A framework for understanding purchasing in building construction companies

Abstract

Purchasing on the part of a building construction company involves actors inside and outside the organization. These actors are driven by different motives that influence purchasing decisions in different situations. An explicit framework that assists in understanding the different purchasing situations would be of benefit to companies and researchers. Through a study of purchasing theory and practices, including interviews with a number of building construction companies, a framework of purchasing is proposed. The framework covers all stages in the purchasing process and focuses on four factors: (1) purchasing situations; (2) level of complexity; (3) active roles and (4) supply chain involvement. The inter-relationships between these factors are discussed from the perspective of the companies.

Keywords:

• Actors
• building construction
• buying centre
• purchasing
• roles.

Notes

1. Purchaser, or buyer, is the person having day-to-day responsibility for purchases of products and services within the purchasing organization.

2. Project team covers those personnel employed by the building construction company and deployed on the project under the leadership of a project manager or equivalent.