Building a Superior Strategy Using a Resource Base Theory Approach in the Procurement Process of Subcontractors and Suppliers in the Supply Chain for Building Construction Projects

Author(s): Hestita Diplomaningtias, Indarto Indarto, Paulus Wardoyo
Institution: University of Semarang, Indonesia
Category: Article, IJMMU, Management, Construction Services
Topics: Subcontractors, Suppliers, Supply Chain, Good Corporate Governance
Abstract: The ongoing effects of the COVID-19 pandemic have certainly impacted the Indonesian economy, including the construction services business. The current increase in development of the construction services business is expected to become one of the economic recovery sectors after the Covid-19 pandemic. The challenges of construction projects are hefty. Therefore, there needs to be comprehensive management, such as supply chains, delivery systems in the goods and services procurement system, and construction quality. This research is on how to manage the procurement process for subcontractors and suppliers in the supply chain at construction service companies to work well to support the completion of construction project work on time, quality, and cost through the Resource Base View (RBV) approach so that the company can compete and excel in the construction services business. This research was conducted at PT. Adhi Persada Building, Mixed Used Transpark Bekasi Area Project. Data analysis includes reduction, data presentation, conclusion drawing & verification. The results of the study show that the supply chain strategy for getting superior subcontractors and suppliers in implementing construction projects is formed using the principles of Good Corporate Governance by paying attention to healthy financial aspects, experience, and specialists in their fields, having company legality, economic capabilities, experience in the field, quality and quality guarantees, competitive prices, commitment, and communication. Bona fide partners, as main contractors, need to build the company’s image by maintaining partner trust through fulfilling obligations to partners and maintaining communication for the sustainability of the relationship. Appointing specialist Subcontractors and Suppliers in their fields by the main contractor can minimize risks, reduce costs, and build trust in the assignor or Owner because they can deliver services according to the contract, guarantee implementation costs, and guarantee the results of the work.