The impact of recession on construction procurement routes

Abstract

The UK entered recession in Q2 (2008) and exited in Q4 (2009) as a consequence of world recession, creating major repercussions for the construction sector. In response, the government introduced a £81 billion efficiency drive. Procurement is a substantial percentage of government budgets, therefore efficient public procurement can offer substantial savings. The private sector indicates efficiencies are introduced through effective procurement and strong competition. It was hypothesised that recession would result in procurement routes being chosen that ensured closer control of costs. Results indicate expected use of traditional procurement will rise 5% and design and build 6% but that procurement personnel do not expect a major shift in procurement route choice due to recession or post-recession. The paper suggests that government policy should ensure that potential efficiencies through choice of route should not be ignored. Further use of robust and innovative procurement techniques should be adopted to ensure value for money.