Monday, March 29, 2010

PROCUREMENT IN CONSTRUCTION INDUSTRY

Procurement Methods

Procurement method is one of the most popular terms used to describe the construction organization system and procedures to organize the project team to manage the entire construction process. Other terms such as delivery methods, project organization system, contractual arrangements, delivery system and procurement system were regularly used by many authors in their discussion on procurement methods. A client has to decide which and when a designer will be hired and what type of procurement method will be used. A client also has to decide which and when to hire the construction professionals and under what type of contract or variations. Which organization will be first hired and who reports to whom.
Indeed, there are a number of proven strategies that are used to manage the process where each has its own distinct advantages and disadvantages. Four procurement approaches are widely discussed; traditional, management, integrated services and in house teams (Ofori, 1990). But, the latest variation, partnering has been introduced in Malaysia construction industry in the early 2000s but have yet to be assessed of its effectiveness.

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