טכניון מכון טכנולוגי לישראל
הטכניון מכון טכנולוגי לישראל - בית הספר ללימודי מוסמכים  
M.Sc Thesis
M.Sc StudentWaagenaar Asaf
SubjectCivil Engineering Infrastructure Projects: Tailoring
Procurement Methods to Project Characteristics
DepartmentDepartment of Civil and Environmental Engineering
Supervisor Professor Yehiel Rosenfeld
Full Thesis textFull thesis text - English Version


Abstract

The global construction and infrastructure market operates and is managed using a wide range of procurement methods and tendering systems that differ on many measures, and are implemented in a wide range of variations. Procurement systems are classified mainly according to their integration of the design and construction phases, as well as the management scheme related to these phases, since the client's representatives face and lead both the designers and the contractors. Procurement systems can also be classified according to the source of finance and ownership. Every project has different requirements and characteristics that must be taken into consideration when selecting a procurement system that will suit both the client's and the contractor's characteristics and needs. Clients are recognizing the importance of "best value" as opposed to lowest cost.

Appropriate procurement system selection has many far-reaching implications and advantages: It can reduce construction costs associated with many aspects of the project while improving accuracy of the projected cost of completing the project, and shorten the project's duration while improving completion date certainty. Correct procurement selection and tailoring can reduce risks and transfer some contractor-related risks to the contractor. It can increase the flexibility of owners, planners and constructors to adjust, change, and complete the design during the construction stage, thus enabling earlier launching of the project. Proper choice of a procurement system can minimize risk by clarifying design requirements and the different responsibilities. Some procurement systems as Public-Private-Partnerships (P.P.P.) also enable the public sector to derive various benefits from the private, professional sector.

An objective procurement selection method is needed to help decision makers tailor and select optimal tender and procurement methods that best suit the specific characteristics of their projects.


This study is innovative in that it presents an in-depth investigation of the entire spectrum of procurement systems for infrastructure projects, processes and compares the data, creates a general knowledgebase of procurement systems (with emphasis on infrastructure), and develops a flowchart for tailoring procurement methods to project characteristics.

This work creates a logical "preliminary decision guide" for a concise updated procurement systems review. The conclusions of this study are formalized in a systematic and structured flowchart. Stemming out of this research is the recommendation to fine-tune and validate the proposed flowchart by means of an extensive empirical study of various infrastructure projects world-wide.