IDEAS home Printed from https://ideas.repec.org/a/taf/conmgt/v21y2003i3p237-245.html
   My bibliography  Save this article

A model to evaluate materials suppliers' and contractors' business interactions

Author

Listed:
  • J. Nicholas
  • D. J. Edwards

Abstract

A symbiotic business relationship exists between materials suppliers and construction contractors. Specifically, contractors must continually purchase materials on credit to complete projects, whilst suppliers exist on the profits made from selling such. In the absence of this indirect source of liquidity, many construction projects would not be completed. Despite the supplier incurring substantial financial risk when furnishing credit to contractors, there are currently no definitive or accurate means with which to measure and predict this risk. This paper presents the findings of a survey conducted throughout the UK that aimed to model the utility value that material suppliers experience when they interact with contractors. It is proposed that the (novel and new) methodological approach used will enable materials suppliers to enhance their decision-making process and subsequently boost business performance (and most notably, profit). Such improvements could ultimately be passed directly to good debtors in terms of lower materials costs, better delivery specifications, and improved creditor staff motivation. Subsequently, this could translate as more economical construction projects for clients. The paper concludes with direction for future works that would develop a more user-friendly software package and subsequently implement the research findings throughout the construction industry.

Suggested Citation

  • J. Nicholas & D. J. Edwards, 2003. "A model to evaluate materials suppliers' and contractors' business interactions," Construction Management and Economics, Taylor & Francis Journals, vol. 21(3), pages 237-245.
    • Handle: RePEc:taf:conmgt:v:21:y:2003:i:3:p:237-245
    DOI: 10.1080/0144619032000049692
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/0144619032000049692
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/0144619032000049692?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sugden, Robert & Williams, Alan, 1978. "The Principles of Practical Cost-Benefit Analysis," OUP Catalogue, Oxford University Press, number 9780198770411.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. van Hulsen, Merel A.J. & Rohde, Kirsten I.M. & van Exel, Job, 2023. "Preferences for investment in and allocation of additional healthcare capacity," Social Science & Medicine, Elsevier, vol. 320(C).
    2. Peter Mackie & John Nellthorp & James Laird, 2005. "Treatment of Induced Traffic," World Bank Publications - Reports 11796, The World Bank Group.
    3. Mark S. Thompson, 1983. "Health Versus Money," Medical Decision Making, , vol. 3(3), pages 285-297, August.
    4. Goswami, Indranil & Urminsky, Oleg, 2021. "Don’t fear the meter: How longer time limits bias managers to prefer hiring with flat fee compensation," Organizational Behavior and Human Decision Processes, Elsevier, vol. 162(C), pages 42-58.
    5. Lin, Tun & De Guzman, Franklin, 2007. "Tourism for pro-poor and sustainable growth: economic analysis of tourism projects," MPRA Paper 24994, University Library of Munich, Germany.
    6. Donald F. Vitaliano, 1992. "An economic assessment of the social costs of highway salting and the efficiency of substituting a new deicing material," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 11(3), pages 397-418.
    7. Joseph H. Cook, 2013. "Principles and standards for benefit–cost analysis of public health preparedness and pandemic mitigation programs," Chapters, in: Scott O. Farrow & Richard Zerbe, Jr. (ed.), Principles and Standards for Benefit–Cost Analysis, chapter 3, pages 110-152, Edward Elgar Publishing.
    8. Culyer, Anthony J. & Evans, Robert G., 1996. "Mark Pauly on welfare economics: Normative rabbits from positive hats," Journal of Health Economics, Elsevier, vol. 15(2), pages 243-251, April.
    9. Joanna Coast & Richard Smith & Paula Lorgelly, 2008. "Should the capability approach be applied in Health Economics?," Health Economics, John Wiley & Sons, Ltd., vol. 17(6), pages 667-670, June.
    10. Anthony Boardman & Shaun Hargreaves-Heap, 1999. "Network Externalities and Government Restrictions on Satellite Broadcasting of Key Sporting Events," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 23(3), pages 165-179, August.
    11. Blackorby, Charles & Donaldson, David, 1999. "Market demand curves and Dupuit-Marshall consumers' surpluses: a general equilibrium analysis," Mathematical Social Sciences, Elsevier, vol. 37(2), pages 139-163, March.
    12. Ranger, Robert F. & Stevens, Robert D. & Saper, Roy A. & Ho, Ting-Ing, 1985. "A General Purpose Benefit-Cost and Cost-Effectiveness Analysis Computer Program (Bencost)," Agricultural Economic Report Series 201347, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    13. Hultkrantz, Lars & Svensson, Mikael, 2012. "A Comparison of Benefit Cost and Cost Utility Analysis in Practice: Divergent Policies in Sweden," Working Papers 2012:5, Örebro University, School of Business.
    14. Marco Grasso, 2004. "Utilizzo e diffusione della valutazione economica dei beni," Others 0406002, University Library of Munich, Germany.
    15. Bengt Jönsson, 2006. "Time for a common standard for cost-effectiveness in Europe?," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 7(4), pages 223-224, December.
    16. Dolan, Paul, 1998. "The measurement of individual utility and social welfare," Journal of Health Economics, Elsevier, vol. 17(1), pages 39-52, January.
    17. Anthony Ogus, 1998. "Regulatory Appraisal: A Neglected Opportunity for Law and Economics," European Journal of Law and Economics, Springer, vol. 6(1), pages 53-68, July.
    18. Davidson, Sinclair, 2023. "Blockchain and the information – calculation problem," Journal of Economic Behavior & Organization, Elsevier, vol. 213(C), pages 142-150.
    19. James Mason & Martin Eccles & Nick Freemantle & Mike Drummond, 1998. "NICEly does it: economic analysis within evidence-based clinical practice guidelines," Working Papers 164chedp, Centre for Health Economics, University of York.
    20. Coast, Joanna, 2009. "Maximisation in extra-welfarism: A critique of the current position in health economics," Social Science & Medicine, Elsevier, vol. 69(5), pages 786-792, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:conmgt:v:21:y:2003:i:3:p:237-245. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RCME20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.