MACRO ANALYSIS OF CONSTRUCTION PROCUREMENT TRENDS Shiyami..

The procurement system is a key means through which the client creates preconditions for successful achievement of project specific objectives. Various factors affect the use and development of procurement systems in any construction industry. Thus, it is interesting to discover different systems being used in different instances. This paper present the results of a Panel Data Analysis carried out among major contracting organizations in Sri Lanka on procurement systems use to discern the trend from year 1977 to 2003. The paper also aims to shed some light on the underlying factors that affected the change of procurement systems in Sri Lanka during the period concerned. The results clearly highlight the dominance of Measure and Pay method throughout the period. Government as a major client and the regulator neglected the development of alternative procurement methods. In addition, it was found that the combination of national culture and organizational culture of construction has created an environment that did not favor the use of new procurement methods. However, economic growth has favored some of the alternative methods to emerge in Sri Lanka.