Civil Engineering Reference
In-Depth Information
Table 9.1
Capacity of contractors viewed against projects
Project 1
Project 2
Project 3
Project 4
Project 5
Suppliers and
their turnover
Yr1
Yr2
Yr3
Yr1
Yr2
Yr3
Yr1
Yr2
Yr3
Yr1
Yr2
Yr3
Yr1
Yr2
Yr3
Contractor A
300
20
15
10
x
x
x
15
35
5
10
15
5
0
5
20
Contractor B
120
x
x
x
x
x
x
15
35
5
10
15
5
0
5
20
Contractor C
150
x
x
x
x
x
x
15
35
5
x
x
x
x
x
x
Contractor D
100
x
x
x
9
10
2
15
35
5
10
15
5
x
x
x
In Table 9.1 projects (1 to 5) are shown in the columns and the contrac-
tors (A to D) are in the rows. The turnover or historical capacity of each
contractor is given in the column next to each supplier. The table also
highlights which contractors have been awarded which projects. For
example, Contractor A has been awarded Project 1. The other fi rms have
therefore been greyed out, as no other suppliers have cost fl ows allocated
to them. The table also shows which suppliers are bidding for which
projects. For example, all contractors are shown as engaged in tendering
for Project 3.
In Figure 9.2 the vertical axis shows the percentage of the expected
annual utilisation of each fi rm compared to their capacity. In Figure 9.1
it is assumed that each fi rm is awarded all the contracts for which it
is tendering. The graph compares the future predicted cost fl ow (the
expected maximum demand facing each fi rm) over its duration - in this
case three years - with the estimated capacity of the responding suppli-
ers to deliver (the potential supply).
As this model uses the previous year's published turnover as the
measure of each fi rm's capacity, it would require updating annually to
refl ect the most recent published turnover of each supplier.
The utilisation graph in Figure 9.2 shows each supplier's exposure as
a percentage of their turnover for each of the three years. The 25 per
cent threshold of over-dependence is also shown. This is indicative of
the relative power position and buyer-supplier interdependence.
However, the graph does not show the number of contracts included in
each fi rm's exposure; neither does it show the extent to which each
supplier's capacity has been secured through awarded contracts and
contracts currently being tendered. To see this breakdown of the status
of contracts, Figure 9.2 needs to be read in conjunction with Figure 9.3,
