Optimization of Material Procurement Processes in Construction
Keywords:
Procurement, technology, corruption mitigation, AI-blockchain integration, supply chain transparency.Abstract
Procurement inefficiencies manifested through delays, cost overruns, and systemic corruption remain persistent barriers to project success in the construction industry. This study examines the impact of technology adoption on mitigating these challenges using a mixed- methods approach that analyzes survey responses from 127 construction professionals, including project managers, contractors, and procurement officers. Quantitative results indicate that fully integrated digital procurement systems (e.g., AI-enabled platforms) reduce average delays by 73% (1.2 vs. 4.5 weeks for manual systems) and decrease the incidence of severe cost overruns (>30%) by 50% (15% vs. 65%). Corruption was identified as the most prevalent barrier, reported by 60% of participants rising to 82% in public-sector projects. Qualitative findings reveal that partially automated systems often exacerbate inefficiencies due to fragmented tools and lack of interoperability, extending procurement delays by an average of 20%. To address these challenges, the study proposes an integrated AI-Blockchain-IoT procurement framework: AI is used for demand forecasting, blockchain secures contract execution and bidding transparency, and IoT provides real-time tracking of supplier deliveries. Policy recommendations include mandating interoperability standards, piloting blockchain-enabled tendering platforms, and incentivizing digital training for procurement teams. These findings highlight the transformative potential of integrated technologies in enhancing procurement efficiency, curbing corruption, and aligning construction practices with global sustainability and governance standards. The study calls for a shift from reactive procurement models toward proactive, transparent, and data-driven systems.
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