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

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

Identification of key process areas in the production on an e-capability maturity model for UK construction organisations

Uptake of e-procurement by construction organisations has been slow (Martin, 2008). Positive e-business achievements in other industries, point towards the potential for the construction industry to accomplish similar results. Since the Modernising Government White paper set targets through best value indicator BV157 for implementation in the public sector, Government has supported many initiatives encouraging e-procurement. These are based on documented efficiency and cost savings (Knudsen, 2003; Minahan and Degan, 2001; McIntosh and Sloan, 2001; Martin, 2008). However, Martin (2003, 2008) demonstrates only a modest increase in the uptake of e-procurement in the UK construction industry. Alshawi et al (2004) identified the significance of possessing a model to sustain the embedment of any business process within an organisation. Saleh and Alshawi (2005) describe a number of model types used to gauge maturity in an organisation. One of these models is the capability maturity model. Paulk et al (1993) released the Software Capability Maturity Model (CMM) in 1991. Since then many CMM’s have evolved. This paper reports on how a CMM based on Drivers and Barriers to e-procurement identified in Eadie et al (2009) can be developed to gauge the maturity of an organisation in relation to e-procurement. This paper presents details of a research project which used factor analysis to produce a set of Key Process Areas (KPA) from the drivers and barriers identified in Eadie et al (2009). These KPAs were then subjected to a mapping process linking them to maturity levels to develop a CMM to analyse the e-procurement capability of construction organisations. The mapping will be reported in a later paper. This termed as e-readiness of organisations will indicate the current state of a construction organisation in terms of its readiness to carry out e-procurement. The paper describes in detail the identification of the KPA’s

The State of Construction e-Business in the UK

The UK Construction industry has gradually ebbed out of the great recession which started in 2008. Output from the construction sector in the UK in 2015 currently sits at around the 2005 level in real terms (Rhodes, 2015). However, its direct contribution to the GDP (over 6.5%) makes it a key sector in the national economy (DBIS, 2013). This is due to its size: the contracting sector is responsible for 2 million jobs, the services sector for 580,000 jobs and the products sector for another 310,000 jobs (DBIS, 2013). ONS (2015) states that compared with April 2014, output in April 2015 in the construction industry increased by 1.5%, resulting in positive growth for the 23rd consecutive month year-on-year. Despite this growth within the construction industry, little work has been carried out to determine the current level of Information and Communication Technology (ICT) /e-Business penetration within the sector

Innovation partnership procurement: EU directive impact

In consultations prior to the UK government’s response to changes to the EU procurement directives, the impact and innovation of small to medium-sized enterprises (SMEs) were examined to try to ensure a positive impact across the industry. To produce innovation, a new innovation partnership procedure was introduced. Subsequent to publication of the procedure, this paper examines perceptions from tenderers and the government. Seventy-one completed questionnaire responses were received from tenderers, with a further 19 from government procurers. The findings indicate that 69% of tenderers intend involvement in the future, but the government is evenly split on the ability to use the procedure and is unsure as to its benefits. While the majority considered that little change would result in relation to value for money, speed of innovation to market and increase in innovative solutions, more were positive than negative towards the procedure. Even though economic operators are keen to use it, there is little desire for its use within government departments, despite the fact that considering it would increase SME involvement. </jats:p