It is undeniable fact that construction industry is a very important product of Gross Domestic Product (GDP) of our country. It is almost 11% of the GDP of our country. It is the second most employment providing sector after agriculture. In spite of its importance, construction industry has not made necessary managerial advancements in formation of Supply Chain to augment productivity and responsiveness in the Industry. In this research, we have made an attempt to explore and understand the nature of supply chain in Indian construction Industry with special attention to supplier selection issues. As we all know that construction industry is an unorganised sector where a lot of individual parties in Construction Supply Chain come together to complete one project. Sometimes many Supply Chain players in the construction industry come together for only one project and on completion of the project they go their separate ways. In such a scenario it is difficult to form and understand the nature and necessity of formation of supply chain fit for use for the given project. In construction industry all the SC players involved look to safe guard their own profits and want their needs to be attended first. With such divided interests and lack of coordination between the participating members it is difficult to complete the project with minimum time and cost variance. Many studies have taken place to improve the coordination between the various SC players of the project. Earlier researchers have already put forth their view of upstream integration in the Construction Supply Chain to reduce cost and time overrun. We argue that the key role of downstream integration has paucity in earlier research work. We believe that the suppliers and subcontractors are the key players in downstream of construction supply chain, because they are the players who actually get the work done at the construction site. We think that if suppliers and subcontractors are integrated at an early stage of a project then reduction in time and cost variation is possible. This means that is inputs from suppliers and subcontractors are taken during design stage itself, then the project schedule prepared will be more precise as the subcontractors and suppliers will be present to tell the times and the buffer that they would require to complete a certain activity; at same time they can tell us about the cost related to the activity based on the material, man-power and equipment required.
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