Banning, which is about
25 miles west of Palm Springs. After most of the lanes closed Saturday at 10 p.m., workers tore
up more of the road than they could replace on time. That would have been enough of a problem.
But then officials learned that a computer issue at a concrete plant in Cabazon had idled
production. "Nobody knew that there wasn't going to be any concrete" when the freeway was
torn up, Profant said. Without new concrete to patch the road, a one-foot-deep gouge was left. By
this point officials knew that major delays would occur Sunday morning. But for reasons that are
unclear, they failed to notify Caltrans public affairs, so no warning was issued early.
Eventually, traffic began to back up. Motorists were already trapped on the road before the first
public warnings were issued. Exits are few in the San Gorgonio Pass, so many motorists were
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simply stuck. By the time the concrete had been loaded into the trucks, "they were caught in the
traffic too," Profant said.
The botched construction job meant that three of the four westbound lanes of the 10 were closed
to traffic, although crews were able to open up one more lane at some point, Profant said. Instead
of opening the road at 7 a.m. Sunday, all westbound lanes opened at 9:30 p.m. Motorists who
were stuck in the traffic called it the nastiest driving experience in their memories.”
Implementation Issues
Changes in schedule and scope are a common occurrence on construction projects, even on well-
run projects. Production in construction is transient in nature.
Resource availability and poor site conditions pose real costs and limits on sub-contractors and
suppliers. These costs are particularly important given frequent changes in schedule and scope.
Existing methods to manage changes in schedule and scope do not account for the costs of
capacity constraints or site conditions. More broadly, construction costing and control methods
do not take these influences into account. Construction contracts that penalize for problems and
contract solely for specific work at specific times retard information sharing and provide no
mechanism to explore costs and capabilities in a dynamic environment.
There is a need for integrated analysis across the entire supply-chain (from supplier to
subcontractor). As a naive application of Just-In-Time principles, there may be an expectation of
benefits accruing to every firm. This may not be the case as one firm had an increase in costs and
supplier costs are greatly influence by the degree of uncertainty in the unit-order system.
A systems perspective is required to evaluate performance. There is a link between facility
design and supply-chain performance. Some suppliers choose not to participate in the unit order
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system because their production technology would be adversely affected.
As production technology is largely driven by design, in theory design choices can be made to
select technologies compatible with the desired production discipline. Contracts need to promote
system optimization. Given a need for integrated analysis and the problems of finding systems in
which every party gains, ways to equitably share the benefits of improved supply-chain systems
are required. Similarly, there need to be incentives for improved operating performance,
particularly with regard to uncertainty. (O'Brien, 1998)
Pitfalls
There are three main categories of pitfalls in construction supply chain management. Firstly,
even in normal situations much waste and many problems exist in the construction supply chain.
However, this is not seen or often ignored. In the chain, most actors (separate companies and
divisions of the same company) appear to be managing just their own parts, and securing their
own businesses. Secondly, most of the waste and problems are caused in an earlier separate stage
of the construction supply chain other than where they are found. The root causes of the waste
and problems were rarely found in the activity where they were encountered, but rather in a
previous activity executed by a prior actor, often operating on a higher organizational level.
Lastly waste and problems are largely caused by narrow-minded control of the construction
supply chain. Many actors in the chain seem to be not able or interested to see the impact of their
behavior on other activities in the chain. In most cases, actors are not prompted to consider the
effects of their activities. Instead, they are encouraged to optimize their own part of the chain,
not taking into account other activities and actors in the supply chain. (Vrijhoef & Koskela,
1999)
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Public Works Construction Case Study “Bakersfield Metropolitan Sanitary Landfill
Module 3 Liner Installation Construction”
A sanitary landfill, which used to be called a "dump", is a site for the disposal of waste materials
by burial. It is the oldest form of waste treatment. Historically, landfills have been the most
common methods of organized waste disposal and remain so in many places around the world.
Bakersfield Metropolitan Sanitary Landfill is the largest waste disposal facility in Kern County.
The landfill property encompasses more than 2000 acres and has a planned waste disposal
capacity of over a hundred years. The waste disposal activity is conducted in specially
engineered and constructed disposal modules to ensure environmental control and regulatory
compliance. The State of California has zero degradation rules which mean that any
contamination of public resources such as groundwater is not tolerated no matter how small the
contamination amount is (detectable contamination levels can be very low, much lower than
harmful levels to humans). This obligation requires the construction of permanent waste disposal
units to be 100% defect free. This is generally accomplished by meticulous design of these units,
effective quality control and quality assurance during construction and continuous environmental
monitoring to check the performance of the system for the foreseeable future. The current federal
law requires the landfill unit to be actively monitored by the owner during operations and for at
least three decades after the unit is closed (the regulators are working to increase the active
monitoring period to 100 years after the landfill unit is closed).
The design and construction process of Bakersfield Metropolitan Sanitary Landfill Phase 2A
Module 3 liner installation project involves various stages. The initial master planning of the
disposal property was completed by Geosyntec Consultants, Inc. in 1998. This master plan
created the conceptual planning of the site development layout with an estimated schedule for
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development based on waste generation projections. The master plan has also divided the
property in development modules with seven to nine years of disposal capacity. Seven to nine
years is the amount of time it takes to plan, prepare the necessary design documents, obtain
regulatory approvals from Federal, State and local enforcement agencies, prepare construction
plans and specifications, bid the project, construct the project, obtain post construction approvals
from the regulatory agencies and one to two years of buffer time for unforeseen delays. In 2007
Vector Engineering started the detailed design and preparation of the construction plans with the
oversight of Kern County Waste Management Department. The plans were completed and
submitted to the enforcement agencies for regulatory approval in 2009. The plans were revised in
late 2009 by Kern County Waste Management Department to resolve possible foreseeable
implementation issues. My personal involvement with the project started around this time. I have
been the project engineer responsible for the project from 2009 until it’s completion in 2011.
Figure 3 - Construction equipment building a soil stockpile
The original engineers estimate prepared by Vector Engineering in 2007 was approximately
$11,977,000 and the Department budget was prepared with this estimate in mind. The project
was bid in September 2010 with the low bid amount of $6,488,000 to Raminha Construction,
Inc. (54% of the original engineers estimate). The project was successfully completed in
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September 2011 with a final cost of $6,437,000 ($51,000 less than the original low bid amount,
further increasing the total savings to the tax payers to approximately $5.54 million dollars) and
is awaiting final regulatory approval by the end of this month. Designing the construction
specifically for optimized supply chain in mind and various scheduling and construction supply
chain decisions and were the primary reasons for the success of the project. Some of the major
design and management decisions are summarized below.
The design was completed in 2009, but since the existing module had three more years of
capacity, instead of starting the construction right away, the Department choose to wait
for construction market to come down even further. The general economy, as well as the
waste generation and disposal rates (which correlate exceptionally accurately with the
local economic strength) and the other local construction costs were continuously
monitored to find the most advantageous time to bid the project and obtain the lowest bid
possible. During this time the design was continuously reviewed for possible
improvements.
Various modular pieces in the design were re-checked to see if the modular pieces were
utilized efficiently. For example, after contacting the local suppliers it was found that the
turf reinforcement mats used in the drainage channels for erosion protection come as 8.5
ft wide standard sections. Normally the contractor is responsible with the overlaps, scraps
and waste etc., all of which increase the bid cost. The channel sections were recalculated
for optimum use of standard material to minimize waste.
Following the general cost trends in the construction market certain design elements were
replaced with cheaper alternatives. For example, because of the stressed housing market,
sub-contractors specialized in earthmoving were forced to decrease earthmoving costs to
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30% of the average costs from a few years ago. To take advantage of this, certain design
elements such as conveyor pipes were eliminated and replaced with earth channels and
retention basins (sumps).
The drainage gravel in the design was approved as a rounded to sub-rounded rock from
the regulatory agencies. Rounded and sub-rounded rock can normally only be found in
riverbeds or by the ocean and is approximately three times more expensive than crushed
rock which is locally available. A consultant was hired to investigate if this material can
be replaced with crushed rock while maintaining the performance criteria requested by
the regulatory agencies. The consultant was able to prove that by making simple
adjustments to the adjacent liner components, the crushed rock can replace the rounded
granular material. This item by itself decreased the construction cost by approximately
one million dollars.
A concrete crusher was rented and started to crush the construction demolition concrete
material received at the landfill. Crushed recycled aggregate was stockpiled and
accumulated over one year to reach required volume before construction. This material
was used as a cheap roadbed material under the access roads.
The local landscaping companies were contacted to find out about the popular fertilizer
materials being used in the farming industry at the moment. The re-vegetation seeding
mix that was specified in the project was modified to include the commonly available
fertilizers that the local suppliers can find cheaply.
The bidding process was longer than usual to encourage the prospective bidders to submit
questions to the design engineers. This prevents any possible confusion that the
contractors might have as well as giving the design team a final chance to adjust the plans
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according to the comments from the prospective bidders. Certain changes were made to
the plans and specifications based on some of the constructive criticism received.
The design plans and computer aided models used in the project were made available in
electronic form to all of the prospective bidders. The contractors were encouraged to
verify the survey and design data. This also enables them to plan and schedule their
operation using various design software that they have.
A mandatory pre-bid meeting was held with all prospective bidders on-site. The project
scope was explained and the anticipated difficulties were highlighted. A pre-construction
meeting was held with the low-bidder and past experiences obtained during previous
similar constructions at the site were explained to the contractor.
The consultant that was responsible with the design was also hired to provide
construction quality control and assurance (CQC & CQA) during construction. The cost
of CQC& CQA was almost 10% of the construction cost. Additional budget was
allocated to the consultant to maintain enough field staff on site to monitor construction
to conduct quality control testing without slowing down the construction.
The department had also its own representative (resident engineer) on site, not for quality
control but mainly as a department liaison and a coordinator between the engineer, the
prime contractor, various sub-contractors, quality control consultant and the regulators.
Weekly and monthly meetings were held between all parties involved to promote
cooperation.
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Vision for Future Practice
Improved coordination, costing, and control offered by construction supply-chain management is
an achievable vision. A better understanding of firm’s production costs and capabilities – in
particular their ability to manage their resources across projects given changes in schedule and
scope – affords several opportunities for improvement. It provides a background for improved
production control within each subcontractor and supplier. Such an improved understanding of
costs and capabilities also allows improved design of supply-chains composed of those
subcontractors and suppliers, providing and engineering basis for improved coordination.
Moreover, the link between cost and production allows new forms of contracts that promote
system optimization.
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References
Benton, W. C., & McHenry, L. F. (2010). Construction Purchasing & Supply chain Management. McGraw Hill.
City of Bakersfield Public Works. (n.d.). Thomas Road Improvement Program. Retrieved February 25, 2012, from Bakersfield Freeways: http://www.bakersfieldfreeways.us/
Construction Bid Board, Inc. (n.d.). Construction bid board. Retrieved March 5, 2012, from Construction bid board: http://www.ebidboard.com/
Douglas, L. M. (2008). Supply Chain Management: Processes, Partnerships, Performance. (p. 3). Sarasota, Florida: Supply Chain Management Institute.
Drucker, P. F. (1998, October 5). Management’s New Paradigms. Forbes Magazine, pp. 152-177.
Lin II, R.-G., & Allen, S. (2012, February 12). Massive traffic jam on 10 freeway becomes Caltrans scandal. Los Angeles Times.
O'Brien, W. J. (1998). Construction Supply-chain Management. CEM, 1-6.
Peat, M., & McCrea, A. (2007). Supply Chain Management in Construction Industry. London, UK: Institution of Civil Engineers.
Potts, K. (2008). Construction Cost Management - Learning from case studies . Routledge.
Schroeder, R. G., Goldstein, S. M., & Rungtusanatham, M. J. (2011). Operations Management - Contemporary Concepts and Cases. McGraw-Hill.
Vrijhoef, R., & Koskela, L. (1999). Roles of Supply Chain Management in Construction. International Group for Lean Construction - 7 (pp. 133-146). Berkeley: International Group for Lean Construction.
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