Lessons learnt from the use of relationship-based procurement methods in Australia: clients’ perspectives

Abstract

This paper aims to review the use of various construction procurement systems and present the development of Relationship-Based Procurement (RBP) Methods currently in use within the Australian construction industry. Therefore, this paper provides the historical development of procurement briefly and then focuses on the adoption of Relationship-Based Procurement (RBP) approaches in the Australian construction industry to investigate the future direction of the collaborative project procurement arrangements. Semi-structured interviews with high-level managers in the Australian state government organizations have been conducted to answer the research question. A discussion has been presented about the potential future tendency of the industry in adopting a RBP. The findings suggest that even though relationship based procurement systems offer significant benefits; they are not popular among the public sector decision makers because of inability to demonstrate Value for Money (VfM) propositions for public projects. Other reasons which may cause a move away from using RBPs in the future include the need for managers to fully engage throughout the project, and the lack of collaborative environment within the construction industry in general.

Keywords

• Procurement routes
• Australia
• Relationship-Based Procurement (RBP)
• construction clients.