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This paper shows how to modify the Saudi procurement system by implementing a clarification phase, which is the most important phase in the Performance Information Procurement System (PIPS). The clarification phase requires the bid’s winning contractor to submit a project scope, a project schedule, to identify risks that not their responsibility, performance measurements and a milestone schedule. The PIPS system has been one of the most successful systems around the world and has shown a 98% success rate in six different countries with risks and cost reductions up to 30%.
This research conducted a survey of 157 engineers, 33 consultants, 9 owners, 5 vendors, 13 academics, and 28 architects to develop the public procurement system in Saudi Arabia. The participants work in government sectors with an interest in the Saudi Arabian procurement system. 80.61 % of participants believe that the traditional Saudi procurement system consistently selects poor performing contractors. Moreover, 95.97% of participants think that the selection of contractors based only on the lowest price criterion affects projects negatively. Also, 96.20% of participants in the survey feel that there needs to be a change in the traditional Saudi Arabian procurement system. 88.7% of participants agree to require the contractor to identify risks, and 96.03 % of participants agree that the contractors must have a plan. Moreover, 95.45% of participants agree to require a contractor review the scope of a project and verify that it is correct. Finally, 82.18% of participants agree to require a contractor to resolve all owner concerns before signing a contract to improve construction projects performance. The paper shows the need to change the Saudi procurement system and a solution to this growing problem.
The current Saudi Arabian (SA) procurement system leads to many losses in money and benefits in projects. Also, the use of the traditional procurement system in SA has been identified as one of the causes for poor performance in the delivery of construction and the major risk to the SA government. A questionnaire has been developed and carefully designed based on literature review. The purpose of the survey was to identify the validity of the recent claims that the procurement system in SA is broken and to improve the current SA procurement system. The questionnaire was sent out to 1,396 participants including included 867 engineers, 256 consultants, 93 contractors, 35 owners and 132 architects and 13 academics.
All participants have been registered and licensed professionals at the SA Council for professional engineers, who work in both private and public sectors. The participants are interested in the SA procurement and contracts system with experience ranging from one to more than twenty-five years with the majority of twenty-five years of experience in common construction sectors such as; residential and commercial buildings, healthcare buildings, industrial building and heavy civil construction.
Most of the participants from both private and public sectors agreed with the survey questions subject matter regarding: zone price proposals, contractors' evaluation, risks, planning, projects' scope, owners concern and weekly risks reports (WRR). The survey results showed that the procurement system is the major risk to projects, affects construction projects negatively and is in need of improvement.
Based on the survey and literature review, a model, called Saudi government performance procurement model (SGPPM), has been developed in which the most expert contractor is chosen through four phases: submittals& education, vendors selection, illustration and execution. The resulting model is easy to implement by SA government and does not require special skills or backgrounds.
In an increasingly global economy, companies face challenges with implementing successful business and marketing strategies in cultures different from their own. This paper calls upon previous research to compile a per-country outline of general behaviors and expectations when doing business overseas. Using categorical definitions from Hofstede's 1984 study and those found in the Handbook of Global and Multicultural Negotiation, a table has been prepared to group similar countries based on their cultural biases.
In the early years of the National Football League, scouting and roster development resembled the wild west. Drafts were held in hotel ballrooms the day after the last game of regular season college football was played. There was no combine, limited scouting, and no salary cap. Over time, these aspects have changed dramatically, in part due to key figures from Pete Rozelle to Gil Brandt to Bill Belichick. The development and learning from this time period have laid the foundational infrastructure that modern roster construction is based upon. In this modern day, managing a team and putting together a roster involves numerous people, intense scouting, layers of technology, and, critically, the management of the salary cap. Since it was first put into place in 1994, managing the cap has become an essential element of building and sustaining a successful team. The New England Patriots’ mastery of the cap is a large part of what enabled their dynastic run over the past twenty years. While their model has undoubtedly proven to be successful, an opposing model has become increasingly popular and yielded results of its own. Both models center around different distributions of the salary cap, starting with the portion paid to the starting quarterback. The Patriots dynasty was, in part, made possible due to their use of both models over the course of their dominance. Drafting, organizational culture, and coaching are all among the numerous critical factors in determining a team’s success and it becomes difficult to pinpoint the true source of success for any given team. Ultimately, however, effective management of the cap proves to be a force multiplier; it does not guarantee that a team will be successful, but it helps teams that handle the other variables well sustain their success.