Establishing the idea procurement arrangement (PAO) that best meet the needs of Malaysian private sector construction clients

Procurement is a strategy to satisfy the client?s needs. Basically, clients in the construction industry set their objectives and requirements and the role of the consultant team is to turn those objectives and requirements into reality. Unfortunately, in recent years, there have been many concerns on the consultant team?s ability to deliver projects that meet the client?s requirements. Research has shown that client?s requirements have not been properly addressed by the construction industry players due to wrong choice of procurement systems. The purpose of this research is to identify the criteria that encompass the client?s requirements in procuring a construction project and attempts to establish the ideal procurement arrangement option that best meets the requirements of the clients. The investigation on the most popular procurement arrangement option adopted in the Malaysian construction industry was made as well. Investigations were limited to the views expressed by private sector construction clients, consultants and contractors, registered with their respective umbrella organizations in Malaysia. The descriptive survey method was used, which comprised qualitative data gathering via pilot interviews and quantitative data gathering via structured questionnaires. Content analysis, multi-attribute analysis and rank correlation test was used in the analysis of the data. Based on the analysed data, a framework was established in determining the ideal procurement arrangement option (PAO) which capable to fulfill most of the private sector clients? requirements in procuring their construction project. Results showed that clients? would prefer a procurement arrangement option that can ensure the delivery of the project within time, budget and quality/specification targets. Other priority needs include fixed price tender, competitive or lowest price tenders, separate service provider for the design and management of the construction, life cycle cost, and risk preference and to accommodate variation orders without incurring financial penalties. It emerged that in the main, Construction Management type of procurement arrangement option is the ideal procurement route that could best meet the needs of the Malaysian construction clients