Most of the construction subcontractors which are in highly competitive environment of the market have a difficulties in having a consistent order from the contractors which are construction companies or engineering companies. According to a survey result, fifty four percent points of the subcontractors had ever once bid under the estimated price because of high competition. And what is the worse is that they tend to solve this problem by reducing the construction period and saving the material cost which generally lead to a quality problem in case they are awarded.
However, as a construction or engineering company's point of view, It is very important for the major construction or engineering companies to have a stable supply connection with competitive subcontractors who have technical capability and highly skilled manpowers for their successful implementation of the project.
The purpose of this thesis is to evaluate the current the buyer and supplier relationship of a case company based on the adversarial and partnering buyer and supplier relation model and to suggest two practicable alternatives that a case company would take as a supplier management practice. Strategic patnering relationship of the buyer and supplier is emphasized in consideration of the environment and charateristics of the engineering project through two ordering cases.
One of the alternatives is to set up new subcontractor management program which contains that the small group of well trained and adapted subcontractors is able to perform the work successfully with sharing the resources and information.
The other one is to make a strategic alliance with that group of subcontractors when a case company bid a proposal to customer. A case company would get a competitive bid price and involvement from the partnering subcontractors because he already gaurantee that he would give an order to them in case he is awared a project from the customer.
