-
The Impact Of Procurement Systems On Construction Cost And Delivery
CHAPTER ONE -- [Total Page(s) 4]
Page 1 of 4
-
-
-
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The construction industry is an important part of the economical backbone in many countries (Ngai et al., 2002), often accounting for between 7-10 percent of the Gross Domestic Product (Winch, 1996, Voordijk et al., 2000). Furthermore, construction products and processes have a large impact on safety, health and environmental aspects (Bayliss et al., 2004). Since all human beings in modern societies are directly affected by its processes and/or products, the importance of a well-functioning construction industry is beyond doubt (Cheung et al., 2001, Ngai et al., 2002, Eriksson, 2007). In many countries the construction industry has, however, attracted criticism for inefficiencies in outcomes such as time and cost overruns, low productivity, poor quality and inadequate customer satisfaction (Latham, 1994, Egan, 1998, Ericsson, 2002, Chan et al., 2003). Practitioners, researchers and society at large have, therefore, called for a change in attitudes, behaviour and procedures in order to increase the chances for construction projects to be successful and result in improved end products (Love et al., 2000, Dubois and Gadde, 2002). Increased complexity, uncertainty, and time pressure in construction projects have increased the need for cooperation among different project actors (Anvuur and Kumaraswamy, 2007). Traditionally, relationships are, however, very competitive and adversarial in the construction industry (Cheung et al., 2003), which to a large extent is due to the customary procurement procedures potentially causing many problems in all stages of the buying process (Eriksson and Laan, 2007). Therefore, in order to take advantage of collaboration, procurement procedures is one key improvement area and can contribute substantially to project success (Cheung et al., 2003, Eriksson, 2007). A change of procurement procedures is, however, impeded by clients’ habitual behaviour (Laedre et al., 2006). Although procurement procedures need to be tailored to enhance the fulfillment of different project objectives (Cox and Thompson, 1997, Love et al., 1998, Wardani et al., 2006), clients tend to choose those procurement procedures they have a habit of using, regardless of any differences between projects (Laedre et al., 2006). In order to enhance change, an increased understanding of how different procurement procedures affect different aspects of project performance is vital. Earlier research efforts in this area have been limited to the investigation of how a single or a few specific procurement alternatives affect one or two project objectives. In order to achieve successful governance of construction projects a holistic and systemic approach to procurement procedures is crucial (Cox and Thompson, 1997, Eriksson and Pesämaa, 2007, Eriksson, 2008b). Since a systemic perspective on the effect of procurement procedures on different aspects of project performance is lacking in the construction management literature, this research effort aims to fill this theoretical gap that has potential to bring important practical implications. Different studies have confirmed the use of various types of procurement methods for project delivery in Nigeria. Studies of Ogunsanmi, Iyagba and Omirin (2003), Ojo, Adeyemi and Fagbenle (2006), and Dada (2012) all confirm the use of Traditional, Design and Build, Project Management, Construction Management, Labour only, Direct Labour and other types such as Alliancing, Partnering and Joint Ventures procurements in the Nigerian construction industry. The use of these procurement methods can significantly affect the performance of most projects.
CHAPTER ONE -- [Total Page(s) 4]
Page 1 of 4
-
-
ABSRACT - [ Total Page(s): 1 ]The study to examine procurement systems and it impact on cost management and delivery, the study has the following objectives,to identify various procurement systems commonly used by quantity surveyors in Owerri, to examine challenges encountered when employing various procurement systems for construction projects and to examine the impact of procurement systems on construction cost.
Concerning methodology for this study, data was obtained from primary source that is standardized structured qu ... Continue reading---
