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In a project many organization take part in it, and as a project managers we have to be able to determinate who is taking responsibilities, the project could be carry by designers, architects, engineers, quantity surveyors, builders, contractors, subcontractors and minor works.
The Supply Chain Management (SCM) involves the organization of every single process in the project and its relation with the company and other subcontractors, according to that, the SCM implicated by our company was based on systems of contracting and tendering procedures. In those, we stipulate types of contracts, designs, and management organisation of the project, all of this is to make the projects more profitable, with also high standards of quality, health and safety, looking after the budget and a greater regard to competition on time.
The project is complex and needs a good management of the construction process; due to that SCM was created in order to identify the roll of the materials on the process and the impact of the price in the contracts budget and also the execution of the activities.
The project is budgeted about £60 million and hence, the huge investment is though that excellent Supply Chain should be manage, for instance materials that represents the difference in the budget could be the key in the way to be success, concrete and steel are the most representative materials and will be essential determinate if the company will manage and control them or otherwise if the subcontractor will take the responsibility. Because of that, generic configuration of a traditional supply chain in building should be done, in which it will determine the kind of contract, identify direct and indirect suppliers and subcontractors for every single activity in the construction process.
The supply chain that will be manage in the project will be carry by domestic subcontractors whose take the responsibilities of any single process in the construction, every activity will be contracted by the main contractor, add to this as construction manager the decision to take subcontractors whose manage their own resources and materials was based on the key facts for the project, such as, the scale of the building, their needs, it was also necessary determinate independent activities taken by independents subcontractors and minor works.
One of the key facts involved is the raw materials within every activity, it was though that every subcontractor should manage the raw materials to develop its activity and everyone should be responsible for the quality of it, according to this, the management of the materials might be monitoring by an external agent provided by the main contractor and one internal provided by the subcontractor, hence the main contractor or the construction manager would be incorporate an interventory team as show the diagram No1. Who look after the project, the diagram shows the relation between the subcontractors, the construction manager and the interventory in charge of controlling and monitoring each activity and the quality of the materials that need to follow an standards and regulation to be used in the construction industry. Due to that, quality systems should be taken by both parts in order to find to reduce the impacts of risks, besides every subcontractor take control of its activities and own budget, otherwise the main contractor should not be able to manage a huge volume of materials and its control to every single subcontractor.
Diagram No. 1: Supply Chain applied into the project.
As direct suppliers, the subcontractors might take measures to control the process within the regulations systems in order to hand over to the main contractor, inspection of the quality of the materials is one of the most import, as main materials that should be monitored are the concrete, the steel and glass. The characteristics of these materials like resistance, date of delivery, date of purchase, production facts are important to follow and monitoring the life cycle of the material from its inception to the final destination and that is one of the measure that the main contractor will take to reduce the risk, as the quality of the materials is a risk within the construction process.
The supply chain is handled after the tendering process and the selection of the designs, in where the soils, structural, architectonical, and services plans and specifications are defined.
On the other hand, some subcontractors will be nominated by the client, but at the same time they will be named in a list of potential subcontractors, finally they will be chosen by the main contractor through the construction manager based on the specifications and its profitability in the project, for instance in this project the client nominated some contractors for the main works such as concrete structure and stone facade, however they need to apply to be named in the list of subcontractors, every activity is also supported by at least 3 options of subcontractors, in where only one will be chosen by the main contractor to develop the specific activity. It is important to mention that the type of subcontractor in the management procurement will be manage as works contractors, in which the main contractor going to be responsible to paid to the subcontractor's work.
After the tendering process including at least 3 applicants for each activity, the subcontractor was chosen by the construction manager in order to execute the process in the different stages as follows:
SITE CLEARENCE, EXCAVATION AND EXCAVATION WASTE
PANELS AND CURTAIN WALLING
WATER SERVICES, GAS AND FIRE INSTALATIONS
ELECTRICAL AND COMUNICATION SYSTEMS
SECURITY AND ALARMSSYSTEMS
FLOORS AND ITS FINISHINGS
The process going to be developed by different subcontractor, however some activities require that only one subcontractor manage it, such the site clearance and excavation, the subcontractor should provide the machinery to take all the waste off the building and they also provide the backhoes, besides general activities water and, gas and fire services will be carry by only one subcontractor.
On the other hand the building requires that minor works, such as carpentry, or panels and curtain walls developing, at the end every single process in the project will be carry by specific subcontractor, one special fact that need to be contracted is the crane use which will be in the project after piling to finishes, and other provisional activity will be done by one subcontractor who make all the camp and allocations for the employees and subcontractors staff and also for the main contractor staff.
The work package procurement used in the project is based on the connection between the management contractor and the design team's quantity surveyor in order to produce a workable budget, it is also relates the quality systems within every activity, add to this the main contractor might be able to some activities by their own like traffic planning and contractual issues as the diagram shows.