Project Procurement Research Articles

Implementing the HEVC standard in software

Implementation and use of an IT standard in software involves legal, technical and societal challenges. This paper addresses how an organisation can, and should, determine the conditions for implementation and use of the HEVC standard in software. The investigation considers the availability of the standard’s complete technical specification and the extent to which an organisation can access the information necessary to assess the licence conditions for standard essential patents impinging on the standard. Through an action case study approach the investigation analyses declarations in patent databases relevant to the standard and seeks to obtain patent licences from each declarant permitting implementation of the standard in software, where that software is to be provided under one (or several) of three specific open source software licences, and alternatively to be provided as an online service. Our analysis of legal and licensing conditions for use of the standard shows significant obstacles. We find that it is impossible to obtain licences from patent holders that would allow for implementation and use of the standard in open source software. The paper illuminates significant challenges related to conditions for use of the standard under (F)RAND terms and identifies that references to the standard in public procurement projects lead to anti-competitive effects.

Dispute Occurrences During Construction Stages of Building Project: A Systematic Literature Review

Disputes arise during construction phases have a negative impact on the outcomes of projects. It is widely known from earlier studies that dispute is one of the factors contributing to the abandonment of building projects in Malaysia. Thus, there is a need to investigate the root causes of it because it leads to delay which affects the overall project performance and loss of money. The study on this research domain in Malaysian construction projects has only been conducted in the general context of the construction industry, without specializing in any specific type of projects or focusing on the phases of project. Hence, this paper aims to investigates the occurrences of dispute throughout the entire process of building construction project based on the traditional approach of project procurement, i.e., starting from the initiation stage until the defect liability period. This study was using systematic literature review and was conducted through searches of relevant publications from multiple electronic sources to review information using specific criteria. The results were presented in two major themes to serve as a theoretical base for the development of framework to minimise occurrence of construction dispute in building projects.

Impact of Traditional Procurement System on Construction Project Delivery

Poor project performance issues have been a problem in the construction industry. A large number of projects have failed to meet their goal as a result of the choice of procurement adopted. The traditional method is the commonly used procurement method in the construction industries of the world, and its sequential and linear nature has serious implications on project time, cost and quality baseline performance. The purpose of this study was to determine the impact of the traditional procurement system on construction project delivery. The specific objectives of this study were; to assess the influence of the traditional procurement system on construction project parameters, and to determine the factors responsible for the poor bottom lines of traditionally procure construction projects. This study was achieved using a structured questionnaire administered to construction experts using a purposive sampling method. With a reliability index of over 0.800, the data gathered were analysed using appropriate descriptive tools. It was found that projects delivered through the traditional procurement system have the greatest impact on project time parameters, more on cost and quality parameters. Also, poor time, cost and quality performance are caused by major factors such as rework, poor original planning/unrealistic scheduling, poor communication among project participants, lack of competent staff and inadequate proper training of available staff, and design and documentation issues. Project clients and consultants should be careful in project procurement selection to ensure that maximum value and goals are met

Resource allocation in power-sharing arrangements – evidence from Lebanon

Power-sharing arrangements allocate not only political power but also economic resources from valuable state functions among powerful elites. Two broad hypotheses emerge from the existing literature regarding how elites allocate such resources: elites either distribute the control over valuable institutions or share the rents they generate. This article investigates which mechanism prevails by focusing on a major source of such resources: public procurement of large infrastructure projects. We analyse an original data set of infrastructure procurement contracts in Lebanon and investigate which politically connected firms receive larger contracts than non-connected firms. We find that firms receive inflated contracts only when they are connected to elites with a ‘seat at the table’ at the board of the implementing agency, rather than the wider set of powerful political elites. We argue that resource distribution depends on elites’ access to important institutional functions, rather than other conceivable mechanisms of resource sharing. By penetrating key positions with loyal personnel, elites serve as brokers in collusive networks, or cartels, that succeed in undermining a process as complex as infrastructure procurement.

Procurement challenges in public-sector agricultural development projects in Bangladesh

The purpose of this paper is to identify and evaluate the key challenges to project procurement in public-sector agricultural development projects in Bangladesh. Being exploratory in nature, the study applied the modified Delphi method, the best worst method (BWM), and the interpretive structural modelling (ISM) approach sequentially for the investigation. Ten key procurement challenges were identified and validated through the use of a literature review and two rounds of modified Delphi with the input of 15 experts in the field. Then the BWM was applied to assess the responses of eight industry experts to estimate the relative importance of the challenges. After that, a second panel of ten experts was interviewed using ISM to look at the contextual relationships between the challenges. This led to a four-layer interpretive structural model and MICMAC (cross-impact matrix multiplication applied to classification) analysis of the challenges. Among the 10 key challenges, ‘lack of competent procurement staff’ is found to be the most significant challenge; whereas, based on the inter-relationships among the challenges, ‘political influence’ is identified as the most influential challenge. As a result, it is recommended that relevant professionals and policymakers address these challenges in terms of their relevance, relative dependencies, and influences in a holistic manner. This study addresses a knowledge gap by offering a thorough investigation of the challenges associated with public-sector agricultural project procurement in a developing country’s context. This makes it useful for professionals in the field, academics, policymakers, and future researchers.

Project cost performance factors in the war-affected and conflict-sensitive Afghan construction industry

PurposeThe Afghan construction industry faces resource shortages and heavily relies on foreign aid to fund public projects on the path to recovery and reconstruction. While the resource constraints demand cost-efficient delivery of construction projects, many Afghan public projects experience delays and cost overruns. This study aims to evaluate various attributes and factors influencing cost performance in public construction projects in Afghanistan.Design/methodology/approachThe literature review and Delphi method identified 30 cost performance attributes relevant to the context of Afghanistan. Next, a questionnaire survey was conducted with construction management professionals working in the public sector in the Afghan construction industry to evaluate these attributes.FindingsThis study found that the lack of resources, poor project management skills and corruption in procurement are the leading causes behind cost overruns in Afghan public projects. This study also identified five latent factors influencing cost performance in public projects in Afghanistan: competency of the project team, socioeconomic and political support, governance and public procurement, planning and risk management and project characteristics.Research limitations/implicationsThe exploratory factor analysis did not reveal the relative significance of different cost performance success factors. Moreover, the ranking of cost performance attributes is based on the responses from the public sector construction professionals only.Practical implicationsThe construction industry in Afghanistan significantly contributes to the country’s social and economic growth and employment. This study’s findings will help researchers, project sponsors, government departments and industry practitioners interested in improving the cost performance in Afghan public projects.Originality/valueGiven the scarcity of research in war-affected and conflict-sensitive regions, this study fills a research gap on project cost performance by providing insights into the cost performance success factors in public projects in Afghanistan.

Postaward Construction and Contract Management of Engineering, Procurement, and Construction Hydropower Projects: Two Case Studies from Uganda

The current economic and infrastructural growth in developing countries has triggered the use of multiple forms of alternative contracting methods (ACMs)—including engineering, procurement, and construction (EPC)—in various public sector projects. However, the relative lack of in-depth experience in using EPC contracting methods among public agencies has presented numerous problems. To this end, the goal of this research is to identify the broad postaward construction and contract management (PA-CCM) challenges associated with EPC projects in developing countries using two major infrastructure hydropower projects in Uganda as case studies. A systematic literature review was first conducted to establish a preliminary list of challenges. Afterward, case study data were collected by examining project documentation, conducting site visits, and holding semistructured interviews. The results of this study offered a total of 73 PA-CCM challenges that were categorized into seven different themes. Also, 14 critical lessons learned were identified to better enable stakeholders to mitigate potential problems and promote improved performance for their EPC projects. The outcomes of this paper serve as a pivotal foundation for construction practitioners and future scholars to develop effective mitigation strategies for the challenges associated with EPC contracting methods in developing countries.

A Systematic Review of the Delphi–AHP Method in Analyzing Challenges to Public-Sector Project Procurement and the Supply Chain: A Developing Country’s Perspective

The effectiveness of public-sector agricultural development projects in developing countries lies not only in their contributions to agricultural sector growth but also in their contributions to environmental and socioeconomic system growth. As a result, the challenges associated with project procurement and supply chain management need to be carefully analyzed and evaluated. Although there has been reasonable literature on procurement and supply chain management, the limitations include the following: The literature, especially focusing on the analytical methodology, is scarce, as is the case with the developing country public-sector project context. This study, in its own modest way, contributes to this gap. Thus, the goal of this paper is to critically examine the Delphi and/or analytical hierarchy process (AHP), as well as their application and appropriateness in analyzing the challenges in the Bangladesh context, from relevant literature published between 2000 and 2019. A systematic review was carried out using the ABI/Inform, EBSCO, Google Scholar, and Science Direct databases for the study. The review of 2071 articles yielded 37 articles for the study. The Delphi and/or AHP were the most applied tools found in the review. Finally, the study examined 18 articles that applied Delphi and/or AHP methods. The review findings contribute to the literature by providing academics and practitioners with an understanding of the appropriateness of the Delphi-based AHP research framework for analyzing challenges to procurement and supply chain management in public-sector agriculture projects. Following that, a novel best-practice research framework based on the Delphi–AHP method is presented.

The procurement and supply chain strengthening project: improving public health supply chains for better access to HIV medicines, Uganda 2011–2016

BackgroundWith countries moving towards reaching the UNAIDS 90-90-90 goal to achieve HIV epidemic control, there are going to be an unprecedented number of persons who will need to be tested, treated, and regularly monitored for viral suppression. However, most of the countries with the greatest burden of HIV/AIDS experience regular stock outages which could be detrimental to reaching these targets. ART and other commodities such as HIV test kits and laboratory supplies need to be readily and consistently available to achieve these targets. The main objective was to improve access to HIV/AIDS related commodities and strengthening institutional capacity for the management of HIV/AIDS logistics services through the MAUL procurement and supply chain strengthening project (PSSP) that rolled out four interventions on mentorship and support supervision, stock level monitoring, spatial visualization of stock indicators using GIS, and using WhatsApp to submit order reports as photo images.MethodsMedical Access Uganda Limited, a private-not-for-profit supply chain management company in Uganda, implemented these interventions as part of a procurement and supply chain strengthening project (PSSP). These interventions were evaluated using performance monitoring indicators from 2011–2016. We tested for the significance in the change in scores of performance monitoring indicators using the test for difference in proportions. Health facilities were scored on 6 categories and accredited as bronze, silver or gold based on their total scores. Kaplan–Meier estimates were computed for time to silver, and gold ranking and univariate and multivariate Cox proportional hazards models were computed for time to gold ranking.ResultsWe observed a significant reduction in reported stock-outs from 46 to 4% (p < 0.001) in the analysis period. Accurate stock card inventory rose from 79 to 91% (p < 0.001); adequate stock levels rose from 54 to 71% (p = 0.002) and stock reporting rates from 91 to 100% (p < 0.001). The stock order fill rate improved from a high of 93% to 97% (p = 0.375). Patient load (medium vs low adjusted hazard ratio (aHR): 2.19, p = 0.026; high vs low aHR: 2.97, p = 0.034) and number of support supervision visits (6–10 aHR: 3.33, p = 0.024; > 10 aHR: 5.78, p = 0.003) were associated with better stock management ranking scores.ConclusionsImprovements in supply chain management in countries committed to achieving the 90-90-90 goals are crucial to achieving HIV epidemic control. Health system strengthening and mentorship investments in Uganda were feasible and are essential for sustainable disease control efforts.

Optimal Buyer Credit Arrangements for Chinese Procured Dam-building Projects: An Iranian Perspective

Dam-building projects in Iran procured under buyer credit arrangements from foreign providers experience high rates of construction stoppages. An understanding of the financial and technical issues that give rise to problems is needed. This study provides an analysis of internal and external factors impacting Iran's bank-to-bank buyer credit-based dams procurement process. By way of TOWS matrix, optimal strategies in such procurement arrangements are identified. Data supporting the matrix are extracted through focus groups comprised of industry experts. Findings facilitating a better dams procurement process include: 1) formulation of an execution structure comprising comprehensive control, management, and implementation; 2) utilization of an omnibus buyer credit dispute review board involving financial, legal and technical representation; and 3) comprehensive stakeholder participation. Strategies identified are applicable at addressing ongoing challenges regarding off-shore dam project procurement, both from the viewpoint of host country and international provider.

Fuzzy TOPSIS framework for promoting win-win project procurement negotiations.

In recent years, organizations worldwide have widely applied the project approach in business and value delivery. Negotiation is essential to the success of a project; however, it has not been explored systematically in the project context. A gap remains between knowledge and practical behavior during negotiation settlements throughout projects. Many project procurement (PP) negotiations do not work as expected. This study develops a practical framework using the scientific method to help close the gap and improve PP negotiations. The proposed framework uses the fuzzy TOPSIS (technique for order preference by similarity to ideal solution) method to integrate the PP management process (PPMP) and the three-phase negotiating model. Through this approach, notable variables and potential solutions under uncertain negotiation situations are quantitatively examined in the early stage and managed until the completion of PP. Thus, expected agreements can be obtained in a timely and efficient manner, with negotiating parties committing to implementing what has been agreed on. Such a commitment facilitates win-win outcomes. An example is presented to demonstrate how the proposed framework operates, and practical implications for managers of project-based organizations are offered. This study provides researchers and practitioners with a foundation to study refined models to enhance project negotiations with interdisciplinary integration.

Reforming procurement standards in order to effectively deliver public infrastructure: Rethinking the regulatory environment in post-pandemic South Africa

This research study identifies a specific layer of regulation within the governance regime which is a key factor impeding the procurement and delivery of public infrastructure in South Africa. We first identify current weaknesses of conflict and confusion at the level of soft law in the procurement and delivery of public infrastructure projects. Then we present a detailed case study of a successful South African megaproject (the procurement and delivery of the public infrastructure for two new universities, the New Universities Project) to demonstrate that these weaknesses can be avoided. The research note’s regulatory account focuses on the key element of quality in the South African public procurement regime, distinguishing that concept from the often conflated notion of value-for-money. We discuss how the problems identified could be addressed by means of changes to soft law prior to the finalisation of the current and ongoing public procurement legislative reform process.Contribution: Through a case study of the on-time and with-budget public procurement and delivery of two new universities for South Africa, the article demonstrated that national policy on public infrastructure can be successfully implemented, with attention to the key soft law layer of regulation.

Possibility of Sustainable Entry into Overseas Port Operation Markets by Japanese Companies

The Japanese government has set an overseas infrastructure deployment policy to involve Japanese companies in all upstream to downstream processes, that is, from project formation, procurement, and construction to operation and maintenance. Although Japanese companies have been hitherto involved in overseas port development through Official Development Assistance, their entry into overseas port operation projects has been limited, meaning the realization of the policy is not expected to be easy. This study thus examines the possibility of sustainable entry into overseas port operation markets by Japanese companies. Specifically, we review port governance in Japan, characteristics of the Japanese market in the global market, and the status of the participation of domestic terminal operators in Japan and overseas, and then identify the possibilities and methods of sustainable inclusion in the future overseas port operations by interviewing representative companies and the government. We finally provide future directions in terms of both increasing entry opportunities and improving the entry environment.

Le rôle de la gestion des approvisionnements sur la performance du projet: Étude de cas d’un échantillon de projets de construction de la wilaya de Constantine

The project manager often seeks to identify methods that will help him get better performance from his project. As a contribution in this regard, this article reports a theoretical conceptual framework that illustrates the relationship between procurement management and project performance based on procurement stages such as planning, execution and the closure of the project in order to know what is the nature of relationship that may have existed between each stage of the procurement and the performance of the project. At the same time, an investigative process was adopted to shed light on the reality of this relationship in the construction projects of the city of Constantine. We arrived at several results, among them: despite the project managers respecting the axes of the project planning and archiving the information of the project during its closure for future use, most of the projects are not delivered within the planned deadlines, even the expenses that are spent to carry out the projects are not in accordance with the planned (planned) budget. This may be due to the absence of a control system that keeps track of the requirements and expectations of the customers agreed in the specifications.

A Study of Design Change Management for Infrastructure Development Projects in New Zealand

Design changes seem to be an inevitable part of engineering, procurement and construction EPC projects. Such changes create a need for a proactive approach to adjusting project scope, cost and time (the triple constraints) for efficiency and effectiveness in overall delivery. This study investigates the causes and implications of design changes in order to improve design change management practices. Data for the study were obtained through online interviews with New Zealand industry practitioners. Thematic analysis was used to collate the results into meaningful data. The study found that design changes were predominantly caused by clients’ inadequate strategic planning, insufficient attention to design, EPC contractors’ inadequate design ability, and on-site variations. There were three categories of such design changes: direct impact on the project, the reciprocal and complementary effect on stakeholders, and the far-reaching impact on the community. The study concludes by suggesting improvements, such as strengthening the integration of project teams to enhance design quality, strategic alignment of stakeholders at the planning stage, early contractor involvement (ECI) between the planning and design phases, and improving collaboration between design and construction teams. Further, a combination of high technical skills (e.g., design ability) and soft skills (can-do attitude, interpersonal skills, problem-solving skills, documentation skills, etc.) are needed to generate the desired improvement in design change management.

Decisive factors for decision-making to achieving sustainable procurement in construction projects

PurposeThis study aimed at determining the decisive factors for achieving sustainable procurement in construction projects.Design/methodology/approachQuestionnaire survey of principal stakeholders involved in construction project delivery within client, consulting and contracting organisations in Nigeria were conducted to assess stakeholders' perspectives on the decisive factors for achieving sustainable procurement in construction projects using importance weights. A total of 243 questionnaires were distributed and a response rate of 51% (123 questionnaires were adequately filled and returned) was achieved. Descriptive and inferential statistics were utilised in analysing elicited data.FindingsThe results from data analysis showed that “satisfaction – including workforce satisfaction and user satisfaction”, “value for money” and “creating a healthy, nontoxic environment – including high indoor air quality” were the top most three decisive factors for achieving sustainable procurement in construction projects in Nigeria.Originality/valueAn understanding of these decisive factors can help principal stakeholders in the construction industry of developing countries to facilitate the development of methods required in supporting the adoption of sustainable procurement practice.

Coordination of Configurations of Technologically Integrated “European Green Deal” Projects

An analysis of the state of affairs in the theory and practice of implementation of technologically integrated projects in various applied fields was carried out. The peculiarities of the implementation of the technologically integrated projects of the “European Green Deal” for the production of ecologically clean fuel from agricultural waste were analyzed. The expediency of developing a method of coordinating the configurations of technologically integrated “European Green Deal” projects for the production of ecologically clean energy from agricultural waste on the territory of a given region, taking into account their specific project environments, was substantiated. As a result of the conducted research, a method of coordinating configurations of the technologically integrated “European Green Deal” projects for the production of ecologically clean energy from agricultural waste in the territory of a given region, taking into account their specific project environment, was developed. This method involves the implementation of five stages, which ensure consideration of the specific design environment of each region and the type of agricultural raw materials for energy production. This method involves the modeling of individual projects, which makes it possible to increase the accuracy of determining their value indicators, taking into account risk. The balancing of the technologically integrated projects of the “European Green Deal” for the production of clean energy from agricultural waste was carried out on the basis of maximizing value for stakeholders and minimizing risk. On the basis of the proposed method, the computer program “Balancing technologically integrated projects” was developed. The use of this computer program for the given project environment (conditions of LLC “Lutsk Agrarian Company” of the Volyn region, Ukraine) made it possible to forecast the specific value and risk of individual projects involving harvesting raw materials from corn waste. The statistical characteristics of the distribution of the projected specific value of the project of harvesting raw materials from corn waste were established: the estimate of mathematical expectation—EUR 9/ton; dispersion—EUR 25/ton; the estimation of root mean square deviation—EUR 5/ton. The technologically integrated projects of the “European Green Deal” for the production of ecologically clean energy from corn waste with the greatest interconnections in terms of value were identified. The ranking of raw material procurement projects from corn waste was carried out according to their specific values and risks. Among the considered projects, priority was given to project #7 and project #1, which provided the greatest values, 37.6% and 36.6%, respectively, of the total value of the considered projects. The obtained results made it possible to establish priority projects and carry out their balancing by value and risk.

Risk Assessment in Building Construction Projects

Risks have a large impact on the budget, schedule, and a building project's quality. As the magnitude and complication of the project grows, the ability to control risk throughout the building process has become critical in preventing unplanned consequences. The high-quality procurement and the element of the corresponding agreement terms influence how risks are divided among project players to a great extent. As a result, project players must choose the best project procurement alternative. This dissertation's main objective is to not only assemble a table of building construction hazards, but also to identify the most important risks that can have a great influence on construction and mitigation methods. Assess and identify the most suitable countermeasure for the construction field in order to minimize hazards in future projects. The post-project appraisal method is applied in this dissertation to discover the list of hazards involved with the construction field. The questionnaire survey was conducted at several building projects, and the results were analysed once the survey was completed. The RRI method (Relative rank index) filters the response. Following this strategy, the AHP (Analytic Hierarchy Process) method is used to obtain more precise factors that affect project risk. The risks were discovered as a consequence of the analysis, and recommendations were made.

Analisis Proses Underwriting pada Produk Kafalah Pembiayaan Surety Bond di PT Penjaminan Jamkrindo Syariah Cabang Medan

The purpose of this study was to determine the Underwriting Process for the Surety Bond Financing Kafalah Product at PT Penjamina Jamkrindo Syariah Medan.This creates a healthy competitive environment between contractors and prevents the emergence of an unfair competition climate, such as monopoly, which may be carried out by principals/contractors with very large sums of money. Equitable regional development across Indonesia may result in a just and successful society, and it is inextricably linked to development projects. In Indonesia, a presidential edict stipulates that any development project procurement must not only satisfy administrative requirements, but also give assurances. PT. Jamkrindo Syariah is one of the insurance businesses that may provide surety bonds. To get a surety bond guarantee, the principal must submit the required papers to PT. Jamkrindo Syariah, which must then go through an underwriting procedure to assess whether the project is feasible. If possible, a policy will be given; otherwise, PT. Jamkrindo Syariah will send the principal a refusal letter.&#x0D; Keywords : Surety Bond, Underwriting

Trust and Trustworthiness in Procurement Contracts with Retainage

In complex procurement projects, it is difficult to write enforceable contracts that condition price upon quality. Supplier nonperformance becomes an acute risk, particularly when there is intense competition for the contract. An established incentive mechanism used to mitigate the problem of supplier nonperformance is retainage, in which the buyer sets aside a portion of the purchase price. After project completion, the buyer determines the amount of retainage that is released to the seller, considering any defects that arise. Although generally a feasible contract form to implement, the practical difficulties in assessing completion introduce a moral hazard for the buyer. We develop a structurally new game and experimental design to offer managerial insights on how retainage principles mediate trust and trustworthiness in competitive procurement settings with moral hazard. The experimental results suggest that if trust in the procurement relationship is strong enough, then retainage can mitigate the seller-side moral hazard problem and substitute for reputation in a fragmented supply chain at the cost of inflated tender prices. In high retainage structures, there is a tradeoff between trade efficiency and supplier participation in request for bids. We further develop a model of fair payment norms and offer managerial insights on how to design the retainage mechanism, conditional on prevailing levels of trust and beliefs about fairness. This paper was accepted by Vishal Gaur, operations management. Funding: This work was supported by the Economic and Social Research Council [Grant ES/R500963/1]. Supplemental Material: The data files and online appendix are available at https://doi.org/10.1287/mnsc.2022.4516 .