Management and handling of construction materials in the construction supply chain, the effect on construction performance

The purpose of this study is to look at the effect of material supply chain in construction industry on the performance of construction project. The study focus on contractors within Kuala Lumpur area. The materials chosen for the study was based on the constructing concrete frame, portland cement and reinforcement steel. The study shows that contractors have knowledge on supply chain, big company have more knowledge on supply chain than small company. Supply of cement for contractors is efficient. Contractors easy to get supply of cement, but bigger companies have more capability to get supply of cement for construction project, compare to small construction company. Cement supply affect the time and cost of construction project. The effect of cement supply to the construction performance is more on small and medium size construction companies, rather than to big companies. Construction companies have their own way to handle problems on cement supply. Small companies tend get the materials from black market, whereas medium and big company from small scale buying. Contractors get enough supply of reinforcement steel. Reinforcement steel supply affect the cost of a project, but not the time. Reinforcement steel supply affect more on project performed by big companies rather than small and medium companies in term of performance of the project.