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Open Access
Book part
Publication date: 1 May 2019

Tina Karrbom Gustavsson, Anna Kadefors, Sofia Lingegård, Ola Laedre, Ole Jonny Klakegg, Nils Olsson and Johan Larsson

The purpose of the study is to map previous and current construction procurement research to further develop the research in the Nordic counties.

Abstract

Purpose

The purpose of the study is to map previous and current construction procurement research to further develop the research in the Nordic counties.

Design/Methodology/Approach

Mapping of previous and current research based on search in national database. The analysis is based on research perspectives, empirical contexts and research methods.

Findings

That the blind spots are partly overlapping, but that there is potential for knowledge transfer in some areas. There is also the potential for a Nordic research program on one or several of the blind spots.

Research Limitations/Implications

The study is limited to PhD and licentiate-thesis reports in Norway and Sweden. Further research should include the other Nordic countries and a more extensive literature review including journal articles to broaden the scope. Findings have implications on collaborative Nordic research initiatives, knowledge transfer and in a longer perspective on the level of procurement knowledge in industry and society.

Practical Implications

Findings provide a base for future research collaborations, initiatives and applications.

Originality/Value

Findings provide a comprehensive understanding of construction procurement research in the Nordic countries, starting with Norway and Sweden. This understanding is needed for developing research collaborations and applications.

Details

10th Nordic Conference on Construction Economics and Organization
Type: Book
ISBN: 978-1-83867-051-1

Keywords

Article
Publication date: 26 July 2021

Fei J. Ying, Nan Zhao and John Tookey

Best value procurement (BVP) has been recognized for some time as offering significant opportunities to advance process excellence in the construction sector. As an…

Abstract

Purpose

Best value procurement (BVP) has been recognized for some time as offering significant opportunities to advance process excellence in the construction sector. As an innovative approach to strategic procurement, BVP has attracted attention from the New Zealand (NZ) Government. It has similarly been found that the most substantial benefit of this modified approach to procurement is in value creation and innovative organizational processes through identifying “best value.” Yet to date, there is a lack of robust evidence as to how BVP can exactly influence construction innovation. Accordingly, this paper aims to explore how to improve BVP implementation to promote construction innovation and what are the values to be achieved in BVP mega projects from the view of innovation.

Design/methodology/approach

Semi-structured interviews with 22 participants, including project managers, procurement specialists, engineers and general managers from three organization types, were conducted to explore BVP implementation in a range of mega construction projects in NZ.

Findings

Barriers to BVP implementation and value innovation have been identified in this paper. Data analysis suggested traditional mindset in the procurement process, market constraints, mistrusts and fuzzy definition of BVP are the challenges for BVP implementation; BVP cultivates organizational competition because of diverse collaboration models and value attitudes; and BVP considers more values from the whole supply chain. To promote innovative construction, existing BVP should consider adopting progressive enhancements toward updating procurement guidance, encouraging effective communications, collaborating and promoting changes in stakeholders’ mindset.

Practical implications

Identified barriers to BVP implementation set up a platform for framing guidance, which could provide an effective approach as it enables a better understanding of what BVP means to NZ and what needs to be overcome. Taking this into account, similar small size markets around the world would be able to consider the applicability of BVP for innovative improvements.

Originality/value

This paper provides insights into value concepts in project procurement. It theoretically and practically possesses originality in linking BVP to innovative construction. The study of BVP and its application further reveals the importance of establishing a distinct regulation and fostering organizational competition from value aspects to achieve construction innovation.

Article
Publication date: 11 November 2013

Lu Weisheng, Anita M.M. Liu, Wang Hongdi and Wu Zhongbing

The purpose of this paper is to attempt to shed light on procurement innovation by examining two state-of-the-art procurement systems in China – an agent-construction

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Abstract

Purpose

The purpose of this paper is to attempt to shed light on procurement innovation by examining two state-of-the-art procurement systems in China – an agent-construction system (ACS or in Chinese Dai Jian Zhi) and public-private partnership (PPP), with special consideration given to the systems’ particular political, economic, social, technological, environmental, and legal (PESTEL) background.

Design/methodology/approach

The paper does so by using content analyses, semi-structured interviews, and a “PESTEL-Procurement Innovation” framework.

Findings

It is found that PPP has not been as popular as expected, while the ACS, which is little known to the international construction management community, is widespread in China. The study of ACS and PPP further reveals that congruence between a procurement system and its external PESTEL conditions is essential for procurement innovation.

Research limitations/implications

The “PESTEL-Procurement Innovation” framework could be a useful tool for devising procurement innovation; although there are many questions yet to be answered by further research.

Practical implications

The paper provides useful insights into procurement innovation, particularly when governments worldwide are searching for innovative procurement systems to help deliver public projects and services.

Originality/value

The paper possesses originality in that it tackles procurement innovation, an area that is under researched in construction management. It exhorts the re-connection between a procurement system and its external PESTEL conditions for devising bona fide procurement innovations.

Details

Engineering, Construction and Architectural Management, vol. 20 no. 6
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 19 June 2009

Adekunle S. Oyegoke, Michael Dickinson, Malik M.A. Khalfan, Peter McDermott and Steve Rowlinson

The purpose of this paper is to examine different categories of building project procurement routes based on organisational, contractual, financial and technical issues.

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Abstract

Purpose

The purpose of this paper is to examine different categories of building project procurement routes based on organisational, contractual, financial and technical issues.

Design/methodology/approach

The paper is based on review of literature and conditions of contracts. The UK construction industry serves as a general frame of reference. The Royal Institution of Chartered Surveyors survey of Contracts in Use from 1985 to 2004 is used to probe the share and value of contracts along different procurement routes and across different conditions of contracts in the UK. The logic is that the value and the share of contracts will indicate the behaviour of different procurement routes in the UK construction market while the in‐depth analysis of conditions of contracts will show the gaps and relationships between the general definition/categorisation and contractual context (conditions of contracts) of each of the procurement routes.

Findings

The preliminary result of the analysis shows that traditional routes remain the main type of procurement route for the construction project industry sector, within which different management and incentivisation systems are applied for greater efficiency. The conditions of contracts in the UK support this assertion by aligning different procurement routes to different conditions of contracts and additionally specifying different forms of agreements, special provisions and incentivisation in order to increase performance, reduce risks and improve compensation methods.

Research limitations/implications

The study can serve as a learning opportunity for construction project stakeholders internationally, and clients in particular, to differentiate between procurement routes, management‐oriented systems, relational contracting and incentivisation.

Originality/value

The research provides an original assessment of construction procurement which can be used as intervening tool in different levels of private and public procurement strategies.

Details

International Journal of Managing Projects in Business, vol. 2 no. 3
Type: Research Article
ISSN: 1753-8378

Keywords

Article
Publication date: 30 September 2020

Martin Loosemore, George Denny-Smith, Jo Barraket, Robyn Keast, Daniel Chamberlain, Kristy Muir, Abigail Powell, Dave Higgon and Jo Osborne

Social procurement policies are an emerging policy instrument being used by governments around the world to leverage infrastructure and construction spending to address…

Abstract

Purpose

Social procurement policies are an emerging policy instrument being used by governments around the world to leverage infrastructure and construction spending to address intractable social problems in the communities they represent. The relational nature of social procurement policies requires construction firms to develop new collaborative partnerships with organisations from the government, not-for-profit and community sectors. The aim of this paper is to address the paucity of research into the risks and opportunities of entering into these new cross-sector partnerships from the perspectives of the stakeholders involved and how this affects collaborative potential and social value outcomes for intended beneficiaries.

Design/methodology/approach

This case study research is based on a unique collaborative intermediary called Connectivity Centre created by an international contractor to coordinate its social procurement strategies. The findings draw on a thematic analysis of qualitative data from focus groups with 35 stakeholders from the construction, government, not-for-profit, social enterprise, education and employment sectors.

Findings

Findings indicate that potentially enormous opportunities which social procurement offers are being undermined by stakeholder nervousness about policy design, stability and implementation, poor risk management, information asymmetries, perverse incentives, candidate supply constraints, scepticism, traditional recruitment practices and industry capacity constraints. While these risks can be mitigated through collaborative initiatives like Connectivity Centres, this depends on new “relational” skills, knowledge and competencies which do not currently exist in construction. In conclusion, when social procurement policy requirements are excessive and imposed top-down, with little understanding of the construction industry's compliance capacity, intended social outcomes of these policies are unlikely to be achieved.

Originality/value

This research draws on theories of cross-sector collaboration developed in the realm of public sector management to address the lack of research into how the new cross-sector partnerships encouraged by emerging social procurement policies work in the construction industry. Contributing to the emerging literature on cross-sector collaboration, the findings expose the many challenges of working in cross-sector partnerships in highly transitionary project-based environments like construction.

Details

Engineering, Construction and Architectural Management, vol. 28 no. 7
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 16 September 2021

Abimbola Windapo, Abdulrauf Adediran, James Olabode Bamidele Rotimi and Nnedinma Umeokafor

This study aims to investigate whether clients’ knowledge about construction procurement systems influence project performance objectives and the role of procurement

Abstract

Purpose

This study aims to investigate whether clients’ knowledge about construction procurement systems influence project performance objectives and the role of procurement systems on project performance objectives in South Africa.

Design/methodology/approach

Using a two-round survey, 90 usable questionnaires from construction professionals in South Africa plus 3 expert clients were collected. The data were analysed using descriptive statistics – means, percentages and the analytical hierarchy process to determine the rank of client project performance criteria, while inferential statistics – Pearson product-moment correlation was used in establishing the relationship between the level of clients’ knowledge and project performance.

Findings

It was found that the common procurement systems used are traditional, followed by management-oriented and integrated procurement systems. In addition, it emerged that client’s knowledge of procurement systems shows a positive relationship with the achievement of project performance objectives. Based on these findings, it is concluded that some procurement systems being selected by clients in South Africa are inappropriately selected. This is despite the emergence of more efficient procurement systems. If procurement systems are selected based on the knowledge of the client, it will give better chances of a successful project outcome.

Practical implications

The research suggests the need for clients to seek ways to improve their understanding or increase their knowledge of procurement systems in construction. Policymakers’ responsibilities in driving policies that will place responsibilities on clients to seek a reasonable way to improve their knowledge where possible is implied in the study.

Originality/value

It contributes to improving project performance by examining whether the level of knowledge possessed by a client influences project performance.

Details

Journal of Engineering, Design and Technology , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1726-0531

Keywords

Article
Publication date: 7 June 2021

Brandsford Kwame Gidigah, Kofi Agyekum and Bernard K. Baiden

Though the Public Procurement Act of Ghana makes room for specific socio-economic policies (environmental, social, economic and other policies which are intended to…

Abstract

Purpose

Though the Public Procurement Act of Ghana makes room for specific socio-economic policies (environmental, social, economic and other policies which are intended to promote social and economic impact), there is no explicit definition and provision for social value as an evaluation criterion, culminating in the absence of a definition in the Act. This paper elicits the conception and understanding of social value from stakeholders in the Ghanaian construction industry.

Design/methodology/approach

The study adopted a qualitative method that relied on a semi-structured interview of 30 participants purposively drawn from Western, Western North and Central regions of Ghana. An inductive thematic analysis approach, which involved identifying repetitions, exploring similarities and differences, noting linguistic connectors, and a framework were employed to analyse the data.

Findings

The study established no single definition or explanation for social value in the construction industry in Ghana. However, it was revealed from the study that the concept of social value could be defined from the functional perspective of the definer, particularly from the perspective of a Procurement Officer, Works Engineer, and a Quantity Surveyor. A new insight from the study that differs from the body of literature is that participants equated benefits derived from physically constructed projects as social value.

Social implications

The study has implication for public administration and practice regarding the decision-making process in the construction industry in Ghana. It provides a vital awakening on social value as a criterion in evaluating construction works procurement in Ghana. The ability of participants to equate the benefits derived from executed construction projects as social value creates a new perspective on understanding the meaning of social value in the procurement of works construction.

Originality/value

The study contributes to the state-of-the-art and ongoing discourse on the concept of social value globally. The findings create an important catalyst for social value research in the Ghanaian construction industry.

Details

Engineering, Construction and Architectural Management, vol. 29 no. 6
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 6 June 2017

Saad Sarhan, Christine Pasquire, Emmanuel Manu and Andrew King

The construction industry has been subject to substantial criticism for its short-term “hit-and-run” relationships which are focussed on win-lose situations. Despite the…

Abstract

Purpose

The construction industry has been subject to substantial criticism for its short-term “hit-and-run” relationships which are focussed on win-lose situations. Despite the wide recognition of these problems the industry persistently resists the radical demanded of it. Therefore, the purpose of this paper is twofold. First, to investigate why this might be the case by reviewing the governance problem confronting clients and decision makers in construction procurement, as conceptualised in transaction cost economics (TCE). Second, to critically analyse and question the efficiency and effectiveness of various safeguarding approaches, which are taken for granted and commonly practiced in construction, from a lean perspective.

Design/methodology/approach

The analysis of this paper is based on an in-depth critical review of 76 construction procurement and contractual-related articles, ranging from 1994 to 2016, using theories of Lean construction and TCE as an analytical lens.

Findings

Findings reveal that clients and decision makers often tend to safeguard their project-specific assets, against opportunism and exploitation, through the deployment of formal contractual arrangements and governance structures. These arrangements and structures typically dominate the management of the project delivery often to the detriment of the project itself; but because there is a belief that interests are safeguarded, clients and decision makers feel they have taken the best course of action. This goes a long way to explaining the coherence of the current construction model.

Research limitations/implications

To the best of the authors’ knowledge, this paper is the first to demonstrate the usefulness of using principles of Lean construction in association with TCE when analysing construction-procurement-related issues. In particular, the use of a “lean” lens helps to expose the impact of procurement governance arrangements on process flow. The study also provides a potential research agenda that can lead to the development of prescriptive conceptual frameworks for causal analysis of institutionalised waste in construction.

Practical implications

The paper attempts to expose to clients and decision makers the amount of waste (and unnecessary cost) they embed by adhering to prevailing unfit-for-purpose contractual governance approaches. It also helps decision makers to consider alternative procurement arrangements and organisational techniques that could be of value and support collaborative ways of working.

Originality/value

The study contributes to the overall understanding of waste in construction by providing insight into various imperfect procurement and contractual arrangements, which are taken for granted and impede efficiency and improvement efforts in construction. The findings presented provide a theoretical anchor and rationale for developing alternative approaches to the design and delivery of capital projects.

Details

International Journal of Managing Projects in Business, vol. 10 no. 3
Type: Research Article
ISSN: 1753-8378

Keywords

Article
Publication date: 4 November 2020

G.P.P.S. Perera, T.M.M.P. Tennakoon, Udayangani Kulatunga, Himal Suranga Jayasena and M.K.C.S. Wijewickrama

The purpose of this paper is to select a suitable procurement method for steel building construction in Sri Lanka following a systematic method which weigh, both…

Abstract

Purpose

The purpose of this paper is to select a suitable procurement method for steel building construction in Sri Lanka following a systematic method which weigh, both procurement selection factors and existing procurement systems.

Design/methodology/approach

An abductive research stance is followed in this empirical study. Procurement selection factors were selected through a critical literature review which was followed by a quantitative questionnaire survey. The collected data were analysed using descriptive statistical analysis and relative important index.

Findings

The critical literature review outlined 46 procurement selection factors, out of which 26 factors were very important in steel building procurement selection. Short construction period and higher constructability of design are ranked at the top with the highest priority rating factors. Management-oriented procurement system was selected as the most appropriate procurement system for steel building constructions within the Sri Lankan context.

Research limitations/implications

The study is limited to widely use three procurement systems in Sri Lankan construction industry. Yet, the process followed in selecting the most appropriate procurement system could be applied for other contexts. The implications of the study are mainly identifying management-oriented procurement as the most suitable procurement method for steel building construction in Sri Lanka.

Practical implications

The systematic procedure of procurement method selection for steel building construction may use in the Sri Lankan construction industry to limit the resource loss due to wrong selection of procurement.

Originality/value

A study which critically and comprehensively presenting a procurement selection process for steel building construction is not recorded in Sri Lanka prior to this study.

Details

Built Environment Project and Asset Management, vol. 11 no. 4
Type: Research Article
ISSN: 2044-124X

Keywords

Article
Publication date: 27 June 2019

Samuel Laryea

Construction project management outcomes in the literature typically portray significant deviations from expected outcomes. Various theories from studies that focus…

Abstract

Purpose

Construction project management outcomes in the literature typically portray significant deviations from expected outcomes. Various theories from studies that focus superficially on causes of project cost and time overruns rather than root causes have not addressed this problem. The need is for a better understanding of how procurement strategy provides a fundamental means to address this problem. The purpose of this paper is to examine the procurement strategy used to deliver a new universities project in South Africa within budget and to ascertain its influence on the outcomes.

Design/methodology/approach

A case study was designed to provide a comprehensive and intensive methodology to identify and examine the construction procurement strategy and its influence on the project outcomes. Document analyses and semi-structured interviews were used to collect data on the construction procurement strategy and outcomes from the client team.

Findings

The evidence brought forward demonstrates that the successful outcome was largely a consequence of the client team, procurement strategy and systems of delivery. However, the collaborative procurement strategy formed the basis of the successful project delivery and outcomes. A general observation from the data is that an appropriate construction procurement strategy developed by an experienced client team and proactively implemented by an integrated delivery team working collaboratively is likely to achieve the intended project outcomes.

Practical implications

The findings show three critical keys to achieving intended outcomes – people, procurement strategy and systems of delivery at the governance, portfolio, programme and project management levels.

Originality/value

The value of this paper lies in using a comprehensive methodology to study the relationship between procurement strategy and outcomes. The findings can be applied by client teams to achieve better outcomes and value for money in infrastructure projects.

Details

Engineering, Construction and Architectural Management, vol. 26 no. 9
Type: Research Article
ISSN: 0969-9988

Keywords

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