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1 – 10 of over 21000Peter E.D. Love, Peter R. Davis and David Baccarini
The determination of the most appropriate procurement system for a capital works project is a challenging task for public sector clients considering the array of assessment…
Abstract
Purpose
The determination of the most appropriate procurement system for a capital works project is a challenging task for public sector clients considering the array of assessment criteria that are considered and the procurement methods that are available. This is particularly pertinent to the Western Australian public sector where there has been a propensity to use traditional lump sum as the default procurement solution despite knowing that the selection of an inappropriate procurement method may lead to cost and time overruns, claims, and disputes on projects. This paper aims to present a six‐step procurement method evaluation approach that requires public sector agencies to consider in detail an array of options so as to obtain value for money.
Design/methodology/approach
A procurement evaluation approach is developed and is examined using a focus group of 12 participants comprising a public sector client, project team and key stakeholders. The focus group was used to examine the developed approach in the context of a real‐life capital works project.
Findings
The procurement method evaluation approach was deemed to be pragmatic and enabled decision makers to re‐evaluate outcomes from previous steps in the process. All focus group participants stated the six step process enabled a recommendation that was grounded in reflection and detailed evaluation.
Practical implications
The developed procurement approach has enabled the public sector client to evaluate the way in which it views procurement method selection and examines how “value for money” is obtained.
Originality/value
The six‐step procurement approach makes use of quantitative and qualitative techniques and is reliant on discourse and reflection in making a procurement method recommendation. Consequently, the approach enables public sector clients to account for the complexities often associated with procurement selection.
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Karem Sayed Aboelazm and Attia Afandy
The purpose of this paper is to present and analyze the different concepts of centralized and decentralized procurement methods; identify the advantages and disadvantages of each…
Abstract
Purpose
The purpose of this paper is to present and analyze the different concepts of centralized and decentralized procurement methods; identify the advantages and disadvantages of each method and the two methods of public procurement applied in the Arab Republic of Egypt in an attempt to overcome the disadvantages of the Egyptian system; and introduce a new framework for government procurement in Egypt.
Design/methodology/approach
The descriptive approach was used in the framework of the presentation and analysis of the concepts of centralized public procurement and decentralized public procurement. The comparative approach was used for presenting some of the experiences of countries in using public procurement methods. The legal approach was also used in the analysis of the legal frameworks governing the public procurement methods in the Arab Republic of Egypt. In addition, the case study methodology was used to study the role of the General Authority for Governmental Services in Egypt in the centralized public procurement processes.
Findings
This paper attempts to find the ideal method of public procurement in general and what is the method to be followed in the Egyptian case through the data presented and analysis of the Egyptian public procurement system.
Research limitations/implications
This paper attempts to present a model or a theory on how to determine the public procurement methods that should be used in a given country and give sufficient flexibility for the conformity between the two methods upon application depending on the ecological factors of each country.
Practical implications
This paper contributes to the development of the public procurement method in the Arab Republic of Egypt by showing the gap between the use of the centralized approach and the decentralized approach at all levels and providing solutions to bridge this gap.
Social implications
This paper provides implications to reduce corruption, increase transparency and give the opportunity to the largest number of private shareholders to participate in public procurement.
Originality/value
Although there is some literature on centralized and decentralized public procurement, there is a lack or scarcity of research and academic articles on this subject (Patrucco et al., 2017). This paper attempted to do so by filling this gap in this area of research.
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Ayodeji Emmanuel Oke, Seyi Segun Stephen, Clinton Ohis Aigbavboa, Deji Rufus Ogunsemi and Isaac Olaniyi Aje
This chapter discusses the involvement of procurement in smart city development. Procurement plays a vital role in the development of strategies in planning, and execution in the…
Abstract
This chapter discusses the involvement of procurement in smart city development. Procurement plays a vital role in the development of strategies in planning, and execution in the construction industry. This is further introduced into smart city to find the best possible methods of bringing the ideas behind smart city into realisation. The common procurement methods are explained along with their involvement in smart city. Common drawbacks to smart cities procurement and measures to challenges in the procurement of smart city are also explicitly explained in the chapter. Through an identified and accepted procurement method into smart city, the processes involved in executing smart city will be the ones with directions and proper planning.
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Javad Bakhshi, Saba Mani, Navid Ahmadi Eftekhari and Igor Martek
International development projects are a dominant means by which aid is distributed to countries. Over the past 70 years, the distribution of trillions of dollars of development…
Abstract
Purpose
International development projects are a dominant means by which aid is distributed to countries. Over the past 70 years, the distribution of trillions of dollars of development aid has been mediated by the United Nations (UN). However, most of this aid has failed to deliver the expected outcomes for which it was assigned. Nevertheless, a significant proportion of projects can be considered successful. Despite the glaring question as to which factors contribute to the success or failure of projects, no study has comprehensively documented the relationship between procurement mechanisms invoked to deliver aid projects and project outcomes. This study aims to assess this relationship.
Design/methodology/approach
Leveraging network analysis methodology, this study examines the World Bank data set of over 247,000 developmental contracts worldwide granted over the past 20 years. It identifies the range of procurement practices used and interrogates their ability to deliver satisfactory project outcomes.
Findings
Eleven prevalent practices are identified covering aid projects across twelve sectors. As might be expected, Africa is the largest recipient of aid, while the Middle East is the least. Overwhelmingly, international competitive bidding (ICB) is the leading procurement procedure, both in terms of contract number and total dollar value. However, ICB does not always deliver the best outcomes, with other, more boutique approaches sometimes doing better.
Social implications
The breadth of this study, encompassing such a vast data resource, and generating such a rich pool of findings will now empower researchers to take the next important step, which is to progress this study in exploring why it is that certain procurement strategies have worked for some sectors, but not others. Countries, financial institutions, the UN and construction enterprises alike will be very interested in the results.
Originality/value
The spectrum of outcomes identified will be of interest to academics and practitioners alike wishing to investigate further the drivers behind the results described here.
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Peter E.D. Love, Peter R. Davis, David J. Edwards and David Baccarini
Choosing the appropriate procurement system for construction projects is a complex and challenging task for clients particularly when professional advice has not been sought. To…
Abstract
Purpose
Choosing the appropriate procurement system for construction projects is a complex and challenging task for clients particularly when professional advice has not been sought. To assist with the decision‐making process, a range of procurement selection tools and techniques have been developed by both academic and industry bodies. Public sector clients in Western Australia (WA) remain uncertain about the pairing of procurement method to bespoke construction project and how this decision will ultimately impact upon project success. This paper seeks to examine “how and why” a public sector agency selected particular procurement methods.
Design/methodology/approach
An analysis of two focus group workshops (with 18 senior project and policy managers involved with procurement selection) is reported upon.
Findings
The traditional lump sum (TLS) method is still the preferred procurement path even though alternative forms such as design and construct, public‐private‐partnerships could optimize the project outcome. Paradoxically, workshop participants agreed that alternative procurement forms should be considered, but an embedded culture of uncertainty avoidance invariably meant that TLS methods were selected. Senior managers felt that only a limited number of contractors have the resources and experience to deliver projects using the non‐traditional methods considered.
Practical implications
The research identifies a need to develop a framework that public sector clients can use to select an appropriate procurement method. Learning from previous experiences with regard to procurement selection will further provide public sector clients with knowledge about how to best deliver their projects.
Originality/value
The paper adds insight as to how public sector agencies select particular procurement methods.
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Shamil George Naoum and Charles Egbu
The purpose of this paper is to present a comprehensive literature review that seeks to address modern factors worldwide that are associated with the selection of current…
Abstract
Purpose
The purpose of this paper is to present a comprehensive literature review that seeks to address modern factors worldwide that are associated with the selection of current procurement methods. The aim is to develop an up-to-date multi-attribute procurement decision-making chart for selecting the appropriate method for the project.
Design/methodology/approach
Stage 1 (literature review). The search engines, Emerald; Business Source Premier; Science Direct and Sage were selected to identify journals that have published the most procurement methods-related articles. The search covered the period 1980-2015. Stage 2 (Survey) – after analyzing and appraising the literature, an up-to-date utility decision-making chart for selecting the appropriate procurement method for the project was developed. The chart was based on findings from a survey that included 57 construction professionals and who have demonstrated sound experience about the various procurement options.
Findings
There is no one best procurement method for all projects. The selection depends on the nature of the issues or problem at hand. Decision making is not a punctual act. It is often a complex process. Effective decision making also demands quality and timely information, and a careful consideration of alternatives. The multi-attribute decision-making chart presented in this paper has included modern criteria and the client would have end up with different recommendations and consequences should these criteria were not included in priority weightings.
Practical implications
The literature review provides states-of-the art research in the field of procurement methods in construction and the multi-attribute chart is intended to offer decision makers an opportunity to broaden their horizon on the different alternatives procurement routs that could lead to different consequences.
Originality/value
To the best of the authors’ knowledge, very few publications have discussed modern selection criteria for procurement methods in construction under one study. Therefore, this paper has established a platform for scholars and researchers to obtain more useful insights into procurement methods concerns. It has identified research trends in procurement methods which may allow industrial practitioners to appreciate the key concerns in their development of modern concepts and principles such as supply chain, lean construction, sustainability, innovation, value engineering, e-procurement and Building information modeling. The inclusion of these modern criteria will present and add value to procurement decision makers within the construction industry.
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Michael Regan, Peter E.D. Love and Jim Jim
Adversarial contracting methods are used for most public infrastructure procurement and timely delivery on budget remains a problem. In the past 20 years, OECD countries have…
Abstract
Adversarial contracting methods are used for most public infrastructure procurement and timely delivery on budget remains a problem. In the past 20 years, OECD countries have adopted a number of alternative procurement methods that are based on collaborative principles including public private partnerships, long-term outsourcing arrangements and relationship/alliance contracts. We review the theoretical principles that operate for both adversarial and collaborative contracting methods. We identify the characteristics of non-adversarial contracting methods such as the output specification, qualitative selection criteria, the alignment of incentives, discrete allocation of residual control rights, life cycle costing, and risk-weighted value for money measurement that are delivering better procurement outcomes for government.
Public agencies have started to shift away from the traditional lowest responsive and responsible bid to other approaches in purchasing certain items and services. These…
Abstract
Public agencies have started to shift away from the traditional lowest responsive and responsible bid to other approaches in purchasing certain items and services. These alternative approaches emphasize the quality of the products and the qualifications of the vendors. The purpose of this article is to explore the use qualifications-based selection (QBS) and other non-traditional source selection methods in public procurement processes. An online survey was sent out to 1665 members of the National Institute of Governmental Purchasing, and a mail survey sent a random sample to 300 American Public Works Association members. The survey results show that while the traditional lowest responsive and responsible bidding is still the dominant selection method when all procurement is considered, QBS and other non-traditional methods have gained wide acceptance and use in public agencies, especially for the purchase of professional services and information technology.
P.A. BOWEN, R.G. PEARL and P.J. EDWARDS
An effective client briefing process and the selection of an appropriate building procurement system both contribute to the attainment of client objectives with respect to time…
Abstract
An effective client briefing process and the selection of an appropriate building procurement system both contribute to the attainment of client objectives with respect to time, cost and quality for construction projects. The present paper documents the results of an empirical study into the nature and effectiveness of the project briefing process, and the selection and effectiveness of procurement methods in the attainment of client objectives. A national questionnaire survey was administered to clients, architects, quantity surveyors, engineers, project managers and general contractors in South Africa. The results show that room for improvement exists in the manner in which project briefing is conducted and the manner in which procurement methods are selected.
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Siraj Ahmed, Jukka Majava and Kirsi Aaltonen
The purpose of this study is to investigate the benefits and challenges of implementing circular economy (CE), as well as shed light on the influence of procurement strategy in CE…
Abstract
Purpose
The purpose of this study is to investigate the benefits and challenges of implementing circular economy (CE), as well as shed light on the influence of procurement strategy in CE implementation in construction projects.
Design/methodology/approach
A qualitative research approach with abductive reasoning was adopted. The empirical data were collected from the construction industry in the United Arab Emirates (UAE).
Findings
The results reveal that clients, consultants and contractors have limited awareness, knowledge and motivation to implement CE in construction projects. The absence of incentives to design projects following CE principles, lack of involvement of contractors and suppliers, non-use of materials that use CE principles and current procurement strategies are the main challenges for the implementation of CE in the UAE.
Originality/value
Previous research offers limited knowledge on CE and its implementation in construction projects particularly from a procurement strategy perspective. The findings of the study provide new knowledge of the benefits, challenges and role of procurement strategy for implementing CE. It is suggested that collaborative and partnering-based procurement methods are needed to facilitate the effective implementation of CE.
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