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International Journal of Engineering & Technology, 7 (2.29) (2018) 887-892 International Journal of Engineering & Technology Website: www.sciencepubco.com/index.php/IJET Research paper Innovative Procurement Adoption for Industrialised Building System (IBS) Projects Hamizah Liyana Binti Tajul Ariffin 1 *, Brenda Yeo Hooi Lynn 2 , Nurshikin Binti Mohamad Shukery 3 , Nafisah Binti Abdul Rahiman 4 , Syamsul Hendra Bin Mahmud 5 , Faraziera Binti Mohd Raslim 6 1,2,3,4,5 Faculty Of Built Environment, Universiti Teknologi Malaysia, Johor Bahru, Malaysia 6 School Of Housing, Building And Planning, Universiti Sains Malaysia, Penang, Malaysia *Corresponding Author E-Mail: Hamizah@Utm.My Abstract Industrialised Building System [IBS] is a new method that used prefabrication components in building construction as an alternative towards enhancing construction performance. The Construction Industry Development Board [CIDB] embraced the IBS method to enhance productivity and building quality, reduce wastage on site, increase occupational safety and health, and reduce overall cost of construction. Currently, most of the IBS project developments in Malaysia are still adopting traditional procurement system. How- ever, traditional procurement system has been criticised for its fragmented procedure to project delivery in terms of integration and collaboration of the project team. As a result of that problem, a number of issues have recently arisen such as reworks, time delay, rising costs, lack of communication and coordination, and wastages. The purpose of this research is to identify challenges of the current procurement system and to investigate the possibilities of implementing innovative type of procurement method for IBS im- plementation. A deductive research approach was adopted. Reviewing relevant literature before embarking into any academic re- search project is one way of exploring a known theory in a holistic manner. It also appears to be one of an essential feature to create a firm foundation for the research. Based on extensive literature reviews; this paper describes what are initiatives that have been taken from developed nations which are known as earlier IBS adopters and through the findings these experiences may shed some light on the type of procurement that have been adopted. This study was conducted among Grade 7 IBS contractors in Malaysia to gain further clarification on the immensity of the issues as well as assessing the research instrument. The findings from this study reveal that financial matters, lack of early involvement, lack of integration and coordination, knowledge and understanding, role and responsibility, risk liability, communication and information, attitude and relationship matters are challenges embedded in the exist- ing procurement approach in adopting IBS. Suggestion on how innovative type of procurement method such as Separation of IBS from Main Contract, Partnering and Integrated Project Delivery [IPD] will be able to minimise the fragmentation gaps will be con- cluded. Keywords: Industrialised Building System [IBS]; Procurement; Innovative; Malaysia 1. Introduction The construction industry is an important productive sector that contributes towards the economy and develops the social welfare, infrastructure and building of the country [1]. As proven by CIDB [2] who stated that the construction industry provides job opportu- nities for 1.2 million people representing 9.5% of Malaysia’s total workforce. Generally, 4% of the Malaysian Gross Domestic Prod- uct [GDP] is contributed by the construction industry, estimated to increase to 5.5% of the Malaysian GDP in 2020 [2]. This reflects that the demand of construction is key to the economy develop- ment compared to others sector [3]. In the 8th Malaysia Plan, the country aims to achieve construction of 600,000-800,000 houses as the conventional method of con- struction is not sufficient to address the huge demands, as men- tioned by Kadir, Lee [4]. Nevertheless, the industry is trying to improve its performance in order to move towards industrialisa- tion. One of the methods to solve this problem is to adopt the Industrialised Building System [IBS] in Malaysia, in order to im- prove productivity, reduce dependency on foreign labour, provide adequate housing [5], quality of works and others. The aim was set by IBS Roadmap 2011-2015, but only 24% of public projects RM 10 million and above achieved 70 IBS score and only 14% of private projects RM 10 million and above achieved 50 IBS score [2]. The demand of IBS components is less compliant in Malaysi- an construction industry. The government have been promoting various programs, training and documents, proving advantages of IBS implementation. Normally, there are a minimum of four or five parties directly involved with the process of a construction project such as clients, design consultants, contractors and material manufacturers or suppliers. These parties have different levels of involvement and contributions at different stages in the whole of construction pro- cess. Bower [6] identified that current methods of procurement have a major impact on the state of the industry by their approach to project delivery and in particular to risks distributions, contrac- tual terms incorporated in the document and the relationships be- tween parties involved in the overall process.