Procurement can be describe as the process of purchasing good or services from an outside the organization
Procurement can be describe as the process of purchasing good or services from an outside the organization (Schwalbe K., 2013). Usually, term procurement will use in government sector; while, private sector will use term purchasing or outsourcing to describe the action buying product or services. Schwalbe K. (2013) stated the person or organizations that provide procurement service is such as contractors, subcontractors, sellers, suppliers, vendors and others. The contractors, subcontractors, sellers, suppliers and vendors are usually will provide product and services or work for person called client (owner of project).
The term of ‘construction contract’ has a statutory definition, conceal most but not a wide range of construction work, which include both building and engineering construction works. In any case, different type of contract used in construction industry are numerous and varied. At the base of construction development contract, there are several techniques of procurement, which based on the contractual methods by which construction projects are are to be set up and constructed.