AUT LibraryAUT
View Item 
  •   Open Research
  • AUT Faculties
  • Faculty of Design and Creative Technologies (Te Ara Auaha)
  • School of Engineering, Computer and Mathematical Sciences - Te Kura Mātai Pūhanga, Rorohiko, Pāngarau
  • View Item
  •   Open Research
  • AUT Faculties
  • Faculty of Design and Creative Technologies (Te Ara Auaha)
  • School of Engineering, Computer and Mathematical Sciences - Te Kura Mātai Pūhanga, Rorohiko, Pāngarau
  • View Item
JavaScript is disabled for your browser. Some features of this site may not work without it.

Procurement selection model: development of a conceptual model based on transaction costs

Rajeh, M; Tookey, J; Rotimi, J
Thumbnail
View/Open
Mohammed Rajeh AJCEB.pdf (2.051Mb)
Permanent link
http://hdl.handle.net/10292/9068
Metadata
Show full metadata
Abstract
Procurement is a major improvement area and a crucial element contributing to project success, and the selection of an optimal procurement system is an important and difficult step in project execution. The criteria for choosing suitable procurement methods are based on client’s objectives and priorities, and influenced by project constraints. The procurement path determination chart has largely dominated research in procurement selection process in construction. Eight factors need to be considered by the client when developing procurement selection criteria. At the procurement strategy the focus should be on factors such as cost, quality, and time, while at the procurement route the consideration should focus on complexity, certainty, risk, responsibility, and degree of control by the client. However, including certain criteria and ignoring the magnitude of transaction costs (TCs) associated with uncertainties in the transaction environment simplifies this process. This study addresses this shortcoming by combining evaluation criteria with TCs incurred because of external and internal environmental uncertainties in a theoretical model on procurement selection. This is achieved by developing a conceptual framework model based on TCs. Uncertainties in the transaction environment have a positive or negative impact on the magnitude of TCs such as information, procurement, administration, and enforcement. The model represents an analytical form of a suitable combination of factors influencing procurement systems, which guide procurement decisions. The model will increase understanding of how efficient procurement selection of construction projects can be achieved through appropriate procurement procedures, which could positively impact project performance.
Keywords
Construction; Procurement systems; Transaction costs
Date
February 3, 2014
Source
Australasian Journal of Construction Economics and Building - Conference Series, vol.2(2), pp.56 - 63
Item Type
Journal Article
Publisher
UTS ePRESS
Publisher's Version
http://epress.lib.uts.edu.au/journals/index.php/AJCEB-Conference-Series/article/view/3889
Rights Statement
UTS ePRESS is the digital, open access scholarly publishing arm of the University of Technology Sydney (UTS). We publish high quality scholarly titles across a wide range of academic disciplines, including cultural studies, governance, history, law, literacy, international studies, society and social justice and indigenous studies.

Contact Us
  • Admin

Hosted by Tuwhera, an initiative of the Auckland University of Technology Library

 

 

Browse

Open ResearchTitlesAuthorsDateSchool of Engineering, Computer and Mathematical Sciences - Te Kura Mātai Pūhanga, Rorohiko, PāngarauTitlesAuthorsDate

Alternative metrics

 

Statistics

For this itemFor all Open Research

Share

 
Follow @AUT_SC

Contact Us
  • Admin

Hosted by Tuwhera, an initiative of the Auckland University of Technology Library