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2012, Proceedings of the 19th Annual European Real Estate Society Conference - Edinburgh, Scotland
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8 pages
1 file
The aim of this paper is to present a concept of "Purchasing clinics", which have been used in complex property and urban development related procurement processes in Finland, and evaluate the benefits of aforementioned concept. Purchasing clinics are a systematized form of market dialogue under Finnish Act of public procurement, which again derives from EU Procurement directive. Design/methodology/approach: The data used has been acquired from a database maintained by RAKLI (The Finnish Association of Building Owners and Construction Clients) and consisting of sixteen cases, and by the authors' participation in various clinics. Findings: As a major finding, the paper presents a successful way of improving property and urban development related procurement processes, especially when using competitive dialogue, and ways of implementing a Purchasing clinic as by-product. Research limitations/implications: The study has been conducted in Finland only, which poses some limitations when applying the findings elsewhere. However, in EU countries the public procurement processes follow the aforementioned directive and should be rather similar.
Journal of Construction Engineering and Management, 2006
This paper deals with procurement routes in public building and construction projects in Norway. Seen from a practical point of view, as well as from a theoretical one, it is important to improve methods for selection of procurement procedure, contract model, and compensation formats. The paper objective is to find out if public owners select a procurement route according to recommended practice. The sources are literature, support material for two software tools for selection of the procurement route, and documentation from 22 public building and construction projects in Norway. According to the literature and the support material for the two software tools, the answer to what is the proper procurement route will depend on the characteristics of each project. The documentation study implies that public owners continue to select the same procurement route as they are in the habit of. They do not consider what procurement route suits each single project, and therefore they do not select the route according to recommended practice. The paper calls for innovation and better supported selection of the procurement route in public building and construction projects.
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 appropriate procurement method is consequently critical for both clients and project participants, and is becoming an important and contemporary issue with the building industry.
26th Annual Conference of the International Group for Lean Construction, 2018
Competitive Dialogue (CD) and Best Value Procurement (BVP) are two different approaches to early contractor involvement (ECI) in public projects. However, it is not clear which approach is best suited for what kind of project situations, and which is better for implementing lean in public procurement. The purpose of this paper is to explore the similarities and differences of these approaches to develop recommendations for how to match approach with project situations. In addition to literature study, two large infrastructure projects were studied through 12 in-depth semi-structured interviews and review of documents. The findings from this study indicate that the two approaches have several similarities; e.g., both give a better result when they are used together with a design-build contract than design-bid-build contract, and they give clients possibilities to meet suppliers and clarify projects before contract signing. However, they also have a number of differences such as the number of competitors that develop a project and a supplier selection premises varies. The study concludes that BVP is a moreeffective procurement process than CD as regards procurement phase. However, CD gives more room for the clients to influence supplier solutions than BVP.
2011
When building and construction markets are analysed it is often at the project level, with markets defined by sector or structure type, procurement method or contract, size, complexity or other characteristic. Projects within a defined market are then grouped together to establish its importance, detached housing for example, or high-rise commercial. A distinction can be made, however, between a market made up of similar types of projects and the market for a single project. Such a market is created by a client as they go through the procurement process. This paper introduces the idea that procurement of a project creates a identifiable, though temporary, market for goods and services, and that such a market has distinctive characteristics that make it both interesting, as a source of testable hypotheses and further research, and important in developing our understanding of the industry and its dynamics. The research the paper reports on shows that the idea of project procurement as...
Open Engineering, 2019
Efficient spending of public money is a crucial requirement of public procurement. This requirement is even more important in the case of public works contracts since construction projects are usually very costly. Accordingly, public authorities should manage the procurement process in an efficient way. The aim of this paper is to analyse municipal procurement practices focusing on small-scale public contracts for construction works. The Czech Republic is the study area for this analysis. Data concerning procurement practices were collected through a questionnaire survey and on the basis of available internal municipal directives that govern the procurement process. The results show that a majority of municipalities use internal directives and specify financial categories for small-scale public contracts. It has also been found that the majority of municipalities contract external consulting companies for specific contracts or subsidised public contracts. Directives usually concern ...
2020
ABSTRACT: Negotiation has been and is one of the key elements when it comes to business success. The largest companies in the world were founded as a result of the abilities of their leaders to manage to find the optimal balance between personal goals and objectives, and at the same time, the respect and the knowledge to know when and how to relate to the negotiating partner. Negotiation is present in all areas of our lives, and trade negotiation is just an extended aspect of negotiation that already takes place at every moment, in different everyday situations. Negotiation is first and foremost a form of communication: negotiating means communicating in the hope of reaching an agreement. International trade negotiation is an organized process of communication between companies, which aim to gradually adapt their interests related to the object of negotiation in order to achieve a mutually acceptable business agreement, materialized in the international contract. In the process of a...
Procedia Economics and Finance, 2015
In this paper, the key aspects associated with procurement in the context of the real estate and construction sector (RECS) are discussed, in order to address the research gaps in purchasing and supply management. The research question is "What kind of context-specific attributes can be identified in the RECS with respect to procurement", arguing that a better understanding of complex performance procurement is required. The underlying assumption is that although procurement may have generic qualities that are valid despite the industrial context, the construction sector offers unique attributes in respect to procurement. We classify these aspects under four categories: relationship management, supply risk, coordination, and learning/knowledge sharing. The key context-specific attributes include a varying relationship lifecycle, the unique and complex nature of products and services, customisation and the non-repetitive and temporary nature of projects. The key managerial issues involve the acquisition of a wide range of procurement competencies and the overall status of procurement in the organisation. Hence, managing procurement efficiently and competently requires the understanding of all these aspects.
2014
In solving the prevalent problems of construction industry, clients have an integral role to play. By its procurement procedures, the client influences the way a construction project is executed, as the procedures affect the form of the project delivery system. What kind of procurement procedures are perceived rational, for one, depends on the underlying assumptions about the function of procurement. This research studies the current conceptualizations of the problem of procurement stemming from the fields of economics as well as engineering and construction management. A recognized tenet in Lean Construction (LC) is that production should be conceived consisting of transformations (T), flow (F), and value generation (V). Therefore, this research exploits the TFV theory in analysing the assumptions underlying procurement. On the basis of the analysis it is suggested that the main function of procurement should not be seen merely as overcoming the problem of exante information asymmetry in the moment of awarding the contract nor tackling the problem of ex-post adaptation just by contractual structures. Instead, it is seen necessary to recognize and address the danger of value loss with an equal diligence as the other problems have been to date. To be more in line with the thinking in LC, the mindset within procurement should be set towards procuring the best possible project production system that is fit for its purpose.
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