Optimisation of a public procurement system supporting the SA construction industry

Abstract: The public procurement system enabled economic growth and delivery of infrastructure in South Africa for many decades and has assisted the growth of the construction sector. Through public procurement top infrastructure and successful projects in SA has been delivered with the assistance of contractors and professionals in the construction sector managing to improve the quality of life for many South Africans. The public procurement system forms an important part of the construction industry in SA and forms a strategic tool of government to deliver services and infrastructure to communities. Public sector procurement account for major spending in construction and development of infrastructure, and is responsible for the growth of the sector in SA. Construction sector is seen as a major economic contributor through employment and delivery of infrastructure, and is a major source of the South African economic growth. Despite successful delivery of infrastructure and projects through public procurement, the system continues to be plagued by challenges that have resulted in South Africans questioning its authenticity and has affected the construction industry in a negative way. The challenges associated with the award of construction projects include corruption, bid rigging, price fixing and collusion with procurement staff. The state of affairs prompted the researcher to conduct the research to investigate challenges in the current procurement system in the public sector with the aim to determine the best practices and international bench marks with the hope to provide ways of improving procurement processes to improve the South African system to ensure optimal value. The study focuses on national departments procurement in Gauteng Province of SA. The study commences with an introduction, which outlines the problem statement, research outcomes and objectives, significance of the study and its limitations. The literature review comprised a review of academic journals, textbooks and articles on similar studies to ascertain their findings and assess contributions to the public procurement system in SA and around the world in relation to the construction industry. In addition, best practices and bench marks are reviewed and the procurement systems in Malaysia and Australia are examined to draw a comparison with the South African system and to identify procurement aspects which will optimise the performance of the system in SA. The literature review reveals that lack of education and experience in procurement staff, procurement management issues, non-compliance and lack of understanding of SCM, failure to...M.Ing. (Engineering Management