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Tuesday, May 17, 2016

What is Procurement System?

The procurement system defines as “An organizational structure that arranges specific responsibilities and authorities to participants and defines the relationship of the various elements in the construction projects. (Love et al., 1998)

Building procurement has become a fashionable term with industry practitioners and researchers. It determines the overall framework and structure of responsibilities and authorities for participants within the building process. It is a key factor contributing to overall client satisfaction and project success. The selection of the most suitable procurement method consequently is critical for both clients and project participants, and is becoming an important and contemporary issue within the building industry. The problem, nevertheless, lies in the fact that there has been limited empirical research in this field of study. Consultants were carried out and were used to obtain experience of and attitudes to a variety of procurement methods and the criteria used for selection.

Procurement describes the merging of activities undertaken by the client to obtain a building. Procurement methods are the procedures used by the procuring entity to acquire goods, services and works. These methods can be competitive and non-competitive. There’s a preference for using competitive methods of procurement given that they tend to promote transparency, economy and efficiency, and limit favoritism. Procurement methods are many, and they go by different names depending on the procurement category.

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