IMPACT OF PROCUREMENT METHODS ON CONSTRUCTION PROJECT PERFORMANCE: A SYSTEMATIC REVIEW

Abstract

Introduction Construction procurement methods are an important factor when it comes to engineering performance outcomes in projects, but the available results are scattered across different sectors and regions. Differences in governance systems, awarding measures, and nature of the projects drive inequitable conclusions on the effectiveness of various systems of delivering projects. The systematic review of the empirical evidence is thus required so as to elucidate on how procurement practices impact the cost, time, and quality performance. Purpose: The aim of the study was to conduct a systematic review of empirical studies investigating the effects of procurement practices, specifically design-build, design-bid-build, and public-private partnerships on the performance of construction projects and determine contextual factors that moderate said relationships. Methodology: This paper involved a systematic review as per PRISMA. An overall search in large academic databases found 1,284 records, out of which 20 empirical studies were screened and eligible to meet predefined inclusion criteria. Data mining was centered on the type of procurement, sector, performance indicators, statistical tools and situational variables. The evaluation of risk of bias was done through the analysis of selection bias, measurement bias, and reporting bias. Findings:  Integrated procurement systems in general tended to maintain better schedule performance and improved coordination than the traditional design-build. The differences in cost performance were more fluctuating and dependent on the complexity of the project, the awarding mechanisms as well as the quality of governance. Best-value selection methodologies often related to more promising results than low-bid systems. Conclusion: Procurement method has a great influence on the performance of the construction projects but its efficiency is determined not by the label itself but by its correlation with the features of the project, distribution of risks and ability of the client.