Purchasing and Payment Policies for Building Construction Materials

摘要

Every building facility incorporates hundreds of different materials items. Wise management practices in the purchasing of and paying for such materials are fundamental to achieving successful construction. Although the purchasing of most required materials is carried out by contractors, owners could have a considerable leverage over the procurement plans through the adopted payment policies incorporated in the contract conditions. Costs associated with materials purchase and inventory management include purchase, order, holding, and shortage costs. The first three categories of such costs can be more objectively estimated and directly or indirectly charged to the owner, whereas the shortage costs are more difficult to assess and to consequently account for in pricing for construction. The paper presents possible materials ordering frameworks and their corresponding contractor-to-supplier payment schedules. The factors affecting the owner-to-contractor payment policies are also identified, and three frameworks outlining these policies are presented. The paper concludes with a set of recommended contractual requirements that could serve to better devise and control materials procurement programs.