When expediting material deliveries for a project behind schedule, which factor should be the primary consideration in selecting an alternative supplier?
Correct Answer
B) Balance of delivery time, cost, and quality requirements
Effective material expediting requires balancing delivery speed with cost impact and ensuring materials meet project quality specifications. Focusing solely on speed or cost can create other project problems.
Why This Is the Correct Answer
When expediting materials for a behind-schedule project, contractors must consider the triple constraint of project management: time, cost, and quality. Option C recognizes that while speed is important due to the schedule delay, completely ignoring cost could blow the project budget, and compromising quality could lead to rework, callbacks, or code violations. A balanced approach ensures the project gets back on track without creating new problems in other areas.
Why the Other Options Are Wrong
Option A: Supplier with the largest inventory
Having the largest inventory doesn't guarantee the supplier can deliver quickly, meet quality requirements, or provide competitive pricing. Inventory size alone doesn't address the critical factors needed when expediting materials for a delayed project.
Option C: Lowest material cost available
Prioritizing only the fastest delivery regardless of cost can create serious budget overruns that may exceed any savings from getting back on schedule. Additionally, the fastest supplier may not meet quality specifications, leading to future problems that could delay the project even further.
Option D: Fastest delivery time regardless of cost
Focusing solely on lowest cost ignores the urgency created by the schedule delay. The cheapest supplier may have the longest delivery times, which would worsen the schedule problem and potentially cost more in the long run through extended overhead, labor costs, and potential liquidated damages.
Memory Technique
Think 'TCQ Balance' - Time, Cost, Quality must all be balanced when expediting, not just one factor optimized at the expense of others
Reference Hint
Project Management chapter in contractor reference manual, specifically sections on material procurement and schedule acceleration techniques
More Business & Finance Questions
A general contractor purchases equipment worth $45,000 with a useful life of 9 years and no salvage value. Using straight-line depreciation, what is the annual depreciation expense?
What is the typical recommended coverage amount for general liability insurance for a small to medium-sized general contracting business?
A contractor estimates startup costs of $75,000 for equipment, $25,000 for initial inventory, $15,000 for insurance premiums, and $10,000 for working capital. They can finance 70% of the total. How much cash do they need?
When establishing professional relationships with architects and engineers, what is the most important factor for a general contractor to consider?
A partnership agreement for a construction company should address all of the following EXCEPT:
A contractor purchases a truck for $60,000. After 5 years, it has accumulated depreciation of $35,000. What is the truck's book value?
A contractor's business plan projects first-year revenue of $500,000 with a 15% net profit margin. If actual revenue is $450,000 with the same profit margin, what is the variance in net profit?
Using the Modified Accelerated Cost Recovery System (MACRS), construction equipment is typically depreciated over how many years?
A contractor is comparing financing options for equipment purchase. Option A: $80,000 cash purchase. Option B: $20,000 down, $65,000 financed at 6% for 4 years. What is the total cost of Option B?
A contractor purchases equipment using a capital lease with a present value of $120,000. How should this be recorded on the balance sheet?
People Also Study
Related Study Resources
Previous Question
A contractor's quarterly payroll totals $180,000 with 15 employees. All employees exceed the FUTA wage base by the end of the quarter. What is the maximum annual FUTA tax liability for this contractor?
Next Question
According to OSHA standards, which injury must be recorded on Form 300 even if it doesn't result in days away from work?