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Employing a suitable construction procurement system is crucial to project success. However,many clients select procurement systems in a cursory manner and some clientseven use a specific procurement system by default without deliberate choice. A systematicmethod for procurement selection would help clients to arrive at more informed decisions.The...
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... to Masterman and Gameson (1994), the selection of an appropriate pro- curement system depends largely on the accurate identification of client require- ments. Many researchers have attempted to arrive at a list of client requirements that might affect the selection of a procurement system, and the outcomes of these studies are summarised in Table 1. ...
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Construction firms that employ collaborative procurement approaches develop operating routines through joint learning so as to improve infrastructure project performance. This paper reports a study based on a survey sample of 320 construction practitioners which were involved in collaborative infrastructure delivery in Australia. The study develope...
Citations
... As shown in Table 1 scholars have established major factors that influence CCs' procurement choices and have subsequently proposed models to simplify the procurement selection task. For instance, Ref. [38] explored the effectiveness of a hierarchical process and multi-criteria screening in construction procurement evaluation, while [40], established the fuzzy function of different procurement selection criteria as a tool for improving procurement selection. Molenaar [41] also leveraged a multi-attribute analysis and regression model in predicting design and build procurement for public sector projects, and Ref. [39] clarified the objective relationship between financing, risk, and construction procurement in their study on private financing of construction projects and procurement systems. ...
Procurement decision-making is a crucial determinant of project success. Although several objective, stage-based models have been proposed to guide clients’ procurement choices, little emphasis has been made on the subjective nature of construction clients. Recognizing the role of clients’ experiences in justifying procurement routes, this study develops a decision-making framework that is capable of guiding construction clients in making informed procurement choices. Adopting a mixed-method approach, comprising semi-structured interviews and multi-objective optimization, relevant procurement options were appraised based on clients’ specifications and project deliverables. The lived experiences of construction clients and the importance they attach to pre-defined selection rating criteria were subsequently evaluated, using a template that enables clients to prioritize procurement methods for different project types. The resultant framework offers a holistic, practical, and collaborative procurement selection process that promotes the efficient delivery of construction projects by reducing the cost overrun and delays associated with uninformed client decisions in construction procurement.
... These tools range from the basic mathematical discriminant analysis [25] to more sophisticated methods such as the analytical hierarchy process [58,59]. Although the practicality and/or applicability of these tools and techniques are treated with skepticism [60], the majority of the clients have used one of the multi-criteria analysis techniques in their organisations for selecting ECI procurement system. ...
Amongst different aspects of a capital construction project, procurement is found to be the most important area and represents over 80% of the contract value. The selection of an appropriate procurement strategy is an important contributor to overall project success. Within several procurement methods, Early Contractor Involvement (ECI), a relatively new strategy to procure a construction project, is becoming more popular for infrastructure projects across Australia. However, it appears that ECI has been adopted as a preferred procurement option with little research or piloting, and decisions to select ECI for a project have been mostly judgmental, and subject to biases of the decision-makers. This paper focuses on this important issue and proposes a conceptual model for selecting ECI for a construction project. Grounded Theory research methodology is employed for this study that facilitates the generation of categories and contextualises theory. Validation of the theory was ensured by carefully practicing the theoretical coding procedures through ‘open coding’, ‘axial coding’, and ‘selective coding’. The data is collected through individual interviews with experts within client organisations who held senior management level roles in their organisations and were involved in the selection process of ECI and could provide input into their experience in that area. The proposed selection model integrates the procurement selection criteria specifically related to the project characteristics, client’s objectives, and internal and external project environments with alternative selection approaches and practices. This paper also discusses the notion of social, process, and output control by using ECI.
... This question sought to determine the main criteria clients use in selecting procurement systems (Shiyamini and Rameezdeen, 2006). Ng et al. (2001) identified nine procurement selection criteria commonly used by Australian clients: speed, time certainty, price certainty, complexity, flexibility, responsibility, quality level, risk allocation and price competition. Cheung et al. (2002) concluded that there are 12 factors affecting the selection of a procurement method under four main headings: firms' background, past performance, capacity to accomplish the work and project approach. ...
... According to the survey respondents, price competition was ranked the most important factor as it directly affects the selection of a procurement method. This factor was considered as a critical factor by Ng et al. (2001), who illustrated that this factor should be taken into consideration for Australian clients when they are selecting a procurement method. This result concurs with the findings of Sawalhi and Agha (2017), Ojo and Gbadebo (2012) and Shiyamini and Rameezdeen (2007), who ranked price competition in the first place. ...
... Thirteen items from the literature review were identified as including some method of ranking of procurement selection factors for traditional construction processes. In the work by Ng et al. (2001), Cheung et al. (2002), Maizon et al. (2006), Shafik and Martin (2006), Rosli et al. (2006b) and Shiyamini and Rameezdeen (2007), participants selected five critical procurement selection factors. Hashim et al. (2008), Abu Bakar et al. (2009), Ojo andGbadebo (2012) and Sawalhi and Agba (2017) ranked factors based on the frequency at which participants consider the factor to be significant, while participants in the survey by Naoum and Egbu (2016) ranked drivers on a Likert scale. ...
While there is a plethora of research into the perceived benefits of off-site construction systems and the barriers towards their adoption, there has been very little discussion of the procurement route selection factors for off-site residential projects in the UK Midlands region. This study sought to identify the factors that influence the selection of a procurement method for off-site housebuilding projects in the Midlands. The aim of the paper was to identify the critical factors influencing the procurement selection for off-site housebuilding developments through a survey of 157 construction professionals and housing developers using the relative importance index as a basis for analysis. A comparison between the most highly ranked factors for off-site manufacturing and those presented in the literature indicates that practitioners' perceptions are largely aligned with those of traditional construction processes. The higher constructability of design and environmental sustainability have been shown to have a greater influence on the selection of the most appropriate procurement route for off-site housebuilding as compared to those applicable to traditional construction. The research findings can also help practitioners to develop a wider and deeper perspective of the criteria for selecting the appropriate procurement method for off-site residential projects at a regional level. Notation A highest weight (i.e. 5 in this case) N total number of respondents RII relative importance index W weighting given to each factor by the respondents and ranges from 1 to 5
... The process for selecting the most suitable procurement delivered method has been studied since 1985 with the NEDO report (NEDO, 1985) and after that several methods have been used and research to adjust the methods with the specify requirements of projects and clients (Skitmore & Martin, 1988;Franks, 1990;Turner, 1990;Kumaraswamy & Dissanayaka, 1998;Alhazmi & McCaffer, 2000;Chueng et al. 2001;Morledge & Smith, 2013;Naoum & Egbu, 2016;Bugrov & Bugrova, 2018). Grimsey and Lewis further reviewed methods such as Public-Private Partnership by carefully describing what is a PPP, and what not (2014) the paper contains a raft of abbreviations and acronyms ranging from BLT (Build-Lease-Transfer) to BOO and BOOT (Build-Own-Operate and Transfer). ...
A clear understanding of procurement methods for built environment professionals is paramount. The current building process continues to evolve for both, governments and private sector clients and in cases also for combined public-private concessions. Over the last 25 years clients have become more knowledgeable on procurement, project finance and construction delivery mechanisms. Some institutional clients have evolved to become industry experts, in other cases contractors have become project investors such as in Public-Private Partnerships (PPPs) or Build-Lease-Transfer (BLT). As building and construction procurement methods continue to change it is then paramount to bring this knowledge into Master and Higher Education programs related to the built-environment. It is important to clearly understand the emerging procurement methods and mechanisms to successfully deliver and operate projects including building with quality, stakeholder engagement, risk sharing, owner life-cycle operations and project financing strategies. It is important is to learn how to identify key project attributes before selecting a procurement route. This matching exercise is explained in the paper utilising six techniques. This paper then discusses on learning and teaching procurement as experienced by the authors with experiences in Australia, Asia and Europe in particular with research and teaching to Master and Honours students in architecture, engineering, building operations and construction management.
... These factors can be classified into the owners' characteristics, the project characteristics, and the external environment [3]. The multiattribute decision making nature have led to the researchers' attempts to identify the selection criteria of construction procurement method and develop procurement decision-making tools and techniques to facilitate clients' decision (e.g., [4][5][6][7]). ...
There are many variables that public clients need to consider in their bidding procedure to enhance efficiency in their procurement for construction services. This paper focusses on the competitive bidding process for public sector procurement of construction services in Singapore. A distinctive feature of the Singapore government competitive bidding process is that full bidding feedback information is released to all competing bidders (and public). The specific objectives are: (i) to examine the degree of competition in the construction markets; and (ii) to examine the bidding performance of competing bidders. Based on a collection of bidding data for a 15-month period, the results show the market environment of the Singapore public sector construction contracting is highly competitive with long bidder lists. In selection of contractors, only 50% of the contracts were awarded to lowest bidders. The results also show that the competing contractors can be broadly classified into three groups based on their bidding performance in terms of number of bidding attempts, bidding success rate and bidding competitiveness. These results provide a useful insight into the bidding competition in the Singapore public sector construction contracting, especially to new market entrants and foreign contractors who want to bid for jobs in Singapore.
... Studies have shown that most clients and their representatives have the tendency of selecting procurement systems by default, without making a deliberate choice or proper consideration of the procurement method that will best suit both their needs and those of the project. Others base their selection largely on their familiarity with a particular procurement method (Okunlola 2012;Ng et al. 2002). The implication of these types of selections is poor delivery of construction projects, and this has characterized the construction industry in most developing countries around the world, Nigeria being no exception ( Akindoyeni 1989;Maizon et al. 2006;Ogunsemi and Jagboro 2006;Ogunsemi and Saka 2006;Oluwakiyesi 2011). ...
... In selecting a procurement option to be adopted for specific projects, certain factors have the tendency of influencing the choice of procurement option. Ng et al. (2002) observed the need for speed and time certainty in construction as a major factor that may influence the choice of a procurement system. Speed refers to the need to complete a project more quickly than other projects of similar nature, complexity and size. ...
... Moreover, Cheung et al. (2001), Love et al. (1998) and Ratnasabapathy et al. (2006) have noted the issue of flexibility of the procurement methods, which has to do with the ability of a procurement method to accommodate variations such as design changes during the construction phase. Quality, which is the degree to which a set of inherent characteristics fulfil client's requirements, has also been noted as an important factor that influences the choice of a procurement option (Love et al. 1998;Maizon et al. 2006;Seng and Yusof 2006;Ng et al. 2002). ...
Procurement method over time has proven to have significant influence on the successful delivery of construction projects. Making the right decision in the selection of a procurement option to adopt is therefore crucial if a project is to succeed. This study therefore assessed the cost and time performance of selected public building projects procured using traditional, direct labour and management procurement options in Ondo State, Nigeria. A pro forma was used to gather cost and time data from government procuring entities in the state. In addition, a structured questionnaire was used to obtain information from construction professionals in these procuring entities, in order to ascertain the factors influencing the choice of procurement options adopted. The cost and time data gathered were analyzed using percentages and the paired-samples t-test, while those gathered on the factors influencing the choice of procurement options were analyzed using mean item scores and analysis of variance (ANOVA). The results revealed that although there is no significant difference between the initial and final costs of the assessed projects, some measure of cost overrun still exists. In addition, a considerable amount of time overrun was experienced on projects executed using the three different procurement options. The most significant factors influencing the choice of a procurement option are price competition, speed, time certainty and complexity of the project. It is believed that the findings of this study will provide public procuring entities with insight on the cost and time capability of these procurement methods and aid them in selecting the procurement option that will help in delivering public building projects within the budget and on schedule.
... However, studies have shown that most clients and client's representatives have been using a specific procurement system by default without making a deliberate choice or proper consideration of the method that best suit their needs, and that of the project. Others base it largely on their familiarity with a particular procurement method (Thomas et al. 2002;Okunlola, 2012). The result of this is the poor performance of construction projects that has characterised the construction industry in Nigeria and in some other developing countries around the world, (Akindoyeni, 1989;Maizon et al. 2006;Ogunsemi and Jagboro, 2006;Ogunsemi and Saka, 2006;Vetiva, 2011;Aghimien et al. 2017). ...
... Babatunde et al. (2010) stated that PPP is an attempt by government to tap from the enormous private resources by way of diversification and letting private hands partake in the provision of basic social and infrastructural amenities. Other similar procurement methods are Turnkey System, Partnering, Joint Venture, Package Deal etc. Thomas et al. (2002) noted the need for speed and time certainty in construction as a major factor that may influence the choice of a procurement system. Speed refers to the need to complete a project more quickly than other projects of similar nature, complexity and size. ...
... It is the degree to which a set of inherent characteristics fulfil client's requirements. Thomas et al. 2002;Maizon et al. 2006;Seng and Yusof, 2006). ...
A procurement method determines the overall framework and structure of responsibilities for participants in a contract process and thus, a key factor contributing to overall project success. However, it has been observed that many procuring entities‘ choice of procurement method is perfunctory and based largely on familiarity with a particular procurement method rather than an informed choice based on project needs assessment. This study therefore assessed the procurement of public works by procuring entities in Ondo State, Nigeria with interest in their level of adoption of various procurement methods available and the factors influencing their choice of a procurement method. The study adopted a survey approach and purposive sampling focused on entities saddled with procurement responsibilities. Three Ministries, three Local Governments, seven Agencies and three Tertiary Institutions within the State participated in the survey. Data were gathered through the administering of questionnaire to construction professionals in targeted entities. Percentage, frequency, MIS, ANOVA and One sample t-test were adopted for data analyses. The study revealed that direct labour and traditional method are the most used procurement methods. The need for value for money and public accountability, speed, completion within stated duration and the project complexity are the major factors influencing the choice of a procurement method. The study further recommends that procurement entities should give adequate consideration to needs assessment and specific project requirement in determining the procurement method to be employed as no single method best satisfies the requirements of every project in all situations
... In order to satisfy the client, all procurement system selection processes prioritize time, cost, and quality, which simply means that client expects high quality with lower cost and minimum time; yet balancing all basic needs is almost difficult, on the fact of one or both needs will suffer when trying to achieve one requirement (Bagnall, 1999). According to Ng et al., (2000), client's requirements or key drivers of the project, subjective to the background of the project take place, which means procurement selection criteria influenced by the factors drives externally to the project. Procurement method must address the technical features of the project with needs of client and contractor since each project has own unique characteristics. ...
Construction procurement system involves processes of acquiring services and products for the project activities starting from investigation up to the completion. With the development of new concepts and technologies, construction procurement arrangements have also advanced. Erroneous selection of a procurement system usually leads project to failure. Although, several procurement selection tools have been developed to minimize the adverse effect of overwhelmed wrong selections, those tools are not widely used in Sri Lanka (SL). Hence, it is vital to propose a new Procurement System Selection Model (PSSM) which can overcome barriers of existing PSSM. A qualitative approach was used to identify prevailing practices and barriers to practice existing selection methods. Decision charts were developed by assigning average utility values for functional grouping, payment method and pricing mechanism. Accordingly, the preliminary procurement system selection framework was arranged which includes seven steps namely; appoint an independent advisor, identification of project brief, identification and prioritizing factors affecting selection of procurement selection, choose functional grouping and payment modality, presentation of options found in step four in ascending order, selection of procurement strategy by the client and selection of parties involved in the project. Ultimately, proposed PSSM in this study merge the existing selection procedure in SL in a manner that leads selection into its best position. The study further recommends timely modernization of decision charts with Average Utility Value (AUV) and procurement systems, since suitability of each procurement system to selection criteria may change with development of construction industry.
... One such method is the UK's National Economic Development Office's (NEDO) Procurement Assessment Criteria (PAC) (NEDO, 1985). A full review of NEDO's PAC or other methods is not within the scope of this paper but readers may refer to the works by NEDO itself (NEDO, 1985), Turner (1997) or by Ng, Luu and Chen (2002). ...
This paper reports on a study on the systems of construction procurement in use in Malaysia. Specifically, the study's objectives were to identify the systems of construction procurement in use, to assess whether the systems used matched the criteria as proposed by the theory on procurement systems and to identify Clients' top priority in procurement and whether their objectives were met or otherwise. Data for the study was obtained from records and interviews with project team members from twenty on-going and completed construction projects and analyzed using descriptive statistics. Findings from the study suggest that: the traditional design-bid-build (DBB) system of procurement remained Malaysia's most dominant system of procurement, Clients' top priority in procurement is speed of completion and in terms of meeting the Clients' overall objectives on time, cost and quality, these objectives, combined together and in most projects they were not met. In addition, problems that caused delays and constraining the processes of procurement were identified, the top two being contractors' related (lack of expertise and time overrun) and local authorities' related (delay in obtaining approvals). The paper concludes with ideas as way forward in effort to increase the chances of Clients achieving their objectives when they procure construction projects. They include capacity building and the need for a systematic selection matrix to assist Clients in choosing the most appropriate system of procurement that suit their procurement needs, priority and risk appetite. © 2017 Construction Research Institute of Malaysia. All rights reserved.
... Moreover, there are certain criteria to establish a profile of client requirements and preferences for the procurement methods, such as speed (during design and construction), certainty, flexibility in accommodating design changes, quality, complexity, risk allocation/avoidance, responsibility, and dispute and arbitration policies (Love et al., 2005). The selection criteria identified as the most common criteria influencing the choice of a procurement method in the Malaysian construction industry are time, controllable variation, complexity, quality, price certainty, competition, responsibility division, risk avoidance, price competition, government policy and client familiarity with the procurement method (Hashim et al., 2006), whereas the results indicate that there are nine procurement selection criteria commonly used by Australian clients, namely, speed, time certainty, price certainty, complexity, flexibility, responsibility, quality, risk allocation and price competition (Thomas, Luu and Chen, 2001). No single procurement system can be applied universally on all construction projects, as each procurement system is chosen for a particular project based on certain criteria used when selecting a procurement system. ...
The selection of an appropriate procurement method is becoming an increasingly important issue due to complex decision making that clients are facing early in the lifecycle of construction projects. The aim of this paper is to improve the procurement system in the construction industry by developing a model using the multi-attribute utility theory (MAUT) as a decision support system for the selection of an appropriate procurement method for construction projects in the Gaza Strip. Factors that influence the selection of an appropriate method for construction projects in the Gaza Strip are identified and the results indicate that the most significant six factors influencing the selection of procurement methods in the Gaza Strip construction projects are price competition, degree of project complexity, time constraints of the project, project size, client financial capability and client experience in procurement methods. The study concludes that there is no variety of procurement methods used in the Gaza Strip construction industry, as a traditional procurement method is preferred. This is because most professionals in the Gaza Strip are not familiar or experienced with alternative procurement methods. A model was developed using the MAUT to select the most appropriate procurement method. The MAUT as a decision support system was successful in identifying the appropriate procurement method.
