Strategic Procurement in Construction

A systems approach to strategic infrastructure delivery

“…A strategic approach is thusly concerned with the maximisation of an organisation's market presence to leverage long term value from its supply chains. A strategic approach to construction procurement is in effect, the linkage between a businesses' strategic goals and the contingent operational reality that faces them (Cox and Townsend, 1998). Mintzberg (1987) argues that decision makers are embedded in the decision making environment, not detached from it and thus strategies emerge from learning and compromise rather than grandstanding (Kochan et al, 1984).…”

“…Love et al (1998) go further to define that a procurement system assigns the respective roles and responsibilities to both people and organisations as well as defining the multitude of project components, and thus can be perceived as an organisational system. What can be gleaned from these definitions is the formation of strategies based on appropriateness in response to contingent circumstances and client needs (Cox and Townsend, 1998). This is typically done through the application of tools and techniques ranging from spend analysis, relationship management, standard contract terms, collaborative strategies and a whole host of other methods.…”

Demographic and Commercial Environments and Building Control Customer Services

“…A key concept of this study is to view services through customer lenses, 'stepping into their shoes' [28,29], by grouping customers by their characteristics such as: public confidence, private expectation, and frontline service needs. An important recommendation in an environment of 'transition', with limited resources, is to take a conservative interpretation on the scope of the building control jurisdiction.…”

International Multi-Party Projects: The Importance of Negotiating Process in Cross-Border Contractual Relationships

“…They affect the collaboration process and the contractual relationship negatively in two ways. regulations (Flyvbjerg 2007), increased competition, and a less equitable risk distribution among the contracting parties are also factors that contribute to the shift to more adversarial relations (Shove 1996;Cox and Townsend 1998;Skeggs 2003).…”

“…Moreover, in difficult economic times contractors often set target prices for projects too low, and clients may tend to shift liability for risks that materialize and result in financial setbacks to the other side. Third, the relationships between parties in the construction industry are often characterized as adversarial (Shove 1996;Cox and Townsend 1998). All in all, this creates a perfect environment for conflict to flourish.…”