Procurement Literature Review

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CHAPTER 2: LITERATURE REVIEW 2.1 INTRODUCTION As previously discussed on chapter one, procurement is regarded as an important key process in a construction project. Although as an important key process, it should reflect its importance in a construction project, from inception to handover and even beyond the project’s completion looking in terms of operations of that particular project’s structure. However, for procurement to can complement or influence the project’s targeted outcome, a suitable procurement route has to be selected and utilized accordingly (Ruparathna and Hewage, 2013).Before the project has commenced, it is every client's aim to have a quality structure delivered to them on time and within the allocated budget (Babatunde,…show more content…
This performance is measured in terms of cost, time and quality. Most of the projects in South Africa have encountered cost and time overruns as a result of the delays which were possibly influenced by the procurement route implemented (Kagioglou, Cooper and Aouad, 2001). The Gautrain project for instance encountered cost and time overruns as the project was initially estimated to a cost of R7 billion and was projected to be completed at nearly R25 billion and surpassed any of the largest construction projects ever executed in South Africa (Du Plessis, 2010). This emphasises the importance of procurement route to be used on projects as this overruns are mainly due to procurement routes and alternatives not being taken into considerations (Nkado, Laryea, Leiringer and Hughes,…show more content…
In addition, there are various methods which are combined to help outline the project’s procurement. These methods are for purchasing of construction objects, and as such include in them the sources of funding, the partnering selection method, price bases, the project’s design responsibility, the responsibility for management and lastly the amount of subcontracting (Osipora and Eriksson,

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