An in-depth analysis of e-procurement use in UK construction organisations

Eadie et al (2007) show that there are many advantages in the adoption of e-procurement within a construction organisation. However, its uptake within the construction industry has been inadequately researched. Martin (2003, 2008) investigated e-procurement use across quantity surveying organisations in United Kingdom. However, the picture is not complete as other disciplines within construction are not considered. This paper seeks to address this issue. Martin (2003, 2008) does not seek to identify the sizes or spend on procurement activities by those quantity surveying organisations who have adopted the use of e-procurement. This paper investigates the correlations between size, procurement spend and adoption of e-procurement. A survey was conducted in two parts: the initial survey looked at 70 contractors in Northern Ireland which had carried out e-procurement. This was followed by the main survey, which contained a telephone survey followed by a web-based survey. The telephone survey of 775 organisations identified the amount of e-procurement in construction within the United Kingdom. This was followed by a web-based questionnaire survey of the identified organisations on e-procurement for construction based activities. These produced a breakdown of e-procurement use and spend on completion of pricing documentation across the construction industry

Electronic government procurement adoption behavior amongst Malaysian SMEs

The aim of this study is to investigate the relationship between a model of electronic procurement (e-procurement) adoption behavior and the level of Government e-procurement adoption amongst Small Medium Enterprise (SME) in Malaysia. Data was collected through questionnaires that were distributed to SME selected randomly in all SME in Malaysia.The data were analyzed using factor analysis, reliability analysis, independent-sample t-test, descriptive statistics, Pearson Correlation and multiple regressions. Regression results reveals that ‘power’, ‘trust’ and ‘value’ have a positive relationship with the level of e-procurement adoption amongst SME in Malaysia.All dimensions, namely; the power of supplier, power of procurement, trust on supplier, trust on information technology, value of implementation system efficiency and value of cost efficiency were also correlated with the level of e-procurement adoption amongst SME. Past studies on e-procurement are beset by problems of buyer-seller relationship perspective.In addition, these studies are skewed towards Government-SME relationship perspective which the Government possesses more power than SME and provide a better incentive to educate and influence SME to adopt e-procurement.In investigation the relationship between a model of e-procurement adoption behavior and the level of Government e-procurement adoption amongst SME in Malaysia, this study also tries to provides recommendation to Malaysian government for improving the level of e-procurement adoption amongst SME

Analysis of the use of e-procurement in the public and private sectors of the UK construction industry

Summary: Eadie et.al (2010a, 2010b) identified 20 advantages in the adoption of e-procurement within a construction organisation. The Glover report (2008) indicated that by the end of 2010 all public sector procurement should be electronic. The use of e-procurement within the construction industry has been inadequately researched. Martin (2009) examined quantity surveying organisations perspectives on the use of e procurement across the United Kingdom. This paper seeks to address the knowledge gap that exists in the analysis of the level of usage of e-procurement within the construction industry. It compares the findings for the construction industry with other industries on company size and spend. Martin (2009) does not seek to investigate the size or spend on procurement activities of those quantity surveying organisations who have adopted e-procurement. This paper investigates the correlations between size, procurement spend and adoption of e-procurement in construction organisations comparing it with other industries. It concludes that the findings of Griloa and Jardim-Goncalves (2010) and European Commission (2007) were correct in suggesting that the AEC sector has been lagging behind other sectors in the adoption of e-procurement and provides a breakdown of the different types of organisations who currently use e-procurement. It further identifies the size of organisations which have implemented e-procurement within construction. On the client and consultant side in traditional contracts, company sizes of 21-50 employees make the highest use of eprocurement. This confirms that when analysing according to the size of organisation, construction organisations perform in a similar way to other industries as reported in Batenburg (2007) and Gunasekarana and Ngai (2008). However, this study indicates that very small companies may still be put off by the costs of software (corroborates De Boer et al, 2002; Kauffman and Mohtadi, 2004). The study proposes the types of construction organisation most likely to be utilising the benefits of eprocurement in construction by procurement spend and size. It also indicates that the deadlines in the Glover report (2008) relating to e-procurement in construction are unlikely to be met

Public Procurement: How open is the European Union to US firms and beyond? CEPS Policy Insights No 2020-04 / March 2020

A recent report on public procurement published by the United States Government Accounting Office (GAO) attempted to provide a range of estimates for the EU and the US, among others, and argued that the EU awarded a low share of public procurement contracts to US firms ($300 million) compared to a much higher value of US public procurement ($3 billion) awarded to EU firms (GAO 2019). However, the methodological approach used by GAO was partial and misrepresented the level of EU openness, as it only looked only at the ‘tip of the procurement iceberg’ and missed out other main avenues for international government procurement. Once these other two main procurement modes are taken into account, EU openness in procurement is much higher, vis-a-vis both for US and third countries. Overall, the EU has awarded over €50 billion worth of public contracts to foreign firms, out of which €11 billion to US firms. Comparable data across all modalities do not yet exist for the US, but we do have clear evidence that, since 2009, the US has introduced the largest number of protectionist procurement measures severely affecting international procurement

Developing a research method to test a new first-order decision making model for the procurement of public sector major infrastructure

Given global demand for new infrastructure, governments face substantial challenges in funding new infrastructure and simultaneously delivering Value for Money (VfM). The paper begins with an update on a key development in a new early/first-order procurement decision making model that deploys production cost/benefit theory and theories concerning transaction costs from the New Institutional Economics, in order to identify a procurement mode that is likely to deliver the best ratio of production costs and transaction costs to production benefits, and therefore deliver superior VfM relative to alternative procurement modes. In doing so, the new procurement model is also able to address the uncertainty concerning the relative merits of Public-Private Partnerships (PPP) and non-PPP procurement approaches. The main aim of the paper is to develop competition as a dependent variable/proxy for VfM and a hypothesis (overarching proposition), as well as developing a research method to test the new procurement model. Competition reflects both production costs and benefits (absolute level of competition) and transaction costs (level of realised competition) and is a key proxy for VfM. Using competition as a proxy for VfM, the overarching proposition is given as: When the actual procurement mode matches the predicted (theoretical) procurement mode (informed by the new procurement model), then actual competition is expected to match potential competition (based on actual capacity). To collect data to test this proposition, the research method that is developed in this paper combines a survey and case study approach. More specifically, data collection instruments for the surveys to collect data on actual procurement, actual competition and potential competition are outlined. Finally, plans for analysing this survey data are briefly mentioned, along with noting the planned use of analytical pattern matching in deploying the new procurement model and in order to develop the predicted (theoretical) procurement mode

Exploring anti-corruption capabilities of e-procurement in construction project delivery in Nigeria

The use of electronic (e-­) procurement to support the execution of supply chain management activities in the different industrial sectors is permeating all regions of the world. However, in countries in sub-Saharan Africa where there is a significant level of corruption and unethical practices in the procurement process, there is a need for a better understanding of how e-Procurement can help to check the incidence of corrupt and unethical practices in construction project delivery. This study relied on a cross-sectional survey of 759 respondents, including architects, builders, engineers, estate/facilities managers, contractors, construction/project managers, quantity surveyors, supply chain managers and others to identify and analyse the anti-corruption capabilities of e-Procurement in construction project delivery in Nigeria. The results of the descriptive statistics, relative importance index and principal components analysis identified 18 anti-corruption capabilities in e-Procurement in construction project delivery with the three most important ones being the capability of e-Procurement to ensure good inventory management/record keeping; accountability by providing audit services trail and minimise direct human contacts during bidding. The key underlying dimensions of these capabilities include the advantage of e-Procurement over the traditional paper-based method; transparent bidding process and increase in competition in construction project delivery process. The findings of this study have implications, especially, on the use of e-Procurement to curb corruption in construction procurement activities

Project characteristics for design and build procurement in Malaysian construction industry

Design & Build procurement approach is one of the procurement methods which is known to be widely gaining popularity in order to serve the modern day construction clients desire of having a constructed facility. To effectively service the market-driven expansion of this project delivery strategy in the construction community, a fundamental understanding of the characteristics of the Design & Build procurement approach is necessary. This study is aimed at appraising the Design & Build procurement approach in the Malaysian construction industry based on current practice through identifying the characteristics of the procurement approach. For this purpose, a detailed literature review of the Design & Build characteristics was conducted and data was collected from a two round Delphi questionnaire survey conducted with experienced professionals that have vast experience in the Design & Build procurement practice. The relative importance of these characteristics were quantified by the relative importance index method demonstrating their level of priority. The key findings in the study showed that the practice of the procurement approach in Malaysia is most importantly characterized by the fact that it is most suitable for projects that are complex in nature, while ‘effective client representation’ is the least important characteristic of the Design & Build procurement approach with regard to the Malaysian construction industry. It is expected that with the consideration of these characteristics of the D&B procurement approach, it will consequently result in the overall improvement in the performance of the Malaysian construction industry in relation to project delivery

The NHS-HE Forum

This paper discusses the formation of the NHS-HE Forum by Professor Roland Rosner in 2001. It looks at the aims and objectives of the Forum and maps current progress. The second part of the paper looks particularly at the NHS-HE Procurement Group and the later JISC NHS-HE Procurement Group, which are part of the Forum. These groupings have been partially successful in conducting joint procurement activity across the NHS and HE sectors. The publication of Dr Ian Gibson?s Parliamentary Report Scientific Publications: Free for All? is seminal in progressing this joint activity. As of 1 February 2006, joint membership of the Public Library of Science has been achieved, but one joint procurement activity of commercial content has failed. Further joint procurement is planned, along with a mapping study of procurement activities and work on an Athens Account Linking Project. The library and informatics research components are coming to the fore with the use of a community-wide survey to establish the current situation and future plans for NHS-HE network connectivity and similarly the Mapping Study of Procurement Practices in the NHS and HE for content such as e-journals. This is moving to a more systematic approach than previously. The attempted joint procurement of selected journals has two joint aims: to support both research and clinical practice in the NHS and HE. This paper discusses the formation of the NHS-HE Forum by Professor Roland Rosner in 2001. It looks at the aims and objectives of the Forum and maps current progress. The second part of the paper looks particularly at the NHS-HE Procurement Group and the later JISC NHS-HE Procurement Group, which are part of the Forum. These groupings have been partially successful in conducting joint procurement activity across the NHS and HE sectors. The publication of Dr Ian Gibson?s Parliamentary Report Scientific Publications: Free for All? is seminal in progressing this joint activity. As of 1 February 2006, joint membership of the Public Library of Science has been achieved, but one joint procurement activity of commercial content has failed. Further joint procurement is planned, along with a mapping study of procurement activities and work on an Athens Account Linking Project. The library and informatics research components are coming to the fore with the use of a community-wide survey to establish the current situation and future plans for NHS-HE network connectivity and similarly the Mapping Study of Procurement Practices in the NHS and HE for content such as e-journals. This is moving to a more systematic approach than previously. The attempted joint procurement of selected journals has two joint aims: to support both research and clinical practice in the NHS and HE

Comparison of German and Czech public procurement system and economic impacts

Purpose: The paper determines the similarities and divergences in the public procurement system in Germany and the Czech Republic. The authors assessed the contribution of the public procurement system in each country’s GDP, identified similarities in the procurement process and how they affect the overall outcome. Divergences in the two countries procurement process and how they affect the outcome were also identified. Design/Methodology/Approach: The research was designed by using secondary research method as it has a wide scope that would be a challenge to achieve using primary research method. Secondary research methods were utilized to generate data which is analyzed by quantitative techniques. Findings: The most notable similarities include the use of e-procurement and the different types of public procurement contracts to enhance transparency and efficiency. Apart from that, there are some divergences where Germany seems to be a little bit more efficient compared to the Czech procurement system. Some of the divergences include higher corruption levels in the Czech Republic system than in Germany and also higher efficiency in terms of processing tender in German system than in the Czech Republic. Practical Implications: The study compares the public procurement systems in Germany and the Czech Republic and underlines potentials and disadvantages of both systems. Originality/Value: The research delivers a legal-economic comparison of German and Czech public procurement systems, including influence and effects made by European Law.peer-reviewe

Performance-Based Specifications: Exploring When They Work and Why

There is extensive research and attention on innovation and sustainable public procurement (SPP) in the European Union at present, with the 2014 revision of the Procurement Directives, the Innovation Union strategy and other European Union policy initiatives. This report seeks to contribute to this discussion through the investigation of the use of performance based specifications (PBSs) in public procurement in the European Union and the United States. The report outlines the benefits and limitations of the use of PBSs, even in the most "progressive" public procurement environments, such as the Netherlands, particularly around their ability to support sustainable development goals and deliver environmental benefits for a procuring authority, such as energy and resource efficiency. Additionally, this report aims to identify the sectors in which the enabling conditions for the successful use of PBSs in public procurement are in place and to understand what policies and regulations are needed to promote the use of PBSs in public tenders and public procurement framework agreements