At the time of writing this thesis, the construction industry related media's attention
was dominated by the issues of alternative procurement systems and the ability to
profit from such variances. In the last decade Sir Michael Latham and Sir John Egan's reports have
contributed to a fundamental shift in the manner in which construction is procured.
The risk: reward ratio is much talked about, but little has been reported
academically to accurately quantify this relationship from a contractors
Hence, the inspiration for this study stemmed from these factors, but rather than
consider them in isolation, this thesis analyses the relationship between the mode
of procurement and the contractor's profitability variance associated therewith.
To facilitate the investigation a literature review, questionnaire/survey and
statistical analysis of anonymous subject companies' data significantly proves that
procurement and profit are related in the construction industry. This research is a
contribution to knowledge, which supports and challenges certain established
procurement paradigms. This research could be utilised to gain competitive
A Doctoral Thesis. Submitted in partial fulfillment of the requirements for the award of Doctor of Philosophy of Loughborough University.