Construction Procurement

Participate in an international competition for a project in China, design a project for Dubai, build a school in the favellas of Brazil. Those are some of the challenges that firms in the fields of architecture, urban planning and construction must now face in a globalizing construction sector. However, the international context of construction shows different faces, ranging from prestige buildings designed by foreign “star” architects in
world-class cities, to emergency shelters produced by humanitarian international initiatives in rural areas in developing countries. For many, this context offers great commercial opportunities, but also risks and threats.

Participants from different countries working in foreign contexts are confronted with major challenges that range from cultural adaptation to contractual know-how. A careful understanding of organizational design and procurement is crucial in this context. The procurement strategies - that is, the initial decisions made by the client(s) to create the temporary multi-organization in charge of the project – can determine the success or failure of the initiatives.

This 2008 conference-workshop discusses these challenges and seeks to clarify the scope of and opportunities for construction projects in the international context. It focuses on the procurement-related aspects of international construction projects, and it opens the door to a wide range of subjects related to the performance of these initiatives.

The conference-workshop addresses the following issues:
• How to procure a building project abroad?
• How do architects participate in international construction?
• What are the main risks of international procurement? What are the main risks of working
abroad?
• Is there such a thing as a real international supply chain?
• What are the differences between local procurement and international procurement?
• What are the main opportunities for construction companies interested in working abroad?
• How must the relations between foreign organizations and local actors be established?

Better understanding of how public works are procured through policy, regulation and upon acquisition is increasingly important. This knowledge can shape how architects can effectively impact wider architectural culture through improving quality, social values and advice to clients, while more successfully obtaining such commissions. In the UK the application of these regulations, which cascades multiple impacts from RIBA Stage 0 through subsequent work stages and extends into the private sector, is in urgent need of reform. Architects need to improve their knowledge of procurement to ensure a more sustainable built environment is achievable and also need to engage in advising clients and industry better to effect the necessary changes in procurement, to deliver more appropriate, simpler, robust, accessible and innovative procurement. Reform has been long overdue but is now an absolute necessity.

The Public-private partnership (PPP) concept has attracted the attention of the Ghanaian government, because it is viewed as a reform tool for resolving underinvestment, inefficiency and absence of dynamism in water supply infrastructure services. Despite the mixed results, to date there has been no comprehensive study on the requirements for their successful implementation. This research defines a set of factors that, when given special and continual attention, would ensure successful implementation of PPP water supply projects. The perceived critical success factors (CSFs) were initially derived from six project cases and extant literature, and verified through a two-round Delphi survey. Factor analysis established five critical success factor groups (CSFGs) as commitment of partners, strength of consortium, asset quality and social support, capacity building, and national PPP unit. These principal factors were then modelled using fuzzy synthetic evaluation method and the model output showed that, overall, these factors have a ‘very high’ positive impact on successful implementation of water based PPPs. It is hoped that this study will trigger policy development towards PPP practice in Ghana, because these findings have wider implications for legal and regulatory systems, public sector capacity, financing, public procurement, and politics. 
Keywords: CSF, PPP, Water, Supply ,Ghana

Purpose Construction project management outcomes in the literature typically portray significant deviations from expected outcomes. Various theories from studies that focus superficially on causes of project cost and time overruns rather than root causes have not addressed this problem. The need is for a better understanding of how procurement strategy provides a fundamental means to address this problem. This study examines the procurement strategy used to deliver a new universities project in South Africa within budget and the purpose is to ascertain its influence on the outcomes. Design/methodology/approach A case study was designed to provide a comprehensive and intensive methodology to identify and examine the construction procurement strategy and its influence on the project outcomes. Document analyses and semi-structured interviews were used to collect data on the construction procurement strategy and outcomes from the client team. Findings The evidence brought forward demonstrates that the successful outcome was largely a consequence of the client team, procurement strategy and systems of delivery. However, the collaborative procurement strategy formed the basis of the successful project delivery and outcomes. A general observation from the data is that an appropriate construction procurement strategy developed by an experienced client team and proactively implemented by an integrated delivery team working collaboratively is likely to achieve the intended project outcomes. Practical implications The findings show three critical keys to achieving intended outcomes-people, procurement strategy and systems of delivery at the governance, portfolio, programme and project management levels. Originality/value The value of this paper lies in using a comprehensive methodology to study the relationship between procurement strategy and outcomes. The findings can be applied by client teams to achieve better outcomes and value for money in infrastructure projects.

The enormous investment through grants for infrastructures development in Higher Education Institutions (HEI) in Nigeria calls for integrity and accountability in the procurement process. However, questions have been raised as to judicious use of the funds, and it was doubtful if the institutions comply with the due process. This study examined the causes of non-compliance with the Public Procurement Act (2007) in the procurement of building projects in all public HEI in Southwest Nigeria. In all, 44 institutions comprising 17 Universities, 17 Polytechnics, and 10 Colleges of Education were used for the study. The opinions of the institutions' Procurement Officers on the causes of non-compliance with the Act in their procurement process were sought using a structured questionnaire. The results revealed that non-compliance with the Act was due to inadequate knowledge of the Act, non-employment of qualified and experienced Procurement Officer, insufficient publicity of the Act, and non-existence of corporate governance leading to poor management of procurement record and non-provision of incentive. Conclusively, engagement of Procurement Officers having: the right educational and professional qualifications, understanding of the Act, sufficient cognate working experience, and occupying management position will enhance compliance. Builders and Engineers managed project procurement records better than other professionals. Consequently, in addition to adopting an organizational culture with corporate governance structure that supports engagement of the right and qualified personnel to handle procurement, encourages them to perform at their best and rewards excellence service by giving incentives, and operates within an administrative environment devoid of corruption.

This paper presents a survey on the practices associated with the acquisition, use, storage and transfer of information by a sample of professionals (actors) within the construction supply chain. The role of information in construction supply chains witnessed a shift from its passive function in decision-making from the 1990s, to a strategic resource that drives both the processes and competitiveness of companies. This change presents challenges for organisations that participate in the construction supply chain. The way organisations involved in the construction supply chain manage this resource will have direct impact on their competitiveness. This is in#uenced by the information acquisition, processing, utilisation and transfer practices of their professional sta! (actors) involved in the processes of the construction supply chain. The paper presents results from a survey that looks at some aspects of how key actors in the construction supply chain address these information-related issues.

Purpose:
This dissertation joins a vibrant conversation in the social sciences about the reasons of construction project failures, in terms of delays and cost overruns, in private sector of construction industry. The prolonged projects delivery times and exceeded budgets are serious problems, and they are the most important reasons of dissatisfaction for the project owners or clients. The procurement routes mostly used in the private sector (i.e. Design-bid-build, design & build, construction management and management contract) does deliver projects on time and on budget but the problem is why not always?. This research carried the investigation and found  the reasons of why procurement routes does not always deliver projects successfully, and identified the factors that have their influence over the performance of these procurement routes. By considering these identified factors, project owners can get maximum benefit out of their selected procurement routes and they can certainly complete their projects on time and on budget.
Method:
In order to identify the factors, which have their influence over the performance of procurement routes, a vast range of literature was reviewed. Different books, journals articles and online articles related to the research topic were reviewed. In addition, a questionnaire survey was conducted, in the spirit of getting useful information and feedbacks, directly from the professionals related to construction industry. These professionals were carefully selected, on the criteria of their experience, qualification and professional background. A very simple and easy to response survey questionnaire was designed, for the purpose of collecting primary data. After collecting both primary data from the survey and secondary data from literature review, the research data was analysed by using Statistical Package for social Sciences (SPSS) software, and finally conclusions were derived and very useful recommendations were made at the end of this research.
Findings:
This researched identified 21 factors, which can influence the performance of selected procurement route. This research also founded that the selection of appropriate procurement routes for projects is a difficult and challenging job, and at the same time it is very important to select the most appropriate route for a project. Each procurement route have its own plus points and drawbacks. Depending upon the nature, size, complexity, and location of the project and available project completion time, available funds, required quality etc., these routes can be preferred over one another. There is no set rule or formula to be used for picking the ideal procurement route.
Conclusion:
The research concluded that by only selecting an appropriate route, a project success cannot be guaranteed, there are many other factors that can greatly influence the performance of procurement routes. These factors needs to be taken care of, and any failure in proper implementation of these factors can cause damages to the project. Similarly, parties involved in construction (Client, Contractors, suppliers, consultants, designers etc.), should know their roles, responsibilities and limitations, they should fulfil their own duties correctly. On time and on budget completion of projects cannot be accomplished just by acquiring a certain pattern of stakeholder’s arrangements. In other words, procurement routes cannot be always blame for project failures.

Assessment of specific experience of the contractor through qualification criteria in bidding documents plays a crucial role in the selection of qualified contractor. Prevailing procurement Act and Regulation of the Government of Nepal requires that two items, i.e. projects of similar size and nature and production capacity of key activities of the contractor are examined under this criterion. Though, both the items have their own specific meanings, these are interpreted in many ways as per the evaluator of different public entities. This paper tries to define the meanings of both items and to briefly discuss about how these are interpreted in evaluation by public organizations in Nepal. For this, example of technical evaluation in irrigation project has been taken in this paper. It comes up with some suggestions to harmonize the meaning of these items and their interpretation during evaluation for the selection of qualified contractors.

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Quality of construction is a key component of perceived value to both clients and contractors. The International Federation of Consulting Engineers (FIDIC) noted that “lack of quality in construction is manifested in poor or non-sustainable workmanship, and unsafe structures; and in delays, cost overruns and disputes in construction contracts”. Value and quality of construction are of concern to both public and private sector clients.
The procurement process in the construction industry is plagued with a number of problems and challenges. Some of the challenges and problems faced by the construction industry in Cameroon and Africa that leads to the delivery of projects of poor quality standards are discussed in this write up. The study investigates the factors that are posing a negative impact on construction quality through the value chain in creating new capital works such as design, procurement and construction. Concerns had been based on the principal issues like; Construction, design and procurement related factors. Furthermore, issues like weak capacity, corruption and embezzlement, finance related issues like budget and funding, procuring design quality, material quality, planning challenges, cultural, human resources and contractor performance issues have been reviewed. These problems have been identified through a critical literature review and field experience drawn from the Cameroon and Africa context and attempts have been made to analyse each of the problems or challenges that lead to the delivery of poor quality projects. Value and quality of construction are of concern to both clients and contractor in both the public and private sector. Against this background, this study has been undertaken on the quality of construction in Africa in general and Cameroon in particular.
The construction projects referred to in this paper deals with all types of building and civil engineering projects

Construction projects have traditionally been costed on the basis of the initial capital cost. The privatisation of many infrastructure providers, the use of private equity to finance construction projects for the public sector and ever-tighter constraints on public spending have generated demands in the UK to predict the overall cost of a project over its whole working life. This concern extends to demands for predictable building service lives and costs of ownership. Until very recently there have been no standard methodologies for approaching this problem. This paper explores the concepts included in whole life costing, in particular that of factored estimates of service life, and reports on the current commercial and practical issues driving adoption of whole life cost procurement of construction works.

Trên thế giới, phương thức thực hiện dự án “Thiết kế - Xây dựng” được sử dụng rộng rãi không kém phương thức truyền thống “Thiết kế - Đấu thầu – Xây dựng”. Tuy nhiên, ở Việt Nam phương thức Thiết kế - Xây dựng cũng chưa được quan tâm nhiều và chấp nhận bởi đông đảo những người người làm nghề xây dựng. Bài viết đánh giá việc áp dụng phương thức này trong ngành xây dựng Việt Nam thông qua hai hình thức hợp đồng EPC và EC, làm rõ các điều kiện thuận lợi và khó khăn của việc áp dụng phương thức, từ đó chỉ ra một số rào cản và định hướng giải quyết các rào cản này để thúc đẩy hơn nữa việc áp dụng phương thức Thiết kế - Xây dựng trong các dự án phù hợp ở Việt Nam.

The project delivery method of “Design – Build” has been widely applied as the traditional method of “Design – Bid – Build”. However, this method has not been considered and applied by most of the practitioners in the construction industry in Vietnam. This paper has reviewed the use of the method in Vietnam under the two types of contract: EPC contract and EC contract. It then clarifies the positive and negative issues of its application and articulates a number of barriers and solutions in order to promote the use of this project delivery method in appropriate projects in Vietnam.

Timely delivery of construction projects is a very vital issue that cannot be overlooked if the goals of the projects are to be achieved and for the projects to be completed to client's requirements at reasonable cost. This study investigates the relationship between time overrun and project delivery in projects procured in compliance with Public Procurement Act, (PPA) 2007 among Public Tertiary Institutions (PTIs) in Southwest, Nigeria. The objectives of the study are to determine the level of compliance with PPA, 2007 among PTIs in Southwest Nigeria, the extent of time overrun in projects they procured and the relationship between time overrun and compliance with PPA, 2007. Structured questionnaires were used to collect data from Procurement Officers representing the 44 PTIs in southwest, Nigeria. Data collected were analysed using descriptive statistics for the level of compliance with the act and the extent of time overrun. Pearson product moment correlation was used to express the relationship between the level of compliance with the Act and project time overrun. The study concluded that the level of compliance with the Act is low and that there were time overruns in projects procured by PTIs, but that the level of compliance with the Act does not contribute to delay among the Institutions. The study recommended additional efforts by the regulatory authorities monitoring and over sighting the implementation and compliance with the Act so as to ensure the achievement of the goal of the procurement Act as well as successful project delivery in the Institutions.

A B S T R A C T Disputes are common problems in the construction industry. The unclear contract underlines in most practiced procurement systems lead to various disputes among stakeholders. In order to minimise the problem, it is interesting to identify the disputes and conflict arises in the industry. This paper explore the pattern of construction disputes occurrence in Malaysia through legal cases synthesis extracted from available data bases such as Construction Law Report and Building Report. Result identified six (6) categories of disputes happen in the Malaysian construction industry that are people/stakeholders/ organisation, nature of the work and project administration, contractual and procurement, poor workmanship, design and external factors. These factors are worth to be considered in proposing new procurement system for sustainable Malaysian construction industry.

The award of the first doctorate degree in the University of Paris in the twelfth century has led to the creation of different doctoral programmes in different universities in Europe, America and around the world. The doctorate degree has been held as the highest and most prestigious academic award. Most popular of such degrees is the Doctor of Philosophy (PhD) which allows a close research-based focus on the candidate’s chosen subject area to gain more expertise in the area.
Other form of doctorate have emerged since the first half of the twentieth century known as professional doctorates. The professional doctorate is a combination of both research project and research training with taught components or modules. These candidates are usually based at their work place or non-academic environment where they try to make a contribution to professional knowledge. This exist in different areas or disciplines.
While this paper makes mention of the different professional doctorate programmes, it duel much on the professional doctorate in built environment abbreviated as DBEnv or DBE which have being emerging in the recent past.
In the United Kingdom (UK), the term built environment have been used to denote different range of practice - oriented disciplines such as Management, Economics, Law, Technology and Design.
Scientist understanding of the built environment have undergone several changes with regards to different areas or discipline. This has led to the emergence of different definitions of the built environment from different disciplines or areas such as the social science, landscape architecture and public health. Some of the definition such as that of Griffiths (2004) is considered as not making any reference to the theoretical qualities of its knowledge base but it is rather limited to areas of professional practice within the built environment at undergraduate and master’s levels.
This paper explodes how universities are carrying out more research within the built environment at doctoral level to complement its professional practice with knowledge base with theoretical qualities. Knowledge and knowledge production within the professional doctorate in built environment is done both tacitly and explicitly.
There have been the question if there is a need for a theory in built environment. Different theories have been postulated using different approaches. This has led to a search of a unified theory within the built environment.
Van de Ven and Poole (2005), acknowledged the ambiguity and complex problems in the built environment research and called for a multi-paradigmatic research to address such problems. As a result of arguments raised by different authors about a unified theory in construction management research, Raftery et al. (1997) advocate the need of bringing different paradigms to allow a more unified approach to analysing the complex nature of the built environment.

Disputes are common problems in the construction industry. The unclear contract underlines in most practiced procurement systems lead to various disputes among stakeholders . In order to minimise the problem, it is interesting to identify the disputes and conflict arises in the industry. This paper exp lore the pattern of construction disputes occurrence in Malaysia through legal cases synthesis extracted from available data bases such as Construction Law Report and Building Report. Result identified six (6) categories of disputes happen in the Malaysian construction industry that are people/stakeholders/ organisation, nature of the work and project administration, contractual and procurement, poor workmanship, design and external f actors. These factors are worth to be considered in proposing new procurement system for sustainable Malaysian construction industry.

PhD Fellow) is a PhD student in project planning and management besides being a part time lecturer in a number of universities in Kenya. He is a freelance researcher and runs a research firm in Kenya. He can be reached at any time for research work, data analysis, interpretation and data management, journals development and publishing etc. Contact: martinotundo@gmail.com, +254721246744 FOUNDATION INSTRUCTIONS: In this assignment you will integrate procurement tasks into a project. Consider the given case study (Procuring textiles made from recycled fibres: Ministry of Defence of the Kingdom of the Netherlands (MODNL); PDF file) and answer the following questions: 1. Explain each part of the "Flowchart for Optimal Utilization of Market Intelligence to Address Sourcing Challenges".

Purpose: Most barriers and enablers of sustainable projects are related to procurement. This study
proposes a framework for evaluating green procurement practices throughout the lifecycle of road
construction projects and demonstrates its application through an Australian case study.
Design/methodology/approach: The study is based on linking the phases of road construction with
incentive mechanisms for proactively motivating behavioural change. A holistic view on utilised and
potential incentives is attempted with a literature review and a state-of-practice review. The latter is
based on interviews and 90 policy and procurement documents across five Australian states.
Findings: An evaluation framework with seven procurement stages is suggested to describe current
state green procurement incentives throughout the delivery lifecycle of road construction projects.
The Australian case study was found to provide useful data to identify gaps and strong points of the
different states regarding their level of integration of sustainability and greenhouse gas emissions
(GHG) reduction elements in their procurement practices. This understanding was used to draw
recommendations on future advancement of green procurement.
Originality/value: Government entities across the globe can impact considerably the achievement of
sustainability and GHG targets, by using their procurement practices and requirements to create
incentives for contractors and suppliers to engage in more GHG conscious practices. The present
study provides a systematic account of how green procurement practices can be underpinned using
the Australian road construction industry as a case study, and distinguish between strong and weak
links in the green procurement chain to draw recommendations for future initiatives.

Lean construction management efforts could prove to be highly rewarding for the UK construction industry. This was emphasised by the Egan Committee who stated that the concepts of lean thinking would lead the UK construction industry's quest to improve quality and efficiency. Although various countries worldwide gained large benefits by adopting Lean Construction (LC) concepts, there still seems to be limited implementation of lean in the UK construction industry, over the last two decades, even after the publication of the Egan report. There appears to be a number of structural and cultural barriers that are militating against its successful implementation. By not realising the factors that affect the successful implementation of LC, organizations will not be able to know what improvement efforts need to be made, where these efforts should be focused, or which efforts could obtain best results . For this reason, this study sought to identify and assess the possible barriers to the successful implementation of LC in the UK. Based on an extensive literature review, followed by a statistical analysis of data gained from a questionnaire survey which targeted practitioners in the UK construction industry, a number of barriers were identified as key barriers. Further analysis revealed that only three of these barriers were determined as significant. The results of this study could be used to help researchers, practitioners and companies in the UK construction industry to focus their attention and resources on the significant issues, crucial to support the successful implementation of LC.

The Cooperative Research Centre (CRC) for Construction Innovation research project 2001- 008-C: 'Project Team Integration: Communication, Coordination and Decision Support', is supported by a number of Australian industry, government and university based project partners including: Queensland University of Technology (QUT); Commonwealth Scientific Industrial Research Organisation (CSIRO), University of Newcastle; Queensland Department of Public Works (QDPW); and the Queensland Department of Main Roads (QDMR). Supporting the project's research aims and objectives, and as a major deliverable for the project, this report is not intended as a comprehensive statement of best practice. Rather it should be read as an overall 'snapshot' of current public and private construction industry sector state-of-play concerning electronic tendering (e-Tendering) - ascertaining the barriers and enablers from both a technological and end-user perspective.

Procurement process consumes major portion of a construction project budget and so the factors influencing them are identified to increase its efficiency. The study identifies decision making as the most important factor along with inventory and therefore decision making models are identified and analysed in this work. A hybrid module is developed considering the advantages and limitations of the existing models that will be suitable for enterprises handling multiple sites at different locations at a time.

This article presents results from the first statistically significant study of cost escalation in transportation infrastructure projects. Based on a sample of 258 transportation infrastructure projects worth US$90 billion and representing different project types, geographical regions, and historical periods, it is found with overwhelming statistical significance that the cost estimates used to decide whether such projects should be built are highly and systematically misleading. Underestimation cannot be explained by error and is best explained by strategic misrepresentation, that is, lying. The policy implications are clear: legislators, administrators, investors, media representatives, and members of the public who value honest numbers should not trust cost estimates and cost-benefit analyses produced by project promoters and their analysts.

Key economic principles and considerations influencing the bidding price of a construction project are discussed in this chapter. The chapter also covers the way that certain factors influence client and contractor economic behaviour in the bidding process. Also highlighted are some of the theories that have been used by academic researchers in the field of construction economics to explain bidding behaviour in construction.

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The road construction projects' performance is adjudicated in terms of quality of workmanship; timely completion, costs, and end-user satisfaction are poor in Kenya, often characterized by unfinished projects, poor service or product delivery, corruption, and extended contract periods. Since the performance of road projects is done by a road contractor, there is a necessity to examine the inherent association between contract management and the performance of road contractors. The purpose of this study was to establish the effect of contract management practices on the performance of road contractors within Nandi County. The specific objectives were to establish the influence of relationship management; contract monitoring, contract administration, and conflict management on the performance of the road contractors in Nandi County. This research was guided by agency theory and contract management theory. The research used a descriptive survey design. The study population comprised of 200 employees of the road construction projects, six contractor's managers, 30 ward administrators, 30 members of the county assembly, 120 community members represented by village elders, two staff from the ministry of finance, and four from the ministry of public works. The researcher adopted a stratified, simple random, and purposive sampling technique to select respondents. The sample size was 199 respondents. Data were analyzed using

Abstract
Quality of construction is a key component of perceived value to both clients and contractors. The International Federation of Consulting Engineers (FIDIC) noted that “lack of quality in construction is manifested in poor or non-sustainable workmanship, and unsafe structures; and in delays, cost overruns and disputes in construction contracts”. Value and quality of construction are of concern to both public and private sector clients.
The procurement process in the construction industry is plagued with a number of problems and challenges. Some of the challenges and problems faced by the construction industry in Cameroon and Africa that leads to the delivery of projects of poor quality standards are discussed in this write up. The study investigates the factors that are posing a negative impact on construction quality through the value chain in creating new capital works such as design, procurement and construction. Concerns had been based on the principal issues like; Construction, design and procurement related factors. Furthermore, issues like weak capacity, corruption and embezzlement, finance related issues like budget and funding, procuring design quality, material quality, planning challenges, cultural, human resources and contractor performance issues have been reviewed. These problems have been identified through a critical literature review and field experience drawn from the Cameroon and Africa context and attempts have been made to analyse each of the problems or challenges that lead to the delivery of poor quality projects. Value and quality of construction are of concern to both clients and contractor in both the public and private sector. Against this background, this study has been undertaken on the quality of construction in Africa in general and Cameroon in particular.
The construction projects referred to in this paper deals with all types of building and civil engineering projects.

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Megaproject Planning and Management: Essential Readings contains the seminal articles from the growing body of research on megaproject planning and management along with an original introduction by the editor, Bent Flyvbjerg. The leading and most cited authority in the field, Flyvbjerg has used crowdsourcing and 25 years of experience to cherry-pick from several hundred articles and books the writings that define the field. This volume will be an indispensable source for those wishing to speak with authority about how megaprojects are prepared, delivered, and fought over. The target audience is students, academics, practitioners, and media pundits alike, as well as communities affected by megaprojects.

Back cover text: Megaprojects and Risk provides the first detailed examination of the phenomenon of megaprojects. It is a fascinating account of how the promoters of multi-billion dollar megaprojects systematically and self-servingly misinform parliaments, the public and the media in order to get projects approved and built. It shows, in unusual depth, how the formula for approval is an unhealthy cocktail of underestimated costs, overestimated revenues, undervalued environmental impacts and overvalued economic development effects. This results in projects that are extremely risky, but where the risk is concealed from MPs, taxpayers and investors. The authors not only explore the problems but also suggest practical solutions drawing on theory, experience and hard, scientific evidence from the several hundred projects in twenty nations and five continents that illustrate the book. Accessibly written, it will be the standard reference for students, scholars, planners, economists, auditors, politicians and interested citizens for many years to come.

A few decades have been passed when we talked about the construction procurement system that involved seven spectacular processes. Unfortunately, less discussion on construction procurement from Islamic perspective is done. This paper focus on the traditional procurement system that consists of three types of contract; measurement, lump sum and reimbursement contract. From initiation to the risk allocation may face the uncertainty in many aspects. Islamic teaching has stated that uncertainty (Gharar) is strictly prohibited in business transaction. Hence, the purpose of this study is to understand the concept of gharar involved in every stage of construction procurement process by knowing the concept of each contract used, acknowledging the concept of gharar in construction process and the effect of uncertainty in the construction industry. The methodology used is literature review from various research papers and published books. The most significant findings are the concept of uncertainty in construction procurement from Islamic perspective and the element of gharar in every stage of procurement process. Expert has identified that not all parts of construction procurement hold uncertainty. The provision of contract generally is shariah compliance which focus to secure both promisor and promisee. At the end of this paper, it can be concluded that more study needs to be done in order to achieve a construction procurement that holistically comply with shariah.

The article first describes characteristics of major infrastructure projects. Second, it documents a much neglected topic in economics: that ex ante estimates of costs and benefits are often very different from actual ex post costs and benefits. For large infrastructure projects the consequences are cost overruns, benefit shortfalls, and the systematic underestimation of risks. Third, implications for cost–benefit analysis are described, including that such analysis is not to be trusted for major infrastructure projects. Fourth, the article uncovers the causes of this state of affairs in terms of perverse incentives that encourage promoters to underestimate costs and overestimate benefits in the business cases for their projects. But the projects that are made to look best on paper are the projects that amass the highest cost overruns and benefit shortfalls in reality. The article depicts this situation as ‘survival of the unfittest’. Fifth, the article sets out to explain how the problem may be solved, with a view to arriving at more efficient and more democratic projects, and avoiding the scandals that often accompany major infrastructure investments. Finally, the article identifies current trends in major infrastructure development. It is argued that a rapid increase in stimulus spending, combined with more investments in emerging economies, combined with more spending on information technology is catapulting infrastructure investment from the frying pan into the fire.