Managed claims procurement strategy (MCPS): A comparative study of the performance of alternate building procurement strategies

This research investigates whether and how the level of project performance is reflected in the number and the extent of delay claims that impinge on projects under different contractual settings. More specifically, it examines claims arising from delays and relates them to the available procurement strategies, particularly in instances where project time is found to be an important consideration for the building owner.

Literature review shows that “project procurement strategies” and “delay claims” have been studied separately. A combination of case studies and surveys permitted the identification and the analysis of some of the critical root causes of claims that affect the performance of the building process under different procurement strategies. All facts were obtained from historical data, since cases were drawn from case law, which represents a facts-based judgement and is not biased by subjective opinions. This gives an insight into the differences between alternate procurement strategies and facilitates the evaluation of the building process performance under each of them.

The availability and access to information proved to be the most critical category of causes of claims for all procurement strategies. The findings of this research point to the consequences (in terms of claims) of the constraints within which public sector owners operate. They also so throw an unexpected light on the likelihood of all types of owners running into trouble when non-traditional procurement strategies are adopted, suggesting the need to fine-tune the practicalities of these strategies.

This research is, therefore, intended to partially fill the gap in the available knowledge of the sources, causes and effects of conflict under different procurement strategies. It also provides owners with suitable benchmarks for assessing the risks associated with a particular procurement strategy, as well as creating an increased awareness among them of likely causes of disputes and their frequencies. Thus helping to shape strategies that improve the performance of the building process by conflict occurrences in the first instance.