Role of procurement and supply chain management in construction project performance: a case on Pakiza Industrial Park

Abstract

Construction supply chain consists of flows of information, materials, labor availability, necessary construction tools and probationary work, which are organized from several stakeholders such as contractors, suppliers, subcontractors, engineer and architects. Construction project is always unique and complex. Any shortcoming of this flow during project implementation disrupts construction progress performance. The aim of this study is to analyze the role of procurement and supply chain activities on construction project performance. To achieve the study goal, data were collected from various sources. Interviews were conducted with procurement and supply chain team and suppliers, contractors, engineers and associate stakeholders of construction project. To get first hand observation I have also visited ongoing construction site several times. It was found that problems in materials flow and layout change caused major disruption in project performance. Problems in materials flow occurred due to material unavailability. These shortage and unavailability of materials at site during construction period indicate how supply chain makes delay and what negative impact may happen in completion of project execution timely. Based on these insights, the study puts forward suggestions to overcome and generate a significant approach for successful construction project performance.