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1 – 10 of over 2000JOHN E. TOOKEY, MICHAEL MURRAY, CLIFF HARDCASTLE and DAVID LANGFORD
Today there are a number of different types of procurement routes available for clients to choose from. Each different type of procurement (traditional, design and build…
Abstract
Today there are a number of different types of procurement routes available for clients to choose from. Each different type of procurement (traditional, design and build, management, etc.) has its own proponents and inherent strengths and weaknesses. Selection of optimal procurement systems is difficult, because even experienced clients cannot know all the potential benefits or risks for each system. Procurement is, therefore, a succession of ‘calculated risks’. Industry and academia have focussed research on reducing procurement risk through better procurement‐system selection methods. Current research considers procurement as a set of rationalistic decisions within a closed environment, aiming to produce generic, prescriptive rules for clients and advisers to use to select the ‘best’ procurement route for their project. This paper seeks to identify whether prescriptive procurement guidance was adhered to on a set of case study projects. It was found that clients usually selected appropriate procurement systems, and where an inappropriate system was selected, alterations were made in contract form to incorporate aspects of the ‘best’ procurement route.
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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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Taha Elhag, Smitha Eapen and Tabarak Ballal
Following the global financial crisis in 2008, the construction sector in UAE has been facing emergent criticisms for growing adversarial culture and rising prevalent claims and…
Abstract
Purpose
Following the global financial crisis in 2008, the construction sector in UAE has been facing emergent criticisms for growing adversarial culture and rising prevalent claims and disputes between stakeholders. The complex, large size and fast track nature of construction projects in UAE, make project management very challenging under the commonly used traditional procurement routes. This paper aims to examine whether implementing collaborative procurement approaches can facilitate resolving the escalating number of claims and disputes in the UAE construction industry.
Design/methodology/approach
Considering the nature of the study, a quantitative method was selected to realize the research objectives. The questionnaire was uploaded using an online survey facility and distributed through e-mails and professional networks. The questionnaire was piloted with experts to assess whether the questions are unambiguous, easy to respond and intelligible. The feedback received was mostly positive with few comments and recommendations. The pilot responses were incorporated and the questionnaire was modified before the final sending out. The questionnaire survey consisted of six main sections to fulfill the research objectives.
Findings
Around three-quarters of the experts believe that the relationship is adversarial, with a lack of trust, win-lose attitude, with dismissive and opportunistic behavior. The survey reveals that the top causes of claims and disputes comprise the following: variations because clients initiated change requests; contractors selection on low bid only rather than including quality and performance considerations; and unfair risk allocation where majority of risks are transferred to contractors. The findings also identify eight collaborative practices, which have crucial positive impacts such as early identification of problems, better communication and enhanced trust and teamwork.
Originality/value
This research contributes to the enhancement of the management of claims and disputes for construction projects, which encompasses the following: the key characteristics of collaborative arrangements to improve the adversarial construction culture comprise: mutual respect, openness, fairness and non-opportunistic behaviors; the foremost roles of collaborative procurement in reducing claims and disputes embrace: early identification and resolution of problems, enhanced trust and teamwork spirit, improved relationships and better quality communication; the major practical barriers of implementing collaborative approaches incorporate: lack of awareness of their benefits, primitive legal framework of partnering arrangements and lack of transparency in procurement processes.
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Duc Thanh Luu, S. Thomas Ng and Swee Eng Chen
The lack of structured procedures, based on good information, for the selection of construction procurement system sometimes inhibits the opportunity for clients to choose a…
Abstract
The lack of structured procedures, based on good information, for the selection of construction procurement system sometimes inhibits the opportunity for clients to choose a procurement option in a fully informed manner. The selection and use of an unsuitable procurement approach could eventually lead to project failure. To formalise the procurement selection procedures, clients should establish a set of appropriate procurement selection parameters (PSPs) based on their distinctive characteristics and objectives, project requirements, and external environment. In this paper, a list of 34 PSPs was drawn up according to the findings of researchers in procurement selection. An empirical study was carried out in Australia with clients and project managers to unveil the importance and interrelationships of the identified PSPs. The results indicate that the perception of clients and project managers on the importance of PSPs was generally consistent, that underlying relationships do exist among parameters, and there is a need for clients to ensure that the interrelated PSPs are not overlooked when assessing the suitability of construction procurement systems.
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Ian Dow, Begum Sertyesilisik and Andrew David Ross
The purpose of this paper is to identify how much particular variables influence the cost differences between order values and final accounts for certain trade subcontractors.
Abstract
Purpose
The purpose of this paper is to identify how much particular variables influence the cost differences between order values and final accounts for certain trade subcontractors.
Design/methodology/approach
The methodology consists of a literature survey and a case study. A sample of 33 projects, undertaken by a contracting organisation, are analysed as a basis for testing their significance.
Findings
For highly asset specific transactions the research suggests that the level of variables which can affect their performance is greatest, suggesting integration within the contracting firm to mitigate the threat of opportunistic behaviour. Procurement route utilised on a project was strongly linked to outturn cost performance, as is inclusion in the tender bid, suggesting earlier subcontractor involvement through design and build and partnering arrangements is significantly better at managing subcontractor cost performance than traditional routes.
Originality/value
The market volatility of the construction industry has meant the procurement of subcontractors has long been established as an important part of the project coalition. Transaction cost economic theory has recently become popular within the construction research industry. Much of this research has examined the vertical boundaries to which a construction firm is subjected when considering integration of trades or continued use of subcontractors. Empirical data on the cost performance of subcontractors within a project environment are not widely available. For this reason, this research aids practitioners and researchers by identifying why particular variables influence the cost differences between order values and final accounts for certain trade subcontractors.
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The purpose of this paper is to establish a conceptual framework to assist decision makers in identifying an appropriate decision-supporting method (DSM) to evaluate…
Abstract
Purpose
The purpose of this paper is to establish a conceptual framework to assist decision makers in identifying an appropriate decision-supporting method (DSM) to evaluate public-private partnership (PPP) contract types in a disciplined and systematic manner.
Design/methodology/approach
A systematic literature review was conducted to compare and analyse DSMs in construction procurement processes, and explore the benefits and limitations of using DSMs. A conceptual framework is then developed to accommodate client characteristics when selecting DSM in a PPP context. An example was obtained to illustrate the implementation of the proposed framework.
Findings
DSMs employed in the procurement method selection are identified by using a systemic literature review. The benefits and limitations of each DSM are established and comparisons of DSMs are provided to fit the client characteristics and a conceptual framework is developed to assist decision makers in choosing DSM for contract selection.
Originality/value
This paper demonstrates a link between DSMs and PPP contracts which adds value at the stage of PPP contract evaluation. Also, the proposed framework sheds some light on an important aspect of the public sector to consider the improvement of current policies (PPP framework/guideline).
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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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Jim Smith, Bing Zheng, Peter E.D. Love and David J. Edwards
Argues that the Chinese construction industry faces a daunting challenge as it slowly migrates from a planned to a market oriented economic system, particularly, with the issue of…
Abstract
Argues that the Chinese construction industry faces a daunting challenge as it slowly migrates from a planned to a market oriented economic system, particularly, with the issue of selecting the most appropriate procurement path. One of the fundamental barriers to knowledge transfer is the historically insular nature of the Chinese Government. To overcome this, a questionnaire survey was undertaken to identify the factors influencing the choice of procurement methods adopted in the Guangdong Province. Results show that quality, risk, dispute, arbitration and price certainty were the most important discriminating factors. The traditional procurement methods are regarded as the most suitable approaches for the Guangdong Province.
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M.M. Kumaraswamy, S.T. Ng, O.O. Ugwu, E. Palaneeswaran and M.M. Rahman
Diverse construction project stakeholders demand “fully‐informed” and well‐balanced decisions that target multiple objectives appropriately. This paper introduces initiatives into…
Abstract
Diverse construction project stakeholders demand “fully‐informed” and well‐balanced decisions that target multiple objectives appropriately. This paper introduces initiatives into the development of a cluster of information and communication technology‐artificial intelligence supported empowerment systems and sub‐systems. Examples presented include conceptual models and/or descriptions of: the framework of an over‐arching management support system (MSS); multi‐agent support for improved collaborative working in: design development and relationally integrated supply chain management; and web‐based quality management.
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Research demonstrates that the PFI process in its current form is not well designed for the procurement of housing and residential care within the Health Service. This paper draws…
Abstract
Research demonstrates that the PFI process in its current form is not well designed for the procurement of housing and residential care within the Health Service. This paper draws conclusions and recommendations for using the PFI more effectively in this domain.