Project procurement systems for mechanical, electrical and piping projects in Saudi Arabia

Abstract

PurposeThe purpose of this paper is to investigate the empirical relationship between mechanical, electrical, and piping (MEP) project procurement systems and project performance in the context of the Saudi Arabian construction industry. The study plans to expand the understanding of the relationship of design-bid-build (DBB) and design-build (DB) performance with respect to change order rate, cost growth, and schedule growth.Design/methodology/approachThe paper statistically analyzed 207 MEP projects. It investigates the relationship of project procurement systems and three project performance indicators. Hypotheses testing was used to assess the relationship.FindingsThe results show that projects using the DB procurement system are more likely to have less cost overrun and experience a lower change order rate compared to DBB for pricing and selection methods, yet neither procurement system had an advantage over the schedule duration based on the study’s sample.Research limitations/implicationsThe lack of information identifying the cause of contract change orders limits the interpretation of the findings. Sample sizes in some of the test criteria were statistically small, thus limiting the reliability or confidence level of the analysis for those samples. Caution should be used when interpreting the results as representative of the Saudi Arabian construction industry as a whole; due to the owner’s project execution policies, procedures, and standards, the level of enforcement of those practices may differ from other owners.Originality/valueThe paper fulfills and identified the relationship between the project procurement system and MEP project performance in the context of the Saudi Arabian construction industry.