Traditional Procurement is too Slow

Ann Kong, Jason Gray


Abstract

This paper reports on an exploratory interview survey of construction project participants aimed at identifying the reasons for the decrease in use of the traditional, lump-sum, procurement system in Malaysia. The results show that most people believe it is too slow. This appears to be in part due to the contiguous nature of the various phase and stages of the process and especially the separation of the design and construction phases. The delays caused by disputes between the various parties are also seen as a contributory factor - the most prominent cause being the frequency of variations, with design and scope changes being a particular source of discontent. It is concluded that an up scaling of the whole of the time related reward/penalty system may be the most appropriate measure for the practice in future.

Full Text

PDF

References

Akinci, B. and M. Fischer. 1998. Factors Affecting Contractors Risk of Cost Overburden. Journal of Management in Engineering, (1): 67-76. (accessed April 3, 2004, from ASCE Civil Engineering Database)."

Akpan, E. O. P. and O. Igwe. 2001. Methodology for Determining Price Variation in Project Execution. Journal of Construction Engineering and Management, 127 (5): 367-372. (accessed April 8, 2004, from ASCE Civil Engineering Database).

Barker, J. 1998. Costs of Tendering – Fact or Fantasy? The Building Economist, (12): 13-19.

Chan, D. W. M. and M. M. Kumaraswamy. 1996. An Evaluation of Construction Time Performance in the Building Industry. Building and Environment, 31 (6): 569-578. (accessed April 8, 2004, from ScienceDirect: Compendex database).

Chan, D. W. M. and M. M. Kumaraswamy. 1997. A Comparative Study of Causes of Time Overruns in Hong Kong Construction Projects. International Journal of project Management, 15 (1): 55-63. (accessed April 8, 2004, from ScienceDirect: Compendex database).

Chang, C.Y. and G. Ive. 2002. On the Economics Characteristics of Construction Procurement Systems. In Procurement Systems & Technology Transfer: CIB W92 Procurement Systems Symposium, 689-710. Trinidad and Tobago: Proceedings of the International Symposium of the Working Commission.

Cooke, J. R. 2001. Architects, Engineers & the Law. Sydney: The Federation Press.

Dulaimi, M, F., F. Y. Y. Ling and G. Ofori. 2004. Engines for Chang in Singapore's Construction Industry: An Industry View of Singapore's Construction 21 Report. Building and Environment, 39: 699-711. (accessed April 8, 2004, from ScienceDirect: Compendex database).

Emmitt, S. 1997. Architect and Client – Adopting a Simple Approach to Procurement. In Procurement – A Key to Innovation, 185-192. Canada: CIB Proceeding.

Gardiner, P. D. and J. E. L. Simmons. 1998. Conflict in Small and Medium-Sized Projects: Case of Partnering to the Rescue. Journal of Management in Engineering, 14 (1): 35-40. (accessed April 6, 2004, from ASCE Civil Engineering Database).

Girmscheid, G. and A. Hartmann. 2002. The Interdependence of Procurement Strategies and Organizational Culture. In Procurement Systems & Technology Transfer: CIB W92 Procurement Systems Symposium, 371-382. Trinidad and Tobago: Proceedings of the International Symposium of the Working Commission.

Goldfayl, G. 1999. Construction Contract Administration. Victoria: Deakin University Press.

Harmon, K. M. J. 2003. Conflicts between Owner and Contractors: Proposed Intervention Process. Journal of Management in Engineering, 19 (3): 121-125. (accessed April 6, 2004, from ASCE Civil Engineering Database).

Hashim, M. 1997. Client's Criteria on the Choice of Procurement Systems – a Malaysian Experience. In Procurement – A Key to Innovation, 273-284. Canada: CIB Proceeding.

Hegazy, T., E. Zaneldin and D. Grierson. 2001. Improving Design Coordination for Building Projects. I: Information Model. Journal of Construction Engineering and Management, 127 (4): 322-329. (accessed April 10, 2004, from ASCE Civil Engineering Database).

Hovet, T. D. 1994. Allowing the Design/Build Project Delivery Method in the Procurement of Public Construction Contracts. www.cascadepolicy.org/bgc/build.htm (assessed March 16, 2004).

Kadefors, A. 2002. Problems of Trust and Control in Client-Contractor Relations. In Procurement Systems & Technology Transfer: CIB W92 Procurement Systems Symposium, 451-460. Trinidad and Tobago: Proceedings of the International Symposium of the Working Commission.

Kashiwagi, D. T. 1999. The Construction Delivery System of the Information Age. Automation in Construction, 8: 417-425. (accessed April 6, 2004, from ASCE Civil Engineering Database).

Kumaraswamy, M and M. Dulaimi. 2001. Empowering Innovative Improvements through Creative Construction Procurement. Engineering, Construction and Architectural Management, 8: 325-334.

Kumaraswamy, M. M. and D. H. T. Walker. 1999. Multiple Performance Criteria for Evaluating Construction Contractors. In Procurement Systems: A Guide to Best Practice in Construction, ed. S. Rowlinson and P. McDermott., 228-251. London: E & FN Spon.

Lavender, S. D. 1990. Economics for Builders & Surveyors. New York: Longman Scientific & Technical.

Ling, F. Y. Y., S. L. Chan, E. Chong and P. E. Lee. 2004. Predicting Performance of Design-Build and Design-Bid-Build Projects. Journal of Construction Engineering and Management, 130 (1): 75-83. (accessed April 6, 2004, from ASCE Civil Engineering Database).

Liu, A. and R. Fellows. 1999. Cultural Issues. In Procurement Systems: A Guide to Best Practice in Construction, ed. S. Rowlinson and P. McDermott., 141-162. London: E & FN Spon.

Loosemore, M. and P. Lee. 2002. Communication Problems with Ethnic Minorities in the Construction Industry. International Journal of Project Management, 20: 517-524. (accessed April 8, 2004, from ScienceDirect: Compendex database).

Love, P. E. D., M. Skitmore and H. Li. 1997. Procuring Toward An Innovative Procurement Process for Construction. In Procurement – A Key to Innovation, 423-432. Canada: CIB Proceeding.

Low, S. P. 2001. Quantifying the Relationships between Buildability, Structural Quality and Productivity in Construction. Structural Survey, 19 (2): 106-112. (accessed April 8, 2004, from ProQuest: ABI/Inform Global database).

Low, S. P. and B. Abeyegoonasekera. 2001. Integrating Buildability in ISO 9000 Quality Management Systems: Case Study of a Condominium Project. Building and Environment, 36: 299-312. (accessed April 8, 2004, from ScienceDirect: Compendex database).

Markus, E. 1997. Low Bid Alternatives Earning Respect. American City & County, 112 (9): 22-24. (accessed March 25, 2004, from ProQuest: Academic Research Library).

Martin, R. 2000. Pitfalls to be Avoided by Design and Build Contractors. www.jrk.com.my/articles/pitfalls.htm (assessed March 16, 2004).

Masterman, J.W.E. 1992. An Introduction to Building Procurement Systems. London: E & FN Spon.

McDermott, P. 1999. Strategic and Emergent Issues in Construction Procurement. In Procurement Systems: A Guide to Best Practice in Construction, ed. S. Rowlinson and P. McDermott., 3-26. London: E & FN Spon.

Mo, J. K. W. and L. Y. Ng. 1997. Design and Build Procurement Method in Hong Kong – An Overview. In Procurement – A Key to Innovation, 453-462. Canada: CIB Proceeding.

Molenaar, K. R., A. D. Songer and M. Barash. 1999. Public-Sector Design/Build Evolution and Performance. Journal of Management in Engineering, 15 (2): 54-62. (accessed April 8, 2004, from ASCE Civil Engineering Database).

Morledge, R. 2002. Procurement Strategies. In Best Value in Construction, ed. J. Kelly, R. Morledge and S. Wilkinson., 172-200. Victoria: Blackwell Science Ltd null

35 Murray, M. D., J. E. Tookey, D. A. Langford and C. Hardcastle. 2002. Construction Procurement Systems. In Procurement Systems & Technology Transfer: CIB W92 Procurement Systems Symposium, 147-168. Trinidad and Tobago: Proceedings of the International Symposium of the Working Commission."

Neighbour, K. 2000. The Clients' Guide to Construction Projects: Best Practices for the Newcombe, R. 1996. Empowering the Construction Project Team. International Journal of Project Management, 14 (2): 75-80. (accessed April 6, 2004, from ScienceDirect: Compendex database).

Newcombe, R. 1997. Procurement Paths – a Cultural/ Political Perspective. In Procurement – A Key to Innovation, 523-534. Canada: CIB Proceeding.

Ngowi, A. B. 1997. Influence of Culture on Construction Procurement. In Procurement – A Key to Innovation, 555-564. Canada: CIB Proceeding.

Ogunlana, S. O., K. Promkuntong and V. Jearkjirm.1996. Construction Delays in a Fast-Growing Economy: Comparing Thailand with other economies. International Journal of Project Management, 14: 37-45. (accessed April 3, 2004, from ScienceDirect: Compendex Database).

Rowlinson, S. 1999. A Definition of Procurement Systems. In Procurement Systems: A Guide to Best Practice in Construction, ed. S. Rowlinson and P. McDermott., 27-51. London: E & FN Spon.

Rwelamila, P. D. and C. Meyer. 1999. Appropriate or Default Project Procurement Systems. Cost Engineering, 41 (9): 40-44.

Smith, J. 1998. Building Cost Planning for the Design Team. Victoria: Deakin University Press.

Tam, C. M. 1997. Design and Build for a Complicated Re-development Project in Hong Kong: The Happy Valley Racecourse Redevelopment. In Procurement – A Key to Innovation, 743-750. Canada: CIB Proceeding.

Tan, D. 2001. Problems with Design and Build Contract in Malaysia. www.jrk.com.my/articles/designbld.htm (assessed May 28, 2004).

Taylor, R. G., G. H. M. Norval, B. Hindle, P. D. Rwelamila, and P. McDermott. 1999. From Conventionally Orientated to Developmentally Orientated Procurement Systems: Experiences from South Africa. In Procurement Systems: A Guide to Best Practice in Construction, ed. S. Rowlinson and P. McDermott., 163-183. London: E & FN Spon.

Tenah, K. A. 2001. Project Delivery Systems for Construction: An Overview. Cost Engineering, 43 (1): 30-36. (accessed April 2, 2004, from ProQuest: Academic Research Library).

The Aqua Group. 1996. Contract Administration for the Building Team. Victoria: Blackwell Science Ltd.

The Aqua Group. 1999. Tenders and Contracts for Building. Victoria: Blackwell Science Ltd.

Turner, A. 1990. Building Procurement. London: Macmillan Education Ltd.

Walker, D. and Hampson, K. 2003. Procurement Choices. In Procurement Strategies: A Relationship-Based Approach, ed. D. Walker, and K. Hampson., 1-27. Victoria: Blackwell Science Ltd.

Wearne, S. 1997. Innovations in Procurement – Why, and to Where? Questions for Research. In Procurement – A Key to Innovation, 781-790. Canada: CIB Proceeding.

Yates, D. 2002. Reducing the Incidence of Claims and Disputes in Construction Contracts. In Procurement Systems & Technology Transfer: CIB W92 Procurement Systems Symposium, 221-234. Trinidad and Tobago: Proceedings of the International Symposium of the Working Commission.

Zaneldin, E., T. Hegazy and D. Grierson. 2001. Improving Design Coordination for Building Projects. II: Collaborative System. Journal of Construction Engineering and Management, 127 (4): 330-336. (accessed April 10, 2004, from ASCE Civil Engineering Database).

Article Metrics

Metrics Loading ...

Metrics powered by PLOS ALM