Assessing critical factors for price sourcing in the building industry: Challenges and strategies
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Date
2021-06-23
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Abstract
Competition within the construction industry has greatly increased due to new knowledge and
technology and how best value for money is achieved to the benefit of all stakeholders involved.
All forms of financing have had its various challenges requiring that stakeholders take well
calculated and pragmatic steps to control cost from the conception to the completion stage of any
construction project. In getting this achieved, price sourcing plays a vital role with some
identifiable successes but has not been void of its associated challenges. This research tries to
assess the challenges of price sourcing stakeholders are faced with within the industry and the
strategies that have been adopted in addressing these challenges. In order to achieve this aim, the
following objectives were set to help achieve the aim; first, to examine the current price sourcing
procedures and strategies. Secondly, to identify challenges involved in sourcing procedures and
thirdly, to outline strategies for effective price sourcing. Also, literature review was undertaken
delving into the price sourcing procedures, the challenges involved in price sourcing as well as
the sourcing strategies that can be adopted by construction professionals for effective price
sourcing. The study adopted a quantitative research method where questionnaires were used to
collect data from construction professionals and the data obtained was analyzed using mean
score ranking and one sample t-test. The study revealed that, Commerciality; the supplier plays a
vital role within the organization, Negotiate and select suppliers and Rigor: not only
organizational wise, but also structural, supply market analysis and professional approach
emphasized were the frequently used price sourcing procedures. Foreign exchange fluctuations,
Transportation delays, Type of products and Inventory management were the most experienced
challenges. Also, it was revealed that most construction professionals practice single sourcing
and out sourcing while a few practice in sourcing. The study recommends strategic price sourcing
procedures by all construction professionals.
Description
A thesis submitted to the Department of Construction Technology and Management Kwame Nkrumah University of Science and Technology, Kumasi in partial fulfillment of the requirements for the Degree of Master of Science in Construction Management.
Keywords
Price sourcing, strategies, Building Industry, critical factors