Authors: Malik M.A. Khalfan; Tayyab Maqsood; Muhammad Ali Noor
Addresses: School of Property, Construction and Project Management, Royal Melbourne Institute of Technology (RMIT), Melbourne, Australia ' School of Property, Construction and Project Management, Royal Melbourne Institute of Technology (RMIT), Melbourne, Australia ' Institute of Management Studies, University of Peshawar, Peshawar, Pakistan
Abstract: In the context of supply chain management (SCM) in construction, this paper discusses how relationships are maintained, it examines the implementation of SCM and how it can be used to identify and resolve problems, create better relationships and the understanding between trades and suppliers of services for construction projects. Maintaining long-term relationships are not generally considered a priority in both Australia and Malaysia, therefore, the possible advantage of the benefits of such relationships is not taken. The contracting structures and styles significantly affect the relationships between organisations and that procurement techniques and contractor selection is an imperative process in keeping strong relationships for the duration of the project or contract works. Through SCM, the above can be incorporated into construction projects as a new method of project delivery. SCM is an emerging concept in the construction industry and this paper found that the participants in the industry had little to no understanding of SCM principles. It is crucial for organisations to move away from traditional procurement and project delivery methods to promote SCM framework in order to stay competitive in the ever changing industry environment.
Keywords: supply chain management; SCM; project procurement; Australia; Malaysia; supply chain relationships; construction projects; contracting structures; contractor selection; contracting styles.
International Journal of Procurement Management, 2014 Vol.7 No.4, pp.376 - 390
Available online: 04 Jul 2014 *Full-text access for editors Access for subscribers Purchase this article Comment on this article