Developing a research method to test a new first-order decision making model for the procurement of public sector major infrastructure

Teo, P, Bridge, A, Gray, J and JEFFERIES, M 2011, 'Developing a research method to test a new first-order decision making model for the procurement of public sector major infrastructure', in Charles Egbu and Eric Choen Weng Lou (ed.) Proceedings of the Twenty-Seventh Annual Conference: ARCOM Conference 2011, Bristol, United Kingdom, 5-7 September 2011, pp. 715-724.


Document type: Conference Paper
Collection: Conference Papers

Title Developing a research method to test a new first-order decision making model for the procurement of public sector major infrastructure
Author(s) Teo, P
Bridge, A
Gray, J
JEFFERIES, M
Year 2011
Conference name ARCOM 2011
Conference location Bristol, United Kingdom
Conference dates 5-7 September 2011
Proceedings title Proceedings of the Twenty-Seventh Annual Conference: ARCOM Conference 2011
Editor(s) Charles Egbu and Eric Choen Weng Lou
Publisher Association of Researchers in Construction Management (ARCOM)
Place of publication United Kingdom
Start page 715
End page 724
Total pages 10
Abstract Given global demand for new infrastructure, governments face substantial challenges in funding new infrastructure and simultaneously delivering Value for Money (VfM). The paper begins with an update on a key development in a new early/first-order procurement decision making model that deploys production cost/benefit theory and theories concerning transaction costs from the New Institutional Economics, in order to identify a procurement mode that is likely to deliver the best ratio of production costs and transaction costs to production benefits, and therefore deliver superior VfM relative to alternative procurement modes. In doing so, the new procurement model is also able to address the uncertainty concerning the relative merits of Public-Private Partnerships (PPP) and non-PPP procurement approaches. The main aim of the paper is to develop competition as a dependent variable/proxy for VfM and a hypothesis (overarching proposition), as well as developing a research method to test the new procurement model. Competition reflects both production costs and benefits (absolute level of competition) and transaction costs (level of realised competition) and is a key proxy for VfM. Using competition as a proxy for VfM, the overarching proposition is given as: When the actual procurement mode matches the predicted (theoretical) procurement mode (informed by the new procurement model), then actual competition is expected to match potential competition (based on actual capacity). To collect data to test this proposition, the research method that is developed in this paper combines a survey and case study approach. More specifically, data collection instruments for the surveys to collect data on actual procurement, actual competition and potential competition are outlined.
Subjects Building Construction Management and Project Planning
Keyword(s) infrastructure
procurement
research method
value
ISBN 9780955239052
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