General needs

 Allocation of responsibility
The responsibility of the building team will be decided when a client chooses
whether to appoint a separate management of consultancy works and contractors, or sole
responsibility after the briefing stage.
For public clients, the responsibility criterion is less important in the selection of
procurement method. The main reason could be that the public clients will have to conform
to the needs of the publicly funded bodies to choose the lowest price for the project, as well
a satisfying public accountability. As for the private sector, responsibility criterion is
important as they focus more on criteria such as time frame, accountability and value for
money.
The following procurement method can be used if the criterion of responsibility by
the parties to the contract is not a crucial factor:

Between traditional and Design & Build procurement methods which are more
relatable to Malaysia’s construction industry, the division of design and construction work is
very obvious in the traditional manner. The client will hire a variety of architects or engineers
to design the project, and they will be fully responsible for overseeing its construction from
the pre-tender stage through to its completion. On the other hand, design and build
method gives the contractor a single point of contact and responsibility. Therefore, any
design or construction failure is entirely the contractor's fault. If there are issues with the
project, the client just needs to deal with one person (Ramus, 1996). The responsibility
criterion is less significant when choosing a procurement technique for public clients. The
primary explanation could be that in order to choose the lowest price for the project and
satisfy public accountability, the public clients will have to abide by the demands of the
publicly supported authorities. When it comes to the private sector, responsibility is crucial
since they emphasize more on factors like timeliness, accountability, and value for money.
Price Certainty (utm.my)
 Professional team performance
Project Complexity: The complexity of the project and the required level of coordination
among different disciplines can also impact the procurement method. For instance, if the
professional team consists of specialists in various disciplines and has a strong ability to
manage complex projects, they may opt for a method that allows for early collaboration and
integration of design and construction, such as design-build or IPD.
 Parties involvements
Collaborative Approach: Some procurement methods, such as design-build or integrated
project delivery (IPD), emphasize close collaboration between different project stakeholders.
If the professional team demonstrates strong teamwork, effective communication, and a
willingness to collaborate, these methods may be preferred as they align with the team's
strengths and facilitate their integrated and coordinated work.
Project Complexity: The complexity of the project and the need for coordination and
collaboration among different parties can impact the procurement method selection.
Complex projects often benefit from methods that encourage early collaboration and
integration of design and construction, such as design-build or IPD. These methods facilitate
a higher level of participation and coordination among parties, leading to improved project
outcomes. For simpler projects with well-defined scopes, traditional methods may be more
suitable.
 Client/Owner Participation: The client's desired level of involvement in the project can
influence the selection of the procurement method. If the client wants to have a high level of
control and direct involvement in the design and decision-making process, they may opt for a
traditional method like design-bid-build. This allows them to have more oversight and input
at each stage. On the other hand, if the client prefers a more collaborative approach and
wants to work closely with the design and construction teams, they may choose a method
like design-build or integrated project delivery (IPD), which encourages early involvement
and collaboration.

Design Team Participation: The level of participation and collaboration desired by the design
team can impact the procurement method. If the design team wants to work closely with
contractors, involve them early in the design process, and encourage collaboration, they may
advocate for design-build or IPD methods. These methods allow for integrated teams and
early input from contractors, fostering a collaborative and iterative design process.
Conversely, if the design team prefers a more sequential approach and minimal involvement
with contractors during the design phase, traditional methods like design-bid-build may be
preferred.

Contractor Participation: The level of participation and involvement desired by contractors

can also influence the selection of the procurement method. Contractors who prefer early
involvement in the project and want to contribute constructability and cost-saving ideas may
prefer methods like design-build or construction management. These methods allow
contractors to provide input during the design phase and potentially streamline construction.
Contractors seeking opportunities for competitive bidding and a clearly defined scope of
work may lean towards traditional methods like design-bid-build.
 Accountability
Risk Management: The professional team's ability to identify, assess, and manage project
risks can influence the choice of procurement method. Certain methods, such as
construction management at risk or design-build, transfer more risk to the contractor or the
design-build entity. If the professional team is proficient in risk management and can
effectively allocate and mitigate risks, these methods may be considered suitable as they
align with the team's capabilities.
Risk Allocation: The level of risk allocation desired by different parties can influence the
procurement method selection. Some methods, such as design-build or construction
management at risk, allow for the transfer of certain risks to contractors or construction
managers. If parties prefer a particular risk allocation strategy, it can influence the choice of
procurement method.
Clear Lines of Accountability: Accountability refers to the responsibility and answerability of
individuals or organizations for their actions and decisions. Different procurement methods
offer varying degrees of accountability. For instance, in a traditional design-bid-build method,
there are clear lines of accountability as the client holds separate contracts with the design
team and the construction contractor. This method allows for distinct accountability for
design and construction phases. On the other hand, in methods like design-build or
construction management, where there is integration and collaboration between different
parties, accountability may be shared among multiple stakeholders.

Decision-Making Authority: The procurement method chosen can determine the decision-
making authority and accountability of different parties. In methods like design-bid-build, the
 client retains a significant amount of decision-making authority and accountability, as they
make final decisions on design and contractor selection. In contrast, methods like design-
build or integrated project delivery involve shared decision-making and accountability, with
multiple parties actively participating in the decision-making process.

Risk and Responsibility Allocation: Accountability is closely linked to the allocation of risks
and responsibilities in a construction project. The chosen procurement method determines
how risks are allocated among the parties involved. Methods like design-build or
construction management often involve the transfer of more risks to the contractors or
construction managers, making them accountable for managing those risks. On the other
hand, traditional methods like design-bid-build place more responsibility and accountability
on the client for managing risks.

Performance Measurement and Monitoring: Accountability is reinforced by performance

measurement and monitoring. Different procurement methods have varying mechanisms for
measuring and monitoring performance. Methods that emphasize collaboration and shared
accountability, such as design-build or integrated project delivery, often have more robust
performance measurement systems to assess the performance of the integrated team. This
allows for better accountability and evaluation of project outcomes.

Contractual Arrangements: The contractual arrangements associated with different

procurement methods can also impact accountability. For instance, in design-bid-build,
separate contracts are typically established with the design team and the construction
contractor, clearly defining their individual roles and responsibilities. This promotes
accountability by establishing clear contractual obligations. In methods like design-build, a
single contract is often formed between the client and the design-build entity, resulting in
shared accountability and joint responsibility.
 Transparency
Transparency here can be interpreted as clarity of scope definition. If a project demands it,
traditional procurement method is the answer.
Openness and Fairness: Transparency in the procurement process promotes openness and
fairness by ensuring that all parties have access to relevant information and that the
selection process is conducted in a clear and equitable manner. Methods that emphasize
transparency can help create a level playing field for all potential bidders, reducing the risk of
favoritism or bias.

Competitive Bidding: Transparency is closely linked to competitive bidding, which is a key

principle in many procurement methods. Competitive bidding ensures that multiple qualified
bidders have the opportunity to submit proposals and compete for the project. This helps
drive competition, potentially leading to better value for the client and encouraging bidders
to put forth their best offers. Methods like design-bid-build or two-stage tendering often
have well-defined processes that promote transparency in the bidding and selection of
contractors.

Accountability and Integrity: Transparency fosters accountability and integrity in the

procurement process. When the process is transparent, it is easier to hold parties
accountable for their actions and decisions. It allows for effective scrutiny and audit of the
process, reducing the risk of corruption, fraud, or unethical practices. Transparent
 procurement methods provide a clear audit trail, ensuring that decisions are justified,
documented, and subject to review.

Public Sector Compliance: In public sector projects, transparency is often a legal or

regulatory requirement. Public procurement processes are subject to specific transparency
rules and regulations, ensuring that taxpayer funds are used efficiently and fairly. Methods
like competitive bidding, request for proposals, or open tenders are commonly employed in
public sector projects to meet the transparency requirements and ensure compliance with
applicable laws.

Stakeholder Confidence: Transparency in the procurement process can enhance stakeholder

confidence. Clients, bidders, and other project stakeholders are more likely to have trust and
confidence in a process that is transparent, fair, and accountable. Transparent procurement
methods can help build positive relationships, foster trust, and mitigate potential disputes or
challenges during project execution.

Risk of Collusion and Fraud Mitigation: Transparency helps mitigate the risk of collusion and
fraud in the procurement process. When the process is transparent, it becomes more
difficult for parties to engage in anti-competitive practices, bid rigging, or fraudulent
activities. Transparent methods promote a higher level of scrutiny and reduce the likelihood
of unethical behavior.
 Safety requirements
 Cooperation and motivation
 Existing building operation
 Familiarity
The other factor that will affect the client’s selection of the procurement method is their
familiarity with the various types of procurement methods available in the construction
industry. The construction industry players are not confident to use other procurement
methods because they are unwilling to change their mindset and take financial risk in case of
failure of the new method. Price Certainty (utm.my)
Expertise and Experience: The expertise and experience of the professional team, including
the architects, engineers, and project managers, can play a significant role in determining the
procurement method. If the team has extensive experience and a proven track record in
delivering successful projects using a specific procurement method, that method may be
favored due to the team's familiarity and confidence in its execution.
 Tender evaluation criteria
Price-based Evaluation: If the primary focus of the tender evaluation is on price, where the
lowest bid is typically preferred, traditional procurement methods like design-bid-build or
competitive bidding may be suitable. These methods allow for a straightforward comparison
of bids based on price alone. Price-based evaluation criteria are commonly used when the
project requirements are well-defined, and there is less emphasis on factors beyond cost.

Qualification and Experience: When the evaluation criteria include the qualifications and
experience of the bidders, methods like pre-qualification or two-stage tendering may be
chosen. These methods allow for a pre-selection process based on the bidders'
qualifications, technical capabilities, and past experience. This approach ensures that only
qualified and experienced bidders are invited to submit detailed proposals, leading to a more
focused evaluation of the technical aspects of the project.
 Technical and Functional Requirements: If the tender evaluation criteria heavily focus on
technical and functional requirements, methods like design-build or integrated project
delivery (IPD) may be more appropriate. These methods allow for early involvement of
contractors and design teams, promoting collaboration and integration of technical
expertise. The evaluation process can assess the technical proposals, innovation, and value-
added solutions proposed by the bidders.

Quality and Value: When quality and value are key evaluation criteria, methods that
emphasize qualitative assessment, such as best value procurement, may be preferred. These
methods allow for a comprehensive evaluation of various factors beyond price, including
technical competence, project approach, sustainability, and long-term value. Best value
procurement encourages a holistic assessment of the bids, considering both qualitative and
quantitative aspects.

Innovation and Creativity: If the tender evaluation criteria seek to encourage innovation and
creativity in project delivery, methods that allow for early contractor involvement and
collaborative design, such as design-build or IPD, may be selected. These methods foster
innovation by providing opportunities for contractors to propose creative solutions and
contribute their expertise during the design phase.

Risk Assessment and Management: Tender evaluation criteria that prioritize risk assessment
and management may lead to the selection of methods that involve collaborative risk
sharing, such as construction management or design-build. These methods allow for early
identification and mitigation of risks by involving contractors and construction managers in
the decision-making process. The evaluation can assess the bidders' ability to identify and
manage project risks effectively.
 Flexibility, clearly express end user’s requirements
Flexibility is an important factor that can affect the selection of the procurement method in a
construction project. The level of flexibility required in a project can vary based on factors
such as project complexity, client requirements, project objectives, and the level of
uncertainty involved. Here's how flexibility can impact the choice of procurement method:

Project Scope and Requirements: Projects with well-defined and stable scopes, where the
requirements are unlikely to change significantly, may not require a high degree of flexibility.
Traditional procurement methods like design-bid-build or competitive bidding can be
suitable in such cases. These methods provide a structured and sequential approach, with
clearly defined roles and responsibilities.

Uncertainty and Design Development: Projects with high levels of uncertainty or where
design development is ongoing may benefit from procurement methods that offer flexibility.
Methods like design-build or construction management allow for early involvement of
contractors and design teams, enabling concurrent design and construction activities. This
flexibility allows for adjustments and modifications during the project lifecycle based on
evolving requirements or unforeseen challenges.

Change Management: Flexibility becomes essential when managing changes during a

project. Projects that are likely to experience changes in scope, design modifications, or
 evolving client requirements may require procurement methods that can adapt to these
changes effectively. Methods like design-build or integrated project delivery (IPD) allow for
collaboration and integrated decision-making, making it easier to manage changes without
disrupting project progress.

Schedule Considerations: Flexibility in the project schedule can also influence the choice of
procurement method. Some methods, such as fast-track construction or phased
construction, offer flexibility in scheduling and can expedite project delivery. These methods
allow for overlapping design and construction activities, reducing overall project duration.
However, it's important to consider the risks and complexities associated with fast-tracking
and ensure that the procurement method aligns with the project's time constraints.

Innovation and Customization: Projects that prioritize innovation, unique design

requirements, or customization may require procurement methods that provide flexibility for
creativity and collaboration. Methods like design-build or partnering enable early contractor
involvement and allow for innovative solutions and customization. These methods foster
flexibility in design implementation and encourage the integration of new technologies or
materials.

Stakeholder Collaboration: Flexibility in engaging and collaborating with stakeholders can

also influence the selection of the procurement method. Some methods, such as
construction management or collaborative contracts, facilitate ongoing stakeholder
involvement and promote effective communication and decision-making. These methods
allow for flexibility in engaging stakeholders throughout the project lifecycle, ensuring their
input and addressing their concerns.

In summary, flexibility is a factor that affects the selection of the procurement method in a
construction project. The level of flexibility required depends on factors such as project
scope, uncertainty, change management needs, schedule considerations, innovation
requirements, and stakeholder collaboration. By understanding the project's unique
characteristics and considering the desired level of flexibility, clients can choose a
procurement method that aligns with their project objectives and allows for adaptability and
successful project delivery.
 Types of client
Public Sector Clients: Public sector clients, such as government agencies or municipalities,
often have specific regulations, transparency requirements, and budgetary constraints. They
are accountable to the public and must follow a fair and transparent procurement process.
Methods like competitive bidding, open tenders, or request for proposals are commonly
used in the public sector to ensure transparency, promote competition, and comply with
legal requirements.

Private Clients: Private clients, including individual homeowners, private corporations, or

developers, may prioritize factors such as cost, speed, quality, and customization. They have
more flexibility in selecting the procurement method based on their specific project
requirements. Methods like design-bid-build, design-build, or negotiated contracts may be
preferred by private clients to achieve their desired balance of cost, schedule, and quality.
 Institutional Clients: Institutional clients, such as educational institutions, healthcare
organizations, or non-profit entities, often have unique requirements related to functionality,
long-term operation, and maintenance. They may place emphasis on life cycle costs, energy
efficiency, sustainability, and operational performance. Methods like design-build, integrated
project delivery (IPD), or public-private partnerships (PPPs) can be suitable for institutional
clients to ensure a holistic approach and long-term value.

Repeat Clients: Clients who frequently engage in construction projects, such as developers or
large corporations, may have established relationships with contractors and consultants.
They may prefer procurement methods that allow for ongoing partnerships and
collaboration, such as construction management, negotiated contracts, or framework
agreements. Repeat clients often value continuity, efficiency, and the ability to leverage their
existing relationships and knowledge base.

Inexperienced or Risk-Averse Clients: Clients who have limited experience in construction

projects or are risk-averse may prefer methods that provide a higher level of certainty,
control, and accountability. Traditional methods like design-bid-build or fixed-price contracts
may be favored by such clients as they offer a clear separation of roles and responsibilities
and fixed costs.

Clients Seeking Innovation or Customization: Clients who value innovation, customization,

and early contractor involvement may opt for methods that allow for collaborative design
and construction, such as design-build, IPD, or partnering. These methods enable clients to
engage contractors and consultants early on, promoting creativity, value engineering, and
the integration of new technologies and solutions.
 Consultant’s attitude towards clients
The relationship between the consultant and the client is built on trust, communication, and
collaboration. The consultant's attitude, approach, and understanding of the client's needs
can influence the client's perception of the consultant's value and expertise. Here's why the
consultant's attitude towards clients can affect the selection of the procurement method:

Client-Centric Approach: A consultant who demonstrates a client-centric attitude shows a

genuine interest in understanding the client's objectives, priorities, and challenges. This
approach fosters trust and establishes a strong working relationship. Clients are more likely
to engage consultants who actively listen to their needs, provide personalized advice, and
prioritize their best interests. The consultant's attitude towards the client's concerns and
goals can influence the client's decision on the procurement method that aligns with their
needs.

Expertise and Knowledge Sharing: Consultants who possess industry knowledge, technical
expertise, and a willingness to share their insights can significantly impact the client's
perception of their value. When a consultant demonstrates a positive attitude towards
knowledge sharing, offering guidance, and educating the client on various procurement
methods, the client gains a better understanding of the available options. The consultant's
attitude towards proactive communication and transparency can help clients make informed
decisions regarding the most suitable procurement method.
 Open Communication and Collaboration: Effective communication and collaboration
between the consultant and the client are vital for successful project outcomes. A consultant
with a positive attitude towards open communication encourages clients to express their
concerns, preferences, and expectations. This enables a better understanding of the client's
requirements, facilitating the selection of a procurement method that aligns with the client's
needs. The consultant's attitude towards collaboration can also influence the client's
willingness to engage in methods that involve early contractor involvement or integrated
project delivery.

Flexibility and Adaptability: Construction projects often involve changing circumstances,

evolving requirements, and unforeseen challenges. A consultant who demonstrates a flexible
and adaptable attitude can navigate these complexities and provide suitable
recommendations to the client. The consultant's willingness to consider alternative
approaches and adapt the procurement strategy to meet the client's changing needs can
positively influence the selection of the procurement method.

Client Satisfaction and Trust: The consultant's attitude towards delivering client satisfaction
and building trust is crucial. Clients seek consultants who are reliable, responsive, and
committed to their project's success. A consultant who consistently delivers high-quality
service, meets deadlines, and demonstrates a positive and professional attitude can foster
trust and loyalty. Such consultants are more likely to influence the client's decision on the
procurement method as the client values their expertise and recommendations.

Conclusion

An effective and efficient procurement method is sine qua non to improving contract
administration and delivery. There is no doubt that the construction industry is a demanding
work environment where many projects are carried out and every construction project type has
its oddity, which must be watched out for before selecting a procurement method suitable for a
project. Traditional, design & build, project management, contract management and public
private partnerships methods are the known methods of procurement. In Malaysia, traditional
and design & build considered the most commonly applied type of procurement methods, hence
the focus of this paper. Between them, design and build procurement method is considered as
being the best-suited and most effective method. The fact that others had low response, do not
infer that they are not used effectively for project execution. From the responses, there were
different factors of selecting procurement methods. Six most commonly considered factors were
client requirement, time-related factor, quality-related factor, general needs, project
characteristics and external environment.

from the results, the quality determines the type of procurement method to be used, to the
respondents, to achieve adequate quality of project, traditional and design and build methods
are most suitable, also to achieve early completion of project, design and build method is most
suitable. To minimize conflict throughout the construction period, project management and
management contracting method were recommended, for cost certainty, the method to adopt
are design and build and management contracting methods. When project involves risk transfer,
the method to use could be PPP or management contracting methods so that the risk involved
can be managed effectively by the construction stakeholders. Also PPP can be used when funds
for a project are not readily available and need for the project cannot be overemphasized.
However, effect of the choice of procurement system on building project procurement shows
that traditional, design & build and management oriented can enhance project quality and
responsibility division.