An improved approach to the subcontracting procurement process in a lean construction setting

AbstractThe subcontracting procurement process is one of the most important issues impacting the costs of engineering projects and construction projects, in particular. Traditional procedures of subcontracting procurement tend to limit the opportunities for price negotiation and cooperative relationships between contractors and neglect potential issues such as engineering interface, construction risk, and waste. Based on case studies of construction projects, we propose a “lean” subcontracting procurement process (LSPP) drawing from lean construction theory. The process consists of a novel Seven-Arrangement operation plan and four types of standard operating flows. Not only does the proposed LSPP help sub-contractors eliminate various types of waste in construction projects, it also establishes a common information platform and cooperative environment that help participating contractors understand the work emphasis of each operation and the whole operation in sequence. As a result, the relationships betwe...

[1]  Ossi Pesämaa,et al.  Validating a Model of Cooperative Procurement in the Construction Industry , 2009 .

[2]  Fawaz M. Abdullah,et al.  LEAN MANUFACTURING TOOLS AND TECHNIQUES IN THE PROCESS INDUSTRY WITH A FOCUS ON STEEL , 2003 .

[3]  Edmundas Kazimieras Zavadskas,et al.  Risk assessment of construction projects , 2010 .

[4]  Martin Skitmore,et al.  Contractor selection using multi criteria utility theory: an additive mode , 1998 .

[5]  W. B. Ledbetter,et al.  Causes of Quality Deviations in Design and Construction , 1992 .

[6]  Per Erik Eriksson,et al.  Procurement effects on trust and control in client-contractor relationships , 2007 .

[7]  Mohamed Al-Hussein,et al.  Development of Lean Model for House Construction Using Value Stream Mapping , 2009 .

[8]  David Arditi,et al.  Issues in Subcontracting Practice , 2005 .

[9]  Creed S. J. Eom,et al.  Subcontractor Evaluation and Management Framework for Strategic Partnering , 2008 .

[10]  Vito Albino,et al.  A neural network application to subcontractor rating in construction firms , 1998 .

[11]  Robert F. Borg.  The Contractor-Subcontractor Relationship: The Subcontractor's View , 1995 .

[12]  Andreas Hartmann,et al.  Subcontractor procurement in construction: the interplay of price and trust , 2010 .

[13]  J. Shimizu,et al.  SUBCONTRACTING AND COOPERATION NETWORK IN BUILDING CONSTRUCTION: A LITERATURE REVIEW , 2002 .

[14]  Elżbieta Radziszewska-Zielina,et al.  Methods for selecting the best partner construction enterprise in terms of partnering relations , 2010 .

[15]  Mohan M. Kumaraswamy,et al.  Improved subcontractor selection employing partnering principles , 2000 .

[16]  Sai On Cheung,et al.  An analytical hierarchy process based procurement selection method , 2001 .

[17]  Andreas Hartmann,et al.  Relative importance of subcontractor selection criteria: evidence from Singapore , 2009 .

[18]  Lincoln Forbes,et al.  ADAPTING LEAN CONSTRUCTION METHODS FOR DEVELOPING NATIONS , 2004 .

[19]  Aminah Robinson Fayek,et al.  Risk Management in the Construction Industry Using Combined Fuzzy FMEA and Fuzzy AHP , 2010 .

[20]  Taiichi Ohno,et al.  The Toyota Production System , 1984 .

[21]  D. Greenwood.  Subcontract procurement: are relationships changing? , 2001 .

[22]  Raj Smith,et al.  Engineering and management , 1963 .

[23]  Ali A. Shash.  BIDDING PRACTICES OF SUBCONTRACTORS IN COLORADO , 1998 .

[24]  Per Erik Eriksson,et al.  Effects of cooperative procurement procedures on construction project performance: A conceptual framework , 2011 .