Sourcing in the construction industry
Sourcing is an activity that involves looking for suppliers of goods and services required to achieve a particular end. Taken literally, the term means finding the source of something. So, in construction, the source of the reinforced concrete floor planks that are required will be either the manufacturer or the supplier of those planks. When a party is awarded the contract, they then become a part of the overall supply chain for the project.
Sourcing of materials, labour and services may be undertaken by any of the stakeholders during the project:
- An architect may wish to source suppliers of glazed bricks.
- An engineer may require to source manufacturers of steel angles.
- A contractor may want to source agencies that supply labourers.
In all cases on a project, sourcing will usually aim to complete one part of the project, so a building project will comprise multiple acts of sourcing.
The process of identifying a specific supplier that will be contracted, and then agreeing terms with them, is generally referred to as procurement.
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