Procurement Routes, Supply Chain Management and Building Information Modelling:A Review of Trends and Impacts on the Construction Industry

Abstract

It has been argued that the construction industry is distinct from other industries and must therefore find solutions that align with its peculiarities. Over the last three decades, several reports, primarily Latham (1994) and Egan (1998) have spotlighted systemic issues underlying the construction industry. The construction industry is highly fragmented evidenced by a high level of subcontracting and a lack of integration within supply chains. Poor information management has also been a common thread on most construction projects. The adversarial culture of project stakeholders and low productivity has been repeatedly discussed in the literature. Particularly, in the 1990’s discussions on poor information management, loosely coupled supply chains, and lack of collaboration took center stage. Addressing these issues, given the transformational changes in other industries, has resulted in the drive by the construction industry to proffer alternative methods of procurement and supply chain management centered on Building Information Modelling. This report compares the advantages and disadvantages of the different procurement methods available to construction projects, examines the impact of Building Information Modelling on procurement methods, and also outlines the trends in digitalisation within the built environment and its implications for procurement.