Effective management of the construction project can be achieved by implementing the supply chain management approach.Upstream and downstream construction activities are collaborately conducted. Logistics activities must be considered during the design phase. Information sharing among designers, suppliers, construction engineers, distributors, and project managers are key aspects in using justintime(JIT) approach in construction supply chain. Consequently, performance of projects can beimproved e.g. less material handling and storage activities can reduce costs. Simulation is used to model and measure the performance of construction supply chain. Finally, the actual building construction case is studied and validated. Objectives of research are (i) to identify critical factors in the construction supply chain, (ii) to reduce logistics cost in the building constructionproject, and (iii) to implement the supply chain management in the actual construction project.