Builders' perceptions of the impact of procurement method on project quality

Quality in relation to a product or service refers to the degree to which it meets the customer's needs and expectations. It is speculated that traditional competitive bid contracting may have an adverse impact on quality in some circumstances. A survey of the perceptions of construction professionals in the Sydney metropolitan area was undertaken. The respondents demonstrated mixed views on the effectiveness of the competitive tender system for the delivery of quality project outcomes. Some support was expressed for the contention that quality of outcome can be reduced by an overly cost driven contractor selection process. In particular, when economic pressures cause bidders to reduce the time allocated and the amount of checking done for the tender process, an inaccurate and unreliable bid may win. A move to value-based rather than cost-based procurement is likely to be necessary to improve industry performance and customer satisfaction.