IDEAS home Printed from https://ideas.repec.org/a/rnd/arimbr/v2y2011i5p181-192.html
   My bibliography  Save this article

Cost Benefit Analysis of Procurement Systems and the Performance of Construction Projects in East Malaysia

Author

Listed:
  • Odhigu Festus Onosakponome
  • Nazatul Shima Abdul Rani
  • Junaid M. Shaikh

Abstract

This research investigated the impacts of procurement systems on the performance of construction projects in East Malaysia. Construction project outcome may be measured in terms of time, cost and quality achieved. Project clients demand and want best value for their money and they want their projects to be completed on time, within budgeted cost and at appropriate quality or specification. The sample in this research consists of 58 participants that work in a construction companies/industry. 90 questionnaires were distributed, 69 were successfully returned and 58 were fully completed. The sample comprises project clients/owners, project managers, consultants and construction workers. However, due to the fact that the time allocated for this research is limited and it is of qualitative in nature for which the sample size is less important (Kumar, 2005). The aim of using project clients, project managers, consultants and construction workers from different companies is because they work under different circumstances, which will ensure all questions are answered from different perspective. Therefore, the researcher distributed questionnaires randomly among the participants in different construction companies. This also minimises any bias towards any particular company. The key findings and conclusions from literature review and the analysis of results of questionnaires issued to project clients, projects managers, consultants and construction workers showed that traditional procurement system benefits cost and quality but at the expense of time. In other words, traditional procurement system has positive impacts on project objectives of cost and quality and negative impact on project time. Design and build procurement system benefits cost and time but at the expense of quality and this implies that the impacts of design and build procurement system on project objectives of cost and time are positive with negative impact on project quality.

Suggested Citation

  • Odhigu Festus Onosakponome & Nazatul Shima Abdul Rani & Junaid M. Shaikh, 2011. "Cost Benefit Analysis of Procurement Systems and the Performance of Construction Projects in East Malaysia," Information Management and Business Review, AMH International, vol. 2(5), pages 181-192.
    • Handle: RePEc:rnd:arimbr:v:2:y:2011:i:5:p:181-192
    DOI: 10.22610/imbr.v2i5.897
    as

    Download full text from publisher

    File URL: https://ojs.amhinternational.com/index.php/imbr/article/view/897/897
    Download Restriction: no
    File URL: https://ojs.amhinternational.com/index.php/imbr/article/view/897
    Download Restriction: no
    File URL: https://libkey.io/10.22610/imbr.v2i5.897?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sai-On Cheung & Tsun-Ip Lam & Mei-Yung Leung & Yue-Wang Wan, 2001. "An analytical hierarchy process based procurement selection method," Construction Management and Economics, Taylor & Francis Journals, vol. 19(4), pages 427-437.
    2. Liaquat Hossain, 2009. "Communications and coordination in construction projects," Construction Management and Economics, Taylor & Francis Journals, vol. 27(1), pages 25-39.
    3. Rick Best & Craig Langston, 2006. "Evaluation of construction contractor performance: a critical analysis of some recent research," Construction Management and Economics, Taylor & Francis Journals, vol. 24(4), pages 439-445.
    4. P. D. Rwelamila & A. A. Talukhaba & A. B. Ngowi, 2000. "Project procurement systems in the attainment of sustainable construction," Sustainable Development, John Wiley & Sons, Ltd., vol. 8(1), pages 39-50.
    5. Hemanta Doloi, 2009. "Relational partnerships: the importance of communication, trust and confidence and joint risk management in achieving project success," Construction Management and Economics, Taylor & Francis Journals, vol. 27(11), pages 1099-1109.
    6. Ellen Lau & Steve Rowlinson, 2009. "Interpersonal trust and inter-firm trust in construction projects," Construction Management and Economics, Taylor & Francis Journals, vol. 27(6), pages 539-554.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Per Erik Eriksson & Ossi Pesamaa, 2007. "Modelling procurement effects on cooperation," Construction Management and Economics, Taylor & Francis Journals, vol. 25(8), pages 893-901.
    2. A. Q. Adeleke & A. Y. Bahaudin & A. M. Kamaruddeen, 2018. "Organizational Internal Factors and Construction Risk Management among Nigerian Construction Companies," Global Business Review, International Management Institute, vol. 19(4), pages 921-938, August.
    3. Nan Zhao & Fei J Ying & John Tookey, 2022. "Construction Procurement Selection Criteria: A Review and Research Agenda," Sustainability, MDPI, vol. 14(22), pages 1-16, November.
    4. Junling Zhang & Xiaowen Qi & Changyong Liang, 2018. "Tackling Complexity in Green Contractor Selection for Mega Infrastructure Projects: A Hesitant Fuzzy Linguistic MADM Approach with considering Group Attitudinal Character and Attributes’ Interdependen," Complexity, Hindawi, vol. 2018, pages 1-31, December.
    5. Shabir Hussain Malik & Weizhong Fu & Samma Faiz Rasool & Gowhar Ahmad Wani & Shah Zaman & Najaf Ali Wani, 2023. "Investigating the Impact of Communication Factors and Stakeholders Engagement on Renewable Energy Projects in Pakistan," Sustainability, MDPI, vol. 15(14), pages 1-14, July.
    6. James K. C. Chen & Thitima Sriphon, 2022. "Authentic Leadership, Trust, and Social Exchange Relationships under the Influence of Leader Behavior," Sustainability, MDPI, vol. 14(10), pages 1-32, May.
    7. Franco Cheung & Judy Leung Fung Kuen & Martin Skitmore, 2002. "Multi-criteria evaluation model for the selection of architectural consultants," Construction Management and Economics, Taylor & Francis Journals, vol. 20(7), pages 569-580.
    8. Mohamed Mahmoud Fawzy & Ahmed Shawky Elsharkawy & Yasser Aly Khalifa & Abbas Atef hassan, 2024. "Contractor selection by using multi-criteria decision-making for Egyptian road maintenance," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 15(6), pages 2351-2365, June.
    9. Khalid K. Naji & Murat Gunduz & Fahid Al-Henzab, 2024. "Evaluating the Digital Transformation Potential in Pre-Construction for Sustainable Practices Using Structural Equation Modeling," Sustainability, MDPI, vol. 16(17), pages 1-33, August.
    10. Roman Trach & Oleksandr Khomenko & Yuliia Trach & Oleksii Kulikov & Maksym Druzhynin & Nataliia Kishchak & Galyna Ryzhakova & Hanna Petrenko & Dmytro Prykhodko & Olha Obodіanska, 2023. "Application of Fuzzy Logic and SNA Tools to Assessment of Communication Quality between Construction Project Participants," Sustainability, MDPI, vol. 15(7), pages 1-17, March.
    11. Yanwei Li & Araz Taeihagh & Martin de Jong & Andreas Klinke, 2021. "Toward a Commonly Shared Public Policy Perspective for Analyzing Risk Coping Strategies," Risk Analysis, John Wiley & Sons, vol. 41(3), pages 519-532, March.
    12. Lorenz Werndle & Nick Brown & Mike Packer, 2006. "Barriers to certified timber and paper uptake in the construction and paper industries in the United Kingdom," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 13(3), pages 121-134, July.
    13. James K. C. Chen & Thitima Sriphon, 2021. "Perspective on COVID-19 Pandemic Factors Impacting Organizational Leadership," Sustainability, MDPI, vol. 13(6), pages 1-21, March.
    14. Laura Treviño-Lozano, 2022. "Framing Social Sustainability in Infrastructure Theory and Practice: A Review of Two Road Projects in Mexico from a Business and Human Rights Lens," Sustainability, MDPI, vol. 14(4), pages 1-16, February.
    15. Yilin Yin & Qing Lin & Wanyi Xiao & Hang Yin, 2020. "Impacts of Risk Allocation on Contractors’ Opportunistic Behavior: The Moderating Effect of Trust and Control," Sustainability, MDPI, vol. 12(22), pages 1-16, November.
    16. Jawad Talha Rehan & Zhao Xuefeng & Rafiq Mansoor, 2019. "Interplay of relational governance, task conflict, opportunism and their effect on the performance of projects," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 8(6), pages 201-211, October.
    17. Min-Yuan Cheng & Shu-Hua Yeh & Woei-Chyi Chang, 2020. "Multi-Criteria Decision Making of Contractor Selection in Mass Rapid Transit Station Development Using Bayesian Fuzzy Prospect Model," Sustainability, MDPI, vol. 12(11), pages 1-32, June.
    18. Narasimhan, Ram & Talluri, Srinivas & Mahapatra, Santosh, 2008. "Effective response to RFQs and supplier development: A supplier's perspective," International Journal of Production Economics, Elsevier, vol. 115(2), pages 461-470, October.
    19. Rogério Moreno Perlingeiro & Mayra Soares Pereira Lima Perlingeiro & Carlos Alberto Pereira Soares, 2021. "Criteria for the assessment of sustainability of public constructions," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(10), pages 15450-15493, October.
    20. Kolawole Iyiola & Husam Rjoub, 2020. "Using Conflict Management in Improving Owners and Contractors Relationship Quality in the Construction Industry: The Mediation Role of Trust," SAGE Open, , vol. 10(1), pages 21582440198, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rnd:arimbr:v:2:y:2011:i:5:p:181-192. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Muhammad Tayyab (email available below). General contact details of provider: https://ojs.amhinternational.com/index.php/imbr .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.