Author

  • Odhigu Festus Onosakponome

    • School of Business, Curtin University Sarawak (Australian University), Miri Campus, CDT 250, 98009 Miri, Sarawak, Malaysia
    • Malaysia

  • Azhar Yahya

    • School of Business, Curtin University Sarawak (Australian University), Miri Campus, CDT 250, 98009 Miri, Sarawak, Malaysia
    • Malaysia

  • Nazatul Shima Abdul Rani

    • School of Business, Curtin University Sarawak (Australian University), Miri Campus, CDT 250, 98009 Miri, Sarawak, Malaysia
    • Malaysia

  • Junaid M. Shaikh

    • School of Business, Curtin University Sarawak (Australian University), Miri Campus, CDT 250, 98009 Miri, Sarawak, Malaysia
    • Malaysia

Abstract

This research investigated the impacts of procurement systems on the performance of construction projects in East Malaysia. Construction project outcome may be measured in terms of time, cost and quality achieved. Project clients demand and want best value for their money and they want their projects to be completed on time, within budgeted cost and at appropriate quality or specification. The sample in this research consists of 58 participants that work in a construction companies/industry. 90 questionnaires were distributed, 69 were successfully returned and 58 were fully completed. The sample comprises project clients/owners, project managers, consultants and construction workers. However, due to the fact that the time allocated for this research is limited and it is of qualitative in nature for which the sample size is less important (Kumar, 2005). The aim of using project clients, project managers, consultants and construction workers from different companies is because they work under different circumstances, which will ensure all questions are answered from different perspective. Therefore, the researcher distributed questionnaires randomly among the participants in different construction companies. This also minimises any bias towards any particular company. The key findings and conclusions from literature review and the analysis of results of questionnaires issued to project clients, projects managers, consultants and construction workers showed that traditional procurement system benefits cost and quality but at the expense of time. In other words, traditional procurement system has positive impacts on project objectives of cost and quality and negative impact on project time. Design and build procurement system benefits cost and time but at the expense of quality and this implies that the impacts of design and build procurement system on project objectives of cost and time are positive with negative impact on project quality.

Keywords

References

  • Albert, P. C. C., Scott, D, and Chan, P. L. (2004). Factors affecting the success of a construction Project . Journal of Construction Engineering and Management . 130(1): 153-155.
  • Bennett, F. L. (2003). The management of construction: A project life cycle approach. Oxford: ButterworthHeinemann.
  • Best, R., and Langston, C. (2006). Evaluation of construction contractor performance: a critical analysis of some recent research . Construction Management and Economics, 24(4): 439-445.
  • Best, R., and Valence, G. D. (2002) . Design and construction: building in value . Sydney: ButterworthHeinemann.
  • Burke, J., and Larry, C. (2000) . Educational research: Quantitative and qualitative approaches. Boston: Allen and Bacon.
  • Chan, A. P. C. (2002). Framework for measuring project success. Journal of Construction Engineering and Management, 18( 3):120-129.
  • Chan, A. P. C., Scott, D., and Chan, A. P. L. (2004). Factors affecting the success of a construction project. Journal of Construction Engineering and Management, 130(1):153-155.
  • Chan, D. W. M., and Kumaraswamy, M. M. (2002). Compressing construction durations: lessons learned from Hong Kong building projects. International Journal of Project Management, 20(1): 23-35.
  • Cheng, E. W. L., and Li, H. (2002). Construction partnering process and associated critical success factors: Quantitative Investigation. Journal of Management in Engineering, 18(4): 194-203.
  • Cheung, S., Lam, T., Wan, Y., and Lam, K. (2001). Improving objectivity in procurement selection. Journal of Management in Engineering, 17 (3):132-140.
  • Cheung, S., Lam, T., Leung, M., and Wan, Y. (2001). An analytical hierarchy process based procurement selection method. Construction Management and Economics, 19(4): 427-437.
  • Cheung, S., Suen, C. H., and Cheung, K. W. (2004). PMMS: A web-based construction project performance monitoring system. Automation in construction, 13(3): 361-376.
  • Doloi, H. (2009). Relational partnerships: the importance of communication, trust and confidence and joint risk management in achieving project success. Construction Management and Economic, 27(1): 1099-1109.
  • Egbu, C., and Ilozor, B. (2007). Construction clients and innovations: an understanding of their roles and impact, in proceedings of CIB World Building Congress, 3259-3267.
  • Gould, F., and Joyce, N. (2009). Construction project management . 3rd edition. New Jersey: Pearson Education, Inc.
  • Hong Kong Housing Authority. (2000). Quality Housing: Partnering for change. Public Construction Paper by the Hong Kong Housing Authority.
  • Hossain, L. (2009). Communications and coordination in construction projects. Construction Management and Economics, 27(1): 25- 39.
  • Kumar, R. (2005). Research methodology: A step-by-step guide for beginners . 2nd edition. . Frenchs Forrest: Pearson Longman.
  • Lau, E., and Rowlinson, S. (2009). Interpersonal trust and inter-firm trust in construction projects. Construction Management and Economics, 27(6): 539 -554.
  • Luu, D. T., Ng, S. T., and Chen, S. E. (2003). A case-based procurement advisory system for construction. Advances in Engineering Software, 34(7): 429-438.
  • Luu, D. T., Ng, S. T., and Chen, S. E. (2003). Parameters governing the selection of procurement system-an empirical survey. Engineering Construction and Architectural Management, 10(3): 209-218.
  • Masterman, J. W. E. (2002). An introduction to building procurement systems . 2nd edition. London. Spon Press.
  • Meredith, J., and Mantel, S. J. (2006). Project management: A managerial approach . New York: John Wiley. Morris, P. W. G., and Pinto, J. K. (2004). The Wiley guide to managing projects . Hoboken, New Jersey: John Wiley and Sons.
  • Mortledge, R., Smith, A., and Kashiwagi, D. T. (2006). Building Procurement . Oxford, UK: Blackwell.
  • Navon, R. (2005). Automated project performance control of construction projects. . Automation in Construction, 14(4): 467-476.
  • Office of Government Commerce. (2003). Project procurement lifecycle the integrated process. Achieving Excellence in Construction Procurement Guide.
  • Pheng, L. S., and Chuan, Q. T. (2006). Environmental factors and work performance of project managers in the construction industry. International Journal of Project Management, 24(1): 24-37.
  • Project Management Institute. (2004). A Guide to the Project Management Body of Knowledge. PMBOK Guide. Third Edition . Newtown Square, Pennsylvania USA: Project Management Institute.
  • Pryke, S. (2009). Construction supply chain management: Concepts and case studies . United Kingdom: Wiley-Blackwell.
  • Rwelamila, P. D., Talukhaba, A. A., and Ngowi, A. B. (2000). Project procurement systems in the attainment of sustainable construction. Sustainable Development, 8(1): 39-50.
  • Sarantakos, S. (2005). Social research . 3rd edition. Houndmills, Basingstoke, Hampshire; New York: Palgrave Macmillan.
  • Takim, R., and Akintoye, A. (2002). Performance indicators for successful construction project performance. School of Built and Natural Environment, Glasgow Caledonian University, City campus. Glasgow G4 OBA, UK.
  • Thomas, S. N., Palaneeswaran, E., and Kumaraswamy, M. M. (2002). A dynamic e-Reporting system for contractor’sperformance appraisal. Advances in Engineering .Software , 33(6): 339-349.
  • Uher, T. E.; Loosemore, M. (2004). Essentials of construction project management. Sidney : University of New South Wales Press.
  • Walker, D. H. T. and Rowlinson, S. (2008). Procurement Systems - A Cross Industry Project Management Perspective. Procurement Systems-A Project Management Perspective. Taylor & Francis. Oxford.
  • Wiersma, W. & Jurs, S. G. (2005). Research methods in education: an introduction. Boston: Pearson
  • Wysocki, R. K., Beck R. Jr., and Crane D. B. (2000). Effective Project Management. Second edition. Canada. John Wiley & Sons.

Downloads

No downloads have been recorded for this article yet. Figures appear here once readers begin downloading the full text.

How to Cite

Onosakponome, O. F., Yahya, A., Abdul Rani, N. S., & Shaikh, J. M. (2011). Cost Benefit Analysis of Procurement Systems and the Performance of Construction Projects in East Malaysia. Information Management and Business Review, 2(5), 181-192. https://doi.org/10.22610/imbr.v2i5.897

Share this article

License

Copyright (c) 2011 Odhigu Festus Onosakponome, Azhar Yahya, Nazatul Shima Abdul Rani, Junaid M. Shaikh (Author)

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of revised paper in the light of suggestions of the reviewers, the editorial team  edits and formats manuscripts to bring uniformity and standardization in published material.

This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.

Keywords

Section

Research Paper

Published in

Vol. 2 No. 5 (2011) Procurement, Service Quality & Digital Life View issue contents

Published

2011-05-15

Submissions

Have research to publish? Information Management and Business Review welcomes submissions.

Make a Submission