Evaluating current project models and effects on procurement and sub-contracting during construction projects in Sweden; suggesting a roadmap for future use

Abstract

The Swedish economy depends heavily on the construction industry, which has made a considerable contribution to its expansion and prosperity. The construction industry has a significant influence on the economy due to its large workforce and significant investments. The extended duration of the projects and the requirement for high-quality results within budget limits provide problems for the construction sector in terms of procurement. Contracts are essential to ensure the achievement of intended results, and their legal obligation necessitates a careful approval procedure. It can be difficult to strike a balance between short-term and long-term goals in the construction industry, which has an impact on the desire for innovation and resource efficiency. The aim of this thesis is to address the research questions: How do the project delivery models design-bid-build (DBB) and design-build (DB) stand against each other from a quality and end-cost standpoint? By looking specifically into: 1. How do the project delivery models affect the number of total procurements offers and sub-consultants in the value-chain? 2. Does the number of total procurements offer, and sub-consultants then effect the result in terms of quality and end cost? and make recommendations for constructing a roadmap that shows the influence of various procurement decisions on the results of the project. The research focuses on assessing the advantages and disadvantages of current project delivery models and procurement frameworks with the objective to spot areas for improvement and provide guidance for the roadmap. The research questions examine alternative models and tactics for procurement and how they affect Swedish building projects. The research methodology consists of literature reviews, survey, and interviews with experts from significant construction firms within the Swedish construction sector. This thesis offers suggestions derived from the findings and offers insights into the construction industry's procurement decision-making process. The thesis also examines a variety of parameters, including accountability, the quantity of actors engaged, systems of compensation, risk management, methods II of evaluation, and stakeholder cooperation. Based on the fluctuating nature of labour demands, construction businesses tend to depend on subcontractors rather than keeping a sizable permanent workforce, making risk management particularly important. Yet, this reliance on contract workers and subcontractors hinders productivity, restricts opportunities for economies of scale, and lowers the quality of the production and client satisfaction. The thesis states that it is challenging to respond to the study question since procurement procedures are not the main factors influencing bidding, tendering, and subcontractor stages along the value chain. The conclusion also underlines how the DBB and DB frameworks differ in the final product's quality, with DB having a small edge. Furthermore, the DB framework must go through improvements that emphasize partnered projects and highlight current standards to become the new standard. It is also advised to use modern digital applications to enhance customer and contractor communication throughout the project lifetime. It is advised that future thesis studies investigate how initial procurement choices affect the aftermarket and property oversight phases of building projects.