Procurement method selection in practice: A journey to discover the optimal

Peter Love, Curtin University
Jim Smith, Bond University
Michael Regan, Bond University

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Interim status: Citation only.

Love, P., Smith, J. & Regan, M. (2010). Procurement method selection in practice: A journey to discover the optimal. Paper presented at the 18th CIB world building congress, Salford, Manchester.

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2010 HERDC submission. FoR Code: 120200

© Copyright CIB Publications, 2010

Abstract

Determining the optimal procurement approach for capital works is a challenging task considering the array of procurement methods available and criteria that must be assessed. To assist a public sector client with this complicated decision making process, a procurement method selection process was developed. A focus group compromising of key stakeholders involved with an educational capital works project used the developed approach to determine an appropriate solution for their needs. Overwhelmingly, participants supported the outcome albeit, a small minority who had limited wider exposure to alternative methods initially perceived their bastion (i.e. a default Traditional Lump Sum (TLS), to be a credible option. Indeed, those participants with limited knowledge procured almost 95% of capital works projects using a TLS and did not adopt a formal approach to procurement method selection. As a clear indicator of demonstrable impact, it can be reported that the approach presented in this paper is now being used by the public sector agency responsible for capital works. The pragmatic approach developed enabled decision-makers to constantly re-evaluate outcomes during each stage of the process in the form of recommendations that were grounded in practice, reflection and detailed evaluation.