Decision-Making Model of Construction Material Procurement with Payment Delay

In the construction industry, to a contractor, the material suppliers provide payment delay service and discount for cash on delivery. To take this advantage, this paper explores the cost structure for construction material purchasing with different payment strategies. By modifying the existing purchase model used in the retail and manufacturing industries, the contractor’s payment strategy is analyzed when cash discount is adopted. Further, an optimum construction material purchasing decision model is put forward when payment delay is selected. An example is used to verify the feasibility of the proposed model.