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PROBLEMS AND RELATED CAUSES OF PUBLIC PROCUREMENT PROCESS TO ACHIEVE SUSTAINABILITY IN DEVELOPING COUNTRIES
Abstract
Public Procurement Process (PP Process) in construction industry has identified as integral part to achieve sustainability in developing countries. Sustainability links with the social, environmental, and economic indicators. The PP Process contributes largely to the budget of developing nations. However, existing PP Processes of developing countries have shown lagging features to achieve sustainability due to a number of problems. Further, the depth and gravity of the problems depend on the impact of root causes throughout the activities and stages of procurement lifecycle of a project. Hence, this paper aims to identify the problems and related root causes during the various activities in the stages of PP Process to achieve sustainability in construction projects in developing countries. In order to achieve the aim, this study started with a comprehensive literature review to identify the stages, activities, problems and related root causes in PP Process to achieve sustainability. Subsequently, interviews with 14 subject matter experts were carried out to identify and verify the stages, activities, problems and related root causes to achieve sustainability in PP Process in developing countries. The data were analysed using manual content analysis. The findings of the study identified 10 problems and 22 root causes that affect the 39 activities in 05 stages of PP process in project procurement lifecycle in construction industry. The outcome of this paper will be beneficial to relevant authorities, funding agencies and policy makers in taking necessary steps to update the existing guidelines, bidding documents, procedures and protocols to address the identified problems and root causes to achieve sustainability of developing countries.
... Public sector development projects are crucial for accelerating government development strategies and delivering community well-being (Brunet, 2019;Ahola et al., 2014). Project Governance Practices (PGPs) play a significant role in optimal project performance (Kodithuwakku, 2022;Gunawardana et al., 2021;Gunawardana & Karunasena, 2016). Issues like approval, standardization, financial planning, quality assurance, procurement delay, and post-conflict sensitive issues can impact project performance, similar to disaster management and climate change (Jayasundara et al., 2013). ...
... Public sector development projects are crucial for accelerating government development strategies and delivering community well-being (Brunet, 2019;Ahola et al., 2014). Project Governance Practices (PGPs) play a significant role in optimal project performance (Kodithuwakku, 2022;Gunawardana et al., 2021;Gunawardana & Karunasena, 2016). Issues like approval, standardization, financial planning, quality assurance, procurement delay, and post-conflict sensitive issues can impact project performance, similar to disaster management and climate change (Jayasundara et al., 2013). ...
... It develops a structural equation model to show the association between PGPs and project performance, which can be applied for future planning. Sri Lanka's development strategy is accelerating, and previous studies (Kodithuwakku, 2022;Gunawardana et al., 2021;Gamlath & Nanthagopan, 2017;Gunawardana & Karunasena, 2016;Jayasundara et al., 2013) have focused on controlling governing issues and challenges faced by public sector projects. ...
The use of Project Governance Practices (PGPs) is increasingly taking a substantial stage in developing economies, particularly in a newly industrializing nation like Sri Lanka where public sector development projects have been implemented to expedite the nation's growth and prosperity. As it is essential to lay a transparent and tangible foundation for an effective public sector that can be sustained, the paper focuses on the significance of PGPs in enhancing the performance of the Sri Lankan public sector development initiatives. Structuring, normalizing, facilitating, and post-conflict-sensitive variables were used to measure the PGPs, whereas financial and non-financial performance measures were employed to evaluate the project performance. The researcher conducted direct observations and administered a comprehensive Likert-scaled questionnaire to 518 project administrators involved in various Sri Lankan public sector development projects, specifically focusing on projects related to irrigation, roads and highways, water and sanitation, and other infrastructure developmental projects. The data was analyzed using the structural equation modeling through the AMOS software. The results showed that PGPs created a considerable improvement in project performance, which increased support for expanding economic prosperity through balanced development strategies and sustainability-based policy formation. Keywords: Performance, Project governance practices, Public sector development projects, Sri Lanka
... 2. Control: Project governance also involves controlling the project's resources, scope, schedule, and budget. This requires establishing controls and procedures to ensure that project activities are completed efficiently and effectively (Gunawardana et al, 2021). ...
This paper aims to create a harmoniously blended thematic conceptual framework that incorporates project governance principles, built upon insights obtained from previous academic studies. This framework is positioned to offer significant benefits to the organisation by improving operational efficiency and aligning with strategic objectives. The authors adopted a qualitative research approach to analyse the key literature on the paper’s theme. They carefully reviewed the theoretical underpinnings and categorised the contents to construct a step-by-step thematic conceptual framework aligned with the research’s objectives. The study identifies four key elements in the suggested framework for project governance. These include maintaining the unity of functional diversity among key processes, creating value and practicing originality, maintaining a sequential governance application path through onion-shaped structure, and ensuring the availability of required project governance framework quality. The framework ensures projects achieve objectives, deliver value for money, and contribute to sustainable development through oversight, control, integration, benefits realization, stakeholder engagement, project culture, and leadership. Effective project governance requires clear goal delineation, well-structured plans, robust risk management protocols, and collaboration among stakeholders. Regular monitoring and assessment of project performance is crucial for achieving project objectives and contributing to sustainable development goals. Governance differs from management in its focus on strategic decision-making, driving investments in capabilities, and ensuring optimal resource allocation. In public sector development projects, incorporating effective project governance practices is crucial for delivering optimal value for invested resources, achieving predefined objectives, and achieving desired outcomes cost-efficiently and impact fully. This separation underscores the importance of governance in imbuing projects with sustainable value and fostering prudent decisions. The paper presents a thematic conceptual framework for project-centric entities, derived from extensive literature analysis. This framework offers a structured blueprint aligned with project objectives, fostering the twin goals of optimizing value for invested resources and nurturing project sustainability. By embracing this framework, organisations can enhance their capacity to deliver outcomes that meet benchmarks and maximise resource utilization, enhancing the overall value proposition of initiatives. The convergence of project implementers and governance entities is crucial for driving exceptional quality outputs and adhering to robust governance principles, ensuring project success and sustained effectiveness.
... Therefore, most publicly available projects are initiated through various public procurement mechanisms. Public procurement is implemented under the authority of the government of a country or any other public sector to focus on stakeholders' satisfaction with the national development plan (Gunawardana et al., 2021). Further, Capacity Development Group Bureau (2010) argued that in the global context, public procurement had been estimated as a 15% contribution to the GDP while it becomes a 70% contribution to GDP in some developing countries such as Peru, Colombia, India, and the Philippines. ...
Infrastructure development can be identified as a key driver of economic growth. Most developing countries have prioritised implementing new procurement arrangements to execute public infrastructure projects throughout their life cycle efficiently. Private Public Partnership (PPP) procurement arrangement is one of the popular procurement arrangements, which can be classified as solicited proposals (SPs) and unsolicited proposals (USPs). Most countries have adopted USP for infrastructure projects among those two arrangements. Nevertheless, USPs have several drawbacks than SPs, such as corruption, low social and economic benefits, low value for money, and lack of transparency. However, governments are still developing their infrastructure projects as USPs due to the government's motivational aspects towards them. Therefore, it is controversial how those motivations have a huge impact than drawbacks in implementing USPs. Thus, this study aims to investigate the motivation for implementing USPs specific to the Sri Lankan context. Accordingly, a qualitatively based extensive literature synthesis has been conducted concerning the practices of USPs. Following the qualitative approach, data were collected through twelve (12) semi-structured interviews with industry professionals familiar with USPs implementation. The findings revealed that governments often choose USPs due to limitations in their capacity to identify and evaluate large-scale projects. These limitations can be financial and technical, including a lack of expertise. While speculation exists about corrupt practices associated with unsolicited PPPs, it is difficult to validate such claims. However, it is acknowledged that unsolicited PPPs, in their current state, offer higher opportunities for corruption. Nonetheless, accessing private financing quickly and efficiently for PPPs is also a positive motivation for choosing the unsolicited approach.
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