: Faculty of Engineering and the Built Environment, University of Johannesburg M.D Mathonsi: Faculty of Engineering and the Built Environment, University of JohannesburgPurpose of this paper: Procurement systems are vital in ensuring the successful implementation of construction projects precisely in all the phases of any particular project. Therefore, this paper aims to investigate in a systematic manner the factors that influence the selection of a procurement system in the South African construction industry.Research methodology: An extensive theory and literature review of procurement systems was conducted. The literature reviewed included a sample of case studies of procurement systems successfully implemented in completed building and civil engineering projects in South Africa. A questionnaire using a four-round Delphi survey method was used to conduct the empirical study in order to obtain participants' opinions about factors influencing the selection of procurement systems as well as the utility value of various procurement systems on each factor as identified. Finally, data analysis of both qualitative and quantitative techniques was performed using the Statistical Package for Social Sciences (SPSS).Findings: After qualitative analysis, findings of the literature reviewed suggest that factors that influence the selection of procurement systems cut across all the phases of the project as identified in this paper. Therefore, these factors are categorically classified into internal and external factors. Factors from the internal environment were further classified into client characteristics and project characteristics, with client characteristics comprising of variables such as clients' level of knowledge and control, political and social consideration, familiarity of procurement systems, competition, funding arrangement, government public/private sector projects and risk allocation whereas project characteristics comprise of factors (variables) such as size and technical complexity of the project, influence of the project life cycle, expedited project delivery, time, quality and price certainty. Factors from the external environment include variables such as market competition, information technology, regulatory environment, natural causes and globalisation. Research limitations:In terms of its scope this study focused on both national and international literature reviews and the empirical survey of this study was conducted within South Africa. Its target participants were limited to civil engineers, quantity surveyors, construction/project managers, architects and contractors located in three provinces of South Africa, namely Gauteng, Mpumalanga and Limpopo Provinces.Value: This study investigates factors that influence the selection of procurement systems in South Africa for the purpose of assisting and guiding construction practitioners in selecting suitable procurement systems for their planned projects. Conclusion:This study demonstrated that due to changes in the construction industry both factors ...
Formation of joint ventures between construction companies is one of the recent efforts in combating contractors problems in Tanzania and addresses one of the key challenges facing the construction industry today in the country especially when large and complex projects are involved. The main objective of the research is to examine the formation of joint ventures in Tanzania, specifically to: study joint ventures formation procedures; identify criteria in selection of joint venture partner; and identify risks associated with and challenges facing joint venture undertakings in Tanzania. The study adopted a descriptive research design and purposive sampling. Multiple sources of evidence was used to collect information mainly literature review, questionnaires and interviews. Key findings reveal that legal and statutory requirements in the formation of joint ventures include registration by Business Registration and Licensing Agency (BRELA), Contractors Registration Board (CRB) and under Registration of Documents Act (RDA). All JV respondents were registered by BRELA and CRB which are mandatory but only 7 were registered by RDA. Most important factors considered during formation of JVs are: contract agreement, financial stability and commitment while key risks associated with JVs are cultural and social differences, delays in approvals and financial risks. In addition, main challenges facing joint ventures are: identification of possible risks and joint venture agreement interpretation. The study concludes that formation of JVs have been addressing some of emerging challenges facing local construction organizations despite the risks and challenges that exist. The study recommends that firms entering joint ventures should explore the benefits of registering with RDA and ensure risks associated with their JV are properly assessed. The study also recommends introduction of an incentive scheme through Tanzania Investment Centre to grant tax relief for foreign contractors going into joint venture with local construction firms.
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