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Article
Publication date: 18 January 2022

Siti Maryam Mohamad Azmi and Suhaiza Ismail

This paper aims to systematically analyze the weaknesses of public procurement in Malaysia as reported in the Auditor General’s Reports from 2011 until 2018. Specifically, the…

1223

Abstract

Purpose

This paper aims to systematically analyze the weaknesses of public procurement in Malaysia as reported in the Auditor General’s Reports from 2011 until 2018. Specifically, the study examines the types of weaknesses, the modes of public procurement involved with the weaknesses, the procurement categories involved with the weaknesses and the key recommendations to mitigate the weaknesses in public procurement.

Design/methodology/approach

A document analysis was adopted in achieving the objective. The Auditor General’s reports and the reports of activities of federal ministries/departments published by the National Audit Department, Malaysia from the year 2011 until 2018 are the main documents used in this study. The data gathered were analyzed using frequency distribution and displayed with descriptive statistics and relevant graphs.

Findings

The findings of the study revealed that the top five reported are non-compliance to scope, specifications and terms of contracts; delayed completion/non-completion of project; poor documentation; low quality of products, service and work; and little or no prior planning. It is also found that direct negotiation mode was reported with the highest issues of public procurement, while the procurement mode with the least public procurement weaknesses is direct purchase. Moreover, it was found that work category is the highest with public procurement issues reported compared to supplies and services. The top recommendations given by the Auditor General were to improve internal control, to enhance monitoring, to establish planning in details, to improve assets management and to take appropriate actions toward contractors and procurement officers when needed.

Originality/value

This is among a few studies that attempted to systematically examine the main issues regarding the public procurement activities in Malaysia. This study highlighted pertinent aspects of the public procurement activities, which need close attention by the relevant authorities to ensure efficient and effective public procurement.

Details

Journal of Financial Reporting and Accounting, vol. 21 no. 5
Type: Research Article
ISSN: 1985-2517

Keywords

Article
Publication date: 30 March 2012

Jan Stentoft Arlbjørn and Per Vagn Freytag

Compared with the private sector, the public sector's procurement process differs in several respects. The purpose of this paper is to analyze the possibility for mutual learning…

9669

Abstract

Purpose

Compared with the private sector, the public sector's procurement process differs in several respects. The purpose of this paper is to analyze the possibility for mutual learning and the value between the public and private sectors and also to identify both drivers and barriers for benchmarks between the two sectors.

Design/methodology/approach

The paper is based on in‐depth literature reviews of comparisons between private and public procurements. The paper is, furthermore, derived from two case studies: one in a chain perspective and another that concerns public‐private innovation.

Findings

Extant literature contains limited contributions that compare public procurement practice with private purchasing practice. Using tendering to regulate procurement is troublesome and may hamper the possibility to learn and gain value measured on a broader scale. Wider collaboration may provide more possibilities to learn and gain value.

Research limitations/implications

The empirical part of the paper rests on two case studies. The procurement process of a single item has been studied as have new cooperation modes between the public and private sectors.

Practical implications

The paper provides supply chain management (staff) input as to examples in which comparisons of procurement and purchasing processes might add value. The paper argues that both sectors can learn from each other.

Originality/value

This paper is the first report about an in‐depth literature review of comparisons of public procurement with private purchase, and it is the first to empirically analyze a chain of relations from private‐private to private‐public. It further addresses new ways to perceive the EU Directive of public tendering.

Details

International Journal of Public Sector Management, vol. 25 no. 3
Type: Research Article
ISSN: 0951-3558

Keywords

Article
Publication date: 1 March 2013

Agnieszka Leśniak and Krzysztof Zima

One of the possible systems of project delivery is design & build (D&B), which is widely used in many countries. In the Polish public procurement market, the D&B system has been…

Abstract

One of the possible systems of project delivery is design & build (D&B), which is widely used in many countries. In the Polish public procurement market, the D&B system has been applied for a relatively short time, only since 2004, and despite the possibility, so far public clients have applied the D&B system only occasionally. This paper describes the current status of using the D&B method in the public procurement sector in Poland. Five hundred and fifty eight completed public-sector projects have been subject to analysis. Items analysed include the design/builder method of award, and types and value of contracts. The results provide insights for owners, the advantages and disadvantages of the D&B system, and highlight the need to change the method of selecting the contractor for the D&B system.

Details

Journal of Public Procurement, vol. 13 no. 03
Type: Research Article
ISSN: 1535-0118

Book part
Publication date: 1 January 2009

David S. Jones

An important aspect of good governance is a well-managed government procurement system. This has a direct impact on the extent and quality of a country's infrastructure and the…

Abstract

An important aspect of good governance is a well-managed government procurement system. This has a direct impact on the extent and quality of a country's infrastructure and the effectiveness of its public services. Two key principles underpin a well-managed procurement system: value for money from the goods, services, and public works, which are procured, and fair access to procurement opportunities. Arguably, competition and transparency in the procurement process are necessary conditions for both. Yet despite this, most of the states of Southeast Asia have been reluctant to create an openly competitive and transparent government procurement system. This has been in part reflected in the fact that none them have become signatories to the WTO's Government Procurement Agreement of 1994 with the notable exception of Singapore. This Agreement seeks to promote international access to the government procurement market in goods, services, and public works by mandating open competition and transparent procedures.

Details

The Many Faces of Public Management Reform in the Asia-Pacific Region
Type: Book
ISBN: 978-1-84950-640-3

Article
Publication date: 23 November 2021

Varaprasad Mallisetti, Tharun Dolla and Boeing Laishram

The most recent advent of the unsolicited proposal in the public private partnership mode of infrastructure procurement has changed the duties and roles of private and public…

Abstract

Purpose

The most recent advent of the unsolicited proposal in the public private partnership mode of infrastructure procurement has changed the duties and roles of private and public sector agencies. Also, they have increased the practitioners' difficulties to work out strategic mechanisms and methods to manage these unsolicited proposals (USP) effectively. So, this study aims to understand how well equipped are the Indian USP guidelines for managing procurement.

Design/methodology/approach

Content analysis with coding procedures was carried to understand the regulations of USP frameworks of India over the four stages of USP procurement.

Findings

The findings show that there are severe flaws in various states' frameworks. The states have flaws in their policies in implementation features across the stages of USP such as defined objectives, the absence of fees and review timeframes in the submission, time frame and guidance on benchmarking and market testing in evaluation and development, time frame for bidding and access to information in procurement stages.

Originality/value

The USP implementation framework developed as part of this study can direct the policymakers and practitioners to improve public procurement regulations and the necessary changes for the successful implementation of USPs. In doing this, the private sector is enabled to develop more competitive and innovative proposals.

Details

Journal of Financial Management of Property and Construction , vol. 27 no. 2
Type: Research Article
ISSN: 1366-4387

Keywords

Article
Publication date: 8 November 2019

Tharun Dolla and Boeing Laishram

Bundled mode of public–private partnership (PPP) procurement has been a widely advocated governance structure of infrastructure delivery. The purpose of this paper is to identify…

Abstract

Purpose

Bundled mode of public–private partnership (PPP) procurement has been a widely advocated governance structure of infrastructure delivery. The purpose of this paper is to identify the various aspects of how this bundling phenomenon has to be played out in practice and examines the implications of such decisions.

Design/methodology/approach

A longitudinal case study with an Indian municipal solid waste (MSW) PPP project provides the necessary evidence on the identification of constructs which are deemed important in the decision making of bundling in PPP MSW projects. Transaction cost economics theory, agency theory and auction theory informed the development of theoretical constructs. The longitudinal case study used interviews, observations and documents analysis.

Findings

This study has highlighted the complexity inherent in bundling decision, arising out of the relatively scanty rationale by which stakeholders first developed. Not only they are very different from the practice, but also many assumptions are proved otherwise. Poor sectoral developments, hindrances arguably caused to innovation, increase in transaction cost and a decrease in the competition along with ex post characteristics such as unfavourable transaction attributes made bundling a too early proposition to Guwahati MSW project. This study suggests that strong liability of the bundling phenomenon was the above the rationale of typical PPP bundling benefits envisaged in the extant literature. It also shows that poor practice and decision making by immature clients would lead to project failure.

Research limitations/implications

A cognitive map emerged from the study on the failure of Guwahati project. An empirical generalisation can be attempted using multiple contrasting case studies to make the theory more acceptable.

Practical implications

The case illustrated why naïve clients should not try PPPs in a bundled model. Accordingly, the developed framework would help the governments to create the right projects catalysing the bundling benefits and harness the full potential of private sector participation in future PPP projects.

Originality/value

The current study would be novel in advancing the theory of bundling in PPP projects. This would be of interest to academia and to industrial practice and policy.

Details

International Journal of Managing Projects in Business, vol. 14 no. 2
Type: Research Article
ISSN: 1753-8378

Keywords

Article
Publication date: 6 December 2019

Tharun Dolla and Boeing Laishram

The performance of public–private partnership (PPP) projects depends on how the project has been structured. The traditional PPP option analysis for structuring project scope and…

Abstract

Purpose

The performance of public–private partnership (PPP) projects depends on how the project has been structured. The traditional PPP option analysis for structuring project scope and size relating to the bundling of functions concerning a single component of the value chain will need to be extended to handle multi-component sectors such as municipal solid waste (MSW) in formulating the project scope. This analysis is currently missing in the extant literature. The paper aims to discuss these issues.

Design/methodology/approach

Through a comprehensive literature review as the methodological backbone, this study develops a testable holistic framework for the procurement of MSW PPP projects that examines how various factors of bundling affect the performance of the PPP projects.

Findings

Using transaction cost economics, agency and auction theories, the review identifies that innovation, maturity, quality specifiability, scope, competition, information asymmetries and transaction attributes have a significant influence on the performance and success of the PPP projects.

Research limitations/implications

Alternative supply chain management possibilities and firm-level organisational ways can be predicted using this framework to strategize the solutions for the municipal infrastructure. Based on this contribution, future research can test the framework to increase the knowledge of bundling theory about how to structure network infrastructure PPP projects.

Originality/value

Studies on how to bundle/unbundle the projects having components of the value chain are in a nascent stage. The present study attempts to extend the body of knowledge on PPP to the complexity of bundling both the functions and components of the value chain in structuring the PPP project scope.

Details

International Journal of Productivity and Performance Management, vol. 69 no. 6
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 5 October 2010

Brodie McAdam

The purpose of this paper is to identify some of the legal problems posed by full adoption of building information modelling (BIM) for construction design, and to propose a…

3577

Abstract

Purpose

The purpose of this paper is to identify some of the legal problems posed by full adoption of building information modelling (BIM) for construction design, and to propose a potential procurement solution for implementation in the UK.

Design/methodology/approach

Legal problems associated with BIM implementation are identified from a literature review, which is then drawn on to outline a potential best practice model for BIM procurement. Two US BIM procurement initiatives – American Institute of Architects (AIA) Document E202 and ConsensusDOCS 301 – are then analysed in relation to their fit with the model for BIM procurement in the UK market.

Findings

Drawing on lessons learned from the AIA and ConsensusDOCS initiatives, the paper concludes that collaborative procurement, perhaps by way of partnering, appears to be an appropriate model for BIM procurement in the UK. However, it notes that empirical research is required in order to identify precisely the best legal approach.

Research limitations/implications

The paper is a scoping work, identifying the ground which needs to be explored before firm conclusions can be drawn.

Originality/value

The legal aspects of BIM procurement remain a relatively unexplored field, and this analysis instructively draws together many of the key threads.

Details

International Journal of Law in the Built Environment, vol. 2 no. 3
Type: Research Article
ISSN: 1756-1450

Keywords

Open Access
Article
Publication date: 7 August 2017

Per Erik Eriksson

The purpose of this study is to investigate how procurement strategies may be designed to facilitate exploration and exploitation in construction projects.

12148

Abstract

Purpose

The purpose of this study is to investigate how procurement strategies may be designed to facilitate exploration and exploitation in construction projects.

Design/methodology/approach

This paper is based on a literature review of organizational research and construction management literature together with a brief interview study of Swedish clients and contractors.

Findings

The theoretical and empirical findings propose that small and simple projects with low uncertainty and scarce resources may focus on exploitation to enhance short-term efficiency through traditional procurement strategies including delivery systems that separate the actors and their activities (i.e. pure design-build- or design-bid-build-contracts), fixed price payment and price focus in bid evaluation. Large complex projects with high uncertainty and customization benefit from combining exploration and exploitation to enhance sustainable performance. This requires collaborative procurement strategies including joint specification through early contractor involvement, cost reimbursement coupled with incentive-based payment, bid evaluation based on multiple criteria and collaborative tools and activities in partnering arrangements.

Research limitations/implications

This paper contributes to organizational learning literature by pinpointing the need for integrating procurement strategies that enhance combination of exploration and exploitation. The main contribution to the construction management literature involves the investigation of how procurement strategies may affect exploration and exploitation, as identified and articulated in the propositions developed in this paper.

Practical implications

From a practical perspective, the findings highlight the importance of tailoring procurement strategies to project characteristics to enhance a suitable balance between exploration and exploitation in construction projects.

Originality/value

The explicit focus on the operational project-level is uncommon but relevant in organizational learning literature.

Details

Journal of Financial Management of Property and Construction, vol. 22 no. 2
Type: Research Article
ISSN: 1366-4387

Keywords

Article
Publication date: 22 December 2020

Sitti Hasinah Abul Hassan, Suhaiza Ismail and Hawa Ahmad @ Abdul Mutalib

The objectives of this paper are twofold. Firstly, to examine the importance of Malaysian public procurement objectives and secondly, to investigate the extent to which government…

1513

Abstract

Purpose

The objectives of this paper are twofold. Firstly, to examine the importance of Malaysian public procurement objectives and secondly, to investigate the extent to which government suppliers adhere to public procurement principles.

Design/methodology/approach

For achieving the objectives, a questionnaire survey was used. A total of 250 questionnaires were distributed to government suppliers involved in the government tendering process. In return, a total of 107 useable questionnaires were received, representing a response rate of 42.8%. Descriptive statistics of the means score, standard deviation and mean score ranking were used to analyse the data.

Findings

The results revealed that the most important public procurement objective is “to ensure a continuous supply of material and services to meet the government needs from the best and reliable sources”. On the other hand, the objectives “to expand the local industrial sector by means of transfer of technology and expertise to suit the nation's needs” and “to promote alternative and multiple sourcing through supplier development according to the aspirations and vision of the government” are perceived as not important by the government suppliers. The findings also discovered a moderate level of adherence to Malaysia's public procurement principles, which consist of public accountability, transparency, open and fair competition, fair dealing and value for money. Amongst these principles, the most adhered to is the open and fair competition principle and the least adhered to is the transparency principle.

Originality/value

This study is one of the few studies that assess the government suppliers' perceptions of public procurement in Malaysia. More importantly, this study may give some ideas to various parties concerning the areas in which improvement is required to ensure that equal importance is given to the public procurement objectives and better adherence to the public procurement principles in Malaysia.

Details

Journal of Economic and Administrative Sciences, vol. 37 no. 4
Type: Research Article
ISSN: 1026-4116

Keywords

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