Procurement In The Construction Industry

Procurement is a combination of different methods of purchasing construction objects and includes

such variables as source of funding, partner selection method, price basis, responsibility for design,
responsibility for management, and amount of subcontracting (Murdoch and Hughes, 2008).
Before proceeding with a project, the appropriate procurement option has to be selected by the
client that provide an effective organization to minimize all the risk that will be occur during the
construction process. There are several procurement approaches that have to be taken in the
construction industry such as the traditional method, design and build method, and management
method. The selections of an appropriate procurement system to be used in a project are important
to guarantee the success of the project. Consideration and analysis in selecting the appropriate
procurement have to be made and it will include several main criteria such as cost certainty, time
certainty, speed, and flexibility. Nowadays, the perspective of choosing the appropriate
procurement is based on the past experience.