CONTRACTORS’ SUPPLY CHAIN MANAGEMENT PRACTICE IN HAWASSA CITY: FOCUS ON MANAGEMENT OF SUB-CONTRACTORS AND MATERIALS SUPPLIERS

Abstract

Unstructured communication and no clear responsibilities between the parties involved and the disintegration lead to low productivity, cost and time overruns, conflicts, and disputes. Due to this, construction supply chain management assists enterprises by helping to improve competitiveness, increase profits, and have more control over the different factors and variables within the project. It is in this light that, this study focuses on four specific objectives; assessing contractors’ supply chain management practice focusing on the management of subcontractors and material suppliers, identifying the challenges that affect contractors’ supply chain management practice focusing on the management of subcontractors and material suppliers and finally, assessing the impact of supply chain management on project performance in terms of subcontractors management, and material suppliers. These objectives were achieved through quantitative and qualitative analysis of primary; questionnaire survey and interview. Initially, different relevant literature was reviewed in-depth to understand the practice and identify the variables for the questionnaire to address the objectives. The finding shows the top-five Subcontractors’ management practice were: payment condition, coordination and communication, relationship, project progress review, planning/scheduling practice, also five most materials suppliers management practice were: coordination and communication, payment condition, planning and scheduling practice, materials quality control, relationship were most applicable management practice in Hawassa city building construction projects. The other five most challenges in subcontractors’ management were: payment delay, lack of proper communication, site coordination challenges, lack of continuity of work, managerial skills, also the most challenges in material suppliers management were: delay in delivery time of material. Finally, time were shows the most impacts in terms of subcontractors and material suppliers