Effects of cooperative procurement procedures on construction project performance: A conceptual framework Per Erik Eriksson * , Mats Westerberg Division of Entrepreneurship and Industrial Organisation, Lulea ˚ University of Technology, 97187 Lulea ˚ , Sweden Received 3 June 2009; received in revised form 20 January 2010; accepted 26 January 2010 Abstract In this paper, we develop a testable holistic procurement framework that examines how a broad range of procurement related factors affects project performance criteria. Based on a comprehensive literature review, we put forward propositions suggesting that cooperative procurement procedures (joint specification, selected tendering, soft parameters in bid evaluation, joint subcontractor selection, incen- tive-based payment, collaborative tools, and contractor self-control) generally have a positive influence on project performance (cost, time, quality, environmental impact, work environment, and innovation). We additionally propose that these relationships are moder- ated or mediated by the collaborative climate (i.e. the trust and commitment among partners) in the project and moderated by the overall project characteristics (i.e. how challenging the project is in terms of complexity, customization, uncertainty, value/size, and time pres- sure). Based on our contribution, future research can test the framework empirically to further increase the knowledge about how pro- curement factors may influence project performance. Ó 2010 Elsevier Ltd and IPMA. All rights reserved. Keywords: Procurement; Project performance; Collaboration; Coopetition 1. Introduction Since construction projects and/or their outcomes heavily affect our modern society, the importance of a well-functioning construction industry is beyond doubt (Cheung et al., 2001). In many countries the construction industry has, however, attracted criticism for inefficiencies in outcomes such as time and cost overruns, low produc- tivity, poor quality, and inadequate customer satisfaction (Egan, 1998; SOU, 2000; Yasamis et al., 2002; Chan et al., 2003). Practitioners, researchers, and society at large have, therefore, called for a change in attitudes, behaviour, and procedures in order to increase the chances for project success and improved end products (Dubois and Gadde, 2002). The client is proposed to act as a change agent in such a change (Egan, 1998; SOU, 2000). The way the client deals with procurement deter- mines responsibilities and authorities in the entire con- struction process, affecting the degree of integration and cooperation among project participants (Love et al., 1998; Briscoe et al., 2004). Since traditional procurement procedures cause adversarial relationships and many problems in all stages of the buying process, this is a vital improvement area that can contribute substantially to project success (Cheung et al., 2003; Eriksson and Laan, 2007). Although procurement procedures need to be tai- lored to enhance the fulfillment of different project perfor- mance objectives (Cox and Thompson, 1997; Wardani et al., 2006), clients tend to choose those procurement procedures that they have a good knowledge of and a habit of using, regardless of any differences between pro- jects (Love et al., 1998; Eriksson, 2008b). For a new pro- curement procedure to be implemented, clients need to feel confident of how to use it and have positive attitudes towards its effect on outcomes (Tysseland, 2008). Hence, the key to a change of practice lies in an increased 0263-7863/$36.00 Ó 2010 Elsevier Ltd and IPMA. All rights reserved. doi:10.1016/j.ijproman.2010.01.003 * Corresponding author. E-mail addresses: pererik.eriksson@ltu.se (P.E. Eriksson), mats. westerberg@ltu.se (M. Westerberg). www.elsevier.com/locate/ijproman Available online at www.sciencedirect.com International Journal of Project Management 29 (2011) 197–208