Decision criteria and their subjectivity in construction procurement selection

Ng, T; Luu, D and Chen, S (2002) Decision criteria and their subjectivity in construction procurement selection. Construction Economics and Building, 2(1), pp. 70-80. ISSN 2204-9029

Abstract

Employing a suitable construction procurement system is crucial to project success. However, many clients select procurement systems in a cursory manner and some clients even use a specific procurement system by default without deliberate choice. A systematic method for procurement selection would help clients to arrive at more informed decisions. The first step towards a systematic procurement selection method is to identify decision criteria pertinent to assessing the alternatives. This paper identifies the commonly considered criteria for procurement selection through a qualitative survey in Australia. The subjectivity of the identified criteria is considered and the effects on procurement selection are examined. The results indicate that speed, complexity, flexibility, responsibility, quality level, risk allocation, and price competition cannot be easily gauged by objective means, and a misperception of the degree of fulfilment of any of these criteria could affect the outcome of procurement selection.

Item Type: Article
Uncontrolled Keywords: procurement; selection; success; questionaire survey; Australia
Index terms: decision criteria, default, risk allocation, construction procurement, project success, procurement system, competition, subjectivity, selection method, complexity, Australia, survey
Subjects: dispute resolution, financial risk, human factors and perception, project management theory and practice, Geography, tendering, data collection methods, systems engineering, contractual arrangements, decision analysis, market analysis
Topics: Legal Issues, Procurement, Risk Management, Project Management, Geographical Context, Research Practice, Engineering Principles, Cost Management
Descriptive scope: 3 PCE

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here