ABSTRACT

The idea for this research project into the costs of procurement in the construction industry was born at a time of great interest throughout the industrialized world in the development of innovative working practices in the management of the commercial processes of the construction industries. The new thinking included new methods of financing projects, such as the development of PFI (PPP); new methods of procurement and new collaborative working practices. These were sometimes introduced as separate innovations but in many cases there was a combination of two or three of the developments in one project or group of projects. One of the changes taking place was the increasing involvement of the client in the movement for change, not only in the public sector, but also by the private client organizations with long term construction programmes. The impetus for change was so great that it seemed that a new era was dawning in the commercial arrangements for contracting, replacing the largely confrontational and adversarial approaches of the past. There had been a considerable amount of discussion on the advantages of the new methods of working, both realized and anticipated, in terms of a better or cheaper product or faster delivery times. However, there was very little consideration on the costs of procurement throughout the whole construction process.