Shared Flashcard Set


Manage Suppliers
Undergraduate 1

Additional Management Flashcards




What needs to be considered in Material Requisitions?
  • What needs to be procured?
  • Quantity (material takeoff)
  • When it needs to be ordered and deliverd?
  • Have knowledge about the latest developments of new materials/equipment
What is the definition of Procuring material or equipment?
  • is the planning and controlling of all necessary efforts to ensure that the correct quality and quantity of materials and equipment are appropriately specified in a timely manner and are available when needed
  • Purchase does not contain job site labour
What are some of the procedures of Purchasing?
  • Pricing and purchasing materials/equipment
  • Tracking and expediting
  • Material control at the jobsite
  • Purchase or rental of construction equipment
What is required when completing a Supplier Search?
  • Comprehensiveness
  • Vendor inquiries and evaluations
  • Short List Vendors on
    • quality
    • price
    • lead time
  • Most contracts have an approved vendor/suppliers list
What are the steps in the Purchasing Process?
  1. Material Requistion
  2. Supplier Search
  3. Request for Quotation
  4. Supplier Selection
  5. Purchase Order (PO)
  6. Delivery
  7. Payment
  8. PO Close Out
What is the material life cycle?
  • The order
  • The approval process
  • Fabrication and delivery
  • Installation process
What is the objective for a RFQ?
Conducting a competitive process aiming at evaluating suppliers and selecting the best supplier who meets the requirement.
What are the contents of a RFQ?
  • Introduction and overview
  • Submissions details
  • Detailed technical specification
  • Milestones
  • Business requirements
  • Terms and conditions
What is the evaluation criteria typical of Supplier Selection?
  • Meeting standards and specifications
  • Competitive pricing
  • Product quality/quality control methods and practices
  • Reliable delivery method
  • Adequate distribution/warehousing
  • Spare parts availability
  • Warranty
  • Insurance
What are some on the uses of purchase orders?
  • Major purchases of bulk materials
  • Materials and equipment to be provided to others
  • Equipment to be installed by general contractor's own forces
What is the definition of a Purchase Order?
The agreement with supplier to purchase the material/equipment.
What is required on a PO?
  • Quantities or number required
  • Item descriptions (this ranges from a catalog No. to complex set of drawings)
  • Special instructions (shipping and invoicing. etc.)
  • Signature of agents
  • Short forms and different methods are used
  • PO is a contract
  • It typically consists mostly of standard conditions
  • There are few supplementary conditions for the item to purchsed, its cost, and the deside quantity
What are the key elements of a PO?
  • Items specifications
  • Delivery clauses
    • delivery date
    • delivery methods
    • point of delivery
  • Use of liquidated damage for late delivery
    • expected cost of problems and consequences
  • Price
  • Payment terms and methods
What are some important considerations for PO?
  • bill of landng: is a transfer of ownership of the purchased items
  • invoices: is a billing document that states the billed price of shipped material. Of importance is the basis of price quotations and responsibilty of shipment
  • Who arranges and pays for transportation cost or any other associated cost?
  • Who assumes risks in transportation
  • Who arranges and pays for import and export licenses, taxes and duties?
What is the approval process of Purchase Orders?
  • Items requiring fabrication require submittal of:
    • Shop Drawings
      • Reinforcing steel
      • Pre-cast concrete
    • Product Data
      • Concrete Mix Design
      • Fire Rating Tests
    • Samples
      • Flooring
      • Wall covering
      • Paint
  • Submission by supplier (or subcontractor) to contractor
  • Review of submittal by contractor
  • Review by the architect (owner)
  • Return of submittal to supplier (or subcontractor)
  • Possible outcomes
    • Approval
    • Approved with noted corrections-resubmission not required
    • Approved with noted corrections-resubmission required
    • Not approved-must resubmit
What are some elements in the PO Systems?
  • PO number
  • Link to cost control system
  • coordination of delivery slips, po and invoices
  • indication of who made the purchase and for which project
What are the PO control requirements?
  • Cost
  • Quality
  • Delivery
  • Schedule
What is expediting?

Tracking, confirming, and accelerating of delivery of purchsed item, which include:

Contacting supplier for 

  • updates on the delivery schedule
  • potential issues
  • reasses the schedule based on issues

Effective communications is the key success factor

What is expediting procedure?

It is a process of detailing

Who will be involved in the expediting process

When s/he will be involved

How s/he will be involved

Make sure this is relayed to the supplier

What are some issues with delivery and storage of materials?

Timely deliver and Quality

Poor materials management can result in large and avoidable costs during construction.

What will occur if there is a failure to order and deliver on time?
  • If materials are purchased and delivered early
    • Capital may be tied up and interest charges incurred on the excess inventory of materials
    • Materials may deteriorate during storage or be stolen or wasted unless special care is taken
    • It may interrupt work schedule
    • Create congestion
  • If materials are delivered late
    • Delays and extra expenses may be incurred if materials required for particular activities are not available
What are some quality issues that may occur?
  • Inspector is responsible to inspect all materials deliverd to site before usage
    • In certain cases, before delivery
  • Inspector has the right to reject materials that dont meet specified standards
  • Faulty material should be clearly marked upon rejection
  • Faulty material should be immediately placed in a separate area and removed from jobsite
  • A written notice of non-compliance should be provided, documented and recorded
What are some guidelines for Material Storage?
  • Communicat the sequence of construction and delivery times with fabricator
    • Ensure timely production of shop drawings and fabrications
  • Assign organized subareas for the delivery of each major material
    • avoid mixing
  • Sort the material upon its delivery to the site
  • Allow sufficient space for organizing and storage of waster materials
  • Assign a proper area for storage:
    • compact and solid surface
    • adequate access to storage for delivery and removal
    • proper size
  • Assign skids or pallets to avoid moisture
  • Protect material, if required e.g. weather sensitive
What is the objective of Material Handling?

Making sure materials are available when needed.

Different options 

Site Storage or

Deliver as needed

What are the Basics of Material Handling?
  • Material movement on the jobsite (e.g. horizontally, vertically)
  • Lifting equipment (forklifts and cranes)

Efficient material handling impacts the construction productivity

Guidelines for Material Handling on the Jobsite are?
  • Deliver material to its location with delivery crew if possible
    • Handles material more efficiently and more quickly
  • Deliver material as close as possible to installation location
  • If possible deliver from the truck to installation location
    • Structural steel
    • Large equipment
  • Move material with the least expensive labour possible
  • Try to pre-plan to avoid moving materials more than once. Be aware of:
    • Work schedule
    • Delivery schedule
  • Plan for equipment needs for moving materials prior to delivery
    • Permanent
    • Temporary
  • Make sure about the equipment availability
  • Select best equipment for moving the material
    • Cost 
    • Availability
    • Capacity
    • Safety
    • Access to and within the jobsite
  • Make necessary arrangements for placing material or equipment in the installation location
    • Constraints in using conventional routes due to large size
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