July 28, 2017

Procurement in the Construction industry

Cover image Venture management within the building industry requires control of many jobs and individuals, suffering from complexity and doubt, which increases the requirement for efficient cooperation. Procurement is vital since it sets the foundation for collaboration between customers and contractors. This is true whether or not the project is regional, local or international in scope. Typically, procurement processes tend to be competitive, resulting in conflicts, adversarial interactions much less desirable project results. The goal of this paper is to propose and empirically test an alternative solution procurement model according to cooperative procurement procedures that facilitates cooperation between consumers and technicians in building projects. The model is based on four multi-item constructs – incentive-based settlement, restricted bidding options, partner choice and collaboration. Based on an example of 87 client organisations, the model had been empirically tested and displayed powerful support, including content, nomological, convergent and discriminant substance, as well as dependability. Our findings suggest that companion choice based on task related qualities mediates the relationship between two important pre-selection procedures (incentive-based payment and restricted bid invitation) and main aim of collaboration. The share of paper is distinguishing good and dependable dimension constructs and verifying a unique sequential purchase for achieving collaboration. Additionally, the results are applicable for most forms of construction projects because of the similarities into the construction industry around the globe.