INTRODUCTION
Construction industry is classified as a project based industry and each and every construction project is unique, reasons behind such characteristic are location based design, environmental issues, various types of partnership per project and numerous clients and suppliers . Vrijhoef believes construction industry is more complex and unsecured supply chain than any other production industry. This supply chain includes many departments such as main contractor, sub-contractor, supplier and client and for more sustainable outcome, integration between all these departments is necessary. For conveyance of the project in atmosphere of shared responsibility and liabilities, associated project needs active collaboration between two participants, owners and non-owners such as designer, contractor and suppliers . According to them, most of the projects involve alliance of basic participants (designer, main contractor & supplier) but only few of them involve sub-contractor. While it is been noted by Miles (1998) that projects involving subcontractor integration have better performance than others. This report will focus on role of sub-contractor in supply chain management and investigate some policies, theories and practices for the purpose of better management technique.
SUPPLY CHAIN MANAGEMENT & SUBCONTRACTING:
According to Meca & Timmer (Supply Chain Collaboration, 2008), research on operation management was focused on single–firm analysis in earlier times and its goal was to ameliorate the production of their firm with the help of managers. In recent times, due to globalization and increased competition, customer gets numbers of products through supply chains which are composed from independent organization so operation management research has shifted its concentration from single firm analysis to multi firm analysis for better production and better efficiency under decentralized control. Constructing excellence claims that there is no motivation in traditional procurement method to work in client’s interest, it is only concerned with delivering specified product or service at lowest price and all the departments work on different contracts with client; while ‘Supply chain’ is a part of modern procurement method where parties of this supply chain have long-term objectives to work together which reduces cost and wastage, provides better value to the client and builds greater confidence in long term planning.
The concept of Supply chain management (SCM) is engendered through just-in-time production and logistics and grew in manufacturing . According to them, construction supply chain is full of wastes and problem because of short sighted control. SCM provides comprehensive methodology which develops better understanding of problems and solutions of them. Basically, supply chain is a network of organizations which makes products and services by various processes and activities and delivers it to customers . Construction companies, which are working in a collaborative way, can see the advantages of supply chain for both clients and themselves. Supply chain is made of subcontractors and suppliers so it is necessary to have better integration with both the companies to deliver the project on time and as per requirement. Different construction companies have different techniques to maintain a sustainable supply chain. One of the major attribute of this system is, every firm shares their individual objectives and their decisions affects performance of other firms of the supply chain . For manufacturing companies, it is tough to produce all the components of project; so they either buy the components or subcontract it to other company. Thus for effective project management, co-ordination between sub-contractor and supplier is necessary . Different countries have different supply chain systems such as relational project delivery, integrated project delivery and alliancing project delivery. For this particular project, I will use integrated project delivery system.
According to ‘Integrated project delivery guide, 2007’, Collaborative, integrated and productive team of project participants is core of integrated project delivery system. Communication in this processes are transparent, succinct and open. Risk and rewards are value based and shared equally between all participants throughout the life span of the project. Outcomes of a process are given more consideration than cost and all the decisions are made upon outcomes. This system involves contractors, suppliers, end users and mangers in design process. IPD delivers better quality product with sustainable environment According to guide, IPD constructs mutual respect and trust among construction manager, suppliers and subcontractors; they understand the value of collaboration and work as a team for the best interest of the project.
MY ROLE AS CONSTRUCTION MANAGER:
For better production management, I will prefer approach of Lean construction management by using good supply chain management, collaboration and elimination of waste from production processes . Lean construction management is derived from lean manufacturing which was developed by large Japanese car industry. Main principles of Lean construction management are: Waste elimination, value based production and perfection.
Lean construction management:
A journal on lean construction by constructing excellence (2004) suggests some principles to be used in construction:
Design:
⦁ Finding out requirement of the office building with the help of visualization techniques.
⦁ Using integrated design and build operation to construct better co-operation between designer, builder and supplier.
⦁ Use of both- standardization and pre-assembly technique for cost and time saving.
Procurement:
⦁ Supply chain management and integration with all the departments.
⦁ Common goal sharing between all parties.
⦁ Complete understanding of costs due to wastes in processes.
Construction:
⦁ Daily progress report and rescheduling.
⦁ Clear communication about project planning.
⦁ Team work with motivation and training.
Subcontractors or suppliers are bounded by a contract with main contractor to deliver a portion of project, material or service. Main contractors’ roles are becoming limited due to advanced procurement method and sub-contracting is growing as a vital part of project as major aspects of works are completed by them . There are certain disadvantages of supply chain such as sometimes it loses control at different levels of management .
CHALLENGES AND ISSUES FOR CONSTRUCTION MANAGER:
Construction manager faces numerous challenges, some are construction related and some are due to peripheral activities. Work force management, health & safety, time & budget constraints and uncertain nature of work fall into the category of construction related issues while legal issues, environmental consideration and socio-political pressures fall into non-construction (peripheral) challenges.
⦁ Time and Budget constraints:
Any time delay in construction projects directly increases the budget of the project so for construction industry ‘Time is money’. Delays cause overhead costs and decrease contractor’s bonding capacity and ability to bid more. It results in higher expenditure on labors and equipment. Furthermore, it creates bad impression on business partners. This issue can be solved by CM’s better planning, scheduling and control work .
For this particular project, as a CM, I will use the comprehensive scheduling with the use of network diagrams. Proactive control will be my prime consideration to stay on the schedule. Unanticipated time delays like weather problems, low production, change in site conditions and limited resources will be taken in consideration while scheduling.
⦁ Environmental & Legal issues:
In recent times, construction industry has certain duties and liabilities towards environment. For each development project, environmental impact assessment is mandatory now a day which is designed to protect human health and natural environment. Not following these regulations can cause some serious consequences like project delay or stoppage, penalties, civil actions, disqualification from future work opportunities and criminal prosecution.
Construction industry is more prone to risks of legal issues than any other industries. As this business is concerned with contractual agreement, disputes and claims are increasing steadily with time. CM can play a vital role to avoid the claims and disputes by preparing comprehensive, transparent and accurate contract document. Detailed description of methods, equipments and techniques with quality specification is needed in contract documentation to avoid claims from pre-construction stage .
⦁ Effective & efficient site management
For effective and efficient site management, a well-defined organizational structure is needed. As a CM for particular construction project, I will apply bureaucratic organizational structure. This structure involves different levels of hierarchy and sub-contractors have given specified roles to perform for their individual department.
⦁ Site Health & Safety management plan:
According to Health and safety plan (Health and safety executive for Northern Ireland, 2011) steps for health and safety management for small projects are as below:
⦁ Identifying concerned risks which need to be managed.
⦁ Assigning responsibilities to site management team or health, foreman and health & safety advisor as per company’s health & safety policy.
⦁ Setting standards and targets and making sure that all the workers attend safety tool box talk.
⦁ Arranging a continuing liaison between designer, client and contractor; which will include health and safety items on agenda.
⦁ Consultation with supervisor and sub-contractor to raise health and safety standards and providing them safety data information sheets (SDIS).
⦁ Employing a sub-contractor for health and safety policy.
⦁ Providing better communication about health & safety between subcontractors during meetings.
⦁ Providing site security with proper arrangements such as fences and notice boards.
⦁ Health & safety training to workers, employees and subcontractors.
⦁ Giving proper welfare facilities such as site office, canteens and toilet blocks for the staff and workers.
⦁ First aid facilities in case of emergencies.
⦁ Establishing site rules and providing fire mitigation arrangements.
Through subcontracting, a construction manager sub out the construction risks and costs, more innovative technologies can be used for better quality products through suppliers which are not affordable in-house, work can be done in better and efficient way of management as responsibilities are divided between subcontractors . Though, subcontracting minimizes the work load of construction manager, it requires proper co-ordination and management between CM and subcontractor to successfully carry out pre-determined objectives. Implementation of supply chain management in construction industry enables high degree of participation among different departments which leads to insightful and structured information
Comments
Post a Comment