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Abstract
Since the declaration of Malaysian independence, the public sector has significantly contributed to the country’s development. In the 1990s, a new procurement system was developed due to CIBD various changes in the construction industry. Since that period, the poor quality of public sector projects has started to attract public attention. This paper describes a study that was conducted to identify the dominant public procurement systems in place, the problems associated with these systems, and the satisfaction level of the industry players in the Malaysian construction industry. The results were drawn from 84 survey responses and interviews with industry players. The public sector is using a traditional system inherited from the British, with an intention to adopt new procurement systems. Aside from the disputes that are present in most systems, the public sector seems to encounter particular problems in relation to capabilities, time, and cost of the major procurement systems used. Traditional work culture and the industry environment influence public sector practice, which accounts for the modifications of each procurement system used. Thus, the full advantages of using an alternative procurement system may not be realised in public sector organizations. This produces an average level of satisfaction gained from the procurement system adopted. As a developing country, Malaysia needs to exert significant efforts to improve the public procurement system.
Highlights
Public sector organisations exist for the ultimate benefit of the public citizenry (Gould, 1997)
A two-stage method was conducted in this study to capture the dominant procurement system in the industry, the problems associated with such system, and the satisfaction level of the industry players
The results revealed that the traditional procurement system remains dominant, with Lump Sum-Drawing and Specification (LSDS) as the highest ranking system, followed by LSBQ and Lump SumApproximate Bill of Quantities (LSABQ)
Summary
Public sector organisations exist for the ultimate benefit of the public citizenry (Gould, 1997). The list was obtained from the Real Estate Housing Developers Association (REHDA), whereas federal and state departments have been included to represent public clients These organizations were selected because they are the actual players in the construction industry, and they have important roles in managing project procurement systems. In relation to the choices, a public client prefers to use the traditional systems, that is, either LSBQ or LSDS, for a number of reasons They have a limited staff, and they can appoint consultants, call for tender, and award the project to a contractor. The client can choose the project team based on their track record One consultant stated his opinion: “In Malaysia, there [is] a [variety] of hybrid systems where [modifications] of [the] conventional system, variation of design and build, and management contracting [were observed]. According to an experienced client, “[the] success or failure of the project very much [depends] on the capability of [the] contractor.” All the parties interviewed mentioned the incompetence of contractors as the main issue affecting project delivery and overall satisfaction
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