THE INFLUENCE AND THE COMPARISON OF TURKISH PROCUREMENT SYSTEMS ON CONSTRUCTION PROJECT PERFORMANCE

Abstract

Procurement system is the invisible part of the construction project organizations and has an important effect to maximize the project performance. It rather concerns the management of the construction project process and participants to reach the common goals of completing the project under the budget, quality, and timeframes. There is a wide range of procurement systems that can be used to manage the construction of a project. Design-Build, Traditional and Turnkey procurement systems, which contain Lump Sum, Unit price and Cost plus a fee contract types and methods, are mostly used procurement systems in the Turkish construction industry. Each of these systems has its advantages and disadvantages which the owner must consider before the project begins. The evaluation of procurement systems and to select the right system is a complex decision problem and depends on many factors for the owner. Factors that the owner should consider are the complexity of the project, the relative importance of budget or schedule and the in-house expertise the owner has to manage the project. Within this study, a survey was conducted with some of the construction project owners in Turkey. The objective of this study is the empirical performance-based investigation of the procurement systems mostly used in the Turkish construction industry today. Another goal is to determine the influences of these procurement systems on project cost, time and quality factors in Turkish construction sector and to determine the extent of these systems that are covering the needs of project owner (client).