Impact of Procurement Methods on Project Cost and Time Performance

CHAPTER ONE

1.1 Background of the Study

Procurement is one of the most critical aspects of construction project delivery. It determines how resources, services, and contracts are acquired and managed to achieve project objectives. According to Turner (2014), procurement methods directly influence project performance, particularly in terms of cost, time, and quality. The choice of procurement approach defines the relationship between the client, contractor, and consultant, as well as their responsibilities and risk allocation.

Common procurement methods include traditional (design–bid–build), design and build, management contracting, construction management, and public–private partnerships. Each method has unique features that affect project outcomes. For example, the traditional method allows detailed cost control but may lead to time delays due to its sequential nature. On the other hand, design and build can shorten project duration but often reduces the client’s control over design quality (Mosey, 2019).

Quantity surveyors play a vital role in the selection and administration of procurement systems. They provide advice on the financial implications of each method, ensuring that clients choose an option that aligns with their budget, timeline, and risk tolerance (Ashworth & Perera, 2018). However, poor procurement choices and mismanagement often result in cost overruns, disputes, and schedule delays.

This study examines how different procurement methods affect project cost and time performance in the construction industry.

1.2 Statement of the Problem

Cost and time overruns remain persistent challenges in construction projects. In many cases, these problems arise from inappropriate procurement methods that do not match the project’s nature or risk profile (Olawale & Sun, 2015). For example, adopting a traditional procurement approach for fast-track projects often leads to delays, while a design and build method may cause cost uncertainties if the design is not properly defined.

In addition, weak contract administration and poor communication among stakeholders worsen these challenges. Although procurement methods have been widely studied, there is still limited empirical evidence linking specific procurement systems to cost and time performance in various project types. Therefore, this study investigates how procurement choices influence cost and time outcomes, with the aim of recommending effective strategies for improved project delivery.

1.3 Aim and Objectives of the Study

The main aim of this study is to assess the impact of procurement methods on project cost and time performance.

The specific objectives are to:

1. Identify common procurement methods used in construction projects.

2. Examine how different procurement methods influence project cost and schedule.

3. Evaluate the role of quantity surveyors in selecting appropriate procurement systems.

4. Recommend suitable procurement methods for improving cost and time efficiency in construction projects.

1.4 Research Questions

1. What are the major procurement methods adopted in construction projects?

2. How do various procurement methods influence project cost and time performance?

3. What roles do quantity surveyors play in procurement method selection and management?

4. Which procurement methods best enhance cost and time efficiency in project delivery?

1.5 Significance of the Study

This study is significant because it highlights the relationship between procurement strategies and project performance. According to Turner (2014), selecting the right procurement method is a key determinant of project success. The findings will help construction professionals and clients understand how procurement choices affect project costs, schedules, and risk allocation.

It will also assist quantity surveyors in providing evidence-based advice during the planning stage. Policymakers and construction firms can use the study to develop frameworks that promote efficient procurement systems. Academically, the study contributes to knowledge on cost and time management within construction procurement.

1.6 Scope of the Study

The study focuses on the impact of procurement methods on project cost and time performance in building construction projects. It considers both public and private sector projects. The research involves architects, engineers, contractors, and quantity surveyors who have experience with different procurement systems.

1.7 Limitations of the Study

The study may be limited by the availability of accurate project data and the willingness of organizations to share performance information. Time and resource constraints may also restrict the sample size. However, efforts will be made to ensure that the findings reflect a broad range of project experiences.

1.8 Definition of Terms

• Procurement Method: The strategy or process used to acquire construction works, materials, and services (Mosey, 2019).

• Project Performance: The measurement of project success in terms of cost, time, and quality.

• Quantity Surveyor: A professional responsible for cost management, contract administration, and procurement advice.

• Design–Build: A procurement system where the contractor is responsible for both design and construction of a project.