A functional analysis of building procurement systems and strategies in an international context

This thesis has focused upon building procurement systems, how these can be compared across a range of countries, and the competencies upon which they depend for effective operation. The study focuses upon dominant procurement systems which exist in the UK, the USA, France, Japan, as major construction exporters and India and Malaysia as major importing countries in terms of construction. The aims of the research include: 1. the development of a functionally based Procurement System Model (PSM) for the dominant procurement systems adopted in each country, enabling the comparison of roles, risks and formal relationships irrespective of job titles, laws or language. 2. the development of schedules of key competencies and resources which need to be in place to ensure that any adopted procurement system can operate effectively. 3. the identification of institutions upon which the competencies (and consequently the systems) depend for their sustainability. This study illustrates how building procurement systems may be modelled in an objective way by using functional analysis. The modelling of procurement systems using the PSM allows countries to objectively identify and comparatively analyse the use of systems between countries. For countries which are pursuing rapid or sustained economic growth this facility will allow them to consider the potential array of procurement systems which may be suitable for them. It has been established in this study that the effective use of a particular procurement system relies upon the availability of key competencies. In order to deliver a particular procurement system effectively within any country the supply chain of key competencies and resources must be in place. The existence of construction industry specific and non-specific institutions is identified as encouraging the array of generic, common and specific key competencies to be established, developed, disseminated and sustained within the construction industry of a particular country. The dissemination and sustainability of competencies is crucial in maintaining the indigenous supply of competencies which facilitates the effective operation of the various procurement systems. The examination of primary institutions illustrates that where they are absent or where their structure is inappropriate (in relation to their operating environment) key competencies do not seem to be established, developed, disseminated or sustained to a recognised standard. It is acknowledged however that if institutions do not exist indigenously or are unable to supply the array of competencies required for the operation of a particular procurement system then the unavailable competencies may be imported from countries which possess the particular key competencies (usually countries which are major exporters of construction services). The overall consequence of the thesis has therefore been to identify how procurement systems may be operated more effectively within a country to meet the economic demands of that country. By developing institutions indigenously, the supply of competencies is encouraged and sustained - thereby allowing the effective use of a particular procurement system which will allow economic growth targets to be achieved.