Search results

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.

Traditionally, in the Netherlands, the procurement procedure for infrastructure does not start until the public decision-making procedure is fully completed. In the new procurement strategy, early contractor involvement is applied by carrying out the procurement procedure and the public planning procedure simultaneously. This article explores the first experiences and lessons learned with early contractor involvement in four Dutch infrastructure projects. It can be concluded that the new strategy adds value in terms of time gains, improved project control and more innovative solutions. However, to optimize early contractor involvement, the differences between the competitive procurement procedures and the open, cooperative public planning procedures need to be bridged.

In the UK healthcare sector, funding and provision of public care facilities has been primarily the responsibility of government through the National Health Service (NHS). After decades of under-investment and consequent effects on the quality of care, new procurement routes are currently being used to improve the standards of facilities to meet the requirements of modern care services. This paper critically reviews these new procurement routes in terms of concepts and suitable areas of application, and examines how the principal procurement methods have evolved into the forms used for UK healthcare facilities. The paper outlines recommendations for further research in assessing the suitability or otherwise of these new procurement methods, both for construction projects generally and specifically for healthcare facilities.

This paper addresses the effect of different procurement methods (traditional, design and build and management contracting) on project cash flow. Historical data relating to the periodic cost of 150 construction projects were collected. Four criteria were identified to classify the projects: type of project, size, company and type of procurement. The effect of these criteria on the S‐curves was then examined using ANOVA. Results confirmed that differently procured projects with different sizes produce different patterns. The company and type of project did not significantly affect the shape of the S‐curve. Standard S‐curves were then modelled for the three aforementioned procurement routes. These curves were used to calculate the relevant cash flows using a computer based cash flow forecasting model. A series of simulation tests were conducted to evaluate the extent of variation in cash flow, given different contract conditions. Results revealed that, in some cases, the variation in procurement routes has a significant effect on contract cash flows.

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.

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.

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.

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.

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.

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.

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.

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.

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.

The purpose of this paper is to provide a better understanding of the factors that can influence the availability of cost information to support design and production decision making at the early stages of project team formation.

An investigation of the current practice of the exchange of financial information between supply chain organisations in the UK construction industry that was undertaken using a portal survey with 710 estimators. The survey sought data on the extent and maturity of the relationships that existed between contractors and their supply chain, and the effect this had on the gathering of subcontract price information.

The data analysis established that a significant difference existed in the approaches adopted by respondent organisations to the collection of subcontract price data for three different procurement approaches, and that main contracting organisations were developing closer relationships with their supply chain.

The paper concludes by suggesting that the use of supply chain price information for pre‐contract negotiation and post‐contract governance can influence the propensity of the supply chain to provide “richer” information on the costs assumptions made within their estimates to improve the empirical basis for future decision making.

The paper takes an original approach to the construction estimating process by considering supply chain price information available to the estimator.

The construction industry in the UK has been subject to frequent reports over recent years, all focusing on perceived inefficiencies within the industry and how processes can be improved to deliver construction projects on time, and within cost and quality targets. Most notable of these reports have been Latham (1994) and Egan (1998), which contend that construction should come closer to manufacturing in design, development and supply chain practices to achieve ambitious improvement targets. The most frequently mentioned industries for such “benchmarking” are the aerospace and automotive industries. Concurrent Engineering (CE) appears to offer significant potential to the construction industry as a means to achieve these targets. This paper identifies key aspects of CE practice in aerospace manufacturers and, in the spirit of the Egan report, possibilities for their adoption in UK construction projects.

This paper seeks to develop a system of how to judge the merit and worth of Private Finance Initiative (PFI) projects in the UK National Health Service (NHS) once they are operational. This concern is couched in relation to whether PFI can be seen to provide long‐term “value for money” (VFM) using a broad definition of this term. This paper does not attempt to further the debate that has focussed on the broader macro economic VFM arguments; rather, the focus is upon developing a model for evaluation at the organisational level where there is a paucity of direction and clarity. Whilst there are many VFM criteria available to guide whether PFI in the NHS should be pursued at the pre‐decision stage, there is little in the way of post‐project evaluation systems to judge VFM once decisions have been taken. Little thought has been given to the design of these post‐project evaluation systems let alone the experiences of how such systems may operate. This paper is addressing these lacunae but only in the sense of suggesting a design for a system for post‐project evaluation. This is drawn from PFI pre‐decision processes, post‐project intentions of some PFI schemes and evaluation theory. It is not about the judgements that come from the use of such a framework which the paper conclude will take some time to be forthcoming.

This paper investigates how the “Design for Sustainability” mindset of the manufacturing sector can be effectively transferred in the context of construction and proposes appropriate implementation tools for the promotion of sustainability in infrastructure projects' planning and design.

The Design for Excellence (DfX) approach is first investigated in the context of manufacturing through the review of related literature, and the goals of Design for Sustainability (DfS), in particular, are specified. The suggestions of the literature are used as a basis for the development of the conceptually equivalent goals in the context of infrastructure projects and to highlight the construction management strategies which qualify as potential DfS tools.

This paper presents how well-known construction planning and management methods, techniques or strategies such as cost–benefit analysis, sustainability-driven procurement, contractors' involvement in design, value-based design, building information modeling (BIM) and buildability review enable the holistic promotion of the triple bottom line in feasibility, design and procurement of infrastructure projects, when combined in the context of an integrated planning approach.

The DfX mindset has very limited presence in the construction literature. This paper attempts to conceptualize its scope in the context of infrastructure projects while putting the multidimensional concept of sustainability as primary planning and design consideration. The proposed planning approach and the systematic mapping of the respective implementation tools can facilitate the decision-makers to achieve the desired sustainability benefits, in line with their priorities.