In the last two decades there has been a significant change in the technical and economic
conditions prevailing in the construction industry. The traditional methods of procuring
projects are now inadequate to cope with these changes. To overcome the shortcomings
of the traditional procurement methods, the construction industry has developed a large
number of different procurement systems to secure the relationships between contract
parties. The proliferation of different procurement systems has created the problem of how
to determine the optimum procurement system for any particular project. A systematic
approach for selection of the most appropriate system is now needed.
Throughout this thesis an investigation has been made of many of the issues related to the
successful formulation of a Project Procurement System Selection Model (PPSSM). The
knowledge of client needs in the construction industry is essential to the project success.
This research has considered the fundamental role played by client needs in the process of
procurement selection. The various categories of procurement system that exist in the
construction industry are presented in order to address the benefits and drawbacks of each
system. A careful investigation of the rules and regulations governing the Saudi
construction industry has contributed very significantly to the success of the model
building. An examination of the existing models revealed a number of drawbacks which
are discussed in detail in this research. A survey was conducted in Saudi Arabia with the aim of testing the PPSSM for
effectiveness and efficiency and assisting the governmental agencies to select the most
appropriate procurement system to implement their projects. For this purpose, a
questionnaire was developed and divided into three major parts: Background information;
Data needed to operate PPSSM; and Evaluation of the criteria used for the selection of the
procurement system. The results of the first and third parts are generated from 100
responses to the questionnaire mailed to the 110 governmental agencies that represent the
population of the study, giving an overall response of (91%). For the second part only
thirty senior government agency officers were involved in order to maintain consistency of
data needed to operate the PPSSM. The data were analyzed using computer statistical
packages: Excel and Statistical Analysis System (SAS).
On the basis of the synthesis process of the PPSSM, Saudi public clients have selected
"design and build" as the most appropriate procurement system to procure their projects
with an overall priority of 0.49. Design and manage, construction management, and
management contracting ranked second, third and fourth with priorities of 0.258, 0.140 and 0.106 respectively. The outcome of the study demonstrates the effectiveness of
PPSSM in helping the client in the construction industry to choose the right procurement
system that best answers his needs and fulfills the project requirements.
A Doctoral Thesis. Submitted in partial fulfillment of the requirements for the award of Doctor of Philosophy of Loughborough University.