Selecting a suitable procurement method for a building project

Construction Management and Economics 03/1998; 16(2):221-233. DOI: 10.1080/014461998372501
Source: RePEc

ABSTRACT Building procurement has become a fashionable term with industry practitioners and researchers. It determines the overall framework and structure of responsibilities and authorities for participants within the building process. It is a key factor contributing to overall client satisfaction and project success. The selection of the most suitable procurement method consequently is critical for both clients and project participants, and is becoming an important and contemporary issue within the building industry. The problem, nevertheless, lies in the fact that there has been limited empirical research in this field of study. Postal questionnaire surveys of 41 clients and 35 consultants were carried out, and were used to obtain experience of and attitudes to a variety of procurement methods and the criteria used for selection. The findings indicate that a simple set of the criteria generally is adequate and sufficient for procurement path selection, and that there is a reasonable consensus on the appropriate weighting for each path. Moreover, it is shown that, contrary to expectations, similar clients generally do not have similar procurement needs.

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    ABSTRACT: Selecting an appropriate procurement method to deliver supply chain efficiencies can reduce the costs of public sector projects by an average of 5%. Despite the considerable practical experience of Australian governments in the public sector, little agreement exists about how to effectively select an approach to deliver social infrastructure (e. g., schools, hospitals, museums, and prisons). Determining the optimal procurement approach for social infrastructure is a challenging task considering the array of procurement methods available and the criteria that must be assessed. Methods for procurement selection that have been developed are prescriptive and unable to deal with the complex and changing needs of public sector clients. As a result, a robust procurement selection process is developed and examined using a participatory action research. Focus groups, comprised of key stakeholders involved with delivering an educational project, examined the approach's applicability and use in determining a suitable procurement method. Participants overwhelmingly supported the outcome, albeit a small minority who had limited wider exposure to alternative methods initially perceived their bastion (i.e., a default traditional lump sum [ TLS]) to be a credible option. Indeed, those participants with limited knowledge procured almost 95% of social infrastructure projects using a TLS and did not adopt a formal procurement method selection approach. Application of the approach presented in this paper, by the public sector agency responsible for delivering its social infrastructure projects, provides a clear indication of demonstrable impact. The procurement approach that is produced enables decision makers to constantly reevaluate outcomes in the form of recommendations that are grounded in practice, reflection, and detailed evaluation. DOI: 10.1061/(ASCE)CO.1943-7862.0000440. (C) 2012 American Society of Civil Engineers.
    Journal of Construction Engineering and Management 03/2012; 138(3):311-322. DOI:10.1061/(ASCE)CO.1943-7862.0000440 · 0.87 Impact Factor
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    ABSTRACT: For owner organizations in the architecture, engineering, and construction industry, successful implementation of new processes for procuring, contracting, and managing requires a concerted change management effort. The objective of this study was to empirically measure the impact of individual change management factors on minimizing resistance from organizational members during implementation, which is often cited as a major reason for organizational change failure. Project team resistance to the implementation of a new project delivery system was tracked across sixteen owner organizations. Findings include identification of six change management factors that contribute to minimizing resistance to change, including certain aspects of project scope, size and duration, organizational expectations of change implementation speed, the establishment of formal change agents, and the level of change agent involvement with implementation activities. Implications for change leaders and practitioners are discussed to recommend strategies for reducing resistance to change.
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    ABSTRACT: Due to their complexity, construction projects involve significant risks that must be managed in order to meet the main project objectives in terms of cost, time and quality. While some risks can be foreseen at the beginning of a project and allocated among the project actors, other risks are difficult to predict. Moreover, even identified risks may change in scope and require different types of response. In order to manage such risks successfully, collaborative efforts among project actors are needed. This thesis focuses on collaborative management of risks in construction projects – joint risk management (JRM) – which is claimed to provide several advantages in comparison to separate risk management by each project actor. An overall aim is to increase the understanding of how JRM can be enhanced throughout a project’s lifecycle. The underlying studies this thesis is based upon constitute a multiple case study of nine construction projects, a questionnaire survey and a longitudinal case study of three construction projects. Empirical data were collected through interviews, observations of JRM workshops and document studies. The empirical findings show that cooperative procurement procedures, organic management systems and appropriate strategies for addressing agency-related problems enhance JRM in construction projects. Thus they require thorough consideration when organizations intend to implement JRM. This thesis provides several contributions to risk management theory. Firstly, the author extends the definition of JRM by including its core components together with associated activities and underlying factors. The extended definition better reflects, and increases understanding of, the nature of JRM. Secondly, the research contributes to discussion of serious drawbacks related to traditional procurement practices by identifying and studying procurement variables (project delivery method, form of payment and use of collaboration or partnering arrangements) that have a major influence on risk management. In addition, the results of questionnaire survey suggest that cooperative procurement procedures in general and collaborative activities in particular are positively related to the use of JRM. Finally, by framing the empirical results in an organizational theory context this research identifies two sets of factors that strongly influence the implementation and effectiveness of JRM, related to management system (organic vs. mechanistic), and strategy for responding to agency-related problems. By applying theory on mechanistic and organic organization to RM, the study pinpoints the importance of managing tensions between control and flexibility when implementing JRM. The author suggests that JRM requires a combination of formal tools (aimed at controlling identified risks) and flexible strategies (aimed at responding to unforeseen events). By investigating how strategies to handle agency-related problems can foster collaborative relationships and JRM, this research contributes to RM literature where few studies have discussed JRM from the perspective of the principal – agent relationships.
    02/2014, Degree: PhD in Construction Engineering


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May 27, 2014