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Paper w78-2003-387:
Legal challenges & strategies in e-procurement in construction

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Ting S K, Wong H Y

Legal challenges & strategies in e-procurement in construction

Abstract: E-commerce is not wholly a technology phenomenon, though technology is utilized to facilitate the business processes. It changes the conventional workflow and practices. E-procurement in the Singapore construction industry is still in its infancy stage. Though Singapore construction companies should be encouraged to utilize informative technology (IT) systems, the potential legal challenges that surfaced while integrating these systems with the existing legal systems must be highlighted and understood to protect their corporate interests and assets. The perception of some Singapore construction players and application service providers (ASPs) on these issues related to lack of alignment in jurisdictions, legal liability, insecurity, confidentiality and service dependency risks were supported by the results compiled from the survey questionnaire conducted. The strategies namely legislation, self-regulation, technology and information security management to minimize the related risks and damages were recommended from a multidisciplinary approach. The mechanisms favored by the surveyors namely enactment of new law, interchange agreement, Public Key Infrastructure (PKI) and education were further discussed. By combining the strategies, the construction industry can better avoid these legal pitfalls while transforming with the advancement of technology and enjoying the benefits of adopting e-commerce.



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Permission to reproduce these papers has been graciously provided by the University of Auckland. The assistance of the editor who provided the full texts and the structured metadata, Dr. Robert Amor, is gratefully appreciated.


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