Construction Procurement Research Articles

An efficient claim management assurance system using EPC contract based on improved monarch butterfly optimization models

AbstractThe Engineering Procurement Construction (EPC) contract systems are widely employed in the construction industry. Among the prevalent issues in this sector, cash flow problems frequently lead to decreased productivity and efficiency. To address these challenges, a claim management system is developed based on the Improved Monarch Butterfly Optimization Algorithm (IMBOA) and the principles of EPC. Conventional construction models typically optimize only a single objective, such as time, cost, or delay, which may not effectively enhance overall performance. This study aims to develop a claim management system based on IMBOA and EPC principles to optimize multiple objectives, focusing on minimizing project costs and time delays while ensuring high-quality results. The basic methodology of this research involves integrating EPC and claim management principles with the IMBOA algorithm to create an efficient, high-quality system. This process starts with a comprehensive literature review on EPC, claims, MBOA, and related algorithms. Common disputes and claims in the construction industry are examined, and critical factors influencing these claims are identified. The Monarch Butterfly Optimization Algorithm (MBOA) and its improved version (IMBOA) are explored for their application in optimizing project performance. A case study in China's coal mining industry evaluates the effectiveness of the EPC approach, demonstrating that it minimizes time delays and costs. The IMBOA approach proposed in this study has the potential to mitigate 23% of risks and avoid 32% of risks associated with the action plan of China's coal mining industry. Furthermore, comparative analysis with other optimization models indicates that the developed IMBOA model yields superior results, reducing overall project time by 15% and cost by 18%.

BIM-based search and selection of construction material suppliers: a dedicated framework and prototype

Purpose This study aims to address the key issues concerning supplier selection in traditional construction procurement by proposing an innovative, novel, state-of-the-art prototype plugin building information modelling – supplier search and ranking (BIM-SSR) and an associated conceptual framework. It enhances building information modelling (BIM) capabilities through web crawling and analytical hierarchy processes (AHP). It uses the World Wide Web to procure construction material suppliers. Design/methodology/approach Prevalent issues in traditional procurement of material suppliers have been identified through a rigorous literature review. Field experts vetted these issues. A framework has been presented to address these issues based on integrated web crawling and AHP as a multi-criteria decision-making (MCDM) method. A BIM prototype (BIM-SSR) has been developed using Python and plugged into Autodesk Revit to automate the search and evaluation of material suppliers based on precise material specifications from the BIM design. The BIM-SSR prototype is tested through a case study and validated by field professionals for its efficiency in tackling the identified issues. Findings Thirteen key issues have been identified concerning traditional construction procurement pertinent to supplier selection. Best-value procurement was encouraged by identifying supplier selection criteria such as cost, delivery time, experience, compliance with quality management standards, warranties, and claim period. The presented BIM-SSR prototype has an efficiency of 80%–95% in addressing the issues identified in this study and 97.5% effectiveness in improving the overall procurement management process. Originality/value The BIM-SSR prototype developed in this study is a novel and innovative addition to the body of knowledge that has been integrated into Autodesk Revit as a Plugin. Automation of supplier search and selection through digital technologies, including web crawling and integration of traditionally accepted MCDM methods such as AHP in BIM, is another innovation in the current study. Overall, this study presents a holistic, innovative system, from conceptual design to practical implementation and demonstration. This is one of the steps to help the traditional construction procurement process evolve into a more modern and digital procurement.

A hybrid conceptual procurement framework for BIM uptake to enhance buildings' sustainability performance in the Jordanian public sector

PurposeA large portion of the public building projects in Jordan suffers from sustainability performance issues. Therefore, this research aims to develop a hybrid procurement framework to enhance the implementation of BIM in the Jordanian public sector for better sustainable building performance. This study also aims to identify the influence of procurement factors on BIM adoption and usage in the public sector in Jordan and to provide a holistic picture of recent research on technology acceptance and adoption in the construction industry.Design/methodology/approachA qualitative approach was adopted using semi-structured interviews with key stakeholders (n = 12) in Jordan to explore procurement routes issues facing the adoption of BIM and to find proposed measures. Then, the findings of the interviews analysis using conventional content analysis and literature review were used based on a problem-solving approach to develop a hybrid conceptual procurement framework for BIM uptake to enhance the sustainability of building performance. Subsequently, semi-structured interviews were conducted to validate and refine the proposed conceptual procurement framework.FindingsIt was revealed that the deployment of unfavourable construction procurement approaches represents a major hurdle towards BIM implementation. Though essential for enhancing BIM implementation, it is revealed that a fundamental change from the common Design bid build (DBB) to more collaborative procurement approaches remains infeasible in view of the realities that govern the construction industry. Moreover, this study has found the key procurement approach challenges for effective BIM implementation.Research limitations/implicationsResearch is limited to the public sector in Jordan and further qualitative and quantitative testing of the conceptual procurement framework is needed to adjust the framework before large-scale testing.Originality/valueThe developed conceptual procurement framework is the first of its kind and draws a set of procurement approach remedies for the Jordanian public sector to foster the implementation of BIM.

A STRATEGIC ANALYSIS OF CONSTRUCTION ORGANIZATIONS DURING THE INDUSTRY'S TRANSITION TO A CIRCULAR ECONOMY

Current production methods have serious environmental impacts, which concerns the world. This concern has led many authorities, individuals, and organizations to prevent irreversible environmental damage. In response to this issue, the circular economy is revolutionizing production by adopting circular business models that minimize environmental impact. Numerous studies have found construction activities to be environmentally harmful. Mineral raw materials from natural sources are used in most construction procurement and production. Once their useful life is over, these mineral resources are irreparable, non-reusable, and non-recyclable. This scenario violates circular economy principles. This study predicts that the construction industry will become more circular in response to demands, obligations, and directives that encourage environmentally friendly production strategies like the circular economy. Thus, construction companies and design consultants must adapt to the circular economy. PESTEL analysis is used to predict macroenvironmental changes for construction organizations. According to the PESTEL analysis, construction companies must make changes to succeed and survive in transition to a circular construction industry. Integration into more complex business networks, adapting to a service-based economy, improving management skills, and improving workforce capabilities are among these changes.

The role of construction consultants in disaster recovery

Abstract. Disaster recovery requires speed above all, and the public and private sectors need to work together. In the event of a disaster, the activities of the construction industry play a crucial role. Construction consultants, surveying companies, and geological survey companies play an important role. Construction consultants oversee the entire process of disaster recovery, from assessing the damage immediately after the disaster to managing the restoration work. In some cases, local governments order construction management services to supervise the entire disaster recovery work, and in such cases, construction consultants are even responsible for part of placing construction procurements. In this way, construction consultants have become an indispensable part of the disaster recovery process. This report is an introduction to the activities of construction consultants in times of disaster, using the heavy rains situations as examples, and presents of challenges and recommendations.

Hybrid procurement model for the construction of library literature and information resource procurement

To improve the efficiency of intelligent procurement of library literature and intelligence resources, the study conducts the design of literature and intelligence resources procurement model. The procurement model is constructed by using the support vector machine, and the optimal parameters of the support vector machine are obtained by using the genetic algorithm. The experimental results demonstrated that the mean square error of the proposed model was only 0.03, which was 40 % lower compared with the procurement models based on other optimization algorithms. The average accuracy of the proposed model was as high as 95.18 % and the prediction accuracy was 95.78 % compared to other methods. The accuracy was improved by 15.11 %, 24.57 % and 19.67 % respectively compared to other models. The results show that using genetic algorithm to optimize support vector machine can effectively improve the prediction speed and prediction efficiency of the model. The proposed hybrid procurement model based on genetic algorithm and support vector machine can effectively meet the needs of library literature and intelligence resources procurement construction. The model has positive application significance in library literature and intelligence resources procurement.

The Adoption of Electronic Procurement and Readiness Assessment in Central Ethiopia Regional State

Electronic procurement is a digitalized means of procurement processes. This study aims to assess its applicability in the central Ethiopia regional state by studying the hindrance factors and the opportunity that can come for the construction sector of the region. A descriptive and explorative study approach has been performed. Qualitative data from public procurement administrators, IT professionals, and construction stakeholders were collected through interviews. -P nor eGP has not been introduced to the region yet. Also to use it factors such as the knowledge gap, lack of infrastructure provisions, and collaboration works with fear of losing competitiveness were probable hindrances. On the other hand, resource-saving, increasing transparency, and accuracy of bid evaluation were found as main probable opportunities. Incorporating practitioners, and combining system development with an adaptability test can provide useful input for further. Timely support from the federal government, capacity-building programs, facility and infrastructure development, and government enforcing mechanisms were found as necessary matters to implement the e-P system for the construction sector. This research is the first study in the area with this topic and also it is a very new topic as a country in general. Hence, in a way, it introduced the system for the pubic construction procurement of the region and stakeholders. The findings contribute as a source to the public body for the launch of the eGP Ethiopia in the region, and a lead for private developers. Additionally, it implements the very nature of the research which is multidisciplinary by incorporating IT professionals.

Analysis Of Factors In Tenders For Procurement Of Construction Goods/Services Using The E-Catalogue System

The government is updating regulations for procuring goods and services by introducing an e-catalogue system in the auction/tender process. Construction companies need to study the factors in tenders for the Procurement of construction goods/services using the e-catalogue system to ensure that the tender process using the e-catalogue system runs well and optimally. This research aims to analyze the factors in tenders for the Procurement of construction goods/services using the e-catalogue system. The method used was distributing questionnaires to small construction companies in Jombang Regency to collect data for further analysis. Based on data analysis, four factors were obtained, namely human resource factors (X1), principles of Procurement of goods and services (X2), infrastructure condition factors and e-catalogue support system arrangements (X3), and benefits factors for implementing e-catalogues (X4). The results were then tested for validity and reliability to ensure the validity and reliability of the data. Further analysis was carried out using descriptive analysis methods and Pearson correlation analysis. The results of the descriptive analysis show that the highest factor in tenders for the Procurement of construction goods/services using the e-catalogue system is the human resources factor (X1), with a mean value of 3.620 and a standard deviation value of 0.047. According to the research outcomes regarding Pearson correlations the relationship between factors that has the highest correlation value is (X1) with (X3) both have a strong correlation with a correlation value of 0.771.

Using construction procurement strategy to achieve socioeconomic development objectives

The procurement strategy for a construction project should provide the framework to achieve secondary procurement and socio-economic development objectives [2]. However, little attention has been focused on this in theory and practice. This paper addresses that gap by presenting a case study of the innovative targeting strategy developed and successfully implemented on a New Universities Project in South Africa to promote specified socioeconomic development objectives. Document analysis was used to examine how four socioeconomic development targets or key performance indicators, namely: local employment, skills development, local expenditure, and B-BBEE, were contractually integrated into the main works contracts. Four out of five framework contractors achieved the development targets, with low-performance damages applied in one case where the contractor failed to achieve all the development targets. The findings demonstrate how an appropriate construction procurement strategy that effectively integrates the packaging, targeting, and contracting strategies with effective systems for monitoring performance-based specifications, can play an essential role in promoting and realising socio-economic development objectives and social value through infrastructure projects.

Comparative Analysis of Environmental Protection Provisions in Construction Procurement: A Case Study of Nepal's Projects Funded by National and International Agencies

This study investigates the environmental protection provisions embedded in procurement processes of construction projects in Nepal, funded by various national and international agencies. The research aims to compare and analyze the environmental safeguarding measures outlined in bidding documents from different funding sources, along with examining relevant legal frameworks and policies governing environmental protection in construction projects. Through a qualitative approach and content analysis methodology, the study delves into the scope, limitations, and significance of environmental considerations in construction procurement. Findings reveal diverse approaches across funding agencies, highlighting the emphasis on contractor responsibilities, safety measures, and project management. While Nepal's standard bidding documents establish foundational environmental provisions, projects funded by international agencies demonstrate a higher commitment to environmental sustainability. The study underscores the importance of comprehensive environmental measures in construction projects to mitigate ecological impact and promote long-term environmental conservation.

Evaluation of Influencing Factors on the Supply Chain of Prefabricated Buildings under Engineering Procurement Construction Model: A Case Study in China

Evaluation of Influencing Factors on the Supply Chain of Prefabricated Buildings under Engineering Procurement Construction Model: A Case Study in China

Impact of green construction procurement practices on the success of circular economy in Ghana

PurposeThis paper investigates the impact of green construction procurement practices (GCPPs) on circular economy (CE) success by identifying environmentally sustainable procurement practices that can promote a CE in the construction industry. The goal was to promote circularity in construction through GCPPs.Design/methodology/approachA quantitative research approach was adopted and purposively selected 100 respondents for a cross-sectional questionnaire survey. Data from the questionnaire survey were analysed using mean score ranking, One-sample t-test and regression analysis.FindingsThe study found that using on-site systematic waste management, project stakeholder commitment and support for green practices and environmental requirements in technical specifications, significantly impact CE success in construction, with a 12.8% variance in CE when green procurement is practised. This implies that GCPPs have positive repercussions on CE success, where the CE success is expected to change as GCPPs levels increase.Practical implicationsThe study provides insights into green procurement, promoting its use in infrastructure development and aiding clients, particularly in the government sector with insights into the challenges and practices involved in green procurement. Practitioners can also benefit from better implementing CE strategies to draft and manage contracts for infrastructure projects that prioritize circularity.Originality/valueThe limited impact of GCPPs on advancing CE principles in construction suggests policy and practice must strengthen procurement requirements to fully leverage spending and drive the sector’s transition towards a circular model. Also, novel insight is provided into the most effective types of GCPPs for promoting CE success, aiding policymakers in optimizing construction procurement strategies.

An Analysis of Appropriate Procurement Method for Delivery of Quality Public Buildings: The Case of Constituency Offices

The success of a building project is significantly influenced by the procurement and tendering process. Understanding construction procurement and tendering processes is crucial to ensuring that projects are completed on schedule, with high-quality materials, and within the projected budget. With the emphasis on the decentralization policy, constituency offices become a hub of development in the constituency. Zambia has 156 constituencies of which less than 30 percent have been constructed. This study endeavors to identify the appropriate procurement method for the construction of the remaining 111 constituency offices in Zambia. The primary focus is on achieving predefined timelines, cost efficiency, and the desired quality standards. Both qualitative and quantitative data collection methods, such as questionnaires, observation checklists and interviews were utilized. The study's findings underscore a robust positive correlation between different procurement methods and the quality of constituency offices. Study findings revealed that, open tendering has the highest impact on the quality of constituency offices followed by public-private partnerships and procurement from other public entities. Though open tendering was found to be the appropriate procurement method for construction of constituency offices, it is recommended to diversify procurement methods in the management of constituency offices, with a strong emphasis on transparency and accountability in procurement processes. Additionally, involving constituents and stakeholders in procurement decision-making processes is crucial for fostering public trust and ensuring efficient resource allocation.

How Do Developers Influence the Transaction Costs of China’s Prefabricated Housing Development Process? An Investigation through the Bayesian Belief Network Approach

The implementation of prefabricated housing (PH) has become prevalent in China recently due to its advantages in enhancing production and energy-saving efficiency within the construction system. However, stakeholders may not always fully realize the benefits of adopting PH due to the emergence of transaction costs (TCs) in the development process of such projects. This study investigated the strategies for developers to make rational choices for minimizing the TCs of the PH project considering their own attributes and external constraints. A Bayesian Belief Network model was applied as the analytical method, based on surveys conducted in China. A single sensitivity analysis indicated that developers influence the TCs of PH through the following three most impactful factors: prefabrication rate, PH experience, and contract payment method. Integrated strategies are recommended for developers in various situations based on a multiple sensitivity analysis. Developers facing challenges due to high prefabrication rates are advised to reduce the risks by procuring highly qualified general contractors and adopting unit-price contracts. For developers with limited PH experience, adopting the Engineering–Procurement–Construction procurement method is the most efficient way to reduce their TCs in the context of China’s PH market. This study contributes to the current body of knowledge concerning the effect of traders’ attributes and choices on TCs, expanding the application of TC theory and fulfilling the study on the determinants of TCs in construction management.

Critical factors influencing the cost in engineering–procurement–construction (EPC) projects: A case study of prefabricated buildings (PBs) in China

Prefabricated buildings (PBs) are a new type of building construction, which are less time-consuming and cause low environmental pollution and resource consumption. They play an important role in industrialized construction and clean production and have gained worldwide attention. However, the high construction costs have become a major obstacle to their popularity and application. This study investigates the factors influencing construction costs of PBs in China using a systematic literature review (SLR), fuzzy interpretive structure modeling (fuzzy ISM), and the Matrice d’Impacts croises-multiplication appliqué an classment (MICMAC) technique. First, 32 influencing factors were identified from the SLR. Second, out of which 16 critical factors were selected and mapped in a hierarchical model through semi-structured interview screening, and the MICMAC technique was used to classify the cost-influencing factors of PBs into different categories. The results revealed that all identified factors played pivotal roles in various capacities and influenced the cost of PB construction. This study may assist administrators and policymakers in better understanding the factors that influence the costs of PBs construction to manage and reduce them.

Leveraging Capitalization for Enhanced Project Delivery in the Nigerian Construction Industry: A Sustainable Risk Management Approach

The Nigerian construction industry grapples with challenges such as low profit margins, cost overruns, and project abandonment, necessitating robust risk management strategies. This study investigates the impact of capitalization on sustainable risk management within large construction firms in Nigeria. Data from 198 firms were collected via questionnaires, interviews, and secondary sources, revealing significant benefits of capitalization including increased turnover, risk reduction, and improved image. The findings underscore the importance of integrating risk management evaluation into construction procurement processes to optimize project delivery. This research contributes to the discourse on sustainable development in the construction sector by advocating for strategic capitalization as a means of mitigating risks and enhancing project outcomes. Keywords: Capitalization, project delivery, risks, risk management, sustainability

Interplay of Green Construction Procurement and Logistic Service Innovation: Advancing Sustainable Economic Growth and Sustainable Development Goals

This paper seeks to explore in great depth the green construction procurement influence to green logistic services, creative activities as well as their general contribution towards economic sustainable growth. Quantitative methodology was used in this study where data collection was through survey to the engineers and project managers under construction projects. The study, hence, critically tempts to examine towards environmentally responsible procurement enhanced services towards transportation as well as the developments of new and sustainable solutions in detail.The major findings indicated towards a high significant correlation between green procurement practices and enhancement of green logistic services particularly in sustainable material handling and transportation. Moreover, green purchasing is shown to considerably boost sustainability-related product and process innovation. The research points out the need for green logistic services in contributing to Sustainable Development Goals (SDGs) through the green construction procurement and emphasis on management and innovation of the services effectively.The study identifies that self-administered surveys limit inclusion while focus within a specific demographic creates further limitation, thus suggesting necessity for further research to understand the long-term effects of green procurement and logistics over SDGs.

Revamping established project procurement approaches to support BIM implementation

PurposePrevious studies have established to a great extent that regulatory frameworks and, in particular, procurement approaches – that are common in a particular context – have a major impact on the success of building information modelling (BIM) implementation in construction projects. Despite the close links between these two concepts, research on the effect of procurement approaches on BIM implementation is scarce. To address this gap, this paper aims to investigate the barriers that affect BIM implementation through the lens of procurement approaches.Design/methodology/approachA mixed-method approach was adopted using a questionnaire survey (n = 116) and interviews with key stakeholders (n = 12) in Jordan. The outcomes of the quantitative parts were augmented with findings from interviews.FindingsIt was revealed that the deployment of unfavourable construction procurement approaches represents a major hurdle towards BIM implementation. Though essential for enhancing BIM implementation, it is revealed that a fundamental change from the common design-bid-build (DBB) to more collaborative procurement approaches remains infeasible in view of the realities that govern the construction industry.Research limitations/implicationsIt was revealed the deployment of unfavourable construction procurement approaches represents a major hurdle towards BIM implementation. Though essential for enhancing BIM implementation, it is revealed that a fundamental change from the common DBB to more collaborative procurement approaches remains infeasible given the realities that govern the construction industry.Originality/valueAs the first of its kind, a set of recommendations for establishing supportive, workable procurement that does not deviate significantly from common procedures and practices is presented. Rather than advocating a shift to procurement approaches that are aligned with BIM, the findings offer novel insight into the necessity of developing a framework within the boundaries of the current and widely adopted procurement approaches to address the identified construction procurement issues and facilitate BIM implementation.

Decision‐Making Evaluation and Optimization Strategies for Construction EPC Project Developers Utilizing BIM Technology

In the context of the advancing construction engineering field in China, there has been a significant increase in the adoption of building information modeling (BIM) technology within engineering–procurement–construction (EPC) projects. This emerging technology is expected to significantly influence the decision‐making practices of professionals in the construction and engineering domain. Consequently, there is an urgent need for comprehensive research focused on construction management specifically pertaining to the effectiveness of construction developer management. This study examines seven representative EPC projects where BIM technology was implemented and it considers various factors that have the potential to influence project decision‐making while taking into account time and cost considerations. A comprehensive multidimensional evaluation method that combines the analytic hierarchy process (AHP) and the fuzzy comprehensive evaluation method is introduced in this study. The results of this study emphasize that the efficiency enhancement strategies derived from the judgment indicator method demonstrate favorable practical outcomes. This research highlights the importance of a comprehensive evaluation method combining the AHP and the fuzzy comprehensive evaluation method to enhance decision‐making efficiency for construction developer management staff.

Research on Risk Management of Engineering Projects under EPC Mode

As a typical type of general contracting model, EPC (Engineering Procurement Construction) refers to the full process general contracting carried out by the contractor on behalf of the owner, in accordance with the agreement, for the design, procurement, construction and other stages of the engineering project. Compared to other modes, the EPC general contracting mode also faces more risk, with risk factors in each link. This article conducts research on the risk of engineering projects under the EPC mode, mainly analyzing the characteristics of the EPC mode and the risk problems existing in the EPC general contracting mode. It proposes relevant countermeasures to strengthen the risk management of EPC general contracting projects from four aspects: contract, design, procurement, and construction, providing a certain reference for the risk management of EPC projects in construction enterprises.