The global credit crisis has significantly affected the domestic residential and commercial construction industry.
- Government spending on infrastructure projects remains high – and construction is booming in China, the Middle East, and Mexico.
- With 25% of the $3 trillion construction market in developing nations, large engineering and construction firms find themselves managing very large, very complex projects across the globe.
- With an increase in fixed-price and guaranteed maximum cost contracts coupled with already thin profit margins, firms must closely manage project costs and deliverables.
- In addition to the exposure of material and labor costs, prime contractors are often susceptible to price volatility, risks, and the general effectiveness of subcontractors.
As new projects are tackled across the globe, Procurement is under additional pressure to identify and enable local suppliers, each complying with the necessary liability coverage and local regulatory mandates like health and safety and environmental. Manually collecting the necessary documentation often falls upon the shoulders of a mixture of corporate and project-level personnel, exposing the firm to errors, oversight, and inefficiencies.
While being assertive on timelines and driving efficiencies, engineering and construction firms must still maintain high levels of project and product safety. Demand for green construction and energy-efficient buildings, however, is driving the use of new materials and specialized subcontractors. But the high standards of safety and quality remain. Therefore, firms are increasingly relying upon cross-functional performance scorecarding, utilizing both quantitative and qualitative metrics to help mitigate unforeseen risks and costs.
HICX understands the pressures that the large engineering and construction firms face. Our products are designed to handle the most demanding global supplier/subcontractor onboarding and information management needs.
Whether identifying, enabling, and managing suppliers in your backyard or across the globe, collecting local and region-specific credentials, tracking qualifications and/or documentation all the way down to the resource level, or implementing a risk and performance scorecard by subcontractor or project, HICX is confident that we can help your organization – and we welcome the opportunity to show you how.