Selection of material suppliers by the contractors in the construction industry

Abstract

Generally, construction materials constitute about 30% of the cost of the building project. Therefore, the selection of the suppliers is important to ensure the successful completion of the project. Past literature show that the main issue with building materials purchasing is the selection of the suppliers, which depends on careful examination of suppliers’ price and quality among other criteria. The aim of this study is to evaluate the selection of suppliers by the contractors and to identify the problems faced by the contractors regarding the material suppliers. The objectives of the study are to study the types of material supplied to the contractor through quotation or direct negotiation from the supplier, to identify the main problems faced by contractors in obtaining the materials from the suppliers, to evaluate the criteria for the selection of material suppliers by the contractor and to develop AHP method and criteria analyzing for the right selection of material supplier. The study is carried out in the state of Johor. The study is carried through questionnaires and interviews. The data is analyzed using statistical analysis and Average Index. From the study, the materials supplied by the suppliers to the contractors are timbers for carpentry and formwork through direct negotiation. Other general materials are procured through quotation. The main problems faced by the contractors in obtaining the material from the suppliers are the supplier does not understand the contractors’ project schedule, late delivery of materials and the high price of materials. The criteria for the selection of the material suppliers by the contractor are price, production facilities and quality. Through the AHP model a wide range criterion and sub-criteria are identified, data and information for each supplier evaluated, the best supplier selected and finally the consistency of the contractor decision tested.