Procurement, Subcontracts and Supply Chain
Buying out a project from the contractor's side of the desk: the procurement cycle and buyout log, packaging, responsibility matrices, self-perform decisions and backward procurement schedules, prequalification with EMR, OSHA logs and incident rates, leveling, scope reviews, fair negotiation and letters of intent, AIA A401 and ConsensusDocs 750 subcontracts with flow-down, schedules of values, retainage and prompt payment, purchase orders under UCC Article 2 and Incoterms 2020, submittals and long-lead tracking, escalation clauses and US-Canada tariff measures, site logistics and materials management, public procurement under the FAR, the Buy American Act, BABA and small business and DBE programs, managing subcontractors to closeout, and a capstone buyout and procurement plan for a mid-rise building.
CON-330 Year 3 3 credits 12 lessons · 5 h 21 min
Offered by HSM University · Construction Management
This is the American version of this course. See the Canadian version.
What you'll learn
- Explain the role of procurement and buyout in construction, the procurement cycle and roles, and the common causes of procurement failure, and read a buyout log
- Prepare a procurement plan with packaging decisions, a responsibility matrix, a self-perform analysis, a sourcing strategy and a backward procurement schedule from need-by dates
- Prequalify subcontractors on safety, financial strength, capacity, experience and compliance, including EMR, OSHA logs and incident rates, using knock-out criteria and weighted scores
- Prepare invitations to bid, level bids, run scope review meetings, negotiate without bid shopping, choose between lowest compliant price and best value, and use letters of intent safely
- Prepare and review subcontracts based on AIA, ConsensusDocs or contractor forms, checking flow-down, schedules of values, payment and retainage terms, changes, notices, delay damages, insurance, indemnity and back-charges
- Write purchase orders and supply agreements, manage the battle of the forms, apply domestic delivery terms and Incoterms 2020, and calculate landed costs and the cost of early-payment discounts
- Build and track a submittal register, plan expected submittal durations with resubmittals, manage substitutions, and track and expedite long-lead items from approval to delivery
- Identify supply chain risks, draft and apply index-based escalation clauses with bands and caps, assess tariff exposure under current trade measures, and choose buying strategies that reduce risk
- Plan site logistics, crane time, deliveries and laydown, compare just-in-time delivery with stockpiling, and manage receiving, inspection, storage and protection of materials
- Apply public procurement rules to buyout, including FAR thresholds, the Buy American Act and BABA, small business and DBE programs, Davis-Bacon wages and integrity requirements
- Manage subcontractors during construction through kickoff meetings, look-ahead planning, manpower tracking, proportionate escalation, back-charges, default procedures, performance evaluation and closeout
- Prepare a complete buyout and procurement plan for a mid-rise building, including budget, matrix, schedule, prequalification, awards, terms, supply chain risks, logistics and closeout
Course content
12 lessons · 5 h 21 min total · final exam
- 1 Procurement in construction: roles, buyout and why it fails 28 min · quiz
- 2 Procurement planning and strategy 26 min · quiz
- 3 Subcontractor prequalification 26 min · quiz
- 4 Selecting and awarding subcontracts and supply 28 min · quiz
- 5 Subcontract agreements 26 min · quiz
- 6 Purchase orders, supply agreements and Incoterms 25 min · quiz
- 7 Submittals, shop drawings and long-lead items 26 min · quiz
- 8 Supply chain risk, tariffs and escalation 28 min · quiz
- 9 Logistics, site delivery and materials management 26 min · quiz
- 10 Public procurement rules and social procurement 25 min · quiz
- 11 Managing subcontractors during construction 28 min · quiz
- 12 Capstone: a buyout and procurement plan for a mid-rise project 29 min · quiz
- E Final exam 20 questions
Requirements
Recommended background. You can start any course at any time.
Description
Buying out a project from the contractor's side of the desk: the procurement cycle and buyout log, packaging, responsibility matrices, self-perform decisions and backward procurement schedules, prequalification with EMR, OSHA logs and incident rates, leveling, scope reviews, fair negotiation and letters of intent, AIA A401 and ConsensusDocs 750 subcontracts with flow-down, schedules of values, retainage and prompt payment, purchase orders under UCC Article 2 and Incoterms 2020, submittals and long-lead tracking, escalation clauses and US-Canada tariff measures, site logistics and materials management, public procurement under the FAR, the Buy American Act, BABA and small business and DBE programs, managing subcontractors to closeout, and a capstone buyout and procurement plan for a mid-rise building.
Part of the Construction Management stream, typically taken in year 3.