Impact of procurement in the construction industry

The aim of the article is to understand the concept of procurement strategy which is one of the vital elements in construction industry. Balancing the need to deliver both good cost and quality outcomes in construction is key. The most fascinating and formidable challenge to the researchers in this field is to explore a variety of approaches to integrate and optimize the various aspects of the system which includes operational, tactical and strategic decisions in large-scale supply chains, and are developing techniques to help managers deal with the sustainability and uncertainty inherent in the real world. The procurement strategy has a significant and exponential impact on the construction business’ bottom line. Highly effective concepts and implementation of these practices can significantly increase the competitiveness of companies making the project meet require quality and within the allocated budget. The main objective of this article is to analyze and evaluate the current ASCON ROAD (U.A.E), contracting company's procurement strategy and giving recommendations to improve their performance goals and measures. Furthermore we were able to identify how the procurement process can contribute to improved performance of the procurement function focusing on efficiency and effectiveness. Based on the findings the author has given some recommendations to redefine the internal process so that the company can sustain their competitive advantage and improve on their core competencies in order to increase market share.