Impact of Procurement Practices on Project Performance: An Evidence from Construction Projects

Abstract

Construction industry serves as a backbone in country’s economy and hence contributing to GNP by a clear percentage. Productivity of construction industry is a matter of concern and interest of alltimes.Althoughthereisextensiveresearchthatcanbefoundonthistopic,butpreviousresearch hadlimitationsinwhichonlyspecificorsomeprocurementpracticeshadbeenstudied.Also,none of the research was conducted in Pakistan, this study investigated the wide range of procurement proceduresandhowtheyeffectsondifferent aspectsofproject performance.Researchgathersthe evidencefromvariousconstructionprojectsandtriedtofindouthowmuchimpactofprocurement processes are on project performance. The aim of this study was to gather empirical evidences of previous studies with the help of construction projects. In this quantitative study sample size was 164 and data was collected with the help of structured questionnaire which was filled by the contractors and subcontractors. To determine the impact of procurement on project performance variable Regression, Pearson correlation and descriptive statistics were used to analyse the findings of this study. SPSS software was used as researchtools. Thisstudyshowsthatprocurementpracticeshavepositiveimpactonprojectperformancethrough correlation analysis. While the regression analysis findings show that 31.6 % of variations in firm project performance can be explained by variations in procurement practices and 48.2 % of variations in firm projects performance are explained by variations in procurement, through these findings the study concludes that there is a relationship between the procurement and project performance.