Abstract
The objective of this research was to describe the types of business networks formed to meet the requirements established by the new bidding law, the Differential Public Procurement Regime, the innovations of this bidding system and the effect on the construction supply chain. This is a descriptive study based on a qualitative–quantitative analysis of a case study of road works on BR-381/MG, in Minas Gerais, Brazil. The units of analysis were the bidding documents, respective contracts, and the construction sites. The results showed that 40 companies took part in the bidding process in 13 cooperative consortia, 8 of which were vertical and horizontal networks, and 5 were vertical networks. An incremental innovation related to the project delivery method was identified between the government and construction companies in Brazil by means of integrated design and build procurement, which changed relationships within the construction supply chain by moving the design supplier into the contractor consortium and improved supply chain management. Moreover, inversion of stages by the new bidding law has increased agility in procurement of public works, as prices are analyzed prior to the other documents.
Highlights
Internationalization of the economy has caused changes in management of businesses that seek organizational configurations adapted to a newly established reality
Article 2 of Differential Public Procurement Regime (DPPR) Law No 12.462/2011 provides for the possibility of contracting the executive engineering project and the construction works in an integrated manner, including the building works needed to relocate families occupying the public spaces where road works would be performed (Brazil, 2011)
It is evident that 38.46% of the total of consortia constituted were of the vertical type, formed by the focal firm and a company supplying technical engineering projects belonging to a construction supply chain
Summary
Internationalization of the economy has caused changes in management of businesses that seek organizational configurations adapted to a newly established reality. Forming business networks is one of the strategies adopted to obtain the new productivity and quality standards required. This cooperative business network allows for the creation of strategic alliances, such as consortia. Established markets (Quandt, 2012) They create competitive advantages by boosting their partners’ skills (Araújo & Guerrini, 2012; Jorde & Teece, 1989; Miranda, 2010). The Differential Public Procurement Regime [Regime Diferenciado de Contratacão] (DPPR) came into force in August 2011, aimed at contracting sporting infrastructures for the competitions beginning in 2013, with the Confederations Cup, and ending in 2016, with the Olympic Games, held in Rio de Janeiro, which allows for the formation of business consortia. The objective of this research is to describe the types of business networks formed to meet the requirements set out by the DPPR, the innovations of the DPPR bidding system, and the regime’s effect on the construction supply chain
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