The Development of Public and Private Construction Procurement Systems in the Malaysian Construction Industry

Abstract

As demand on building construction projects rises, various procurement methods have been adapted to suit with unique project requirements. However, poor industry performance and rapid developments within it indicate the need for a research on the procurement systems in the industry. In order to explore the development of procurement systems in Malaysia, a discussion on different economic phases which influence the routes of procurement systems and its evolution in Malaysia’s construction industry is initiated. Subsequently, based on a questionnaire survey collected from 73 public and 68 private parties, the significant and dominant role of traditional procurement system used by both the public and private sectors in Malaysia can be confirmed. Further, compared to the public sector, the private sector is observed to be more aggressive in adapting alternative systems such as design and build (D&B) and Turnkey. Further elaboration on the research findings is covered in the discussion section.
Keywords: construction project, procurement system