Procurement
COBRA 2006
The construction and building research conference of the Royal Institution of Chartered Surveyors
University College London, 7-8 September 2006
COBRA 2006
PROCEEDINGS OF THE ANNUAL RESEARCH CONFERENCE OF THE ROYAL INSTITUTION OF CHARTERED SURVEYORS Held on Thursday 7th and Friday 8th September 2006 at University College London
Joint Conference Directors
Stephen Brown Stephen Pryke Editor: Elaine Sivyer
COBRA 2006 Proceedings published by: The RICS, 12 Great George Street Parliament Square London SW1P 3AD In association with: The Bartlett School University College London, WC1E 7HB © RICS, The Bartlett School, UCL and the contributors First published 2006 ISBN: 978-1-84219-307-4
A Multiple Decisive Factor Model for Construction Procurement System Selection
S. Ratnasabapathy and R. Rameezdeen
Department of Building Economics, University of Moratuwa, Moratuwa, Sri Lanka; shiyalk@yahoo.co.uk The procurement system is a key means through which the client creates the pre-conditions for the successful achievement of project specific objectives. Different procurement systems are used for different projects and the appropriate selection may help to avoid problems and be the key to the attainment of project specific goals. In Sri Lanka, the practice of procurement selection is rather unstructured and ad hoc. Therefore a realistic and systematic approach for the selection of the most appropriate system is essential to aid clients in selecting procurement systems. This paper presents a construction procurement selection model based on decisive factors. It particularly examines and analyses factors in terms of clients’ requirements, project characteristics and the external environment in which the construction industry operates. Four rounds of Delphi surveys were carried out to investigate the most important factors and their level of influence on various construction procurement systems. It was found that client requirements are the most
The construction and building research conference of the Royal Institution of Chartered Surveyors
University College London, 7-8 September 2006
COBRA 2006
PROCEEDINGS OF THE ANNUAL RESEARCH CONFERENCE OF THE ROYAL INSTITUTION OF CHARTERED SURVEYORS Held on Thursday 7th and Friday 8th September 2006 at University College London
Joint Conference Directors
Stephen Brown Stephen Pryke Editor: Elaine Sivyer
COBRA 2006 Proceedings published by: The RICS, 12 Great George Street Parliament Square London SW1P 3AD In association with: The Bartlett School University College London, WC1E 7HB © RICS, The Bartlett School, UCL and the contributors First published 2006 ISBN: 978-1-84219-307-4
A Multiple Decisive Factor Model for Construction Procurement System Selection
S. Ratnasabapathy and R. Rameezdeen
Department of Building Economics, University of Moratuwa, Moratuwa, Sri Lanka; shiyalk@yahoo.co.uk The procurement system is a key means through which the client creates the pre-conditions for the successful achievement of project specific objectives. Different procurement systems are used for different projects and the appropriate selection may help to avoid problems and be the key to the attainment of project specific goals. In Sri Lanka, the practice of procurement selection is rather unstructured and ad hoc. Therefore a realistic and systematic approach for the selection of the most appropriate system is essential to aid clients in selecting procurement systems. This paper presents a construction procurement selection model based on decisive factors. It particularly examines and analyses factors in terms of clients’ requirements, project characteristics and the external environment in which the construction industry operates. Four rounds of Delphi surveys were carried out to investigate the most important factors and their level of influence on various construction procurement systems. It was found that client requirements are the most
References: Chan, A. P. C. et al. (2001), “Application of Delphi method in selection of procurement systems for construction projects”, Construction Management and Economics, 19, 699– 718. Chang, C. Y. and Ive, G. (2002), “Rethinking the Multi Attribute Utility Approach based procurement route selection technique”, Construction Management and Economics, 20, 275-84. Cheung, S. et al., (2001), “An analytical hierarchy process based procurement selection method”, Construction Management and Economics, 19, 427–437. Luu, S. D. T., Ng, T. and Chen, S. (2003), “Parameters governing the selection of procurement system”, Engineering, Construction and Architectural Management, 10(3), 209-218. Masterman, J. W. E. (1992), An Introduction to Building Procurement Systems, E & FN Spon, London. National Economic Development Office (1985), “Thinking about building”, Report by Building, Design Partnership for National Economic Development Office, Building EDC, HMSO. Rameezdeen, R. and De Silva (2002), “Trend of Construction Procurement Systems in Sri Lanka”, Built-Environment Sri Lanka, 2(1), 2-9. Rubenstein, M. E. and Firstenberg, I. R. (1995), Patterns of Problem Solving, (2nd Edition), Englewood Cliffs, Prentice Hall, NJ. Shiyamini, R., Rameezdeen, R., and Amaratunga, D. (2005), “Macro analysis of construction procurement trend in Sri Lanka”, Proceedings of 5th International Postgraduate Research Conference of the Research Institute for the Built and Human Environment, April, The University of Salford, UK. Skitmore, R. M. and Marsden, D. E. (1988), “Which procurement system? Towards a universal procurement selection technique”, Construction Management and Economics, 6, 71-89.