A Research Study to Investigate the Value-Transfer of Subcontractor Procurement

Like any process, buffers are put in place in the construction supply chain to reduce risk and ensure the predictability of the final outcome. ELECTRI International commissioned MCA, Inc. to study the impact of owner-supplied or GC-supplied material and equipment. The investigation focused on evaluating the value transfer throughout the construction supply chain to the end customers. The research found this value transfer is highest in terms of time, cost, and quality, when subcontractors purchase material and equipment themselves.

Assuming the electrical contractor is well equipped to manage the risks, including all of the above-mentioned degrees of freedom impacting the jobsites, then material purchased through the existing channels will result in the lowest energy required to supply the material. If these buffers, that is the electrical suppliers and electrical contractors, are removed from the procurement chain and the input and outcome stability is not ensured, the cost of owner or GC purchased material to the final project will be much higher.



Perry Daneshgari


Publication Date:

June 2018

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