2004 AACE International Transactions

IT.05 Best Value IT Procurement for Construction Organizations

Dr. Srinath Perera and Gayani Karunasena
ost construction organizations invest in information technology (IT), considering it as an investment towards achieving competitive advantage. The challenge is to minimize the cost and upheaval, while making leaps in efficiency and performance. It is clearly evident in the world of business that IT represents a huge opportunity and method for competitive advantage [13]. It also represents a significant risk considering the scale of investment often required. An inappropriate application of IT can spell disaster for the whole business. As with other organizations, construction organizations are also using IT in order to manage their business. Paulson states that, computer knowledge has become increasingly essential to success of todays construction engineers and managers and will become more so in the future. The question for those going into this field is how best to acquire an understanding of this subject that will be most useful in construction practice [11]. This clearly indicates that knowledge on procurement of IT is crucial and critical. This often becomes a challenge and difficult decision to decide due to the nature of IT itself [16].

determine the most appropriate solution to suit the performance [5]. Construction organizations also use IT for projects of increasing size and complexity as they seek to achieve a competitive edge. However, inappropriate IT applications may ruin the organizations performance and threaten commercial losses running in to millions of dollars. The situation is further aggravated due to the high competitive nature of the construction industry. Therefore the primary aim of this proposed comprehensive study on IT procurement in construction organizations is to investigate the challenges associated with procurement of IT and provide a VM integrated model for procurement of IT which is capable of increasing customer satisfaction while removing unnecessary expenditure on resources.

RESEARCH METHODOLOGY The methodology adopted for the research involves the review of previous theoretical considerations and current industry practice, and then to synthesize a new approach drawing from the best practices for IT procurement found within these two sources, incorporating principles of VM to enhance the synthesized approach. This new approach was then worked up into a model and applied to real-life scenarios within construction. The project was undertaken in response to a well-defined and explicit industrial need more than as an exercise in academic curiosity. The research comprised experienced academics and industry representatives, all of whom had direct experience in the IT based systems within construction organizations. The research methodology, which is to be applied for this research can be graphically illustrated as follows (Figure 1). The initial work on the project consisted of reviews of current knowledge in VM and IT procurement. Two principal methodologies were used: a literature review and a current practice review. These reviews were conducted to determine which methods and tools were currently being used in construction and other industries to justify procurement on IT. A literature review was carried out through books, journals, conference proceedings and the Internet. The current practice review was conducted on large-scale construction organizations operating in the Colombo metropoli-

Their technical content is diverse and difficult to define. They are highly affected by changing business objectives, organizational politics, and institutional capacity of the end user. They are subjected to rapid technological change over the project cycle.

These provide ample evidence for the need of a tool to evaluate new investments in IT and providing feedback on their success or failure. In most cases, although IT investment achieves the business requirement, it may not provide value for money for the investment. Simply, it may not increase client satisfaction nor reduce the expenditure on resources. To evaluate this application, tried and tested techniques such as VM may be appropriate. The Employer Organization of the United Kingdom also believes that the policy priorities set out can be built into a high performance culture more effectively if the two principles of performance and value are adopted. VM is a well-established industrial technique that requires dynamic leadership and is based on the concept of team-based working that identifies the required performance to satisfy the business and stakeholder needs and to

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2004 AACE International Transactions

The Research Strategy

Review of current knowledge

Development of IT procurement model

Industry survey

Literature review

Initial designing of IT procurement model

Sample survey

Case studies

Analysis of the findings

Modification of IT procurement model Enhancement of IT procurement model

VM

Construction Procurement

Evaluate the model based on case studies Enhanced the model to a CASE tool

Expert opinion survey on research

Figure 1Research Methodology tan area. This is justified by the fact that they are the organizations that are capable of significant investments on IT. The survey was carried out by using semi-structured interviews in order to identify the IT procurement strategies used in Sri Lankan construction industry and available IT procurement methods in Sri Lanka. This was done in two phases. First phase: this included IT professional or responsible personel who dealt with IT procurement process in construction organizations. This enabled the identification of procurement process, problems, suggestions and VM applications for IT procurement. Second phase: this included the IT providers who are dealing with the IT procurement in large scale in Sri Lanka to identify existing IT procurement methods and payment options. All interviews were recorded and a systematic knowledge elicitation process to capture the relevant information was used throughout. The knowledge elicitation process was carried out in three stages: Transcript: Direct transferring of audio recorded interviews to hard copy format. Abstract: Removing of noise that distorts information. Extract: Extracting the relevant information.

The survey sample was restricted to 100 major construction and nonconstruction organizations covering selected consulting organizations (20), selected contraction organizations (60) (selected from M1, M2, M3 according to ICTAD grading and foreign contractors who are in Sri Lanka) and IT providers (20). This survey was conducted in two stages. First was the pilot review covering 40 organizations and extended to full extent review covering the rest of the organizations. IT resources covered by the survey include Hardware (HW), Software (SW), Liveware and IT services. Full details of these interviews and organizations consulted are too voluminous for reproduction here. The next stage of the research was the development of a model for procurement of IT that is capable of increasing customer satisfaction while removing unnecessary expenditure on resources. The development of a model carried in three phases

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2004 AACE International Transactions respectively: primary, secondary, and enhanced. Primary model is the initial development of IT procurement model, which is based on secondary data collected through the literature review. Secondary is the modified model based on the knowledge gained from the current review as identified before. The last stage of development is the enhancement of the model by the incorporation of VM methodology to IT procurement to provide the best practice guide in terms of achieving value considering cost, quality and time parameters. In addition to that the model will be further developed, learning from the successes in construction procurement methods. To obtain industry-wide perspective as well as for the checking of the consistency and the accuracy of the model, case studies will be conducted among organizations covering both construction and nonconstruction industries (10 organizations) operating in the Colombo metropolitan area. Unstructured interviews will be used in case studies, to collect the view of the experts in industries. Through this process authors expect to verify the acceptability and success of the model so developed. The final outcome or the evaluated model will be enhanced to a Computer Aided Software Engineering (CASE) tool with the intension of providing a user friendly guide for IT procurement in construction organizations. The final stage of the research program was the validation of research through expert opinions. This will also be carried out through a series of semi-structured interviews, demonstrations and discussions. the extent to which an IT actually contributes to achieving organization goals [2]. The detailed literature review carried out revealed that IT procurement selection continues to be topical, and only a very few advanced studies being reported. One of the key concerns of procurement selection is how to enhance objectivity. A recent article [3] stated that everybody benefits from fast, effective and transparency in procurement. It reduces the suppliers cost, enables the organization to fulfill commitments faster and more effectively and gives better value for the clients money. The Department of Finance [4] defines IT procurement as Any contract, interagency agreement or purchase estimate to conduct any activity listed below, or any combination of these activities is to be considered an IT procurement: IT facility preparation, operation maintenance, development and implementation or changes of application systems or programs, documentation of systems and procedures, project appraisal or assessment, performance measurement, employment of personnel in support of, or directly related to, any of the above activities. This is a wide and comprehensive definition that covers all aspects of IT development. The approaches available for the IT Procurement include [16]: Consulting services contractsConsultants are expected to provide intellectual services according to the highest professional standards, e.g., procurement plan for IS. Off-the-shelf IT supplies and maintenance contractsThe technical risk is assumed by the purchaser who defines required product and services specifications. System supply and installation contractsSupplier assumes responsibility for the design, supply, and installation of facility defined by the purchaser mainly in terms of performance specifications. System Engineering contractsCombination of aspects of engineering contracts, consulting services and supply of products.

VALUE MANAGEMENT VM is a structured and systematic approach in achieving the necessary functions of a project at the lowest resulting cost. VM is a comprehensive evaluation technique that considers all aspects of the project from the project feasibility, the financing plan and costs, project design and construction and through project operation [9]. One can find several definitions for VM. Larry Miles [10] defines good value as: a product or service that has appropriate performance and cost and as a problem solving system aimed at reducing expenditure of time and money whilst maintaining or increasing performance. This is the view that has been promoted by most value associations worldwide until recently and has found its way into national standards, from the seventies to the nineties. The new vision of VM as defined by the European VM standards states it as a style of management that evolved out of previous methods based on the concept of value and functional approach. It claims that VM uniquely brings together [10]: management style, positive human dynamics, consideration of external and internal environment, effective use of methods and tools.

Each of these options entails various payment methods such as cash purchase, hire/leasing, risk and reward and arrangement with a services provider (ASP) [1].

RESEARCH FINDINGS The following are results primarily based on a literature review and a current review carried out to collect information on VM and IT procurement.

Application of VM in Construction Industry According to research carried out by SAVE, VM methodoloIT PROCUREMENT gy can increase customer satisfaction and add value to an organizations investment in any business or economic setting [7]. VM A survey on IT revealed that many researchers recognized IT practitioners apply VM methodology to products and services in as a strategy to improve performance, but as a difficult concept to industries such as manufacturing, construction, transportation, measure or define. In most occasions IT performance measures government, health care and environmental engineering. Further, the research found out that VM methodology easily proIT.05.3

2004 AACE International Transactions duces savings of 30% of the estimated cost for manufacturing a product, constructing a project or providing a service. There are some documented examples of VM application by some agencies worldwide: Environment Protection Agency (USA), Federal Highway (USA), School Facilities State of Washington, New York Convention and Visitors Bureau [6]. The industry survey revealed that application of VM in construction organizations is relatively new in Sri Lanka, although it is widely practiced in the developed countries. At present a very few instances of application of VM can be found in the industry. For example, a VM study was carried out on certain specialized elements (raised floors, etc.) of the construction of the World Trade Centre (Colombo) throughout the project. Another study also was carried out on the same project looking at post occupancy energy saving possibilities, and increasing productivity in business by some consultants related to the same project. However there is no evidence of use of VM for the procurement of IT. There are various reasons for the very limited usage of VM within the Sri Lankan construction industry. A main factor could be the greater fragmentation of the industry and inadequate knowledge on use of VM. Following are some other factors that can be highlighted as potential factors to this situation. A key fact is that professionals do not share a common design environment. No guidance or knowledge about the benefits of VM among the clients, developers, etc. There is no standard procedure available for VM process in Sri Lanka. The construction industry regulatory body (ICTAD) does not actively encourage the practice of VM in their documentation, advice or guidance on projects. ducing various continued professional development activities (CPD events) for IT professionals in Sri Lanka (www.cssl.lk). However there is no one organization that regulates or at least provides guidelines for the IT industry in Sri Lanka. A literature review revealed various projects on application of IT in terms of budgeting, developing strategies, measuring benefits primarily introduced by various leading companies (MS, ICTBP). There is evidence of usage of VM for the software development process [14], but there is no evidence for the availability of a standard guide for IT procurement, and especially one that is applicable for the construction organizations in local as well as global context. The survey carried out to identify the current IT procurement practices of the construction industry revealed the following information in general. All the organizations consider IT as the strategy to improve organizational performance. However, about 95% of organizations used IT for construction activities and it is rare to see the full utilization of IT resources among these organizations. Basically, they are using IT as a tool to improve speed and accuracy, quality, management of information and the sharing and communication with the outside world. The rest consider that investment in IT is inappropriate due to inadequate knowledge of IT among the existing staff and the need for proper training in the use of IT. Ten percent of the organizations have a strategic plan for the development of IT within organizations. The rest of the organizations have not provided any allocations for research and development of IT in their annual budget proposals. They tend to find the finance as and when the need arises rather than pre-plan for it. Government organizations involved with construction have to strictly base on Guideline on Government Tender Procedure, which is imposed by government for procurement of material and equipment including IT. There are no such rules and regulations imposed for the non-government organizations for IT procurement. However, it was also found that in some organizations they have their own unique rules and regulations to administer the IT procurement process. Only 5% of organizations have software licenses for the purchased product. They indicated that they had experienced greater efficiency, effectiveness and security of the licensed product than the pirate software copies of the same. All other organizations used pirate versions of software for construction activities (even though it is a violation of international copyright regulations). As identified previously, our survey on current review of procurement of IT can be spilt into four categories: Hardware, Software, Liveware and IT Services. The findings of the survey on each area explained in detail in the following section.

IT Procurement in the Construction Industry Computers can assist in almost all aspects of construction engineering and management [11], including estimating, scheduling, operation simulation, safety, and structural analysis. And even direct field applications like automated data collection and robotics, as some of the areas that IT can enhance the performance of the construction industry. However, in the Sri Lankan context, Premasiri [12] states that, construction industry does not emerge to the forefront in usage of IT in the magnitude that other industries do. As a result the construction industry is lagging behind from other sectors with respect to the use of IT and consequent poor performance. However, the studies carried out by Kodikara and Costa [8] show that the construction industry has realized the potential of using IT. Most of the large contractors and consultants realized this trend and have invested capital in application of IT in to construction activities. The survey also revealed that there are organizations that proclaim to manage and improve IT in Sri Lanka. For example: Federation of the Information Technology Industry in Sri Lanka (FITIS). It manages HW and SW suppliers, IT services providers (training, Internet and communication) (www.itlanka.org). The Computer Society for Sri Lanka (CCSL), which is widely regarded the professional body for the IT profession, is involved in intro-

Hardware and Software Table 1 illustrates a summary of important findings of the Hardware and Software procurement methods used in construction organizations.

Liveware When recruiting construction professionals, most of the organizations give consideration to the IT skills of the personnel

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2004 AACE International Transactions Table 1Summarization of HW and SW Procurement Findings HW SW Application SW Off the shelf Supplied with the Off-the-shelf HW products supply and maintenance contracts 95% 75% System SW Provide free of charge Same Direct purchase Same -Quotations -Nomination -Demonstration Same

1.

IT procurement method Usage of IT procurement Payment options Purchase time frame Approaches for selection of supplier Factors considered for evaluation

-Consulting service contracts -Off-the-shelf supply and maintenance contracts 95% -Direct purchase (cash/credit) -Few on leasing On requirement -Open tending (govt. org.) -Calling for quotations -Through the nomination -Cost -Response of supplier -Maintenance (warranties) -Reliability

2. 2 3. 4. 4 5. 5 6. 6

Tailor made System supply and installation contracts 20% Same Same Same

-Cost -User friendliness -Functionality -Maintenance

Same

since they are not providing any in-house or external IT training due to the lack of time and complexity of the industry itself. Only the suppliers of IT products provide training as part of their agree- ment. IT Services The survey on IT service providers who are dealing with the IT procurement in large scale in Sri Lanka revealed the following information on existing IT procurement methods and payment options practice in its organization. All the IT providers offer the above identified IT procurement methods for their clients to procure IT. However findings revealed that the applicability of each procurement method varies according to the IT requirement of the organizations. The outcomes of the analysis can summarized as follows (Figure 2 ) About 75% of the organizations do not obtain special IT services from other organizations since most of the suppliers provide the IT services required free of charge during warranty period as the part of their sales agreement. In addition to that, maintenance companies are reluctant to take full responsibility of products, which are supplied by others. It is also noted that there are only a few established companies that provide IT services within the country.

Available off the shelf packages do not suit the construction industry. Unavailability of adequate resources (finance and technical) to invest in IT. Culture and fragmentation of industry also affect the improvement of IT. Poor standard of after sales services provided by the IT providers. Difficulty of identifying the best IT products and systems in the open market that are suitable for organizations. Less confidence of top management towards the use of IT. Poor response of relevant authorities towards management and improvement of IT in Sri Lanka.

Poor IT literacy of construction professionals, difficulty of identifying the best products, and poor after sales services can identified as the major problems with the procurement of IT. Although other factors do not directly affect the IT procurement they are affecting indirectly the decision of investment in IT, such as inadequate resources, less confidence of top management and cultural fragmentation construction industry itself. Also, the poor response of relevant authorities towards the enhancement of IT in the construction industry is an important issue.

Suggestions for Improvement of IT Procurement and IT Usage Problems Associated with IT Procurement in General The survey revealed the following information relevant to IT The following illustrates the suggestions for improvement of in general with respect to construction organizations. IT procurement as identified by the current review. Nevertheless these factors immensely contribute to the problems associated with IT procurement. Introduction of new information systems unique for the construction industry. Inadequate knowledge of IT among the professionals in the Introduction of training programs and learning institutes by construction industry. the responsible authorities to improve level of knowledge and IT.05.5

2004 AACE International Transactions

Procurment methods suitable for various IT requirements

Usage of IT procurment methods More than 10 computers Less than 10 computers Purchasing 1 or 2 computers -Consulting services contracts -Off the shelf supply and maintenance contracts -System supply and installation contracts. -System engineering and Integration contracts.

50

100

150 200 IT requirements

Figure 2IT Requirements vs. Procurement Methods skills in IT aimed mainly at construction professionals in the industry. Possibility of including the cost of IT in the Preliminaries Section of the Bills of Quantities as an item. To standardize IT in industry, incorporate it as a clause of condition of contract or requirement of ISO standards. Introduction of some sort of assistance for the Procurement of IT, e.g., a guide. Provide aids for IT development from responsible authorities in construction industry. Standards or rankings should be introduced to find the best IT suppliers. Development of VM Based IT Procurement Model Figure 3 illustrates the conceptual model for the proposed IT procurement system. VM will be the center technique incorporated into the model to identify best IT requirements and the technique to select the best procurement options, which satisfies the organizational requirements. The initial step of the development model is the identification of best IT requirements for a particular organization by applying the VM technique. According to the nature and size of the organizations, the requirements of IT will vary. The Functional Analysis System Techniques (FAST), which is used to find the best functions that satisfy the primary requirements, can be used to identify the best IT requirements relevant to a particular organization. The next step of the development will be the application of VM to find the best IT procurement options, which satisfies the best value IT requirements identified previously. To evaluate the best procurement option VM techniques incorporating Cash flow forecasting, Life cycle costing, Cost benefit analysis and/or statistical methods will be applied for various IT procurement options. This process is illustrated in Figure 4. This statistical method will be applied to carry out a statistical analysis of behavior of the procurement options against key parameters identified by current review. For an example in case of Hardware procurement, a current review revealed that the organizations give priority to cost, maintenance, and reliability. Then these key parameters will be evaluated with the procurement options available to identify the behavior of it against the particular time frame. Also in this model, end users will be given the opportunity of indicating the preference of each VM technique by allocating a weight to each technique. Each procurement option will then be ranked based on the results obtained through analysis. The stage of providing best IT solutions for the selected best IT requirements as shown in broken lines (Figure 3) is beyond the scope of this research as it is a task for the IT experts. Carrying out case studies as explained in the methodology will test the validity of the model. A software system that incorporates these functions will be developed as the supporting

The next section of the paper will explain the conceptual model developed for IT procurement to alleviate the prevailing problems identified in the constriction industry in Sri Lanka.

CONCEPTUAL MODEL FOR IT PROCUREMENT An IT procurement guide provides information on how to procure IT for the construction industry. This approach has been taken because every company has different requirements depending on its size and activities and the nature of the projects with which it is involved. The principle adopted for the guide is that all IT procurement should relate with the business and consequently play part in construction activity either at project level or at business level. The target of this guide is the construction industry professionals, particularly those without proper knowledge of IT or procurement of IT and those who are responsible for the selection and procurement of IT. This is one of the main problems identified through the industry survey. Although all the major factors identified are not addressed through the framework, it has been designed to help one understand the cost of the investment and the methods that can be used to finance the investment. For example, the problem of poor after sales services cannot be addressed through this framework since it is out of control of the researcher.

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2004 AACE International Transactions

Identify IT requirements Apply VM

Best value IT requirements

IT procurement options

IT solutions

Best value IT procurement options

Best IT solutions IT product

Figure 3Conceptual Model for IT Procurement

1. Consulting services (PM1) 2. Off-the-shelf IT supply and maintenance (PM2) 3. System supply & installation (PM3) 4. System engineering (PM4)

Best IT requirements

IT procurement options

Application of VM Cash flow statements Cost benefit analysis

Statistical analysis

Life cycle costing

Calculate the marks obtained by each procurement options & ranked it

Introduce weighted factor for each VM technique

Rank list 1. PM1 - A % 2. PM2 B % 3. PM3 C % 4. PM4 D%

X%

Y%

B%

Z%

Best Value IT procurement option Purchase IT product

Figure 4Application of VM to Find the Best IT Procurement Option IT.05.7

2004 AACE International Transactions Computer Aided Software Engineering (CASE) tool for the new VM based IT procurement model. The knowledge base for the procurement model will consist of key factors as outlined in Figure 5. The knowledge base considers the following key factors in IT procurement. Select IT: procurement of IT can be spilt into Hardware, software, liveware and IT services. This provides details of some of the important factors that should be considered during the selection of each. Cost IT: in any procurement approach it is necessary to understand the true cost of IT requirements. This section covers the detailed explanation of each component associated with true cost of IT. Procure IT: this section of the guide provides details of methods for IT procurement that can be used by different organizations according to their requirements. Benefits IT: this section provide the proof of merits and demerits of the selected procurement option using actual costs. Direct purchasing is the most popular payment method, which even suppliers desired to adopt because of the less risk to them. There is no evidence of application of risk and reward and Application Service Provision (ASP) payments options. A survey on SW revealed most of the organizations using pirated copies of application SW and general purpose SW as the lack of implementation of copyright laws. Lack of planning for IT activities, inadequate knowledge of construction professional towards IT, poor response of IT providers, and difficulty of identifying IT products have been identified as the main problems in IT procurement. An industry survey identified the need for formal guidance in the selection of IT procurement strategy for the investor. To address the above prevailing problems this research introduces a value based IT procurement model that is a common basis for all organizations to evaluate both the potential costs and benefits of new IT procurement. VM techniques were incorporated as a principle to improve the value of IT procurement model and enhance the model to produce a user-friendly software CASE tool. VM is an industry accepted organized approach to providing the necessary functions at the lowest cost. A CASE tool that incorporates VM principles for procurement of IT will assist the user in IT procurement and achieving value in the procurement process. The benefits expected from application of VM to IT procurement can be summarized as the development of a Decision Support System that ensures the best value, cost savings and better performance in the procurement process.

rganizations are under greater pressure than ever before to increase productivity. Increasing productivity has become a key to remaining competitive and viable in todays post industrialized, information oriented society. But the very resource that organizations need to remain competitive costs more. The only available exception is the computer technology [15]. As a result, organizations tend to invest in IT. But the main barrier or the problem faced by the investors is the selection of suitable IT for the organizations. In this respect the construction industry of Sri Lanka is no exception. In order to map the existing IT procurement practice in the construction industry, an industry survey was carried out in the form of interviews covering 100 organizations in the industry. The main outcomes of the industry survey are as follows. Most of the organizations used straightforward IT procurement methods to procure IT since the client has to bear the design and the implementation risks, mainly because of the low cost and time frame.

Further Research The research can be further developed in the following directions. Application of VM for decision-making process of adoption IT for construction organization. Development of value based framework for measuring the benefits of new IT innovations for construction organizations.

IT Procurement Consideration

Select IT 1. 2. 3. 4. Hardware Software Live ware IT services

Cost IT 1. 2. 3. 4. 5. 6. 7. 8. Purchase price Maintenance (HW) Renewable licenses (S/W) Implementation costs Internal support & management Training Disaster recovery & back up Protection

Procure IT 1. 2.

Benefits IT

3. 4.

Consulting services Off-the-shelf IT supply and maintenance System supply & installation System engineering

Figure 5The Key Factors for IT Procurement IT.05.8

2004 AACE International Transactions REFERENCES 1. 2. Abbott, C., and Blundell, D. (2000) Construct IT for the Business. University of Salford, UK. Caldeira, M.M., and Ward, J.M. (2002) Understanding the Successful Adoption and Use of IT/IS in SMEs: An Explanation from Portuguese Manufacturing Industries. Journal of Information System, 12,121-152. Central Unit of Procurement. (2003) Procurement TrainingC.V.P Guidance. Central Unit of Procurement, UK. URL: www.org.gov.uk. [Accessed 10 October 2003]. Department of Finance. (2002) IT Policies and ProceduresDefinitions. California. Harris, E.C. (2003) Value Management. http:// www.cclcon.com. [Accessed 2 July 2003]. Institute of Engineers Sri Lanka. (2002). Public Seminar on Value Management. Sri Lanka. Kelly, J., Morlrdge, R., and Wilkinson, S. (2002) Best Value in Construction. Blackwell Publishing, UK. Kodikara, G.W., and Costa De W.A.C.J. (1993) Information Technology in the Sri Lankan Construction Industry. Paper submitted to Institute of Engineers Sri Lanka annual session. Lally, H., and Davis, L. (2000) VM-Beyond the Function. http:// www.bizhot.co.uk. [Accessed 5July 2003]. Michel, T. (2001) Will the European VM Standard Change the Way We Practice? The Cost Engineer, 12,8-11. Paulson B.C. (1995) Computer Applications in Construction. McGraw-Hill Inc., New York, U.S.A. Premasiri, R.W.R. (2000) Use of Information Technology in the Sri Lankan Construction Industry. Thesis (Master of Engineering in Construction Management), Department of Civil Engineering, University of Moratuwa, Sri Lanka. Siong, N.B. Exploiting IT for Business Competitiveness. Addison-Wesley Publishing Ltd., Singapore (1996). Standing, N. (2002) Software Value Engineering. The Institute of Value Management, UK. Whitten, J.I. (1989) System Analysis and Design Methods. 2nd ed. Galgotica publications (Pvt) Ltd., New Dehli. World Bank Report. (2001) IT Procurement Guidance Note. [online] World Bank, US. www.worldbank.org /itprocurmntforum. [Accessed 5 September 2003].

3.

4. 5. 6. 7. 8.

9. 10. 11. 12.

13. 14. 15. 16.

Dr. Srinath Perera School of the Built Environment University of Ulster Jordanstown BT37 0BQ United Kingdom E-mail: s.perera@ulster.ac.uk

Gayani Karunasena Department of Building Economics, University of Moratuwa, Moratuwa Sri Lanka E-mail: gayani@becon.mrt.ac.lk IT.05.9