Effect of Procurement Systems on the Performance of Construction Projects

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EFFECT OF PROCUREMENT SYSTEMS ON THE PERFORMANCE OF CONSTRUCTION PROJECTS Rosli Abdul Rashid, Ismail Mat Taib , Wan Basiron Wan Ahmad, Md. Asrul Nasid, Wan Nordiana Wan Ali & Zainab Mohd Zainordin Department of Quantity Surveying Faculty of Built Environment Universiti Teknologi Malaysia Abstract: Project procurement has been described as an organized methods or process and procedure for clients to obtain or acquire construction products. Apart from the traditional approach, there are now other “fast-tracking” or innovative procurement systems used by the construction industry world wide. The different procurement systems differ from each other in term of allocation of responsibilities, activities sequencing, process and procedure and…show more content…
It invariably involves placing consideration on three major project elements i.e. time, cost and quality. (Project Management Institute, 2004). It has been pointed out that, in today’s highly competitive and uncertain business environment, the client who is the major stakeholder, want speedier delivery of their project with early start of construction work, certainty of performance in term of cost, quality and time, value for money for their investment, minimal exposure to risk and early confirmation of design and price or cost (Centre for Construction Strategic Studies, 1998). Although many tend to focus on the elements of cost, quality and time, all others are also important parameters of project performance. THE ISSUES As mentioned earlier, the introduction of different “fast-tracking” project procurement systems is the attempt by the industry to provide better deal to its clients or customers, who are increasingly insisting for “better value for money” from their projects in term of cost, time and quality. The different project procurement systems present different methods, process and procedure of designing and construction of projects for the client. These different systems also prescribe the variation of the organizational structure of the project teams in term of role, responsibility and authority. So how do the different procurement systems affect the project performance given that the method, process,
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