The determinants of the traditional procurement method

Abstract

Selecting a suitable procurement strategy is becoming an increasingly important issue due to a dynamic decision-making process that customers must take early in the project lifecycle. The objective of this work is to investigate and strengthen the procurement system to achieve sustainable development in the construction industry by identifying, evaluating and ranking absolutely crucial factors affecting traditional procurement method selection. The data was collected from Deputy General Manager (DGM), Assistant General Manager (AGM), Project Directors (PD), Chief Engineer(CE), Procurement experts and consultants using the structured questionnaire. 90 respondents were response to this study from 11 construction companies/firm in Trincomalee, Battcaloa and Ampara district in the Eastern Province of Sri Lanka. The collected data was analyzed using the Statistical Package for Social Sciences (SPSS Version 20). Initially, the reliability and the validity of the data was analyses and the result showed the collected data was fit for further analysis. Consequently, correlation and regression analysis were carried out the result revealed that there is a significant positive correlation between independent variables such as Client, Project Characteristics, External Environment with traditional procurement method whereas Cost, Time and Risk has a negative significant relationship with traditional procurement method. Further found that open tendering method preferred by most of the respondents in Eastern Province in Sri Lanka. Also, found that it is no significant difference for selecting the traditional procurement method among the different level of employees such as Deputy General Manager (DGM), Assistant General Manager (AGM), Project Directors (PD), Chief Engineer(CE), Procurement experts and consultants. Further, Client, Project Characteristics, External Environment Cost, Time and Risk has a significant impact on the traditional procurement method.