Due to the use of traditional methods of construction, the company is not able to manage deliverance of its project on time. The construction material required, contract formulation and several related procedures have diversification and traditional methods of construction make it further difficult for the company to deliver it services on time.
By use of traditional methods of procurement, there are various parties present, for example suppliers, quantity surveillance team and quality assessment team etc and all these teams are important for the client who makes contract with each of them. Therefore, the communication between clients and their parties would be indirect, problematic and consuming team. Therefore, the communication links between the clients and the parties related is also indirect. This procurement moreover does not offer any wider responsibility.
The main contractor is the only one involved in the construction processes even though an equal important role is played by the sub-contractors and the suppliers. Participating in the project’s initial stage is avoided in the company and no information is shared with them.
The organization has fostered short term relationships with their suppliers and sub-contractors as they are employed only on the basis of the project. Furthermore, the company makes use of distinct suppliers and organizations for sub-contacting which are not essentially similar in every city (Gripa 2011). Even though it may be seen as a benefit for avoiding a consistent relationship to turn bad, there are more chances for the company to take up work with newer organizations. Therefore the relationship perspective is overall performance measure of an organization offering future projects insight as well which MPC is yet missing.
It is evident that the organizations main goal lies in saving costs instead of focusing over the quality for overcoming margins issue on profit along with limited scope of work completing based on the capital. This is an additional reason because of which the organization selects tendering competitively by forming relationships in short term where organizations will be employed to bid at lower prices disregarding considering the capabilities with regard to finances, qualities and others such as OHS.