Originally Published on: SpendEdge |The Not-So-Secret Sauce of Winners in Construction Procurement
In the current global construction landscape, a sense of cautious optimism prevails. With significant federal highway programs in the US and various international public infrastructure projects on the horizon, the industry anticipates a positive future. However, challenges such as supply-side bottlenecks, escalating input costs, and a substantial workforce gap in the US pose hurdles to a complete industry rebound. Amidst these challenges, the construction sector must maximize existing resources, embracing resource-saving practices to avert project delays and mitigate heavy penalties. This calls for a reevaluation of construction procurement methodologies.
### *The Critical Role of Construction Time Management*
**Why "Construction Time Management" is Crucial**
The risks associated with delayed project completion extend beyond mere cost overruns. Increased costs, exceeding budget allocations, and potential liabilities for procurement organizations are significant concerns. Effective construction time management is imperative to uphold brand credibility, meet investor expectations, and avoid protracted legal battles.
### *Budgeting as the Linchpin of Construction Procurement*
**Budgeting: A Central Element of Success**
Stakeholders expect construction projects to conclude on time, within budget, and with high-quality standards. Project managers must carefully adjust initial financial plans based on actual performance to prevent delays and cost overruns. Thoughtful budgeting is crucial for the success of construction procurement projects, as deviations can lead to negative business outcomes.
### *The Vital Role of Supplier Selection in Construction Procurement*
**Contracting with the Right Supplier: A Strategic Imperative**
Outsourcing specific tasks to contractors is common in infrastructure projects. Choosing contractors with demonstrated proficiency in delivering complex projects and a commitment to safety and quality work is paramount. Injuries at worksites can result in significant costs, making it essential for businesses to onboard contractors who uphold high standards of health, safety, and governance.
### *SpendEdge's Role in Advancing Construction Procurement*
**Building Better Budgets with SpendEdge**
Procurement often plays a vital spending role but is occasionally overlooked in the budgeting process. SpendEdge's sourcing experts assist businesses in developing accurate procurement methods for construction, ensuring effective plan execution and impactful financial outcomes.
**Improving Supplier Selection with SpendEdge**
Supply chain performance is crucial for profitability and competitive advantage. SpendEdge's experts help construction procurement businesses identify top-tier suppliers based on key performance indicators such as total cost of ownership, reliability, timeliness, and compliance rate.
**Enhancing Fulfillment Efficiencies with SpendEdge**
Lack of visibility and communication across the supply chain can lead to inefficiencies. SpendEdge offers tailored solutions to help clients gain transparency on specific commodities, reduce bottlenecks, and regain control over their sourcing environments.
### *Success Story: Navigating Construction Procurement Challenges*
**A Procurement Organization in the US Steel Industry Enhances Budgeting Accuracy**
SpendEdge collaborated with a mid-size manufacturer of stainless steel coils and strips, helping them quantify and predict construction procurement costs accurately. By identifying critical areas for cost optimization, renegotiating supplier terms, and expanding the supplier network, the client is reshaping construction procurement for sustainable growth.
