Dismantling the public sector bastion: evaluating capital works

Abstract

PurposeThe determination of the most appropriate procurement system for a capital works project is a challenging task for public sector clients considering the array of assessment criteria that are considered and the procurement methods that are available. This is particularly pertinent to the Western Australian public sector where there has been a propensity to use traditional lump sum as the default procurement solution despite knowing that the selection of an inappropriate procurement method may lead to cost and time overruns, claims, and disputes on projects. This paper aims to present a six‐step procurement method evaluation approach that requires public sector agencies to consider in detail an array of options so as to obtain value for money.Design/methodology/approachA procurement evaluation approach is developed and is examined using a focus group of 12 participants comprising a public sector client, project team and key stakeholders. The focus group was used to examine the developed approach in the context of a real‐life capital works project.FindingsThe procurement method evaluation approach was deemed to be pragmatic and enabled decision makers to re‐evaluate outcomes from previous steps in the process. All focus group participants stated the six step process enabled a recommendation that was grounded in reflection and detailed evaluation.Practical implicationsThe developed procurement approach has enabled the public sector client to evaluate the way in which it views procurement method selection and examines how “value for money” is obtained.Originality/valueThe six‐step procurement approach makes use of quantitative and qualitative techniques and is reliant on discourse and reflection in making a procurement method recommendation. Consequently, the approach enables public sector clients to account for the complexities often associated with procurement selection.