Since the declaration of Malaysian independence, the public sector has significantly contributed to the country's development. In the 1990s, a new procurement system was developed due to CIBD various changes in the construction industry. Since that period, the poor quality of public sector projects has started to attract public attention. This paper describes a study that was conducted to identify the dominant public procurement systems in place, the problems associated with these systems, and the satisfaction level of the industry players in the Malaysian construction industry. The results were drawn from 84 survey responses and interviews with industry players. The public sector is using a traditional system inherited from the British, with an intention to adopt new procurement systems. Aside from the disputes that are present in most systems, the public sector seems to encounter particular problems in relation to capabilities, time, and cost of the major procurement systems used. Traditional work culture and the industry environment influence public sector practice, which accounts for the modifications of each procurement system used. Thus, the full advantages of using an alternative procurement system may not be realised in public sector organizations. This produces an average level of satisfaction gained from the procurement system adopted. As a developing country, Malaysia needs to exert significant efforts to improve the public procurement system.
Public and private sectors have different work cultures that lead to different procurement usage. Changes in the industry have pushed the need to adopt new procurement systems. The present study explores the differences between public and private sectors' procurement systems in terms of usage and problems. A quantitative study was conducted on 141 industry players, covering contractors, consultants, and clients. Results showed that the traditional system is highly practiced by both sectors in the construction industry. However, the private sector has not given priority to the traditional lump sum bill of quantity. Comparison of the problems revealed that disputes appear in all dominant systems. Among the significant variables that have been identified in a specific procurement system are legal, risk, and operations. The detailed research findings are explained in the discussion. The present study has contributed to broadening the knowledge of the procurement system used in a developing country.
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