AS 2007 Volume 14 Issue 1

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http://hdl.handle.net/11660/6888

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Browsing AS 2007 Volume 14 Issue 1 by Author "Bowen, Paul"

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    Beyond Egan’s supply chain management: advancing the role of logistics in the South African construction industry
    (University of the Free State, 2007) Shakantu, Winston; Tookey, John; Muya, Manya; Bowen, Paul
    English: The construction industry has globally been identified by investors and portfolio managers as under-performing in terms of return on investment (ROI), while simultaneously exposing the capital investment of investors to the highest levels of risk compared to any significant industry. In some cases, construction firms have received rates of return of as low as 1.5 to 2%. This is typically an unsustainable level of return for investors as they can gain a considerably higher ROI through much less risky financial vehicles such as gilts and bonds. Given such a low rate of return, the construction industry has for a number of years attempted to increase efficiency and reduce costs as a means of winning further business and increasing profitability. One of the methods that have been espoused as offering significant potential benefits for construction has been the industry-wide adoption of the principles of supply chain management (SCM). However, at present the bulk of SCM practice is focussed on high level strategic issues, whilst largely ignoring more operational issues related to logistics. This is a major omission, given the fact that a recent study by the Building Research Establishment (BRE) in the UK indicates that as much as 30% of the cost of construction is attributed to transportation of materials. This article examines, through a review of literature, the role of SCM in construction and the contribution an effective logistics system can make to increasing efficiency and reducing construction costs.
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    The management of clients’ strategic objectives using the JBCC principal building agreement: a case study
    (University of the Free State, 2007) Richards, Peter; Bowen, Paul
    English: Meeting the strategic objectives of construction clients is paramount in construction procurement for the project to be regarded as successful by the client. It is contended that the choice of contractual arrangement can act as a barrier to achieving these objectives. Through an analysis of the South African JBCC Principal Building Agreement, the authors explore how contractual arrangements can be a limitation to achieving the client’s construction strategic objectives. The research methodology adopted for the research comprises a desktop analysis of the JBCC Principal Building Agreement together with the analysis of a single case study to explore how the JBCC Principal Building Agreement addresses the client’s strategic objectives in theory and in practice. The findings indicate that the Agreement neither makes provision to deal with the client’s strategic objectives nor are they met by its philosophy, structure, or parameters. It is concluded that construction clients who use the Agreementor its equivalent for the benefit of its convenience and familiarity should consider its adequacy to manage strategic objectives within the wider sense of the investment and business case of the construction project.