Material Purchasing: Sub-Contractor vs. General Contractor

Procurement in the construction industry has primarily been a function of the specialty contractor. However, a few general contractors have been attempting to purchase material directly from manufacturers. This operational philosophy has its roots in bulk-purchasing and vertical integration. Participants will examine a new and more efficient procurement model, which will help decrease cost and increase profits for all the stake-holders.

This program is based on the research report Procurement Chain Management in the Construction Industry, funded by ELECTRI International.

Following this course, participants will be able to:

  • Discuss strengths and weaknesses in procurement management practices
  • Explain the three procurement chain models practiced in the construction industry

Describe methods to eliminate waste and inefficiency in the supply chain to more effectively work with suppliers and customers

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