Laryea, S (2019) Procurement strategy and outcomes of a new universities project in South Africa. Engineering, Construction and Architectural Management, 26(9), pp. 2060-2083. ISSN 0969-9988
Abstract
Purpose: Construction project management outcomes in the literature typically portray significant deviations from expected outcomes. Various theories from studies that focus superficially on causes of project cost and time overruns rather than root causes have not addressed this problem. The need is for a better understanding of how procurement strategy provides a fundamental means to address this problem. The purpose of this paper is to examine the procurement strategy used to deliver a new universities project in South Africa within budget and to ascertain its influence on the outcomes. Design/methodology/approach: A case study was designed to provide a comprehensive and intensive methodology to identify and examine the construction procurement strategy and its influence on the project outcomes. Document analyses and semi-structured interviews were used to collect data on the construction procurement strategy and outcomes from the client team. Findings: The evidence brought forward demonstrates that the successful outcome was largely a consequence of the client team, procurement strategy and systems of delivery. However, the collaborative procurement strategy formed the basis of the successful project delivery and outcomes. A general observation from the data is that an appropriate construction procurement strategy developed by an experienced client team and proactively implemented by an integrated delivery team working collaboratively is likely to achieve the intended project outcomes. Practical implications: The findings show three critical keys to achieving intended outcomes – people, procurement strategy and systems of delivery at the governance, portfolio, programme and project management levels. Originality/value: The value of this paper lies in using a comprehensive methodology to study the relationship between procurement strategy and outcomes. The findings can be applied by client teams to achieve better outcomes and value for money in infrastructure projects.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | case study; integration; project management; strategic management |
| Index terms: | interview, programme, project cost, strategy, evidence, strategic management, integration, methodology, value-for-money, South Africa, time overrun, governance, case study, procurement strategy, project outcome, deviation, document analysis, construction project management, construction procurement, project management, project delivery, infrastructure project |
| Subjects: | data collection methods, evaluation and assessment methods, business, project completion, data science, contractual arrangements, financial and cost management, project delivery, Geography, evaluation, project management theory and practice, management, research methods, economics, infrastructure and transport systems, organizational analysis, project controls |
| Topics: | Time Control, Organizational Design, Value Management, Governance, Procurement, Engineering Principles, Research Practice, Project Management, Geographical Context, Business Strategy, Cost Management |
| Descriptive scope: | 5 PCTEA |
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