Electronic Procurement in the Construction Industry

Abstract

The benefits of e-business have been widely promoted but the Architecture, Engineering, and Construction (AEC) sector has lagged behind other sectors in the adoption of e-procurement. The prospective benefits for the AEC sector are suggested by the proven advantages of general e-procurement where adoption has been faster and deeper. However, several studies indicated that barely 20% of documentation is tendered electronically, suggesting there are barriers to e-procurement. In order to promote adoption of e-procurement in the AEC sector, it is important to establish the status of the industry and identify the drivers as well as barriers to e-procurement. This chapter provides a detailed discussion of the state of the industry and its drivers and barriers while ranking these according to its importance. It acts as a reference guide to allow those implementing e-procurement in construction to make informed decisions as to where to focus their efforts to achieve successful realisation incorporating the benefits and avoiding the pitfalls in the process. The chapter also provides some insight into the current state, trends, and future directions of e-procurement in the construction industry.