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Article
Publication date: 18 September 2023

Stephanie Sheamar, Gayan Wedawatta, Maheshi Tennakoon, Roshani Palliyaguru and Maxwell Fordjour Antwi-Afari

Cost overrun is a significant issue in construction, an undesirable feature the industry has long been associated with. Poor procurement practices are often blamed for subsequent…

Abstract

Purpose

Cost overrun is a significant issue in construction, an undesirable feature the industry has long been associated with. Poor procurement practices are often blamed for subsequent cost overruns in construction, especially with conventional procurement methods leading to outrageous cost overruns. The purpose of this study is to review the features of the new models of construction procurement (NMCP) and assess their potential to reduce cost overruns in construction projects.

Design/methodology/approach

A literature review was conducted to identify the issues of procurement leading to cost escalations. Primary data were obtained through exploratory, semi-structured interviews using a case study approach.

Findings

Clients’ lack of knowledge was highlighted as a key issue in procurement that interlinks with many factors causing cost escalation. The findings suggest that the features contained within the NMCP, such as early contractor involvement and collaboration throughout the project team, have the potential to make a positive contribution to addressing cost escalation in construction.

Research limitations/implications

The primary research was undertaken as an exploratory study and presents the contractor's perspective. Further research is therefore suggested, with multiple organisations representing all key stakeholders in a construction project, including clients, consultants, sub-contractors and suppliers.

Practical implications

The study recommends awareness of the NMCP be raised throughout the industry, and simplified information must be made available to help widen uptake of these contemporary procurement methods.

Originality/value

Addressing the dearth of research concerning the use of NMCP within the industry, this study makes a niche contribution to the body of knowledge on construction cost management by illustrating the potential offered by these new procurement methods for addressing cost escalation. For an industry where collaboration is accepted with reservations, this case study demonstrates how novel collaborative strategies such as open book costing, project bank accounts and shared pain and gain mechanisms can be implemented as part of the procurement strategy and how such strategies can contribute towards minimising the cost escalation inherent in construction projects.

Details

Journal of Financial Management of Property and Construction , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1366-4387

Keywords

Article
Publication date: 15 April 2024

Tennakoon Mudiyanselage Maheshi Pabasara Tennakoon, Nicholas Chileshe, Raufdeen Rameezdeen, J. Jorge Ochoa and Aparna Samaraweera

Offsite construction (OC) is an efficient method to reduce waste in the construction industry from a circular economy perspective. Yet, its uptake is subdued by the ambiguities…

Abstract

Purpose

Offsite construction (OC) is an efficient method to reduce waste in the construction industry from a circular economy perspective. Yet, its uptake is subdued by the ambiguities around its supply chain. Hence, the purpose of this study is twofold: to identify the OC project delivery models, the limitations in their procurement approach to facilitate the resilience of the supply chain and interventions to promote supply chain resilience (SCR) and to identify the gaps in the existing procurement process and propose further research areas that implement strategies to improve SCR.

Design/methodology/approach

The study was conducted as a systematic literature review. In total, 41 peer-reviewed research papers published between 2013 and 2023 were shortlisted through the preferred reporting items for systematic reviews and meta-analysis guidelines. A descriptive analysis was conducted, followed by a thematic analysis.

Findings

The descriptive analysis reveals that the emphasis on digitising OC has shifted to transforming the business model, procurement and supply chain with a human-centric view. In thematic analysis, the predictability of the SC partners and the probabilities of evaluating the prospects are revealed as arbitrary characteristics in the current procurement strategies. Rewarding collaborative relationships among SC partners and incorporating provisions to postpone the module delivery are some interventions to promote flexibility. Drafting comprehensive and effective contracts that address transparency issues and facilitating the need for continuous development of capabilities through procurement are among the further research avenues proposed.

Originality/value

This study is a precursor demonstrating the potential of the procurement process to implement the decrees of SCR for better goal congruence of the OC supply chain.

Details

Construction Innovation , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1471-4175

Keywords

Article
Publication date: 4 December 2023

Nnedinma Umeokafor, Abimbola Windapo and Oluwole Alfred Olatunji

The purpose of this study is to investigate the influences of the characteristics of procurement strategies, in this instance labour-only, on project performance concerning health…

Abstract

Purpose

The purpose of this study is to investigate the influences of the characteristics of procurement strategies, in this instance labour-only, on project performance concerning health and safety (H&S), a project performance indicator.

Design/methodology/approach

Using non-probability purposeful and snowballing sampling methods, questionnaires were used to collect data from construction professionals in Nigeria. This was then analysed using descriptive (frequency and mean scores) and inferential statistics (Mann–Whitney-U and Kendall's Tau_b tests).

Findings

The findings indicate a statistically significant negative correlation between ‘the level of client involvement and ‘fatalities' and a positive one with ‘conducting of health and safety risk assessment' and ‘conducting employee surveys on health and safety attitude’. Poor hygiene is found to be the worst lagging indicator, while conducting of inspection is the most adopted leading indicator of project health and safety performance. It also emerged that there is no significant difference in the health and safety performance of projects procured through the procurement strategy in urban and rural areas.

Practical implications

The study provides valuable insight into the complexities in H&S management due to the high level of client involvement in labour-only procurement system (LoPS) projects and the level of diversity in their responsibilities therein. It creates a fundamental direction for developing a detailed framework or guidance notes for client involvement in the integration of H&S into LoPS projects.

Originality/value

This is the first study that examines the influence of the characteristics of procurement strategy on project health and safety performance. Evidence in the literature shows that project delivery outcomes significantly improve if procurement is strategically used, including when it is considered early in projects. However, integrating H&S into procurement strategies has received little attention.

Details

International Journal of Productivity and Performance Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 15 May 2023

Asmamaw Tadege Shiferaw, Paulos A. Wondimu and Tor Kristian Stevik

This study aims to explore the experiences of using competitive dialogue (CD) as a procurement procedure and the freedom it provides to the contracting parties in Norway.

Abstract

Purpose

This study aims to explore the experiences of using competitive dialogue (CD) as a procurement procedure and the freedom it provides to the contracting parties in Norway.

Design/methodology/approach

This study opted for qualitative research design. Data were collected from four case projects through document reviews and in-depth interviews with procurement experts and key contract partners of the projects.

Findings

Results indicate that CD has some room for maneuver that is worth trying. Furthermore, the research identified several measures that can be implemented to use the procedure effectively. Contracting parties that have used the procedure have had various positive experiences.

Social implications

The findings have implications in improving project outputs, building better trust and cooperation between the contracting parties and better use of public money on projects that have lasting outcomes for the society.

Originality/value

The authors studied four actual projects that used CD as a procurement procedure and aimed to provide first-hand information on the degree of freedom that it offered to the contracting parties.

Details

Journal of Public Procurement, vol. 23 no. 2
Type: Research Article
ISSN: 1535-0118

Keywords

Article
Publication date: 22 August 2023

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.

Open Access
Article
Publication date: 3 July 2023

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…

3494

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.

Details

Construction Innovation , vol. 24 no. 7
Type: Research Article
ISSN: 1471-4175

Keywords

Article
Publication date: 15 December 2022

Cong Wang, Henry Liu, Michael C.P. Sing and Jin Wu

Pre-construction of a project comprises stages that are pivotal for the procurement performance. It is defined as the duration from the project's initiation to construction…

Abstract

Purpose

Pre-construction of a project comprises stages that are pivotal for the procurement performance. It is defined as the duration from the project's initiation to construction. However, Private Public Partnerships (PPPs) have been subjected to a long pre-construction, thereby leading to an inefficient development process. Therefore, the purpose of this paper is to pay attention to the influencing factors elongating the pre-construction duration.

Design/methodology/approach

Based on data of 5,677 PPP projects between 2009 and 2021 in China, the authors adopt the Accelerated Failure Time (AFT) model in duration analysis to empirically analyze the following underlying dynamics determining the duration of PPP pre-construction stages: (1) policy uncertainty; (2) corruption; and (3) procurement method selection. To observe the influencing paths more specifically, the authors divided the pre-construction duration into the pre-tendering period and tendering period and regressed them separately.

Findings

The results indicate that the pre-construction duration is significantly prolonged with increased policy uncertainty and corruption degree as well as the use of tendering methods. Meanwhile, the above factors have a greater impact on the pre-tendering period than the tendering period.

Originality/value

The contribution of this study is twofold: (1) theoretically, this paper provides new evidence on the impact of PPP policy uncertainty, corruption and procurement method selection on the pre-construction duration. It complements empirical studies on the factors elongating the time efficiency of PPPs projects. (2) In practice, it provides a specific path for the government to improve the time efficiency of PPPs.

Details

Engineering, Construction and Architectural Management, vol. 31 no. 4
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 26 January 2024

Mohammad Alhusban, Faris Elghaish, M. Reza Hosseini and Mohammad Mayouf

Previous studies have established to a great extent that regulatory frameworks and, in particular, procurement approaches – that are common in a particular context – have a major…

Abstract

Purpose

Previous studies have established to a great extent that regulatory frameworks and, in particular, procurement approaches – that are common in a particular context – have a major impact on the success of building information modelling (BIM) implementation in construction projects. Despite the close links between these two concepts, research on the effect of procurement approaches on BIM implementation is scarce. To address this gap, this paper aims to investigate the barriers that affect BIM implementation through the lens of procurement approaches.

Design/methodology/approach

A mixed-method approach was adopted using a questionnaire survey (n = 116) and interviews with key stakeholders (n = 12) in Jordan. The outcomes of the quantitative parts were augmented with findings from interviews.

Findings

It was revealed that the deployment of unfavourable construction procurement approaches represents a major hurdle towards BIM implementation. Though essential for enhancing BIM implementation, it is revealed that a fundamental change from the common design-bid-build (DBB) to more collaborative procurement approaches remains infeasible in view of the realities that govern the construction industry.

Research limitations/implications

It was revealed the deployment of unfavourable construction procurement approaches represents a major hurdle towards BIM implementation. Though essential for enhancing BIM implementation, it is revealed that a fundamental change from the common DBB to more collaborative procurement approaches remains infeasible given the realities that govern the construction industry.

Originality/value

As the first of its kind, a set of recommendations for establishing supportive, workable procurement that does not deviate significantly from common procedures and practices is presented. Rather than advocating a shift to procurement approaches that are aligned with BIM, the findings offer novel insight into the necessity of developing a framework within the boundaries of the current and widely adopted procurement approaches to address the identified construction procurement issues and facilitate BIM implementation.

Details

Smart and Sustainable Built Environment, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2046-6099

Keywords

Article
Publication date: 25 September 2023

Terence Y.M. Lam and Keith S. Gale

Construction frameworks are recognised by the UK Government as an integrated procurement path to deliver efficiency, collaboration and sustainability. This research paper aims to…

Abstract

Purpose

Construction frameworks are recognised by the UK Government as an integrated procurement path to deliver efficiency, collaboration and sustainability. This research paper aims to develop a performance-driving model for framework procurement to align with the government construction policy objectives.

Design/methodology/approach

A quantitative hierarchical regression analysis was conducted to examine the causal relationships between project outcomes and performance drivers. A successive qualitative multiple-case study involving eight typical construction framework projects was examined to further explain casual relationships.

Findings

Conclusive results from the quantitative and qualitative analyses validated the performance-driving model, generalising a framework procurement principle that project outcomes of time, cost, quality, sustainability and closer relationships are significantly driven by supplier's task and contextual performance drivers, and client's organisational drivers.

Research limitations/implications

The investigation followed two major public-sector organisations in the UK: infrastructure offices of local authorities and estate offices of universities. Further research should be extended to other public-sector situations to enhance the model further.

Practical implications

Using this model, framework managers can drive project outcomes by applying task and contextual performance drivers in order to select the best suppliers at the procurement phase, and by adopting the client's organisational factors at both procurement and construction monitoring phases.

Social implications

The empirical evidence supports the use of frameworks by public sector policymakers as a key strategy to develop the performance drivers further and improve efficiency and quality outcomes.

Originality/value

The results will be of value to support the policy of public-sector works organisations contemplating using framework procurement for executing continuing construction activities.

Details

Built Environment Project and Asset Management, vol. 13 no. 6
Type: Research Article
ISSN: 2044-124X

Keywords

Article
Publication date: 3 November 2021

Richard Ohene Asiedu, Patrick Manu, Abdul-Majeed Mahamadu, Colin Anthony Booth, Paul Olomolaiye, Kofi Agyekum and Mohamed Abadi

Effective procurement of infrastructure is partly dependent on infrastructure procurement personnel having the skills that are important for the discharge of their role…

Abstract

Purpose

Effective procurement of infrastructure is partly dependent on infrastructure procurement personnel having the skills that are important for the discharge of their role. Addressing the infrastructure deficits in developing countries, therefore, calls for an understanding of the skills that are important for the discharge of the roles of public personnel that are involved in infrastructure procurement. This study aims to investigate these skills from the perspective of public infrastructure procurement personnel in the sub-Saharan African region.

Design/methodology/approach

A questionnaire survey of procurement personnel yielded 590 useable responses, which were analysed using t-tests and exploratory factor analysis (EFA).

Findings

EFA established eight key components of important infrastructure procurement skills to include skills related to: project success factors; social and environmental sustainability; marketing and e-procurement; project phase management, the application of procurement laws and procedures; soft skills, ICT and communication; and data analysis and team building.

Originality/value

The findings are crucial in developing infrastructure procurement capacity building programmes that would be appropriate for infrastructure procurement personnel in developing country contexts. Infrastructure procurement personnel ought to engage more in capacity development training that is aligned to enhancing skills within the eight components.

Details

Journal of Engineering, Design and Technology , vol. 21 no. 6
Type: Research Article
ISSN: 1726-0531

Keywords

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