Cost index represents the most important part of the success of the system construction projects where they one important factor , especially on the part of the contractor ( contractor ) where that cost him represent one of the main reasons to keep the real support to survive and continue and strengthen the competitive position in the real estate market . The contract target cost in the field of building and construction to give the employer (client) set of guarantees that the total cost of the project will not exceed certain limits are contracted between the owner and the contractor on the basis of the total cost of the project before implementation ( target cost ) and is added to the contract element or an item Contractor is required to assume part ( not little ) of the project costs have increased if the final cost of the project is targeted for what . This contract also required the contractor to incur fines for each day of delay .. Any contractor under a contract target cost and restricted binding two elements of the utmost importance , namely the cost and time , in addition to quality and safety.
There is no doubt that the contractor under his signature on the contract target cost became surrounded by a group of risks that threaten the indicators of success in the completion of the completion of the contract work which cost, time , quality and safety .. and those risks are divided into the following groups :
• the risks before starting the implementation of the contract.
• risks during the execution of the contract .
• risk after the completion of the execution of the contract .
• the risk of financial claims of the contract.
So he tried a researcher thinking about the subject of this research from the standpoint of ( Contractor ) in the contract target cost in an attempt to address these risks or reduce them and try to reduce their impact on the estimated cost elements of the contract as the estimated cost elements of the contract represents one of the important requirements of interest to officials of the costs in Construction companies .. and then tried to use a researcher methods of cost management in a recent analysis of the costs of the supply chain who cares about how to manage the most important elements of the contract costs , namely:
• Analysis of supply chain operations for the acquisition of materials and raw materials .
• Analysis of supply chain operations to choose employment.
• Analysis of supply chain operations for the acquisition of machinery and equipment .
• Analysis of supply chain operations for the selection of subcontractors .
In pursuit of the interests and wishes of all members of the supply chain from suppliers of raw materials and suppliers of machinery and equipment, tools and suppliers of labor and subcontractors as suppliers of services contract to face the dangers of the constant change in prices of inputs and then cost management , reduction and control of all members of the supply chain to add a final value for the client ( employer ) .. and the exploitation of different types of relationships between members of the supply chain management cost ( which represents the most important component of the success indicators within target cost contracts ) so that all members of the supply chain and on top of the contracting company to survive and continue .
The main objective of the search in an attempt to use the analysis of the supply chain as a tool to reduce the risk of target cost contracts for the construction sector in Egypt .
This can be achieved this goal through the following sub- goals :
1 - limit the risk to the target cost contracts for the construction sector and on how to assess and identify and measure the components of costs related to the contract target cost .
2 - Statement analysis of the role of the supply chain to achieve connectivity and integration between the needs and requirements of the parties to the value chain inside and outside contractor to provide the needs of the target cost contracts required quality and cost targets in a timely manner .
3 - Analysis of the stages of the supply chain to reduce the risk of target cost contracts for the purchase of raw materials and labor selection and acquisition of machinery, equipment and tools and hiring subcontractors .
4 - testing hypotheses through a field study has fifteen companies of the largest construction companies in Egypt and the questionnaire the views of four groups within each company they are accounting costs and auditors costs and account managers and project managers , to get a field guide to demonstrate the idea and the subject of the search.