Improving Construction Procurement Systems using Organizational Strategies

Abstract

Numerous types of construction procurement systems have been developed for project implementation. However, previous studies have not focused on subsequent managerial strategies and the project organizational forms to be adopted towards the selected procurement system. This research proposes that further managerial theories are required to enhance the project performance and effectiveness. Therefore, this paper aims to extract the principles of projectized and nonprojectized organizations and incorporate them with the selected procurement systems at the project level. A mechanism for assessing the key areas of compatibility was developed using the well established McKinsey 7 S model. The paper shows that the characteristics of the organizational principles are complementary with the procurement systems. It contributes an insight for future strategic organization and management at the project level in construction.