CONSTRUCTION INDUSTRY

Procurement in Construction Industry

Procurement in Construction Industry

Introduction

The report focuses on the analysis of the mentioned statement “A CIOB survey into construction procurement reveals that 77% of clients are not sufficiently knowledgeable about procurement in the construction industry, CIOB, (2011), Procurement in the Construction Industrv. The report goes on to highlight that "93% of respondents involved in projects that overran in terms of cost, and 57% of this group believe the chosen procurement method was a contributory factor to the cost overruns. Meanwhile, 94% involved in projects that overshot their programme, with 49% of this group believing that an inappropriate choice of procurement route was relatively to blame: CIOB News, Construction Manager, January 2011, page 8.” The report also focuses on the analysis of the role and responsibilities of Project Manager in advising the client to select the most appropriate procurement system for either a private or public sector construction/civil engineering project. Recent years in the Construction Industry have seen the development of a range of techniques aimed at making the management of construction projects more effective and at providing clients with the means to make more rational and objective decisions (Robins 2003 11).

Discussion

Too many construction clients think that procuring construction is “the same as buying paperclips” and do not understand the damage they cause to their own projects when they accept suicide bids. The increasing technological complexity of construction projects has led to great differentiation of specialist roles, and this in turn, has led to the need for more effective integration of these specialists. The main responsibility of Project Manager, manage not only there clients large differences between firms in terms of size and scope of work, but within firms, there is often a great diversity of activity (Masterman Gameson 2004 12). The construction industry is also still typified with the traditional separation of design and production.

Project Manager argue that we live in an increasingly complex, uncertain and dynamic world. In these conditions, we need a different strategy models, models that can reflect and ideally incorporate and handle turbulence. There is the need to develop theory and practice that takes account of the chaotic and turbulent conditions of our time (Mawhinney 2001 45). The world is not a neatly packaged, rational and predictable place. Rather, it is constantly changing and presents business with an increasingly hostile market and turbulent environment. Under these conditions, survival depends upon either having to exercise some control over the environment and one's market or deploy speed and agility and flexibility in business matters.

It is important to recognise that not all information required for construction projects is of a technical nature. Information input to decisions in the early development of a project will be at a much more macro level and be concern with defining the client's requirements (Masterman 2009 56). This process will need information generated by the client's company and its environment and information about the scope of design possibilities, the capability of the construction industry to deliver what requires, and the procurement ...