Procurement in the Real Estate and Construction Sector (RECS) – Preliminary Context-specific Attributes

Abstract

Abstract 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 kindof 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 acquisitionofa widerange of procurement competencies and the overall status of procurement in the organisa-tion. Hence, managing procurement efficiently and competently requires the understanding of all these aspects.