Best value public sector construction project procurement: Challenges and opportunities

Public Sector Construction accounts for $4.9 billion in the 2006-07 Victorian State Budget and approximately $8 billion dollars in the Queensland 2005-06 State Budget. Consequently, innovation in the procurement processes has the potential to produce very significant payoffs for the community. This paper presents an overview of a proposed innovative procurement framework designed to achieve best value outcomes for the public sector client. Within such a framework, the provision of a robust decision making tool should enable public sector procurement officers to take account of nonprice criteria in their decision making with a transparent approach to sharing the decision making criteria with the contractors seeking to secure the contract. Further, the approach to public sector procurement of construction being advocated is one in which a broader perspective of value for money is considered. The paper discusses the challenges and opportunities for public sector clients seeking to drive innovation through their supply chains. Future research will involve piloting the Best Value Procurement Framework in order to evaluate the benefits.