Literature | Procurement Methodol

Research Insights

The literature indicates that procurement methodologies vary significantly between relational and transactional approaches, each shaping flexibility, collaboration, and the management of risk. Relational models, such as alliancing and Early Contractor Involvement (ECI), are consistently identified as more effective for managing uncertainty and aligning risk with organisational capacity.

Equally, the clear and proportional allocation of risk is critical to project success. Misalignment often results in disputes, escalating costs, and overall underperformance. Moreover, systematic management of minor risks, though sometimes overlooked, is essential in preventing cumulative inefficiencies that can undermine delivery outcomes.

Building on these insights, this research investigates how selecting procurement methodologies—when aligned with relational principles, contractual structures, and appropriate risk allocation—can enhance risk distribution and strengthen the resilience of infrastructure delivery. For a deeper exploration of these themes, navigate the slides below.

1. Procurement Methodologies for Infrastructure Delivery: Relational vs. Transactional Principles

Procurement is the primary mechanism for distributing risk in infrastructure delivery. Principle 1 highlights the distinction between relational and transactional approaches. Relational models—such as alliancing and Early Contractor Involvement (ECI)—emphasise cooperation, trust, and shared problem-solving. Botha and Scheepbouwer (2015) describe how the Christchurch rebuild used an alliance model with an adjusted Target Outturn Cost, enabling flexibility and collaborative risk management.

Conversely, Public–Private Partnerships (PPPs) often take a more transactional stance, relying on bespoke contracts and rigid obligations (Jayasuriya et al., 2019). The contrast illustrates that procurement method selection must reflect project complexity and uncertainty.

Evidence from Australia and the UK reinforces this point. Projects delivered through alliancing and relational models often outperform traditional methods, which have historically suffered from delays and cost overruns (National Audit Office, 2001 ; Walker et al., 2002). Despite progress, underperformance remains widespread, signalling the need for a deeper cultural shift in procurement ethos (Dawson, 2011).