Supply Chain Management & Logistics

Procurement Strategies for Construction Materials

Procurement strategies for construction materials play a crucial role in successful supply chain management and logistics within the construction industry. Getting the right materials, at the right price, at the right time, and in the right place is fundamental to project success, impacting everything from budget adherence to timely completion. Choosing the right procurement strategy is a balancing act, requiring careful consideration of project specifics, market conditions, and risk tolerance.


One common approach is the traditional method of separate procurement, where each material is sourced individually from different suppliers. While this can offer flexibility and potentially lower prices for individual items, it also increases administrative overhead, requires managing multiple contracts, and can complicate logistics. Imagine juggling dozens of suppliers, each with their own delivery schedules and payment terms – the potential for delays and miscommunication is significant.


A more streamlined approach is bundled procurement, where materials are grouped together and sourced from a single supplier or a smaller group. This can simplify logistics, potentially offering bulk discounts and reducing administrative burden. Think of it like buying all your groceries at one supermarket instead of visiting separate butchers, bakers, and greengrocers. However, bundling can limit flexibility and may not always be the most cost-effective if a specific supplier doesnt offer competitive pricing across all materials.


Another strategy gaining traction is strategic sourcing, which goes beyond simple cost comparisons. It involves a deeper analysis of supplier capabilities, market trends, and total cost of ownership. This might involve building long-term partnerships with key suppliers, leveraging technology for better demand forecasting, and implementing lean inventory management practices. Its about looking at the bigger picture and building a resilient, adaptable supply chain.


Finally, e-procurement platforms are transforming how construction materials are sourced. These online platforms allow for greater transparency, streamlined bidding processes, and easier access to a wider range of suppliers. From comparing prices to managing orders and tracking deliveries, e-procurement offers a level of efficiency and control previously unimaginable.


Ultimately, the best procurement strategy depends on the specific project. A large, complex project might benefit from strategic sourcing or bundled procurement, while a smaller project with a tight budget might opt for the traditional approach or leverage e-procurement platforms for better deals. Careful planning, market research, and a clear understanding of project requirements are essential for choosing the strategy that will deliver the best outcomes.

Procurement Strategies for Construction Materials

Logistics of Equipment and Machinery Management

Logistics of equipment and machinery management plays a crucial, often overlooked, role in the broader field of supply chain management and logistics. Its not just about moving boxes of finished goods; its about managing the very tools that enable that movement – from forklifts in warehouses to conveyor belts in factories, and even the trucks and ships that transport goods across the globe. Effective management of these assets is paramount to a smooth and efficient supply chain.


Think of it like this: a chef cant prepare a meal without functioning ovens and sharp knives. Similarly, a supply chain cant operate without properly maintained equipment. Breakdowns lead to delays, impacting production schedules and ultimately, customer satisfaction. A single malfunctioning forklift can bottleneck an entire warehouse, causing ripple effects throughout the entire supply chain.


This is where the logistics of equipment and machinery management comes in. It encompasses a range of activities, including procurement, maintenance, deployment, and eventual disposal of these vital assets. Procurement involves sourcing the right equipment for the job, considering factors like cost, efficiency, and lifespan. Maintenance is crucial for preventing breakdowns and extending the life of the machinery, involving regular inspections, repairs, and part replacements. Deployment focuses on strategically placing and utilizing equipment to maximize efficiency and minimize downtime. Finally, responsible disposal ensures outdated or broken equipment is handled sustainably and cost-effectively.


Furthermore, technology plays an increasingly important role in this aspect of logistics. Sophisticated software can track equipment usage, predict maintenance needs, and optimize deployment strategies. This data-driven approach allows companies to make informed decisions, reduce operational costs, and improve overall supply chain performance.


In conclusion, effective logistics of equipment and machinery management isnt just a back-office function; its a strategic imperative for any organization operating within a complex supply chain. By prioritizing the health and efficiency of their equipment, companies can ensure smooth operations, minimize disruptions, and ultimately, deliver on their promises to customers.

Optimizing On-Site Material Flow and Handling

Optimizing on-site material flow and handling is like choreographing a complex dance within a warehouse or factory. Every move needs to be precise and efficient to avoid costly missteps. In the world of supply chain management and logistics, this "dance" is crucial for maintaining a smooth, cost-effective, and responsive operation. Its about getting the right materials to the right place at the right time, all while minimizing waste and maximizing resource utilization.


Think of it this way: every second a forklift sits idle, every extra step a worker takes, every instance of double-handling a pallet – all of these add up. They represent wasted time, labor, and ultimately, money. Optimizing material flow means streamlining these processes, eliminating unnecessary movements, and ensuring a continuous, predictable flow of goods throughout the facility.


Several strategies can be employed to achieve this optimization. Implementing a well-designed layout is key. This involves strategically positioning workstations, storage areas, and loading docks to minimize travel distances and bottlenecks. Imagine a kitchen designed with the stove across the room from the refrigerator – a recipe for inefficiency. Similarly, a poorly planned warehouse layout can significantly hinder productivity.


Technology also plays a vital role. Automated guided vehicles (AGVs) can replace manual forklifts, reducing labor costs and improving safety. Real-time tracking systems provide visibility into material location and movement, enabling proactive adjustments and preventing delays. Warehouse management systems (WMS) can optimize picking routes and prioritize tasks for maximum efficiency.


Furthermore, incorporating lean principles, like 5S (Sort, Set in Order, Shine, Standardize, Sustain), can significantly improve on-site material flow. By eliminating clutter, organizing workspaces, and standardizing procedures, companies can create a more efficient and safer working environment.


Optimizing on-site material flow and handling isnt just about efficiency; its about responsiveness. In todays fast-paced market, businesses need to be agile and adaptable. An optimized material flow allows companies to quickly respond to changing customer demands, adjust production schedules, and minimize lead times. Ultimately, it contributes to a more resilient and competitive supply chain. Its the difference between a well-oiled machine and a clunky, inefficient operation.

Optimizing On-Site Material Flow and Handling
Waste Management and Reverse Logistics in Construction

Waste Management and Reverse Logistics in Construction

Waste management and reverse logistics are two increasingly vital aspects of supply chain management and logistics within the construction industry. Traditionally, construction has been a major generator of waste, contributing significantly to landfill and environmental damage. However, growing awareness of sustainability and the circular economy is driving a shift towards better waste management practices and the integration of reverse logistics.


Construction waste encompasses a wide range of materials, from concrete and wood to metals, plastics, and packaging. Effective waste management begins with careful planning and design. By accurately estimating material needs and optimizing construction processes, companies can minimize waste generation from the outset. On-site sorting and segregation of waste streams are crucial, allowing for easier recycling and reuse. Partnering with specialized recycling facilities is essential to ensure that materials are properly processed and diverted from landfill. This can involve crushing concrete for use as aggregate, reclaiming wood for other projects, or recovering metals for recycling.


Reverse logistics plays a key role in closing the loop on construction materials. It involves the process of retrieving materials and products from construction sites for various purposes, such as reuse, repair, remanufacturing, or recycling. For example, reusable formwork can be returned to the supplier after use, damaged equipment can be sent for repair, and surplus materials can be redistributed to other projects. Implementing reverse logistics requires careful coordination and tracking of materials, often involving specialized software and logistics providers.


The benefits of effective waste management and reverse logistics in construction are numerous. Environmentally, it reduces landfill waste, conserves natural resources, and minimizes the industrys carbon footprint. Economically, it can lower material costs, generate revenue from recycled materials, and improve project efficiency. Furthermore, embracing these practices enhances a companys reputation and demonstrates its commitment to sustainability, which is increasingly important in todays competitive market.


While challenges remain, such as the complexity of construction projects and the varied nature of waste materials, the construction industry is making strides towards more sustainable practices. Through the adoption of innovative waste management strategies and the integration of reverse logistics principles, the industry can move towards a more circular economy, minimizing its environmental impact and maximizing resource efficiency.

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A contractor[1][2] (North American English) or builder (British English),[3][4] is responsible for the day-to-day oversight of a construction site, management of vendors and trades, and the communication of information to all involved parties throughout the course of a building project.[5]

In the United States, a contractor may be a sole proprietor managing a project and performing labor or carpentry work, have a small staff, or may be a very large company managing billion dollar projects. Some builders build new homes, some are remodelers, some are developers.[6]

Description

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A general contractor is a construction manager employed by a client, usually upon the advice of the project's architect or engineer.[7] General Contractors are mainly responsible for the overall coordination of a project and may also act as building designer and construction foreman (a tradesman in charge of a crew).

A general contractor must first assess the project-specific documents (referred to as a bid, proposal, or tender documents). In the case of renovations, a site visit is required to get a better understanding of the project. Depending on the project delivery method, the general contractor will submit a fixed price proposal or bid, cost-plus price or an estimate. The general contractor considers the cost of home office overhead, general conditions, materials, and equipment, as well as the cost of labor, to provide the owner with a price for the project.

Contract documents may include drawings, project manuals (including general, supplementary, or special conditions and specifications), and addendum or modifications issued prior to proposal/bidding and prepared by a design professional, such as an architect.The general contractor may also assume the role of construction manager, responsible for overseeing the project while assuming financial and legal risks.There are several types of risks can occur include cost overruns, delays, and liabilities related to safety or contract breaches.

Prior to formal appointment, the selected general contractor to whom a client proposes to award a contract is often referred to as a "preferred contractor".[8]

Responsibilities

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A general contractor is responsible for providing all of the material, labor, equipment (such as heavy equipment and tools) and services necessary for the construction of the project. A general contractor often hires specialized subcontractors to perform all or portions of the construction work. When using subcontractors, the general contractor is responsible for overseeing the quality of all work performed by any and all of the workers and subcontractors.

It is a best practice for general contractors to prioritize safety on the job site, and they are generally responsible for ensuring that work takes place following safe practices.

A general contractor's responsibilities may include applying for building permits, advising the person they are hired by, securing the property, providing temporary utilities on site, managing personnel on site, providing site surveying and engineering, disposing or recycling of construction waste, monitoring schedules and cash flows, and maintaining accurate records.[9]

The general contractor may be responsible for some part of the design, referred to as the "contractor's design portion" (JCT terminology).[10]

United Kingdom, Commonwealth and Australia usage

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In the United Kingdom, Australia and some British Commonwealth countries, the term 'general contractor' was gradually superseded by builders during the early twentieth century.[citation needed] This was the term used by major professional, trade, and consumer organizations when issuing contracts for construction work, and thus the term 'general contractor' fell out of use except in large organizations where the main contractor is the top manager and a general contractor shares responsibilities with professional contractors.

General contractors who conduct work for government agencies are often referred to as "builders". This term is also used in contexts where the customer's immediate general contractor is permitted to sub-contract or circumstances are likely to involve sub-contracting to specialist operators e.g. in various public services.

United States and Asia usage

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In the United States and Asia, the terms general contractor (or simply "contractor"), prime contractor and main contractor are often interchangeable when referring to small local companies that perform residential work. These companies are represented by trade organizations such as the NAHB.[11]

Licensing requirements

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Licensing requirements to work legally on construction projects vary from locale to locale. In the United States, there are no federal licensing requirements to become a general contractor, but most US states require general contractors to obtain a local license to operate. It is the states' responsibility to define these requirements: for example, in the state of California, the requirements are stated as follows:

With a few exceptions, all businesses or individuals who work on any building, highway, road, parking facility, railroad, excavation, or other structure in California must be licensed by the California Contractors State License Board (CSLB) if the total cost of one or more contracts on the project is $500 or more.

In every state that requires a license, a surety bond is required as part of the licensing process, with the exception of Louisiana, where bonding requirements may vary in different parishes. Not all states require General Contractor licenses - these include Vermont, New Hampshire and Maine, among others.

Licensing qualifications

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Some general contractors obtain bachelor's degrees in construction science, building science, surveying, construction safety, or other disciplines.

General Contractors often learn about different aspects of construction, including masonry, carpentry, framing, and plumbing. Aspiring general contractors communicate with subcontractors and may learn the management skills they need to run their own company.

Experience in the construction industry as well as references from customers, business partners, or former employers are demanded. Some jurisdictions require candidates to provide proof of financing to own their own general contracting firm.

General Contractors often run their own business. They hire subcontractors to complete specialized construction work and may manage a team of plumbers, electricians, bricklayers, carpenters, iron workers, technicians, handymans, architects and roofers. General Contractors build their business by networking with potential clients, buying basic construction tools, and ensuring that their subcontractors complete high-quality work. General Contractors do not usually complete much construction work themselves, but they need to be familiar with construction techniques so they can manage workers effectively. Other reasons include access to specialist skills, flexible hiring and firing, and lower costs.

General contractor example

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A property owner or real estate developer develops a program of their needs and selects a site (often with an architect). The architect assembles a design team of consulting engineers and other experts to design the building and specify the building systems. Today contractors frequently participate on the design team by providing pre-design services such as providing estimations of the budget and scheduling requirements to improve the economy of the project. In other cases, the general contractor is hired at the close of the design phase. The owner, architect, and general contractor work closely together to meet deadlines and budget. The general contractor works with subcontractors to ensure quality standards; subcontractors specialise in areas such as electrical wiring, plumbing, masonry, etc.

See also

[edit]

References

[edit]
  1. ^ Davies, Nikolas, and Erkki Jokiniemi. Architect's illustrated pocket dictionary. Oxford: Architectural Press, 2011. 289. Print.
  2. ^ "Collins Dictionary".
  3. ^ "Merriam-Webster".
  4. ^ "Builder vs. Construction Manager".
  5. ^ Hendrickson, Chris. & Au, Tung (2000), The Design and Construction Process. Project Management for Construction: Fundamental Concepts for Owners, Engineers, Architects and Builders, chapter 3
  6. ^ "What's the difference between a developer and a builder?". Chicago Tribune. 2005-01-23. Retrieved 2023-07-18.
  7. ^ Shekhar, R. K. (2005), Academic Dictionary of Architecture, Delhi: Isha Books, 69
  8. ^ Department of Defense Appropriations Part 3: Procurement. Washington DC: U.S. Government Printing Office. 1968. p. 224.
  9. ^ Allen, Edward, & Iano Joseph (2009). Fundamentals of Building Construction Materials and Methods. 5th ed. Hoboken, N.J.: John Wiley & Sons.
  10. ^ Joint Contracts Tribunal, Intermediate Building Contract with contractor’s design (ICD), current edition 2019, accessed 7 July 2021
  11. ^ "About NAHB". www.nahb.org. Retrieved 2023-07-18.

Sources

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Merchandise on display in a hardware store
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The concept of home improvement, home renovation or remodeling is the process of renovating, making improvements or making additions to one's home.[1] Home improvement can consist of projects that upgrade an existing home interior (such as electrical and plumbing), exterior (masonry, concrete, siding, roofing) or other improvements to the property (i.e. garden work or garage maintenance/additions). Home improvement projects can be carried out for a number of different reasons; personal preference and comfort, maintenance or repair work, making a home bigger by adding rooms/spaces, as a means of saving energy, or to improve safety.[2]

Types of home improvement

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Man painting a fence

While "home improvement" often refers to building projects that alter the structure of an existing home, it can also include improvements to lawns, gardens, and outdoor structures, such as gazebos and garages. It also encompasses maintenance, repair, and general servicing tasks. Home improvement projects generally have one or more of the following goals:[citation needed]

Comfort

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Maintenance and repair

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Maintenance projects can include:

Additional space

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Additional living space may be added by:

  • Turning marginal areas into livable spaces such as turning basements into recrooms, home theaters, or home offices – or attics into spare bedrooms.
  • Extending one's house with rooms added to the side of one's home or, sometimes, extra levels to the original roof. Such a new unit of construction is called an "add-on".[3]

Saving energy

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Homeowners may reduce utility costs with:

Safety, emergency management, security and privacy

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The need to be safer or for better privacy or emergency management can be fulfilled with diversified measures which can be improved, maintained or added. Secret compartments and passages can also be conceived for privacy and security.

Home improvement industry

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Screws and bolts in an OBI home improvement store in Poland

Home or residential renovation is an almost $300 billion industry in the United States,[5] and a $48 billion industry in Canada.[6][full citation needed] The average cost per project is $3,000 in the United States and $11,000–15,000 in Canada.

Professional home improvement is ancient and goes back to the beginning of recorded civilization. One example is Sergius Orata, who in the 1st century B.C. is said by the writer Vitruvius (in his famous book De architectura) to have invented the hypocaust. The hypocaust is an underfloor heating system that was used throughout the Roman Empire in villas of the wealthy. He is said to have become wealthy himself by buying villas at a low price, adding spas and his newly invented hypocaust, and reselling them at higher prices.[7]

Renovation contractors

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Perhaps the most important or visible professionals in the renovation industry are renovation contractors or skilled trades. These are the builders that have specialized credentials, licensing and experience to perform renovation services in specific municipalities.

While there is a fairly large "grey market" of unlicensed companies, there are those that have membership in a reputable association and/or are accredited by a professional organization. Homeowners are recommended to perform checks such as verifying license and insurance and checking business references prior to hiring a contractor to work on their house.

Because interior renovation will touch the change of the internal structure of the house, ceiling construction, circuit configuration and partition walls, etc., such work related to the structure of the house, of course, also includes renovation of wallpaper posting, furniture settings, lighting, etc.

Aggregators

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Aggregators are companies that bundle home improvement service offers and act as intermediary agency between service providers and customers.

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Home improvement was popularized on television in 1979 with the premiere of This Old House starring Bob Vila on PBS. American cable channel HGTV features many do-it-yourself shows, as does sister channel DIY Network.[8] Danny Lipford hosts and produces the nationally syndicated Today's Homeowner with Danny Lipford. Tom Kraeutler and Leslie Segrete co-host the nationally syndicated The Money Pit Home Improvement Radio Show.

Movies that poked fun at the difficulties involved include: Mr. Blandings Builds His Dream House (1948), starring Cary Grant and Myrna Loy; George Washington Slept Here (1942), featuring Jack Benny and Ann Sheridan; and The Money Pit (1986), with Tom Hanks and Shelley Long. The sitcom Home Improvement used the home improvement theme for comedic purposes.

See also

[edit]

References

[edit]
  1. ^ https://dictionary.cambridge.org/us/dictionary/english/home-improvement
  2. ^ https://www.collinsdictionary.com/us/dictionary/english/home-improvements
  3. ^ "Add-on". English Oxford Living Dictionary (US). Oxford University Press. Archived from the original on February 21, 2017. Retrieved February 20, 2017.
  4. ^ Use a Programmable Thermostat, Common Sense, to Reduce Energy Bills Archived July 19, 2009, at the Wayback Machine, Brett Freeman, oldhouseweb.com
  5. ^ "Joint Center for Housing Studies of Harvard University, 2007" (PDF). Archived (PDF) from the original on August 7, 2014. Retrieved April 10, 2014.
  6. ^ "Canada Mortgage and Housing Corporation - Société canadienne d'hypothèques et de logement". Archived from the original on October 23, 2007. Retrieved October 23, 2007.
  7. ^ "Canada Homeowners Community - Example of Low-Cost Advices used by Canadian Homeowners (Community) for Home Improvement that boost the sale of your Home". Canada Homeowners Community. January 12, 2020.
  8. ^ Cerone, Daniel (September 17, 1991). "Tim Allen's Power Tools : Television: The comic who had Disney and cable executives abuzz parlayed his luck to develop 'Home Improvement". Los Angeles Times. Archived from the original on June 22, 2015. Retrieved June 16, 2015.

Further reading

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Building design, also called architectural design, refers to the broadly based architectural, engineering and technical applications to the design of buildings. All building projects require the services of a building designer, typically a licensed architect. Smaller, less complicated projects often do not require a licensed professional, and the design of such projects is often undertaken by building designers, draftspersons, interior designers (for interior fit-outs or renovations), or contractors. Larger, more complex building projects require the services of many professionals trained in specialist disciplines, usually coordinated by an architect.

Occupations

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Architect

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An architect is a person trained in the planning, design and supervision of the construction of buildings. Professionally, an architect's decisions affect public safety, and thus an architect must undergo specialized training consisting of advanced education and a practicum (or internship) for practical experience to earn a license to practice architecture. In most of the world's jurisdictions, the professional and commercial use of the term "architect" is legally protected.

Building engineer

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Building engineering typically includes the services of electrical, mechanical and structural engineers.

Draftsperson

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A draftsperson or documenter has attained a certificate or diploma in architectural drafting (or equivalent training), and provides services relating to preparing construction documents rather than building design. Some draftspersons are employed by architectural design firms and building contractors, while others are self-employed.[1]

Building designer

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In many places, building codes and legislation of professions allow persons to design single family residential buildings and, in some cases, light commercial buildings without an architectural license. As such, "Building designer" is a common designation in the United States, Canada, Australia and elsewhere for someone who offers building design services but is not a licensed architect or engineer.

Anyone may use the title of "building designer" in the broadest sense. In many places, a building designer may achieve certification demonstrating a higher level of training. In the U.S., the National Council of Building Designer Certification (NCBDC),[2] an offshoot of the American Institute of Building Design,[3] administers a program leading to the title of Certified Professional Building Designer (CPBD). Usually, building designers are trained as architectural technologists or draftspersons; they may also be architecture school graduates that have not completed licensing requirements.[4]

Many building designers are known as "residential" or "home designers", since they focus mainly on residential design and remodeling.[5] In the U.S. state of Nevada, "Residential Designer" is a regulated term for those who are registered as such under Nevada State Board of Architecture, Interior Design and Residential Design, and one may not legally represent oneself in a professional capacity without being currently registered.

In Australia where use of the term architect and some derivatives is highly restricted but the architectural design of buildings has very few restrictions in place, the term building designer is used extensively by people or design practices who are not registered by the relevant State Board of Architects. In Queensland the term building design is used in legislation which licenses practitioners as part of a broader building industry licensing system. In Victoria there is a registration process for building designers and in other States there is currently no regulation of the profession. A Building Designers Association operates in each state to represent the interests of building designers.

Building surveyor

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Building surveyors are technically minded general practitioners in the United Kingdom, Australia and elsewhere, trained much like architectural technologists. In the UK, the knowledge and expertise of the building surveyor is applied to various tasks in the property and construction markets, including building design for smaller residential and light commercial projects. This aspect of the practice is similar to other European occupations, most notably the geometra in Italy, but also the géomètre in France, Belgium and Switzerland. the building surveyors are also capable on establishment of bills of quantities for the new works and renovation or maintenance or rehabilitation works.[6]

The profession of Building Surveyor does not exist in the US. The title Surveyor refers almost exclusively to Land surveyors. Architects, Building Designers, Residential Designers, Construction Managers, and Home Inspectors perform some or all of the work of the U.K. Building Surveyor.

See also

[edit]

References

[edit]
  1. ^ "Occupational Employment and Wage Statistics". 7 September 2022.
  2. ^ National Council of Building Designer Certification Archived 2008-05-20 at the Wayback Machine
  3. ^ American Institute of Building Design Archived May 18, 2008, at the Wayback Machine
  4. ^ "Steckbrief: Bauzeichner" (in German). 7 September 2022.
  5. ^ Yusuf Ebrahim, University of Nairobi (7 September 2022). "Lessons in tropical design and planning (Erich Meffert and beyond): Chapter seven (Building design thinking and issues)".
  6. ^ Murtagh, Niamh; Ashkar, Loulwa; Roberts, Aeli (2018). "The role of building control surveyors and their power in promoting sustainable construction". Construction Management and Economics. 36 (7): 363–374. doi:10.1080/01446193.2017.1397721. S2CID 115923683.

 

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By implementing a robust procurement plan involving accurate forecasting, strategic sourcing, supplier relationship management, and real-time inventory tracking. This allows for timely delivery of materials, reduces storage costs, and minimizes the risk of delays.
Implementing just-in-time delivery systems, optimizing delivery routes, using technology like GPS tracking and telematics, and employing efficient material handling equipment can significantly improve logistics and transportation efficiency, reducing downtime and improving overall productivity.
Implementing a waste management plan that includes waste segregation, recycling, and responsible disposal practices. Additionally, accurate material forecasting and efficient inventory management can minimize surplus materials, reducing waste and associated costs.
Utilizing cloud-based platforms, Building Information Modeling (BIM) software, and RFID tracking can provide real-time visibility into material flow, inventory levels, and delivery schedules. This enhanced transparency facilitates better collaboration between all stakeholders, enabling proactive decision-making and improved project outcomes.