Correlation between construction procurement methods and lean principles

Abstract

Different procurement methods have been developed and applied in the construction industry to improve performance. At the same time novel management concepts have been adopted for similar prospects of performance improvement based on new production methodologies. The lean principle is one such methodology being applied in the construction industry, which this paper believes, with the right combination of its objectives, principles and techniques could form the basis for a new project delivery system. The paper has as its objective the identification of an appropriate procurement method that accommodates lean principles. It reviews related literature on lean principles and its application in the construction industry as well as construction procurement methods and their individual characteristics. The study finds that partnership arrangements have a higher correlation with lean principles compared to other procurement methods because of the emphasis it places on collaboration and teamwork through construction partnerships.