Abstract
The comparison of the traditional (budget-funded) public building procurement model with the public private partnership (non-budget funded) model is presented in the paper. Public service buildings procured based on the traditional model and those procured according to the PPP model are compared in the scope of research involving nine buildings realized in the Republic of Croatia. The results point to greater efficiency of the PPP model in the construction of public service buildings, with regard to both cost and time of construction work.
Highlights
Public service buildings (PSB) are buildings that are used for conducting public sector activities such as those related to upbringing, education, teaching, science, culture, sports, healthcare, social welfare, national administration bodies and organisations, local and regional government units, citizen associations and religious communities, and for other similar activities [1].Such buildings are usually funded using a traditional procurement model
If the said buildings were not constructed based on the turnkey system, - according to the estimate made by the project manager - the cost overrun would amount to 10 % of the initial investment, and the results would show that cost overruns are almost two times greater in case of traditionally procured buildings compared to PPP projects, i.e. the cost overrun would amount to 33 %
The traditional procurement model is still more often used in the Republic of Croatia, the implementation of the PPP model is expected to grow in the future, mainly due to the lack of budgetary funding and the need to meet public needs despite funding difficulties
Summary
Public service buildings (PSB) are buildings that are used for conducting public sector activities such as those related to upbringing, education, teaching, science, culture, sports, healthcare, social welfare, national administration bodies and organisations, local and regional government units, citizen associations and religious communities, and for other similar activities [1] Such buildings are usually funded using a traditional procurement model. Some government of the Republic of Croatia is aware of the possible role authors [8] define the value for money as the best combination of of PPP in the realisation of new public service buildings and, in this the quantity, quality, features and costs as expected throughout respect, it has issued a Framework Programme [5] through which the entire life-cycle of the project, or it is often stated that it intends to fulfil current needs for the construction, extension and the value for money is the real value for the funds invested. The aim of the paper is to present the results of the analysis, interpret these results, and point to the advantages and shortcomings of these models in the procurement of public sector buildings
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