Contracts and procurement methods in the construction industry

Abstract

The aims of this study were to examine the theoretical procurement methods and standard forms of contracts that exist within the construction industry. As an exploratory study, the dissertation developed through the collection of primary and secondary data. The primary data consisted of interviews with a variety of industry professionals. The secondary data was collected through academic research which focused on the selection of contracts and procurement methods, the management, assessment and division of risk in construction projects, the role of the project management team, with an emphasis on the initial phases prior to construction and also on the economics of a construction project. The results who that although a large number of standard forms of contract and procurement methods are in existence, only a limited number are used locally, namely amended versions of the standard form of contract FIDIC. The most common procurement methods in use is the re-measured method however on occasion the design and build method is adopted. These findings clearly indicate that the specifics of the project are rarely taken into consideration during the selection of contracts and procurement methods. The study concludes with recommendations, observations and conclusions about the collected data and the shortcomings of the local practices.