Ideal Construction Procurement System based on Transaction Cost Approach
Journal Title: International Journal of Academic Research in Business and Social Sciences - Year 2018, Vol 8, Issue 1
Abstract
Procurement system provides an avenue for bringing together various service providers in a construction project, and for identifying and fulfilling the priority needs of the client for procuring the building or facility. Thus, it is critical that by making the right choice of a procurement system at the onset would indirectly ensure successful project delivery with satisfaction by all parties involved. There have been many attempts made to develop various model to assist in the decision making and selection of appropriate procurement system and most of the models are developed based on clients’ objectives and preferences and influenced by the project constraints. However, none of the previously established models give detail consideration on the cost aspects especially the hidden cost apart from the production cost. Therefore, the Transaction Cost Theory is appropriate to be applied in every phase of construction project and most importantly the application of this theory can become the basis of the clients in selecting the most ideal procurement system to be adopted for their construction projects. Unfortunately, Transaction Cost Theory is unknown and the awareness on application of Transaction Cost Theory in construction project among the industry players is very minimal. In fact, in Malaysian context, so far there is limited study done to relate the Transaction Cost Theory to any aspect of construction fields. The purpose of this research is to identify the common transaction cost incurred in different types of procurement system i.e. Traditional and Design and Build; to develop a framework in selecting the ideal procurement system based on the Transaction Cost Theory approach. Investigations would be limited to the views expressed by professional consultants in Malaysia. Structured questionnaires and expert interview will be conducted as data collection methods. Content analysis, multi-attribute analysis and rank correlation test will be used in the analysis of the data.
Authors and Affiliations
Wan Norizan Wan Ismail, Siti Sarah Mat Isa, Norhafizah Yusop
Keywords
Related Articles
- EP ID EP530311
- DOI 10.6007/IJARBSS/v8-i1/388
- Views 63
- Downloads 0
Recruitment Policies and Politics in the Local Government Administration: Implication for the Achievement of Universal Basic Education as a Sustainable Development Goal in Nigeria
The abysmal performance in Nigeria’s public service today, particularly inthe teaching profession at primary education level is largely traceable to politicization of recruitment and selection of staff devoid of merit-ba...
Domestic Affairs Influence on Malaysia’s Relations with Saudi Arabia and Iran
Recent development shows that diplomatic relations between Malaysia with the two biggest economic players in Arab-Persian Gulf, Saudi Arabia and Iran, has been growing. There have been active engagements between Malaysia...
Attitude towards Counterfeit of Luxury Brands: A Research on Consumers in Turkey
Production and purchase of counterfeits are increasing in Turkey. Trade in counterfeits has reached record levels since counterfeiting is a significant economic phenomenon. Consumers mostly prefer such products mainly be...
Tactics to Restore Damaged Customer Relationship after Negative Events
Negative event about companies is widespread in media recently. Corporate image, trust and customer relationship of an organization can be damaged once negative media publicity is spread in the marketplace. How to restor...
Emerging Challenges of HRM in 21st Century: A Theoretical Analysis
Human Resource Management discipline extracted its roots from organizational psychology discipline and proved to be an important practice for managing organizations. The role of this practice has emerged to be strategic...