THESIS ABSTRACT

Abstract

Supply chain plays a vital role in the successful completion of a construction project. Lack of proper supply management in any construction project results in cost overrun, time overrun, claims, disputes, and low productivity, which may ultimately lead to failure of the project. The overall objective of this study is to analyze a comparative study of supply chain management in building construction projects. This study focuses on the perception of the stakeholders on the need and importance of supply chain management on the selected construction projects of Kathmandu Valley. Total of thirty-four projects were taken for the study. Among these, 16 projects were executed by DUDBC and NRA and 18 projects from the private developers. The primary data collection tools used for the study are a questionnaire survey and a key informant interview along with a desk study was conducted. The responses of questionnaires based on the Likert scale were ranked using the Relative Importance Index (RII). The findings derived based on the comparison of views between the public stakeholders and private sectors showed that supply chain management in the construction industry would improve quality assurance and client satisfaction for the public and private sectors respectively. The public sector perceived that the successful growth of the supply chain relationship between client and supplier is based on the relation between demand and supply along with the efficient supply of the materials. Whereas, for the private sector it was based on the relation between demand and supply only. Similarly, the respondents agreed that there is a significant degree of agreement regarding the high importance of supply chain management in the construction industry by accepting an alternative hypothesis. The existing challenges in the supply chain management process in the construction industry have been assessed for the factors that create a barrier in SCM, the efficiency of SCM, and challenges faced during material management. Delay in delivery, delivery of inferior quality materials, and delay in payment are the major barriers for the public and private sector, which have been assessed by hypothesis testing. Similarly, hypothesis testing showed that vi the factors such as cost of materials, cash to cash cycle, perfect order, poor road condition, and shortage of transporting means were the existing challenges for inefficient supply chain management processes in the construction industry. The study also found that improved integrated management between supply chain and project site as the best approach for SCM from hypothesis testing. Similarly, good communication and order at right time to maintain the inventory is the best solution for an efficient supply chain system which shall have high benefit for increasing quality works and improving coordination with suppliers. The study recommends following the approach of integrated management for the successful growth of supply chain management along with establishing a good communication system, ordering construction materials at the right time and amount, quick decision making process, quality assurance of materials before supplying and ordering, practicing better construction methods, and updating with the latest materials and its specification available in the market, identifying alternative suppliers, proper resource planning, identifying the capacity of suppliers, tracing the performance of the project, identifying the wastages and elimination of non-value activities.

Keywords

Supply chain management, building construction projects, private sectors, public sectors.