http://www.scotland.gov.uk/Publications/2005/11/28100404/04061 http://www.building.co.uk/procurement-constructionmanagement/3072705.article http://www.constructingexcellence.org.uk/pdf/rethinking%20constructio n/rethinking_construction_report.pdf http://theconstructor.

org/constrution/const-management/delphitechnique-in-procurement-systems-of-construction-projects/1313/
Construction procurement system is the organizational framework adopted by the client for the management of design and construction of a project. With the introduction of new and innovative ways of construction, many new and alternative procurement systems have been developed over the past decades. These systems could be used to meet contemporary requirements of the clients. Different procurement systems are used for different projects and the correct choice may help to avoid problems and be the key to the attainment of project specific goals.

From the clients point of view, there are probably only three basic criteria which include cost, time and quality. Hence, traditional procurement selection processes result in clients prioritizing the basic criteria of Time, Cost, and Quality.
The lack of structured procedures, based on good information, for the selection of construction procurement system sometimes inhabit the opportunity for client to choose a procurement option in a fully informed manner. Each project in the industry has its own characteristics and the project to be success the procurement method must address the technical features of the project alongside the clients and contractors needs. The selecti on of suitable procurement method is critical to the success of any project. Procurement selection Several previous studies have identified number of factors influencing the selection of procurement system in construction. They have focused on selection factors in terms of Client characteristics, Project requirements and External environment. From the synthesis of the outcome of past studies, overall factors affecting the procurement selection can be grouped under three main criteria. The Figure portrays the conceptual framework developed based on the projects environments which determine the selection criteria

There have been several models developed with the intention of facilitating the selection of suitable procurement system for a particular project. Among the various models, Multi Attribute Utility Technique (MAUT) received the greatest attention. One of strongest criticisms was the selection of procurement variables. The other is the utility value developed through opinions of industry experts. Methodology The use of Multi Attribute Decision Analysis has been considered the foremost technique for examining client needs and weighting of preferences from experts for each procurement, but the major difficulty with these selection systems lies in the lack of consensus among the experts on the utility factors. To overcome above deficiencies, the Delphi technique was adopted. Delphi method is a highly formalized method of communication that is designed to extract the maximum amount of unbiased information from a panel of experts. The success of the Delphi method principally depends on the careful selection of the panel of experts. In order to meet all stipulated requirements and to increase efficiency of the outcomes, the sample size was selected to have upper limit of the reliable sample size (1535) of the Delphi technique. Thirty five (35) members of panel represent wide distribution of professionals from several disciplines including Project Management, Quantity Surveying, and Engineering from consultant & contractor organizations both in public and private sectors. The Purposive selective sampling has been used as the appropriate sampling method for this research, because the information obtained from experts required in depth knowledge

and sound experience on various procurement options. A group of experts, who have relevant working experience in the field of construction management and procurement selection, were selected to get the opinion on selection criteria and their level of influence on various procurement systems in construction. The following Table gives the profile of the experts involved in the survey

The Table 2 presents the formats of Delphi survey carried out in four rounds and briefly introduces the data evaluation techniques used to analyze the data collected from the survey

Findings Review of literature in Delphi round one. In the second round level of importance of each factor was considered.

 Third round targeted to derive the utility values fourth round comprised with the average utility values The questionnaire used in fourth round comprised with the average utility values derived from 25 experts for each factors against various procurement systems. The respondents were asked to reconsider the results of round three in order to improve the consistency of the results. There were 23 out of 25 questionnaires received in the fourth round and they were considered for the analysis at the end of fourth round. Clients requirements Utility values of all nine factors were sufficiently consistent at 0.05 level of significance or smaller. Further, concordance coefficient (w) ranges between 0.08 0.46 for certain factors indicating less strong agreement among experts during round three. The concordance coefficient ranges between 0.59 0.74 indicate the strong agreement among experts at the fourth round of Delphi. The concordance analysis shows that the consistency of the experts ranking for procurement systems against each factor has improved over the succeeding round. Therefore, it can be concluded that all nine factors significantly influence the procurement selection practices.

Project Characteristics Utility values of all six factors were sufficiently consistent at 0.05 level of significance or smaller. Further, concordance coefficient (w) ranges between 0.29 0.38 for all six factors

indicate less strong agreement among experts during Delphi round three. The concordance analysis shows that the consistency of the experts ranking for procurement systems against each factor has improved over the successive round. The coefficient of concordance for all six factors improved from 154.64% to 581.644%. In this round, six factors were considered sufficiently consistent compared to previous round. The results shows that the experts had overcome the difficulty in assessing the factor such as Project type, since the significance improved lesser than 0.05 (? reduced from 0.2613 to 0.0000 in the successive rounds).

External Environment With respect to the external environment, utility values of all five factors were sufficiently consistent at 0.05 level of significance or smaller. On the other hand, the correlation between the experts regarding the external environmental factors has also been increased. These external environmental factors have either direct or indirect influence on the selection and use of the procurement systems. Therefore, in assessing the suitability of a procurement system, the underplaying relationships of external environment need to be considered to avoid the consequences in decision making.

Conclusion An exclusive set of multiple decisive fa ctors in terms of main three criteria: Clients requirements & objectives, Project characteristics and External Environment, have been identified as being generally adequate for the procurement selection and there is a reasonable consensus on utility values for each procurement system.

This study has used

Delphi technique

to ensure that the consensus is reached

for the utility values provided by the panel of experts/practitioners from the industry. The synthesis of the outcome of the survey demonstrates intensely that there is a significant improvement in the consistency of the utility values over the successive Delphi rounds. From this study it was found that all identified factors in terms of clients requirements and project characteristics have greater level of influence on procurement selection. The importance and interrelationships of identified significant factors and the utility values provide a good background for the development of procurement selection criteria for any kind of project scenario. The selection criteria should be logically derived from projects internal and external environment.

What are the Client Responsibilities? A successful project relies on mutual integrity, cooperation, communication, fairness, objectivity, courtesy and professionalism. The Client is the pivotal figure in the project and is in a position to lead by example through the right approach to the project and a commitment to teamworking andVFM, so must therefore:

allow sufficient time (before and during construction) to fully plan the project and get all elements of the construction and delivery sequence right clearly and fully define his needs and expectations in the brief, since late changes of mind can prove expensive in terms of timescale, cost and quality ensure that the appropriate team is appointed (either collectively or individually) to provide advice and to represent the Client's interests - they must be suitably resourced, qualified, experienced and able to work together as a team analyse the risks attached to the project, quantify them, ensure they are managed and make appropriate financial and time provision for them define the parameters of time, cost and quality before the construction phase commences take account of project cost over its whole life and not on the basis of initial (construction and professional fee) costs ensure that the necessary financial and other resources are available when required meet all statutory obligations, including health and safety and EC legislation requirements regularly monitor the entire development process throughout all of its stages, including responding to the reports of Gateway Reviews carried out at key approval points in the process and carrying out post project evaluations of the process and end product on completion display the leadership and management skills of a best practice Client

What comprises the Construction Procurement Process? Generic Procurement Processes do not directly translate to construction procurement situations, but are broadly comparable. In construction procurement, once the decision to proceed with the project has been made, the Client will then embark on the procurement process. This can generally be described as follows. (a) Setting up the project This includes:

appraisal of all of the options available to the Client (including 'do nothing' or 'do minimum') and identification of those which will best serve the business aim (See the Appraisal and Evaluation, Major Investment and other sections of the SPFM and HM Treasury's 'The Green Book: Appraisal and Evaluation in Central Government') nomination of members of the client body to fulfil the specific Client roles (See Section 1 of Construction Works Procurement Guidance) examination of the case for private finance using the Non Profit Distributing ( NPD) model. An early contact should be made with the Scottish Futures Trust obtaining external professional advice and support if this is not available in-house. This may involve the appointment of a client adviser who will give guidance on the preparation of the economic appraisal and options to meet the Client's needs including possibly a non-build option (ie business reorganisation rather than a new or upgraded facility). (See Section 1 of the Construction Works Procurement Guidance) confirmation of the business case by setting out those essential components which will subsequently form part of the strategic brief (for example, initial budget, outline programme, benefits and risks) and by establishing time, cost and quality benchmarks against which the project can be monitored as it proceeds (See Section 1 and Section 4 of the Construction Works Procurement Guidance) development of the Client's brief into a full project brief including consultation with end users identification of the most appropriate strategy to procure the building (See Section 3 of the Construction Works Procurement Guidance) appointment of the project manager, who will be responsible for taking the project forward to its conclusion. The role of the client adviser will diminish on this appointment (See Section 3 of the Construction Works Procurement Guidance) review of the procurement route on appointment of the Project Manager. This may be required due to changes in the Client's requirements or on the advice of the Project Manager (See Section 3 of the Construction Works Procurement Guidance)

(b) Defining the project This includes:

formal agreement of the strategic brief prepared by the Project Manager, including functions to be provided, cost parameters, quality of design and phasing of programme if required establishment of project control and management procedures, including arrangements to meet the requirements of funders in the case of jointly-funded projects preparation of a project execution plan by the Project Manager, and agreement of key aspects of that plan and timetable; roles, responsibilities and delegated authority ensuring that risk management and value management are employed and that robust capital and whole life cost control procedures are in place

(c) Assembling the team This includes:

drawing up a list of suitable consultants both in terms of technical and project specific expertise, and using data from Constructionline and other sources as appropriate (such as framework agreements) to check the market capacity selecting and appointing the project team through a combination of competitive tendering/interviewing to obtain the most economically advantageous tender or, in specific circumstances, negotiating or conducting a "Competitive Dialogue". (See Section 3 of the Construction Works Procurement Guidance) drawing up contracts between the Client and design team defining the scope of service and obligations. Where possible, standard unamended contract forms, issued by recognised bodies, should be used. Bespoke or amended forms may be required in certain circumstances; however, it will be necessary to ensure that they are both legally and technically sound (See Section 3 of the Construction Works Procurement Guidance)

(d) Design The following refers to a traditional form of procurement ( i.e. completion of design by specialists prior to tendering) and may need to be adapted for other forms of procurement. This includes:

clarification of issues within the design brief development of the concept design to detailed design by the design team in collaboration with the project sponsor and client body ensuring that the statutory consents and legal, financial, insurance and health and safety matters have been resolved and site access is available prior to commencing construction choice of the most appropriate procurement route (See Section 3 of the Construction Works Procurement Guidance) establishment of change control procedures to regulate project cost

taking account of the Scottish Government's Policy on Architecture for Scotland, which aims to encourage good architecture in publicly and privately commissioned projects. (Further information can be obtained from the Architecture and Place Division of the Built Environment Directorate) consideration of sustainability issues (the materials chosen for the scheme and the overall impact of the building) taking the health and safety implications of construction and operation into consideration full consideration of life cycle and whole life costs

Further information is contained in Section 6 and Section 7 of the Construction Works Procurement Guidance. (e) The Public Contracts (Scotland) Regulations 2006 and Amendment Regulations 2009 It is essential that these Regulations are followed where they apply and to ensure that the tendering process is competitive in an EC context. Information on the Regulations can be obtained:

in the Procurement Toolkit from the Scottish Procurement and Commercial Directorate's Policy, Strategy and Systems Division

(f) Tendering This includes:

normally, where the contract value lies above the relevant EC threshold, invite expressions of interest by placing a notice in OJEU either directly or through Public Contracts Scotland for contracts that are not subject to the Regulations, ensure the invitation seeking expressions of interest is suitably advertised (eg by using the Public Contracts Scotland portal) checking the financial and technical suitability of contractors (eg by use of Constructionline and other sources) ensuring that tendering procedures are clear, fair, capable of withstanding scrutiny by audit and are in line with Scottish Government requirements (Section 3 of the Construction Works Procurement Guidance) compliance with appropriate industry guidance or codes of procedure for selective tendering, insofar as they are compatible with the Regulations ensuring that all tenders are comparable on a like-for-like basis in terms of cost and contract period

(g) Construction This includes:

management of the project during the contract period to control costs and avoid disputes. This necessitates the clear defining of responsibilities and encouragement of a teamworking approach regular monitoring and reporting, to analyse all aspects of the project as construction progresses taking corrective action (if required) following the Gateway Reviews, carried out at key stages of the project (whether in-house or by independent scrutiny)

(h) Completion This includes:

oversight of testing and commissioning procedures coordination of the reporting and remedying of defects receipt of the health and safety file from the CDM Co-ordinator the agreement of final accounts in line with contractual requirements

(j) Post project evaluation and post occupancy evaluation This includes:

completion of a formal post project evaluation in order to review the project performance, its delivery of objectives and VFM, and to identify lessons to be learned from the procurement process. These lessons should be used to influence the approach to the procurement of future schemes completion of a post occupancy evaluation (possibly by an independent consultant) which focuses on whether the building is meeting user needs and identifies lessons to be learned