Why do we rely on approved vendors? Although a construction schedule seems simple on paper, tough challenges often occur as a result of a single delayed item. For example, the cabinets arrive but are missing a door. Maybe there is a delivery delay due to an unavailable finish. Or perhaps a replacement part has a 6-week lead time vs. the 2 weeks previously estimated.

These small changes can create a ripple effect when other items or services depend upon timely availability of materials at the jobsite. This is just one of the main reasons we utilize approved vendors.

To us, an approved vendor is a supplier that we have worked with, understand, and trust to consistently provide the necessary products and services to meet our project needs.

We Know What We’re Getting

Quality begins before the product arrives on-site. When working with repeat suppliers, we develop familiarity with the products offered by them, their manufacturing standards, their ordering procedures, and their overall reliability. This knowledge allows us to make better decisions regarding the suitability of various materials for a given project.

Additionally, this familiarity provides us with greater confidence in the final results. Instead of selecting a product solely based on its availability or price, we can select products and manufacturers that we have experienced previously.

Consistency matters, especially when there are multiple trades and many different materials involved. In addition to the quality consistency of repeat suppliers, we also consider each manufacturer's warranty.

Warranties Matter, Too

Manufacturer warranties vary greatly depending on the type of product. They typically cover defects in materials and manufacturing for a predetermined length of time. Workmanship warranties, however, address the product's installation. As such, these are two entirely different forms of protection, and the specifics of each warranty depend on the manufacturer and product.

As mentioned earlier, working with established vendors makes it much simpler to identify what warranty documentation is available from each manufacturer, what requirements each manufacturer has, and who to contact if a product issue arises during or after completion of a project.

For example, the federal government's standard construction warranty clause (which is required for certain government contracts) requires contractors to provide warranty coverage for completed work against defects in equipment, materials, design, and workmanship for 1 year after final acceptance of the project. 

While every private construction project will not have the same warranty provisions, this example illustrates why warranty responsibilities are an essential element of successful management of a construction project.

Reliable Lead Times Help Us Build a More Accurate Schedule

Another aspect of construction planning that receives little attention is knowing when materials will arrive at the jobsite. For example, a cabinet order may take several weeks from placement to delivery. Industry-wide data indicates that although supply chains have improved significantly, lead times continue to vary greatly among products. Commercial cabinetry products may take approximately 4-8 weeks for delivery, whereas some specialty electrical equipment products may require several months to deliver. 

Further, lead times may fluctuate based on numerous factors including product type, manufacturer, level of customization, shipping methods, and current demand levels.

By establishing a relationship with approved vendors, we gain a better understanding of these variables. We know who to contact and what information they require to facilitate scheduling of deliveries with the remainder of the project. This facilitates coordination of purchasing with respect to the remainder of the project rather than learning of potential problems after installation was scheduled to commence.

Industry surveys demonstrate the importance of having few unforeseen circumstances. According to a recent AGC survey, 41 percent of contractors indicated that they increased purchasing activity following the awarding of contract(s) in response to supply chain issues; 32 percent stated that they utilized alternate suppliers, and 25 percent indicated that they selected alternate materials/products. 

It Comes Down to Fewer Unknowns

Utilizing approved vendors does not guarantee that deliveries will be received on the originally scheduled date. There are simply too many unknown variables involved in construction for that assurance.

Utilizing approved vendors provides us with a superior foundation upon which we can base our planning activities. We know the products. We know the vendors. We have experience with their lead times and processing procedures. Additionally, when issues do occur related to lead times or other unforeseen events, we have developed relationships with our vendors that assist us in identifying what occurred and determining the most logical course of action.

For our customers, using approved vendors means fewer surprises throughout the construction process. Identifying an approved vendor may occur behind the scenes; however, establishing relationships with qualified suppliers is part of how we protect quality, manage our schedules, and keep projects moving.

References

Acquisition Gov Warranty of Construction
Acquisition Gov Subpart Warranties
AGC The Construction Association
Rocky Mountain Custom Cabinets LLC Lean Manufacturing