Selecting and evaluating suppliers in the Czech construction sector

Abstract

Selecting a capable contractor is one of the crucial prerequisites for the successful completion of a construction project. This paper addresses the issue of selecting and measuring the performance of suppliers. Using a web-based questionnaire survey, quantitative data was collected from Czech construction companies that act as main contractors and subcontractors within the supply chain. The data was evaluated by applying absolute and relative frequency, the relative importance index and the chi-square test of independence. The findings revealed several managerial implications for purchasing professionals in both areas. The findings were of interest with regard to the significance of individual selection criteria in the selection of suppliers. Data was analysed on both the usage of performance measurement systems and the frequency of performance measurement. We concluded that somewhat large differences exist between main contractors and subcontractors in terms of the use of selection criteria and that performance measurement is not universally applied in the Czech construction sector.