1. Project Performance in Construction Industry

1.0: Background Information on Project Performance

1.1 Problem Identification

            The procurement methods in the construction industry are the process of obtaining goods and services as per the requirements of the project, including the determination of payment to the contractors. There is a growing importance of procurement methods in the construction industry because, without effective procurement methods, the project cannot be completed within time and may not be of acceptable quality. There are various procurement methods used by project managers in Singapore, such as traditional procurement and Design and Build (D&B). Moreover, the construction industry uses procurement software to bring the agility in the procurement process that adds value to the construction projects. The Singapore government has an e-procurement portal on which bidders can fill tenders to bid for government construction projects. The size, nature, and complexity of the project decide the procurement method to be used by the project manager, and the inefficiency of these methods may lead to cost overrun that increases the project cost (Chauet al., 2017).

            The chosen procurement method is usually based on the client’s objectives, budget, and other project constraints that lead to the delivery of the quality project within the stipulated time. Today, the construction projects are creating a negative impact on environmental quality, and due to this, European Commission has started as a concept called Green Public Procurement (GPP) in which the government procures green technology for its construction projects leading to a positive impact on the environment. In the same way, the Singapore government is also focusing on sustainable procurement to promote environmentally friendly construction projects. In the majority of projects, the client begins the procurement process by framing a project strategy that takes into account multiple factors, such as opportunities and risks. The procurement method varies from client to client due to different contractual agreements, policies, and resources (Wilson, 2019).

1.2 Research Question

            The research question guides the researchers in the completion of the research study. In the same context, the research question for this dissertation is as follows:

• To what extent, the performance of the construction project is affected by using the procurement methods?

Sub-Questions

RQ1 – What is the concept of procurement, and how is it helpful for construction companies?

RQ2 – What are the procurement methods, and how are they useful in project completion of the construction industry?

            The sub-questions of research assist the researchers in effectively examining the main topic. In this context, the first sub-question covers the concept of procurement and its advantages for different construction companies. In the second sub-question, procurement methods have been discussed and their impact on project completion.

1.3 Research Aim and Objectives

            The main aim of the research is to discuss procurement methods in the construction industry of Singapore. Based on the aim, the main objectives of the research are as follows:

• To examine the various studies related to procurement and its methods.
• To explore the procurement methods’ impact on the performance of project completion in the construction industry.
• To explore the effectiveness of procurement methods that help construction companies during the process of project completion.
• To explore innovative procurement methods than can be embraced by the construction industries for strengthening product performance.

1.4 Literature Review to the Aim of the Study

            As per the views of Lim (2016), Singapore is a member of the World Trade Organisation (WTO) agreement of government procurement, and due to this, its procurement strategy is according to international standards and rules. There are various procurement concepts, such as transparency and fair competition, which make the tender process reliable and efficient. Different procurement methods, such as D&B and traditional procurement, are used depending on the client’s requirements. The most popular method of procurement used in Singapore is the traditional method in which there is an agreement between client and architect regarding designing of the project. Once the designing work completes, the contractor is given the responsibility to procure the required goods and services for the project’s completion. In the D&B procurement method, which is gradually gaining popularity in Singapore, all the responsibilities of the construction, such as designing, procurement of raw materials is assigned to the contractor (Lim, 2016).

1.5 Research Methodology

            The presented research has undertaken a quantitative research methodology for the investigation of the research aim and objectives. Under this methodology, the primary data collection method has been applied by collecting this data through a survey method in which a survey has been conducted with project managers of Singapore working in construction companies (Walterand Andersen, 2013).

2. Literature Review

2.1 Introduction

            Procurement refers to the process of getting the possession of goods or services for conducting business operations of the company. The method of procurement is crucial for the construction industry due to the derivation of quality from the material or bids procured by the company. The procurement process plays a vital role in the construction projects as they help in saving time and money for the companies. The evaluation of goods and services outsourced is a crucial decision as it impacts the overall quality of the construction projects. The construction industry utilises different methods of procurement to optimise the quality of the project completed by the companies (Morledge and Smith, 2013).  In this regard, the concept of procurement, along with its various methods, has been discussed in the literature review. The impact of the procurement method used and its effectiveness in the completion of projects in the construction industry have been detailed. Additionally, the literature review consists of innovative procurement methods that can provide strength to the product performance.

2.2 Concept of Procurement and its Methods

            According to the views of Wagner, Padhi and Bode (2013), the procurement process is the acquisition of goods or outsourced services from other company in the construction industry. The procurement process is identified to be complicated in construction projects as it includes varying amount and extent of the process of procuring goods and services. This process requires a detailed study of the procurement options available so that the company can choose the best of them as per the least amount of money and the best quality provided by the methods. The procurement process impacts the project delivery in the construction industry as the quality of the project, and timely delivery depends on the goods and services sourced from the external market. Thus, the cost-effective procurement process helps to achieve timely delivery as well as the best quality output in the project (Wagner, Padhi and Bode, 2013).

            Naoum and Egbu (2015) states that different methods of procurement used by the construction companies are traditional method, design and build method and management contracting. The traditional method involves the appointment of a management team by the employer of the project to accomplish the work. This method involves different types of contracts such as lump sum amount contracts which are fixed price ones and cost-reimbursement contracts that include cost and an additional incentive. The design and build method consists of the development of the project design, and the inherent risk is bear by the contractor and consults its client for the confirmation of the plan (Naoum and Egbu, 2015). As per Al-Harthi, Soetanto and Edum-Fotwe (2014), the cost of the project is discussed after the finalisation of designs, and all the processes from design to management are conducted by the contractor apart from finance which is managed by the clients. The management contracting method is mostly used in complicated construction projects in which the contractor hires subcontractors to accomplish several different packages of the final task. The management contractor manages all of these subcontractors and is responsible for the client’s final task delivery. Subcontractors do the building part of the projects while design and management is done by the management contractor who also interacts directly with the clients (Al-Harthi, Soetanto and Edum-Fotwe, 2014).

2.3 Impact of Procurement Method in Construction Industry

             According toOgunsanmi (2013), the performance of the project in the construction industry is profoundly impacted by the procurement method that has been used to complete the project in terms of its quality and cost. For instance, in case of traditional procurement method, which is widely used in Singapore, the client avails the exclusive services of the designer before assigning the responsibility of construction to contractor leading to the positive impact on project quality. However, this method may negatively impact the project quality due to lack of coordination between the designing and construction team. The D&B procurement method can also affect the projects of construction industry positively or negatively depending upon the complexity of the project. This method may enhance the project quality as the contractor has the freedom to do work based on his/her expertise without interference from the designer team. Moreover, there is no coordination problem because the contractor is responsible for all the construction activities. Nevertheless, this method may degrade the project quality as the contractor may not have expertise in designing of the project (Ogunsanmi, 2013). 

           As per the insights of Burr (2016), management contracting can influence the construction project outcome in terms of timely completion of the project. This method drastically improves the project quality as client outsource the construction project to an expert third party so that client can focus on the other core functions. It also saves the money of the client as he/she may end up spending huge money on the project due to lack of knowledge. However, there are equal chances of bad quality of project delivery as management contractor may take undue advantage of lack of knowledge of client regarding nitty-gritty of construction projects leading to moral hazard problem. The collaborative procurement method enables the timely delivery of a quality project with the help of collaboration among various companies. Nevertheless, there are specific issues with this method, such as clashes among collaborating partners due to contractual agreement that may create obstacles in project completion (Burr, 2016). 

2.4 Effectiveness of Procurement Method in Completion of Construction Projects

            De Araújo, Alencar and De Miranda Mota (2017), stated that the procurement process helps the construction companies evaluate the strengths and weaknesses of various suppliers that provide them with goods and services. The final output of construction projects is depended on the input of raw materials or any outsourced services. The introduction of appropriate inputs, such as raw materials and outsourced services, helps improve the quality of construction projects. The procurement process helps companies manage their internal supply chain and risks associated with the process, such as operational risk. The effectiveness of the procurement process thus helps to mitigate risks and optimise the company’s profitability. Moreover, the installation of effective procurement processes in construction companies provides surety of improved efficiency at all phases of the procurement lifecycle and thus reduces the overall time required in the completion of the process (De Araújo, Alencar and De Miranda Mota, 2017). As per the views of Ke, Ling and Ning (2013), the effective process of procurement includes a detailed understanding of all the business requirements, such as choosing the correct supplier to fulfill the requirements, timely analysis of the suppliers’ performance, and selecting the contracts by the best negotiation possible. The strategic approach requires the understanding of clients’ needs, and thus, the procurement is done based on the drivers and market conditions of the client’s business. The procurement process is one of the essential strategic functions of construction companies in Singapore from a long-term perspective. The performance of the construction projects depends on the effectiveness of the procurement method used in the industry (Ke, Ling and Ning, 2013).

           According to Oladirin, Olatunji and Hamza (2013), the construction companies find it challenging to opt for the appropriate procurement method that is best for the completion of their projects. Thus, they choose the most effective one derived from the performance results of the methods used in the industry. The procurement process helps the construction companies in Singapore to achieve an effective supply chain that shortens the completion time of projects due to the relationship of the company built with its regular suppliers. The effective procurement process makes the companies rely on their previously used procurement methods such as management contracting. Thus there is no scope of complaints in the procurement process, which helps in early and proper quality completion of the construction projects of Singapore (Oladirin, Olatunji and Hamza, 2013).

2.5 Innovative Procurement Methods that can Strengthen Product Performance

            As per the views of Torvinen and Ulkuniemi (2016), the product performance in construction companies is measured based on its timely completion along with sticking to budget and specification constraint as defined by the client. The innovative approach in procurement such as the inclusion of the environment of the buildings is central to the quality of people’s lives and thus attains a sustainable future for the projects completed by construction companies in Singapore. The innovation in procurement approach can be brought by introducing technological innovation in the construction projects that can be attained by gaining access to excellent management practice crucial for the construction projects to strengthen the performance of its products (Torvinen and Ulkuniemi, 2016).

According to Weisheng et al. (2013), the innovative procurement approach to implement in the construction industry depends on the continuous improvement to be installed in all phases of the product lifecycle that creates opportunities for the value creation in the future course of action. The innovative approach lies in identifying supply partners and develops capabilities together with the procurement partners with the help of close collaboration with them (Weisheng et al., 2013). In the views of Naoum and Egbu (2015), the introduction of innovation in procurement process requires appropriate human capital to introduce and manage change with the help of including simplicity in the outcomes. The innovative approach focuses on solving issues with the previously adopted methods such as traditional procurement method and not on the money spent on the processes. Therefore, the innovative procurement method refers to a better understanding of the way companies and markets act in different situations and hence the complete cycle of procurement from planning strategically to managing contracts is understood in a better and well-defined way.

2.6 Summary

            It can be summarised that the procurement in the construction industry is the process of acquiring goods and services for completion of construction projects by using different methods such as traditional and D&B. The usage of these methods depends on the client budget and project technicality that can impact project cost and quality. The traditional procurement method is extensively used in Singapore in which client hire a designer to design the project, and after that, the contractor starts the construction.  

Chapter 3 Methodology

3.1 Introduction

            The presented research study is focused to examine the theoretical perspective of procurement methods. The procurement methods have a great importance in terms of having direct impact on the overall project performance (Daniel and Sam, 2011). In order to determine the impact of the procurement methods on the construction project performance in Singapore, it is vital to have selection of a suitable research methodology. The presented chapter has explored which of the three available research methodologies namely quantitative, qualitative and mixed method is the best suitable for this research study purpose. 

3.2 Available Research Methods

            In order to have collection of the relevant data, there are mainly three types of research methods available in this research study namely qualitative research method, quantitative research method and mixed method (Creswell, 2013). From among these methods, the selection of the most suitable method in the research work is governed in the direction of the research design. In this research study descriptive research design is applied and positivism research philosophy is involved in this research study. The positivism research philosophy is supportive gain trustworthy and useful information through collecting data from the most reliable and accurate research methods. The research study in the light of this research philosophy and descriptive research design facilitates the data collection from the most suitable method (Jonker and Pennink, 2010). The first method available in this research is qualitative research method where data collected in descriptive and theoretical form. The qualitative research method can be used from any of the alternative methods namely interview method of primary data collection, library research method of secondary data collection, and focus group method of primary data collection. The other method of data collection available in this research study is quantitative research method that provides numeric data (Babbie, 2007). The quantitative data collection in the research study is governed with the implication of different methods namely primary data collection method of survey questionnaire and observation method. The third category of method that is available for the data collection purpose in this research study is mixed method where both qualitative and quantitative research methods are used in the same research study in amalgamation (Mallinson, Childs and Herk, 2013). In the mixed method any of the two methods can be used in combination in accordance to their fitness with the qualitative and quantitative data collection process. From among the three alternative available methods, the presented research seeks to find out the most suitable research method that can be helpful for this research study to have data collection.      

3.3 Identification and Justification of the Research Methods

            From among the three alternative methods available for this research study, the most suitable method selected in this research study is the quantitative research method. Under quantitative research method there were two options of the primary data collection including survey method and the observation method (Babbie, 2007). From among these two methods, in this research study, the survey questionnaire method has been selected. The key reason behind selection of the survey method is that the subject matter of the research study requires the collection of the data from larger sample and survey method facilitates the data collection process from the larger sample and hence it is found the most suitable method for the data collection purpose (Creswell, 2013). The other justification point behind the selection of the survey method is that is the cheapest method of data collection in the research study. The survey method is the most time effective method for the data collection purpose and hence the research study has selected this research method. The other rationale point behind selection of the survey method is that it provides the realistic data based on the experience of the individuals and the subject context of the research requires collection of the realistic experience based data. For the survey purpose the questionnaire has been developed in the structured format where Likert scale has been used for the data collection purpose in this research study (Thomas, Nelson and Silverman, 2011). The questionnaire has been developed for the project managers who are employed in the construction sector of Singapore.  

3.4 Sampling

            In the primary data collection process, selection of the suitable participants is the key requirement for the data collection purpose (Supino and Borer, 2012). The participant selection in the research projects is ensured with the help of suitable sampling strategies. In this research study the collection of primary data is pursued with 25 respondents involved in construction companies working in Singapore. The key rationale behind selection of the project managers for the survey purpose is that they have a good experience of working in the construction sector and they are directly involved in the process of governance of the procurement methods and hence they can provide relevant information about impact of procurement methods on project performance. The sampling strategy that has been applied for the selection of the participants is random sampling strategy (Axinn and Pearce, 2006). The random sampling strategy has facilitated the selection of the sample without any biasness and discrimination because the sample is selected on random basis from the mass population available for the data collection purpose (De Vaus and De Vaus, 2001). The sample size that has been determined for the survey purpose is 25 including Head of Project, Quantity Surveyor, PQS, Assistant Contract Manager and Contract Manager. The estimation of the target sample population is determined using Slovin’s formula “n = N / (1+Ne2)”.  

N = 100 (Top 100 construction companies in Singapore is taken for approaching sample)

e= 0.05

=100/(1+100*0.05^2) = 80

            Out of this sample, approximately 25 respondents participated and agreed to take part in the survey due to their busy schedule.  The data collected from these manages will be directly supportive to reach the desired results.

3.5 Data Analysis  

            Data analysis is the most important process in the research work because analysis of the data determines the generation of the key findings of the research work. The data in this research study has been collected through the use of survey method and hence quantitative data has been collected in this research study (Wood and Kerr, 2010). The quantitative data has been analysed with the help of the quantitative data analysis method with the implication of SPSS software. The SPSS software has facilitated graphical presentation of the data with the use of descriptive statistic method (De Vaus and De Vaus, 2001). The data has been presented with the help of the graphs and frequency distribution tables. The analysis of the data has been done in the percentage format. The analysis of the data has been supported with the help of the literature data findings in order to reach the desired research results. The detailed discussion of the data with the help literature data findings has presented the base for reaching the final research outcomes and the results. 

3.6 Summary

            The research methodology employed in this research study is quantitative research methodology and this strategy has facilitated collection of the quantitative data from the survey method. The data collected with the help of this method is suitable for reaching the desired results because it is accurate and reliable data collected in the numeric form that is not based on any manipulation.

Chapter 4: Argument and Evidence

4.1 Introduction

            Data analysis plays an important role in research studies as it helps in interoperating our results easily with the help of graphs and tables. In the questionnaire data has been collected from 25 respondents working at different positions in the organization. In this study the data analysis of survey questionnaire is done through descriptive statistics. Frequency tables along with pie charts are generated for each question in order to analyze the questionnaire and find out about the impact and significance of procurement method on project performance. The results of the study along with charts are represented below.

4.2 Findings and Analysis

            Gender:

From among the total respondents in the study 44% are males and 56% are females. The data depicts that the percentage of female respondents in the questionnaire is more than males (See above Figure).

            Age:

            From among the total respondents in the study 44% are aged between 25-35 years while 40% of the respondents are aged between 36-46 years. 8% respondents are among the ones which come in the category of 47-57 years and similarly 8% respondents are among 58-68 years (See above Figure). It can be seen through the analysis that majority of people are aged between 25-46 years and the percentage of people of age 55 and above is very less. This shows that a large proportion of respondents working in the organization are young.

            Experience Level

                        From among the total respondents under study 96% respondents have experience level of more than 4 years and only 4% respondents have experience level between 1-2 years (See above Figure). It can be seen through the analysis that a large majority of respondents have an experience level of more than 4 years and only few respondents were having 1-2 years of working experience. Good working experience of respondents will generate better quality results for the study.

            Position:

            Among the total respondents 52% are Quantity Surveyor, 12% are Project Quantity Surveyor and similarly 12% are Senior Quantity Surveyor. The Contract Managers are 8%and Project Managers are also 8%. The Assistant Contract Managers are 4% and similarly Contract Managers are 4% (See above Figure). It can be seen through the analysis that the majority of respondents in the sample are working at the position of Quantity Surveyor in the organization and after them majority of respondents are Project Managers and Senior Quantity Surveyors.

            Importance of procurement method in project management

All the respondents were asked about their view point on the importance of procurement method in project management field and 44% respondents agreed that procurement methods have importance in project management field, 36% respondents strongly agreed to the point, 16% respondents had neutral reviews and only 4%  respondents disagreed to the point (See above Figure). It can be seen through the analysis that the majority of respondents agreed about the importance of procurement method in project management field as they know that procurement procedures help in running the business more smoothly and effectively. This analysis can also be supported by the evidence that when procurement methods were analyzed among the public sector parastatals in Kenya, it was observed that if procurement methods are applied in correct manner than they can give very good results in terms of expanding the business (NGUNYI, 2014). This shows that procurement procedures have high importance in project management field as they allow the work efficiency to improve and hence the organization gets benefitted from it in many ways.

            Direct impact of procurement method on the performance of business

            The respondents were asked about their opinion that do procurement functions have a direct impact on the performance of the business. There were 52% respondents who strongly agreed to the point that procurement functions have a direct impact on the performance of business, 40%  respondents agreed and only 8% respondents had neutral reviews on the point (See above Figure). It can be seen through the analysis of data that majority of respondents agreed to the point that procurement functions have a direct impact on performance of business as it is well known fact that procurement methods save money, manage time and allow the business to run smoothly and has benefitted the organizations to large extent. These results can be supported by the evidence that different procurement methods like Design and build procurement systems, construction management procurement system used in Malaysia’s construction sector have highly impacted the performance of the construction sector. These methods have reduced the cost and time of the construction projects (Onosakponome et_al, 2011). This shows that procurement methods directly affect the business performance.

Different procurement methods have different implications

                        The respondents were asked about their view on whether different procurement methods have different implications in the project management field. There were 52% respondents which agreed to the point that different procurement methods have different implications in the project management field, 40%  respondents strongly agreed, 4%  respondents had neutral reviews while 4% respondents disagreed to the point (See above Figure). It can be seen through the analysis that large number of respondents agreed to the point that different procurement methods have different implications in the project management field as different methods applied helps the business in different ways and few also believed that there are no major different impacts of different procurement procedures.

            Factors that affect procurement performance

                        The respondents were asked about the major factors that they believe affects the overall procurement performance of the construction project. It was seen that 80% respondents believed that budget constraint is the major factor that affects the overall procurement performance of the construction project and only 20% respondents believed that staff efficiency is the major factor that affects the overall procurement performance of the construction industry (See above Figure). It can be seen through the analysis that majority of respondents were of the view that major factor that affects the procurement performance is budget constraint as it manages money and time and very few were of the view point that procurement methods affects staff efficiency. These two factors were considered to be most important ones that affect the procurement performance of the construction project. This analysis can be supported by the evidence that study was conducted in UK to analyze different procurement procedures used in offices, and the analyses of the different procedures was done on the basis of cost and speed (Muriro and Wood, 2010). This indicates that overall budget is a very crucial factor that affects the performance of procurement methods.

            Environmental Concern determines the impact of procurement methods on project performance.

When the respondents were asked about their view point on whether environmental concerns are major factors that determine the impact of procurement methods on project performance 52% respondents had neutral reviews on this topic while 32%  respondents agreed to the point that environmental concerns are major factors that determine the impact of procurement methods on project performance. There were 8% respondents who strongly agreed and only 8% respondents disagreed to the point (See above figure). It can be seen through the analysis that majority of respondents agreed that environmental concerns are major factors that determine the impact of procurement methods on project performance while the other half had neutral reviews on the topic and very few disagreed to this point as environment is a major factor that has a major impact on procurement performance. This analysis can be supported with the help of evidences that in present time more attention is given to goods and services that have sustainable procurements. The increasing awareness and rules made by governments for preserving the environment has affected the performance of each industry and has made the industries to opt for sustainable production and development (Palmujoki, Alhola and Ekroos, 2010).

            Success is based on procurement method

            The respondents were asked about their point of view on whether the success of construction projects and their timely completion is based on procurement method and 48% respondents had neutral reviews on this topic while 28% agreed to the point that success of construction projects and their timely completion is based on procurement method. There were 12% respondents that strongly agreed to the point and 12% respondents also disagreed to the point (See above Figure). It can be seen through the analysis that a large number of respondents had a neutral review regarding the use of procurement methods for the success of construction project. Only few people believed that the entire success of construction projects is based on procurement methods. These results can be supported by giving the example of a study that was conducted in Malaysia to find out the most important factor out of all the factors that is responsible for the success of construction projects in Malaysia. The data revealed that project management factor was ranked first while procurement factors were ranked second (Tan and Ghazali, 2011). The study shows that the along with procurement procedures project management also plays an important role in the success of construction projects and thus, procurement methods are not the only factors that lead to success of construction projects.

            Efficiency of current procurement methods

            The respondents were asked about their point of view on whether current procurement methods employed in the construction industry are effective enough for the success of the projects and 60% respondents agreed to the point that current procurement methods employed in the construction industry are effective enough for the success of the projects while 28% respondents had neutral reviews on this topic. There were 4% respondents that strongly agreed to the point and only 8% respondents disagreed to the point (See above Figure). It can be seen through the analysis that the majority of respondents find that current procurement methods employed in the construction industry are effective enough for the success of the project as they are giving good results and have proved to be efficient in all ways. The use of different procurement procedures have developed the trust in clients and have increased the performance of organization. This analysis can also be supported by the evidence that the study indicates that construction industries that have adopted changes with time in their procurement procedures have got benefit from it. The use of new techniques in procurement methods have helped in resolving the modern issues (Naouma and Egbu, 2015). This shows that current procurement methods are effective enough and are helpful for the construction industry.

            Significance of traditional procurement method

                        The respondents were asked about their point of view on whether traditional procurement methods do not have much significance in the present day construction sector of Singapore and 64% respondents had neutral reviews on the topic while 20% disagreed to the point. There were12% respondents who agreed to the point that traditional procurement methods do not have much significance in the present day construction sector of Singapore and only 4% respondents strongly agreed to the point (See above Figure). It can be seen through the analysis that the majority of respondents had neutral review regarding the non-significance of traditional procurement methods and a good percentage of people disagreed on the non significance of traditional procurement procedures. These results can be supported by the evidence that in a study of procurement methods in Nigeria, still there are large number of construction projects that are completed with the help of traditional procurement methods. The people find that cost and time are the major factors because of which people are still using traditional procurement procedures in the construction industry (Babatunde, Opawole and Ujaddughe, 2010).

Innovative procurement methods can strengthen the project

                        The respondents were asked about their point of view on whether innovative procurement methods can strengthen the project performance in the construction sector of Singapore and 40% respondents agreed to the point that innovative procurement methods can strengthen the project performance in the construction sector of Singapore. There were 24% respondents who strongly agreed to the point. There were 32% respondent’s that had neutral reviews and only 4% respondents disagreed to the point (See above Figure). It can be seen through the analysis that large number of respondents agreed that innovative procurement methods can strengthen the project performance in the construction sector of Singapore as new methods and innovations will help to resolve the current and latest issues faced by the construction industry. The use of new procedures will bring more efficiency in the organizations work and overall development of the organization will take place. These results can be supported by the evidence that small and medium construction industries have large potential to grow and innovations and advancements play a major role in increasing the performance of the industries. The small and medium construction industries of Australia have developed over time by continuous innovations and advancements in their working structure (Hardie, 2010). This shows that even small innovations on regular basis can help to improve the growth of the business and strengthen the projects.

            Collaborative working and joint venture is a significant procurement approach

                        The respondents were asked about their point of view on whether collaborative working and joint ventures are significant procurement approaches that have positive impact on the project performance and 52% respondents had neutral reviews on the topic. There were 40% respondents that agreed on the point that collaborative working and joint ventures are significant procurement approaches that have positive impact on the project performance. Only 8%  respondents strongly agreed to the point. It can be seen through the analysis that half of the respondents agreed to the point that collaborative working and joint venture is a significant procurement approach that has positive impact on project performance as joint ventures and collaborations help the industries to work upon their weakness and increase their strength. Half of the people had neutral reviews on this joint collaborative working as being a significant approach which is having positive impact on the project performance. This analysis can be supported by the evidence that the study analyzed six case studies of organizations that were having partnerships in Iran’s construction industry and it was found that if organizations got benefitted from joint ventures. The joint ventures allow firms to share capital, resources and technical skills (Hasanzadeh, Hosseinalipour and Hafezi, 2014). The study shows that as being part of construction business it is very hard to survive because of large competition and collaborative procurements have solved this problem to large extent.

Role of contractors

The respondents were asked about their point of view on whether contractors have a significant role in the determination of the procurement method and 48% respondents  agreed to the point that contractors have a significant role in the determination of the procurement method. There were 24% respondents that strongly agreed to the point that contractors play a important role in determination of procurement procedures. There were 16% respondents that had neutral reviews on the topic while 8% respondents strongly disagreed to the point.  Only 4% respondents were the ones that disagreed to the point that contractors do not have a significant role in the determination of the procurement methods (See above findings). It can also be seen through the analysis that the majority of respondents agreed that contractors have a significant role in the determination of procurement method as contractors bring advancements and help in innovations of new methods. This analysis can be proved with the help of evidence that contractors make new innovations which help the society and the construction industry in different ways (Valence, 2010; Eriksson and Westerberg, 2011). Thus contractors play a very important role in procurement procedures as they build the trusts between clients and play an important role in managing the budget of the firm.

4.3 Discussion

            This research study is aimed to examine the impact and significance of procurement methods on project performance in construction industry of Singapore. In this relation a sample of 25 employees working at different positions in the industry was taken and a questionnaire was generated to record their responses on the importance and impact of procurement methods on project performance in the construction industry.

The discussion of the findings reflect that procurement methods have importance in project management field and literature data also supports the findings as a case study of twelve social enterprises in the construction industry of UK indicates that better social procurement methods have helped to build a good relationship between social enterprises and construction industry and there is still a large scope for development of social procurement methods. Social procurements have become equally important and construction industry needs to adopt them so as to increase the contribution of social enterprises in the industry (Loosemore, 2016). Over time there have been many changes in the procurement procedures and the industries have realized its importance with time and similarly different procurement methods are getting developed with time.

            The discussion of the findings also reflects that a large percentage of respondents believed that different procurement methods applied have different implications in the project management field. The results can also be supported with the help of literature which has explained that different procurements have different implications by giving the example of various types of public procurements having different impacts and the reason of their different impact can be geographical location, different background and many other (Uyarra, et_al, 2009).

            The discussion of the findings also reflects that a large percentage of respondents agreed that the current procurement methods employed in the construction sector are effective enough for the success of construction projects. This literature data also supports that with time the construction industry has also evolved by adopting new ways and techniques of procurement methods that have helped them in the construction projects. At the same time there is also a need to adopt new methods of procurement with time that will understand the current situations of organization in better way and would be able to resolve them (Naouma and Egbu, 2015). The current methods are effective but along with that the construction industry must also focus on new procurement techniques in future that will help to enhance its business.

            The discussion of the findings also reflect that large  percentage of respondents believe that collaborative working and joint venture is a significant procurement approach and it is seen that it has a positive impact on the project performance. The literature data also supports that joint ventures and collaborating workings in construction projects in the Lagos state of Nigeria have increased the performance of both organizations and it has allowed both organizations to increase their strength and overcome their weaknesses (Famakin and Ogunsemi, 2012). Joint ventures have usually benefitted the organizations as because of it organizations share knowledge, resources and technology between each other and it definitely increases the efficiency of work.

The discussion of the findings also reflects that contractors play an important role in the determination of the procurement methods in the construction industry. A large percentage of respondents have agreed to the point and literature data also supports that contractors play a important role in procurement methods as they form different sorts of proposal to owners and manage budget (Valence, 2010;  Eriksson and Westerberg, 2011).

 The discussion of the findings also reflect that around half of the respondents believed that environmental concerns are major factors that determine the impact of procurement methods on project performance as now a day’s general public is becoming more aware. The literature data also supports the findings as with increasing awareness about the environment people’s concern level has also increased. The study analysed that from 2005 to 2007 there has a large increase in the use of environmental criteria in public procurement in Sweden and Finland in all sectors like transportation, construction and other industries (Palmujoki, Alhola and Ekroos, 2010).

4.4 Methodological Limitation

            Methodological limitations are the limitations that limit the use of the results of the study. In this study the survey data was conducted by asking the point of view of the employees regarding the significance of procurement procedures in the construction industry of Singapore. The data was collected through questionnaire and thus the study suffers from the drawbacks of data collected through questionnaire process. As it is known to everyone that every question in questionnaire has 4 to 5 options in it and thus this limits the respondent’s point of view on any topic. The data collected with the help of questionnaire do not provide a wider view of the data as the options mentioned in it are limited and respondents have to give the answer only from the 4 to 5 options mentioned in it. This lead to confinement of the views of the respondent and thus no proper conclusions can be drawn from the results as the data collected is not wide and thus this study suffers from the major drawback of no collecting data in wider view.

In this study the data has been collected from the employees working in the construction industries of Singapore and results are generated after the analysis. These generated results regarding the significance of procurement procedures in the construction sector do not fulfill the generalizability criteria as the presented results are for the construction companies of Singapore and these results cannot be applied for the entire construction organization around the globe. This limits the results of study till construction sector of Singapore only and no proper conclusions from these results can be drawn for the overall construction sector in the world.

4.5 Summary

            The study was conducted in order to determine the significance of procurement procedures on the construction sector of Singapore. The data was collected from 25employees working in the construction industries of Singapore at different positions. They were asked several questions on this topic and their point of views were recorded in the questionnaire. The analysis of the study shows that majority of the respondents were working as Quantity Surveyors, Senior Quantity Surveyors and Project Managers in the organization. A large number of respondents believed that procurement procedures have helped the construction organizations in Singapore to a large extent and are very important for this sector and they also believe that procurement procedures have a direct impact on the business.

            A large number of respondents agreed to the point that different procurement procedures have different impacts on the construction organizations. They agreed that contractors play a major role in implication of procurement procedures in the organization and the concept of joint ventures and collaborations in this sector have highly benefitted the firms as the efficiency of the firms have increased. It can be presented through the study that procurement procedures have gained importance with time and organizations have realized its importance as they have benefitted the organizations in different ways like efficiency of organizations have improved and all this has ultimately resulted in increasing the businesses of the firms.

Chapter 5: Conclusion and Recommendations

5.1 Conclusion

            This present research aims to discuss different procurement methods in the construction industry of Singapore. To address this aim, two research questions are sought to be addressed through the findings of this research focuses on the concept of procurement and its use in the construction companies and the kinds of methods and their use in the completion of the projects in the construction industry. . The procurement process helps the construction companies evaluate the strengths and weaknesses of various suppliers that provide them with goods and services. The need for the innovative approach of procurement such as the inclusion of environmental factors during the procurement process is generated in the construction industry as traditionally used methods are not apt for modern and environmentally friendly projects in the industry. However a gap exists in the detail of innovative procurement methods that can be used in construction companies to solve the existing problems in traditional approaches used by them. The overall views of the respondents have reflected that procurement methods are of great importance for an organization and have a direct impact on the business and contractors play a very important role in determination of the procurement methods.

In the context of the first research question, the evidence from the primary data gathered through the literature review, it is examined that the process of procurement involves the acquisition of goods and or outsourced services from other organisations in the same industry. In the construction industry, the procurement process is complicated and includes various methods and degrees of procurement of goods and services. From the findings, it is also examined that the procurement process plays a highly significant role in the delivery of the projects successfully because the quality and timely delivery of the project depends on the goods and services sourced for the project.

The findings of the literature also provided substantial evidence regarding the impact of procurement method in the construction. They revealed that the procurement method influences the construction industry very profoundly because the efficiency in this method helps in enhancing the quality and efficiency of the project. These findings are adequately supported by the evidence drawn from the primary method of the survey that revealed that procurement methods help in the efficient and smooth running of the construction business because it has a direct impact on the performance of the construction business. This can be attributed to the impact of procurement methods on saving costs, management of time and smooth operations of the project that benefits the organisation to a significant extent. There is also substantial evidence to confirm the positive impact of the procurement method on the construction companies wherein the findings reveal that different procurement methods have different implications on the construction projects. Based on these findings, it can be confirmed that procurement methods are highly significant for construction companies. They are widely used by the construction companies in Singapore and play an essential role in the construction companies.

In respect of the second question focusing on the kinds of methods used for procurement by the construction companies and their use in the completion of construction projects, the literature findings reveal that the various methods used for procurement in the construction industry design and build method, traditional method and management contracting. Under the traditional method, different kinds of contracts like lump sum amount contracts and cost-reimbursement contracts. The design and build method involves the development of the project design, and the risk is born by the contractor. The most commonly used method for procurement in construction companies is the management contracting method wherein the contractor manages all the packages and the final task delivery for the client. The survey findings also reveal significant evidence to confirm that different procurements methods are used in project management because it helps the construction businesses in gaining the benefits of efficiency quality and timely completion.

 The findings of the research also highlight the importance of procurement method for the completion of construction projects and reveal that the process of procurement is useful for the construction companies in ensuring effective management of their supply chain and risks. The effective process of procurement helps in gaining a detailed understanding of the overall business requirements such as the selection of the most appropriate supplier, analysis of the performance of the supplier and gaining an understanding of the needs of the clients. It thus eventually helps in enhancing the completion of the construction projects. The evidence drawn from the primary findings of the survey has also helped in confirming the findings of secondary data by revealing that the procurements methods play an essential role in the timely completion and quality of the construction projects thereby, lead to successful and effective project completion.

The different proposal and innovations done by contractors to bring advancements in the procurement method helps the construction industry in increasing its business. Similarly it is reflected that when contractors were hired at earlier stage of project it benefitted the overall process in many ways like it decreased the time period of process, saved money and because of all this the client satisfaction also increased. The increased satisfaction level contributed in increasing the overall project performance

The application of various procurement methods have led to the development of trust in the clients and have been playing an essential role in the performance of the construction companies. Additionally, innovative procurements methods are also claimed to be highly effective in helping the construction companies in resolving the current issues encountered by the projects and lead to the efficiency of the organisations. Therefore, based on the overall findings of the research, it can be concluded that procurement methods are used at a highly significant extent in the construction companies in Singapore and they are very helpful in facilitating the construction industry in successful project completion. Overall, the research study has a significant place in the Singapore construction industry in terms of benefiting it with varied kinds of new approaches.    

5.2 Recommendations

Based on the conclusion of this research, some recommendations can be proposed to the construction companies in Singapore to increase the use and application of procurement methods for project completion and gain maximum benefit out of them. These are:

• It is recommended that management procurement methods must be applied to the large, fast-moving and complex projects because they are more suitable for these projects and can lead to early completion. Another critical aspect to be considered while applying this procurement method is the degree of trust and confidence, which is highly crucial for the successful application of this method. The application of this method must also be considered during the early stage of the project because it helps in making expertise and knowledge available to the design team throughout construction (Lesniak, Plebankiewicz and Zima, 2012).
• Design and Build system must also be considered by the construction companies in Singapore because of its advantages regarding high efficiency. However, it is recommended that while applying this method, the best-suited team for project delivery must be selected because it helps in organising and managing the project most efficiently (Naoum and Egbu, 2015).
•  The innovative approach is necessary for the procurement process for it to contribute to the strengthening of products performance. Thus, the innovative approach requires the introduction of a transparent and efficient procurement process which provides fair access to all the people involved in the construction project along with competition (Weisheng et al., 2013).
• It is equally important for the organizations to find a partner which would actually benefit the organization and compliment it. Choosing a correct partner also impacts the performance of the firm (Hasanzadeh, Hosseinalipour and Hafezi, 2014). With time there has been a large increase in collaborative procurement in the construction industry and in future also joint ventures will keep benefiting the organizations.
• The overall construction industry introduces innovative approaches to procurement to reduce the inherent risks in these projects. Additionally, the need for the innovative approach of procurement is generated in the construction industry in Singapore as traditionally used methods are not apt for modern and progressive projects in the industry (Naoum and Egbu, 2015).

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