Multi-Purpose Sports Facilities Construction Services Market Procurement Intelligence Report

Several macro changes in the dynamics of overall Construction Service Providers as well as Multi-Purpose Sports Facilities Construction Services procurement trends are poised to change the business practices and procurement thumb rules. Suppliers across the value chain are increasing their investments in technologies and incorporating systems integrated with IoT, AI, Big data, and data analytics to generate efficiencies and better serve the evolving demand patterns of buyers. This is expected to impact the cost structure of suppliers in the short-term but will help bring down the costs in longer run as suppliers recover the costs of current investment cycles.

Construction activities and manufacturing of construction supplies are known to be a large source of emissions across the world. Regulatory and social pressures to keep emissions in check have transformed the way construction industry operates. Sustainable practices have penetrated the traditional business processes. There is an increasing demand for green buildings, low carbon concretes and other low emission construction aggregates and renewable energy solutions. All these factors are contributing to a significant change in the procurement standards and practices within the category.

The growing need for smarter and resilient construction has encouraged a rapid implementation of advanced BIM solutions. The integration of 4D BIM and geographical information system (GIS) is helping in improving construction productivity, construction supply chain management, material supplier selection, estimation of deliveries, and overall coordination between construction companies and material suppliers.

Category managers need to take note of the potential of these developments and reassess the changes required in their procurement practices.

It has become imperative for category managers to remain as agile as possible in terms of their procurement practices. However, it is not always easy to quickly spot and implement alternative practices in a category like Multi-Purpose Sports Facilities Construction Services. To help quick decision making, this report advises on several procurement best practices that have worked well for category managers.

For example, Service providers may outsource certain aspects of the project if they lack the required expertise or to expedite the project progress. If the subcontractor is not covered by a reliable liability insurance or does not abide by the same terms and conditions that were laid down for the main contractors, then it can hinder the main contractor's ability to perform its services. It may also entangle the buyers in legal complications and negative publicity.

Establishing strategic partnerships with suppliers allow category managers to enhance management and planning vision. By adopting a strategic engagement approach, buyers can optimize their category spend by streamlining the category management process. For instance, a risk/reward-sharing approach for construction management providers helps buyers to transfer ownership of projects to service providers.

Large firms should prefer to engage in long-term contracts with a preferred set of suppliers that can provide integrated solutions for all scales of projects (small, mid-sized, or large). Partnerships with preferred service providers lead to category-level innovations and enable buyers to avail customized services.

Multi-Purpose Sports Facilities Construction Services procurement managers also need to proactively identify and mitigate potential risks that can arise in the supply chain or contracts for Multi-Purpose Sports Facilities Construction Services procurement. Some examples include: