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Ross, A D, Scullion, J S and Goulding, J S (2006) A decision support approach to procurement arrangement design. Journal of Construction Procurement, 12(02).
- Type: Journal Article
- Keywords: procurement route design; QFD; decision support matrix
- ISBN/ISSN:
- URL: http://www.journalofconstructionprocurement.com/abstractdetails.asp?id=136
- Abstract:
Many tools available to clients and their advisors for the selection of the optimum procurement approach have focused upon quantitative methods, which are based on how contracts control time, cost and quality. The unit of analysis of these approaches has been the contractor/client relationship and the impact that change has upon project outcomes. Crudely stated, if clients require ex post change, in order to protect the price they have gained through competition, the most effective control on the impact that a change has is to have high project information specificity and clearly defined rules as to how change is defined and managed. These inputs to the selection models are usually a set of variables that reflect the client’s project priorities such as time, cost, and quality and client attributes such as experience of construction and procurement approaches. The procurement route assessment usually involves a weighting of these criteria and then assessing how well the various arrangements meet these criteria. This paper suggests that a decision support approach based on the quality functional deployment model could be used to assist in the design of procurement arrangements in meeting client requirements. A review of the previous work on procurement decision support approaches was undertaken which identified a number of weaknesses in previous approaches when considering the newer integrated procurement arrangement designs. An analysis of the variables used in the previous work resulted in the definition of a number of primary and secondary critical procurement attributes and primary and secondary procurement arrangement performance attributes. The paper reports on the use of these attributes in conjunction with a QFD approach on a case study to investigate the effectiveness of the approach in practice. It concludes that the approach has merit as a decision support tool as well as a framework for capturing knowledge about the effectiveness of procurement arrangement designs.