Parameters governing the selection of procurement system – an empirical survey

TLDR

Construction procurement selection often lacks structured, information‑based procedures, leaving clients uninformed and risking project failure. The study aims to formalise procurement selection by establishing a set of procurement selection parameters tailored to client characteristics, objectives, and project requirements. An empirical survey of Australian clients and project managers was conducted to assess the importance and interrelationships of these parameters. The survey produced 34 procurement selection parameters, revealed consistent perceptions of their importance, identified interrelationships among them, and highlighted the need to consider these interdependencies when evaluating procurement systems.

Abstract

The lack of structured procedures, based on good information, for the selection of construction procurement system sometimes inhibits the opportunity for clients to choose a procurement option in a fully informed manner. The selection and use of an unsuitable procurement approach could eventually lead to project failure. To formalise the procurement selection procedures, clients should establish a set of appropriate procurement selection parameters (PSPs) based on their distinctive characteristics and objectives, project requirements, and external environment. In this paper, a list of 34 PSPs was drawn up according to the findings of researchers in procurement selection. An empirical study was carried out in Australia with clients and project managers to unveil the importance and interrelationships of the identified PSPs. The results indicate that the perception of clients and project managers on the importance of PSPs was generally consistent, that underlying relationships do exist among parameters, and there is a need for clients to ensure that the interrelated PSPs are not overlooked when assessing the suitability of construction procurement systems.