Traditional Procurement Method in Construction Industry

Ooi, Shuang Syen (2023) Traditional Procurement Method in Construction Industry. Final Year Project (Bachelor), Tunku Abdul Rahman University of Management and Technology.

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Abstract

The construction industry in Malaysia plays a significant role in the country's economy. Over the past few decades, project management, technical skills, and the nature of construction have become increasingly complex. However, this complexity has also brought about benefits of using traditional procurement strategies, such as the contractor's control over quality, cost, and risk. Despite these benefits, traditional procurement methods also face challenges, including time constraints, coordination issues among different consultants, and communication problems between different parties involved. To address these issues and achieve the research's objectives, a field survey using questionnaires was conducted among various stakeholders, including developers, government personnel, consultant teams, safety committees, builders (main contractors), and sub-contractors. The survey aimed to gain insight into the selection factors of procurement strategies in Malaysia construction projects, the benefits of using traditional procurement methods, and the challenges faced by using traditional procurement strategies in construction projects. Additionally, the literature review also provided further insight into these topics. In summary, this research aimed to examine the complexities of the Malaysia construction industry and its procurement strategies, identify the benefits and challenges of traditional procurement methods, and provide recommendations for future research. Survey shows quality of work was top priority for procurement methods, despite competitive bidding potentially leading to better prices. Buyers prioritized their own benefits. Biggest challenge faced by developers was project delays. The study concludes that while traditional procurement methods have several benefits, there are also challenges that need to be addressed. Overcoming these challenges can make it a useful option for consultants.