The influence of a collaborative procurement approach using integrated design in construction on project team performance

Purpose – The purpose of the paper is to study the influence of procurement on the performance of integrated design teams. Design/methodology/approach – The research paradigm is based on Russian socio-constructivist approach to activity theory. Activity theory, as opposed to natural or social science, is a design science approach that focuses on the context aspect of project. A triangulation of qualitative research methods is used to investigate the dynamic of integrated teams in two different procurement contexts. Findings – The paper is conclusive regarding the influence of procurement on team efficiency. It demonstrates that traditional procurement processes reinforce socio-cognitive barriers that hinder team efficiency. It also illustrates how new procurement modes can transform the dynamic of relationships between the client and the members of the supply chain, and have a positive impact on teamperformance. Practical implications – The paper demonstrates first that problems with integrated design team efficiency are related to context and not process – they are not technical but socio-cognitive; second that fragmented transactional contracting increases socio-cognitive barriers that hinder integrated design team performance; third that new forms of relational contracting may help to mitigate socio-cognitive barriers and improve integrated design team performance, fourth that changing the context through procurement does not address the problem of obsolete design practices. Originality/value – The paper brings together theories of production in lean construction and social learning as a rival approach to traditional project management theory for demonstrating the importance of context on team performance

Can procurement affect design performance?

There is an emerging view in the construction industry that better performance or better value for money can be achieved by integrating teamwork for planning, design and construction of building projects. There are though, two opposing perspectives regarding how changes in traditional design practices should occur. Advocates of sustainable construction in North America posit that it is a matter of evolving processes, moving from a sequential to an iterative approach to design, whereas the British government supports the view that a change in how projects are procured is required to transform the context that dictates relationships among the members of the team. The objective of the research is to study the influence of procurement on the performance of integrated design teams. It analyses, through case studies representing these two perspectives, the influence of procurement on the performance of integrated teams. The research is conclusive in that it is the context created by contractual relationship, and not the process set up for conducting integrated design, that most influence team efficiency. It demonstrates that traditional procurement processes reinforce socio-cognitive barriers that hinder team efficiency. It also illustrates how new procurement modes can transform the dynamics of relationships between the client and the members of the supply chain, and have a positive impact on team performance

Performance modeling of e-procurement workflow using Generalised Stochastic Petri net (GSPN)

This paper proposes a Generalised Stochastic Petri net (GSPN) model representing a generic e-procurement workflow process. The model displays the dynamic behaviour of the system and shows the inter relationship of process activities. An analysis based on matrix equation approach enabled users to analyse the critical system's states, and thus justify the process performance. The results obtained allow users for better decision making in improving e-procurement workflow performance

An evaluation of performance information procurement system (PIPS)

Since procurement is seen as crucial for project success, many\ud methods have been developed and papers written about this issue. A remarkable\ud contribution in this field comes from Dean Kashiwagi (Arizona State University,\ud USA) who underpins his support for the Performance Information Procurement\ud System (PiPS) with claims of high project performance and client satisfaction.\ud Kashiwagi’s explanation for PiPS’s effects is based upon a theoretical\ud framework that relates to staff members’ ability to deal appropriately with\ud information by making sound decisions based not just on implicit expectation\ud and tacit experience. This is not, however, a satisfactory explanation. This paper\ud provides an overview of New Institutional Economics perspectives which are\ud better able to explain the effects of PiPS. The linking of these theories to\ud innovative PiPS elements clears the path to effectively select and apply PiPS\ud elements within suitable projects in the Dutch construction industry. This will\ud enhance industry performance and is of interest to all stakeholders

Pengukuran Kinerja Pengadaan di Pemerintah Kota Semarang Menggunakan Procurement Maturity Model

Procurement Performance Measurement In Semarang City's Government Using Procurement Maturity Model - Semarang City's Government is an agency that is running the procurement activities to improve the welfare and infrastructures in the city of Semarang. Effective and efficient procurement is needed to support the advance of Semarang city's quality. Therefore we need a performance measurement Semarang city's government procurement in order to note the performance of the procurement process that occurs. Many problems that occur in the procurement of Semarang city government indicated as a lack of effectiveness and efficiency of procurement that occurs. Procurement maturity model (PMM) is a popular instrument that is used for assess the maturity level of the entity that supports an organization and take action so that the entity can achieve a higher level of maturity. Maturity models are widely used for several organizations to increase performance interaction of entities within an organization by comparing current proctice with best practice. The ability of identifying an entity which has weak performance, makes it easier in taking another step in increasing the existence of procurement performance

An Experimental Study of Complex-Offer Auctions from Wholesale Energy Markets

A Payment Cost Minimization auction has been proposed as an alternative to the Offer Cost Minimization auction for use in wholesale electric power markets with an intention to lower procurement cost of electricity. Efficiency concerns have been raised for this proposal while assuming that the true production costs would be revealed to the auctioneer in a competitive market. Using an experimental approach, the study compares the performance of these two complex-offer auctions, controlling for the level of unilateral market power. The analysis finds that neither auction results in allocations that correspond to the true cost revelation. Two auctions perform similarly in terms of procurement cost and efficiency. Surprisingly, consumer prices in a competitive environment approach the prices of an environment with market power. It appears that the expected institutional effects for procurement cost and efficiency are greatly dominated by the effects of anti-competitive behavior due to the offer complexity and a cyclical nature of market demand

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

Moving Towards Performance-Based Specifications in Public Procurement

There are environmental benefits associated with the procurement of services instead of, or in addition to, discrete products. Under the right conditions, transitioning to a more service-intensive purchasing model can reduce natural resource consumption in the production, use and disposal phases of product life cycles. Generally, financial savings can be realized too—even in the short term. In order for public procurers who purchase goods, services, buildings and infrastructure on a significant scale to take advantage of these potential savings and benefits, performancebased specifications are invaluable tools. Performance-based specifications allow public authorities to specify their needs in general terms by describing what general functions they require (e.g. lighting, mobility, information management) rather than specifying the minute details of the inputs and process required to get there. The private sector can then innovate and generate savings in resource use and in operating costs. Generally speaking, suppliers are better suited than public procurers to know what options are available in the market, or to innovate and commercialize towards new products and services in order to meet a required performance level. Performance-based specifications are thus a tool with which, under the right conditions, public procurers can stimulate markets to deliver innovative and environmentally sound solutions

Technical Design Report for the PANDA Solenoid and Dipole Spectrometer Magnets

This document is the Technical Design Report covering the two large spectrometer magnets of the PANDA detector set-up. It shows the conceptual design of the magnets and their anticipated performance. It precedes the tender and procurement of the magnets and, hence, is subject to possible modifications arising during this process