Could e-procurement in the construction industry: Could e-procurement replace traditional methods of securing construction work in the future?

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ACKNOWLEDGEMENT

My thanks go out to all who have helped me complete this study and with whom this project may have not been possible. In particular, my gratitude goes out to friends, facilitator and family for extensive and helpful comments on early drafts. I am also deeply indebted to the authors who have shared my interest and preceded me. Their works provided me with a host of information to learn from and build upon, also served as examples to emulate.

DECLARATION

I [type your full first names & surname here], declare that the following dissertation/thesis and its entire content has been an individual, unaided effort and has not been submitted or published before. Furthermore, it reflects my opinion and take on the topic and is does not represent the opinion of the University.

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Abstract

The process of procurement is complex in the construction industries. It involves great time and management and thus makes it difficult for the project managers and the channels that are involved in the process of construction procurement. The processes of e-procurement in the construction organization are reported to increase the efficiency of the project with the reduced cost and time. It has been reported the traditional methods of procurement are as effective when compared to the traditional methods of procurement. This study will analyze the effectiveness of the e-procurement when compared to the traditional methods of procurement. This study is based on the method that will analyze the importance and the impacts that have been visible in an organization after implementing e-procurement methods, strategies and applications in an organization specifically in the construction industry. Therefore a methodology will be adopted based on the case study methods together with the literature on the topic. The conclusions and recommendations are discussed in the last chapter.Table of Contents

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER1: INTRODUCTIONVI

1.1.Introduction1

1.2.Background of the research2

1.3.Aims and objectives3

1.4.Research questions4

1.5.Rationale significance of the study5

1.6.Structure of the study6

CHAPTER 2: LITERATURE REVIEW7

2.1.Procurement7

2.2.E- Procurement7

2.3.e- procurement In The Construction Industry8

2.4.Traditional Methods Of Procurement11

2.5.Challenges Faced By The Traditional Methods Of Procurement12

2.6.e-procurement And Construction Supply Chain13

2.7.Drives of procurement and e-procurement15

2.8.Barriers in the process of e-procurement17

2.9.The process of e-procurement and strategic performance of the project19

CHAPTER 3: METHODOLOGY1

3.1.Introduction1

3.2.Research strategy and design2

3.3.Mixed methods research3

3.4.Data collection4

3.4.1.Primary data4

3.4.2.Secondary data5

3.5.Approach for the study5

3.6.Population and sampling5

3.7.Analysis of data6

3.8.Reliability and Validity6

3.9.Ethics7

CHAPTER 4: ANALYSIS AND DISCUSSION8

4.1.Interviews8

4.1.1.Interview with Site project manager8

4.1.2.Interview with Supply chain manager9

4.1.3.Interview with Facilities manager9

4.1.4.Summary of the Interviews10

4.2.Case study: ISG Pearce construction organization10

4.2.1.Problems faced by ISG Pearce in traditional process of procurement: Organization Profile11

4.2.2.Switching to e-procurement methods12

4.2.3.e-Tendering package introducing ERP13

4.2.4.Price reduction in tendering14

4.2.5.Reduction in time to source materials15

4.2.6.Lower Administration and staff costs15

4.2.7.Gaining competitive advantage16

4.2.8.Improving communication16

4.2.9.Improved market intelligence and enhanced decision making17

4.2.10.Reduced Operating and Inventory costs17

CHAPTER 5: CONCLUSION18

5.1.Future recommendations19

REFERENCES20

APPENDICES27

CHAPTER1: INTRODUCTION

Introduction

The construction industry in any country plays very important role in the economy of any country, and form a huge proportion of the country's income, success and Gross Added Value. In the past it has been observed that many construction industries in UK have stated to expand ...