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 COR, board clearance and injury rates, levelling, scope reviews, fair negotiation and letters of intent, CCA 1 and CCDC 17 subcontracts with flow-down, schedules of values, holdback and prompt payment, purchase orders under sale of goods law and Incoterms 2020, submittals and long-lead tracking, escalation clauses and Canada-US tariff measures, site logistics and materials management, public procurement under the CFTA, the Buy Canadian Policy and Indigenous procurement targets, 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 Canadian version of this course. See the American 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 COR certification, board clearance and injury 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 CCA, CCDC or contractor forms, checking flow-down, schedules of values, payment and holdback 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 trade agreement thresholds, the Buy Canadian Policy, Indigenous and social procurement commitments, fair 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 COR, board clearance and injury rates, levelling, scope reviews, fair negotiation and letters of intent, CCA 1 and CCDC 17 subcontracts with flow-down, schedules of values, holdback and prompt payment, purchase orders under sale of goods law and Incoterms 2020, submittals and long-lead tracking, escalation clauses and Canada-US tariff measures, site logistics and materials management, public procurement under the CFTA, the Buy Canadian Policy and Indigenous procurement targets, 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.