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Impact of project procurement systems on performance of Rwandan building construction projects

Umuhoza Esperance
Umuhoza Esperance
 and 
An Sung-Hoon
An Sung-Hoon
   | Nov 30, 2023
Organization, Technology and Management in Construction: an International Journal's Cover Image
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Article Category: Research Paper
Published Online: Nov 30, 2023
Page range: 221 - 232
Received: Aug 08, 2022
Accepted: Nov 25, 2022
DOI: https://doi.org/10.2478/otmcj-2023-0016
Keywords
© 2023 Umuhoza Esperance et al., published by Sciendo
This work is licensed under the Creative Commons Attribution 4.0 International License.

Respondents’ backgrounds

Demographic table No. of respondents Percentage (%)
Years of experience
5 years 44 60.3
6–10 years 23 31.5
11–15 years 5 6.8
≥16 years 1 1.4
Qualification
Undergraduate 60 82.2
Master’s 12 16.4
PhD 1 1.4
Organisation category
Design consultants 29 39.7
General contractors 27 37
Client 17 23.3
Position
Project manager 10 13.7
Architect 12 16.4
Engineer 20 27.4
Quantity surveyor 9 12.3
Owner 22 30.2
Type of project mostly performed
Residential construction 29 39.7
Commercial construction 18 24.7
Institutional construction 24 32.9
2 2.7
Industrial construction
Project size
Small 27 37
Medium 43 58.9
Large 3 4.1
Awareness of project delivery method
ODF 15 20.5
DBB 24 32.9
DB 12 16.4
Package deal 2 2.7
Turnkey 2 2.7
Develop and construct 1 1.4
CM 13 17.8
Management contracting 2 2.7
Design and manage 2 2.7
Total of questionnaires sent 100
Total of questionnaires received 73
Percentage of respondents 73%

Current status concerning the usage level of project procurement systems in building construction projects in Rwanda

Level of usage ODF DBB DB CM
MS 4.03 4.36 3.22 1.49

Summary of previous studies on the key performance criteria and their indicators that have been used for evaluating the effects of procurement systems on project performance

Performance criteria and their indicators Previous studies
Smith et al. (1992) Barkley and Saylor (1994) Hogg and Morledge (1995) Sanvido et al. (1997) Luis et al. (1999) Alhazmi and McCaffer (2000) Ling et al. (2001) Yates and Eskander (2002) Ameyaw (2009) Oladinrin et al.(2013) Caccames and Bragantini (2012) Project management institute (2013) Ghulam and Noel (2015) Abdul Rashid et al.(2016) Alaeddin & Nuhu (2016)
Criteria
A. Time ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
B. Cost ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
C. Quality ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
D. Scope ✓ ✓ ✓ ✓
A. Time related indicators
1. Less compensable time of delays ✓ ✓
2. Time overruns control during construction ✓ ✓
3. Time saving ✓
4. Rapid response to new order change ✓ ✓ ✓
5. Fast track construction
6. Early start of construction ✓ ✓
7. Meeting scheduled time
B. Cost related indicators
1. Compensable costs ✓
2. Contingency costs ✓
3. Legal costs ✓
4. Dispute and claim costs ✓
5. Cost of insurance
6. Cost of environmental issue ✓
7. Managerial costs ✓ ✓
8. Reworks costs ✓ ✓
9. Maintenance costs ✓
10. Change orders costs ✓
11. Cost saving ✓ ✓ ✓
12. Reduction of financial risks ✓ ✓ ✓ ✓
C. Quality related indicators
1. Compliance with specification ✓ ✓
2. Competence of project team ✓
3. Change control ✓
4. Material tests ✓
5. Training and incentives for labour personnel ✓ ✓
6. Supervision of work ✓
7. Flexibility for innovation and new systems ✓
8. Construction durability ✓ ✓
9. Appearance of the building ✓ ✓ ✓
D. Scope related indicators
1. Meeting defined project scope ✓ ✓ ✓ ✓
2. Scope change control ✓ ✓
3. Scope creep and gold-plating control ✓
4. Set manageable requirement ✓
5. Flexible scope of work ✓
6. Fixed scope of work ✓
7. Activities interference minimisation ✓

Influence level of procurement systems on quality performance

Performance criteria MS of project procurement systems’ influence level Rank
ODF DBB DB CM ODF GC DB CM
Quality-related 2.86 3.02 4.09 4.11 4 3 2 1
1. Compliance with specification 3.63 3.60 4.26 4.34 2 2 5 5
2. Competence of project team 2.16 3.63 4.30 4.95 8 1 4 1
3. Change control 2.68 3.00 3.55 3.38 5 5 9 9
4. Material tests 4.26 3.03 4.32 4.37 1 4 3 4
5. Training and incentives to labours 2.97 2.40 3.93 3.39 4 8 6 8
6. Supervision of wok 2.42 3.55 4.53 4.63 7 3 2 2
7. Flexibility for innovation and new systems 2.00 2.37 4.59 4.63 9 9 1 3
8. Construction durability 2.59 2.63 3.95 4.25 6 7 7 6
9. Appearance of the building 3.00 3.00 3.36 3.41 3 6 8 7

Influence level of procurement systems on time performance

Performance criteria MS of project procurement systems’ influence level Rank
ODF DBB DB CM ODF GC DB CM
Time-related 2.72 2.95 3.92 3.75 4 3 1 2
1. Less compensable time of delays 3.14 3.00 4.63 4.45 1 4 1 1
2. Time overruns control during construction 3.04 3.08 3.34 3.93 3 3 7 3
3. Time saving 2.45 2.37 3.63 3.63 5 7 5 4
4. Rapid response to new order or change 2.99 2.82 3.41 3.38 4 6 6 7
5. Fast track construction 1.97 2.90 4.18 4.01 7 5 3 2
6. Early start of construction 3.08 3.08 4.04 3.38 2 2 4 6
7. Meeting scheduled time 2.37 3.41 4.22 3.49 6 1 2 5

Influence level of procurement systems on scope performance

Performance criteria MS of project procurement systems’ influence level Rank
ODF DBB DB CM ODF GC DB CM
Scope-related 2.79 2.72 3.97 4.08 3 4 2 1
1. Meeting-defined project scope 2.42 3.05 4.19 4.47 5 3 3 1
2. Scope change control 3.15 3.49 4.25 4.33 3 2 1 2
3. Scope creep and gold plating (adding or altering features) control 2.42 2.00 3.92 4.04 6 7 4 5
4. Set manageable requirements 2.63 2.52 4.00 4.21 4 4 5 3
5. Flexible scope of work 3.45 2.00 3.70 3.79 1 6 6 6
6. Fixed scope of work 2.18 3.63 4.19 4.15 7 1 2 4
7. Activities interference minimisation 3.26 2.37 3.52 3.60 2 5 7 7

Reliability of the data

Characteristic Cronbach’s α Reliability
(1) Level of usage of four most-utilised procurement systems in Rwanda 0.880 Good
(2) Effect of ODF on performance indicators 0.928 Excellent
(3) Effect of DBB on performance indicators. 0.910 Excellent
(4) Effect of DB on performance indicators 0.968 Excellent
(5) Effect of CM on performance indicators 0.960 Excellent

Influence level of procurement systems on cost performance

Performance criteria MS of project procurement systems’ influence level Rank
ODF DBB DB CM ODF GC DB CM
Cost-related 4.18 4.07 3.32 4.12 1 3 4 2
1. Compensable costs 3.92 3.54 3.51 3.53 11 11 5 11
2. Contingency costs 4.15 3.82 3.11 4.63 6 9 8 2
3. Legal costs 4.41 4.00 3.00 4.04 4 6 9 7
4. Dispute and claims costs 4.04 4.00 2.86 4.04 8 7 11 6
5. Costs of insurance 3.37 3.33 3.37 3.37 12 12 7 12
6. Cost of environmental issues 4.00 4.51 2.44 4.59 9 3 12 3
7. Managerial costs (consultancies) 4.59 3.88 3.00 4.00 3 10 10 9
8. Reworks costs 4.65 4.59 4.01 4.64 2 2 1 1
9. Maintenance costs 4.10 4.29 3.41 4.41 7 5 6 4
10. Change orders costs 4.37 4.37 3.58 4.37 5 4 4 5
11. Cost saving 4.63 4.55 3.86 3.78 1 1 2 10
12. Reduction of financial risk 4.00 3.96 3.67 4.00 10 8 3 8
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