Key procurement selection criteria of Auckland interior fitout clients: An empirical study

Abstract

Over the past twenty years the construction industry has developed a myriad of alternative procurement routes to offer its clients. As a result of this vast quantity of options it has become imperative that construction industry clients utilise a set of well defined criteria or parameters to assess the merits of the various procurement routes available. The interior fitout sector is characterised by its tight time frames, challenging work environments where construction operatives often have to work around fully functioning offices, tight budgets, the prevalence of third parties in the form of building managers and tight budgets. Relatively little prior research has been conducted into the specific procurement selection criteria of Auckland interior fitout clients. This study’s objectives are to evaluate how influential pre defined procurement selection criteria or parameters are on the procurement decisions of Auckland interior fitout clients. The results obtained from this study will then be partially compared to the results of a similar study conducted in Australia (Thanh Luu, Thomas, & Chen, 2003). A semi structured interview incorporating a questionnaire facilitated the collection of specific data addressing backgrounds of respondents, current procurement selection practices, influence of 34 procurement selection parameters in terms of procurement decision making and open ended questions around overall impressions of construction procurement. The results show that cost related criteria and time related criteria are by far the most influential parameters in terms of procurement decision making. The findings of this study support the findings of numerous previous studies that time and cost are the primary initial indicators of project success of failure and therefore most prevalent in procurement decision making. Furthermore results from this study suggest that interior fitout clients utilise consultant advice to determine a procurement path. Responses to open ended questions indicate contradictory thinking amongst research participants as the same clients who overwhelmingly rated time and cost as the most critical procurement selection criteria feel that too much emphasis is placed on cost factors at the expense of other valid considerations. Future study could focus on how factors other than time and cost could be incorporated into procurement decision making.