The Effect of Recession On Construction Procurement Strategies

After the collapse of the oil prices in Saudi Arabia, the country experienced sudden cuts in infrastructure and public project funding. Both contractors and subcontractors, experienced major freezes and sudden cuts in subsidy. While public projects were on hold, the private sector could not feed all the existing major contractors. Competition was at its highest and the granting of projects was based on an organizations experience, financial standing and competitive offer. Every organization and their departments underwent major cuts and reconfigured their management to meet the new demand in order to survive the upcoming years. With overwhelming risks and political unrest, companies are forced to restructure and adapt to the new system. demonstrate the flexibility of a procurement strategy in the construction industry and how its proper management could impact the outcome of a projects success or even provide a competitive advantage for an organization particularly in an unpredictable market    

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