Factors Affecting the Selection of Procurement System in the Construction Industry in Gaza Strip

Abstract

Purpose: Procurement system has recently attained widespread attention in the Construction Industry (CI). Where procurement system has been suggested by several professionals and researchers as the universal remedy to addressing the inefficiencies in the CI. In numerous cases in different countries, potential benefits and competitive advantages have been reported. However, in spite of the benefits and potentials of procurement system technologies, it is not applied in the CI in Gaza strip just like many other regions over the world. Therefore, the purpose of this research was to develop a clear understanding about procurement system by identifying the different factors that will facilitate and those that will impede the prospects of successful adoption of procurement system in the CI firms. Design/methodology/approach: A quantitative survey was used in this research. Three main steps were used to reach to the final version of the questionnaire: Face validity by presenting the questionnaire to 6 experts in the AEC field as well as experts in statistics, Pre-testing the questionnaire in two phases with 6 people who represented the target group, which involved professionals. Pilot study was conducted by distributing 30 copies of the questionnaire to respondents from the targeted group and analyzing them for testing statistical validity and reliability. After piloting, the questionnaire was adopted and distributed to the whole sample from the targeted group. 102 copies of the questionnaire were distributed and 92 copies of the questionnaire were received from the respondents with a response rate = 90.2 %. To draw meaningful results, the collected data have been analyzed by using the quantitative data analysis techniques (which include Relative important index, Pearson correlation analysis, and others) through the Statistical Package for Social Science (SPSS) IBM version 22. Findings: The study results indicated that the awareness level of procurement system by professionals in the CI in Gaza strip is very low. Findings indicated that procurement systems are significantly needed and important, like procurement management systems benefits are significantly valuable for professionals in the CI in Gaza strip. On the other hand, the research findings demonstrated that procurement system barriers were greatly affecting the adoption of procurement management in the CI in Gaza strip. The major procurement system factor was the availability of the materials. The results showed that the top five significant factors that had most influence on the applying of procurement methods in the Gaza Strip in construction projects are: availability of the materials, contractor reputation, delays in the project financing, political considerations and predicting the actual project tasks time. This research concludes that there is no serious interest on procurement management practice in Gaza strip. Research limitations: The findings are confined only to the CI in Gaza strip and the development of the research is based only on the quantitative method through questionnaire survey. Also, the previous studies related to procurement management in Gaza strip is not widespread. Practical implications: Procurement system awareness and interest need to be increased through comprehensive education and training programs. Awareness of construction firms about procurement systems should be enhanced by increasing the role of academic institutions and universities. Cooperation between construction firms and consultants/ construction managers during the procurement phase should be developed to minimize problems and enhance knowledge.