29 APR 2018
This paper reviews the impact of procurement risks on collaboration, by reviewing existing literature. The paper deals with various procurement risks i.e. reliability, commitment, trust, et al and attempts to establish a connection between procurement risk and barriers of collaboration as its root cause.
Construction and infrastructures projects in Australia are vital components of the country’s productive capacity and efficiency. The Australian construction industry is currently observing a paradigm shift in scale of projects i.e. an increased growth in terms of capital cost and complexity. It is evident that the construction sector is a major contributor to a country's economy and forms the backbone of consistent growth. The concept of collaborative procurement is somewhat novel idea in construction, with many constraints.
In the context of the procurement process, the current scenario of the application of relational attributes of the buyer-supplier relationship appears to be falling short in order to achieve value for money. This study, through a review of current literature, seeks to establish how procurement risks relate to barriers of collaborative procurement.
The research findings indicate that constraints such as trust, arm’s length relationship, opportunism, favouritism, regionalism, lack of communication et al, have a major role to play in successfully managing risks factors including reliability, commitment, logistics, equitable allocation, and cost overruns. Subsequently, any ignorance of these constraints and risk factors may result in strained relationships or even project failure.
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