Innovative Australian public sector construction management: Effectively engaging the private sector

Abstract

This research addresses problems where 'poor quality tender documents continue to be a source of inaccurate estimates, claims and disputes' (Laryea Constr Manag Econ 29:275-286, 2011) and 'few industries suffer more from conflict than construction' (Black et al. IJPM 18:423-434, 2000). Much of this conflict derives from differing aims - Australian public sector owners aim to achieve 'value for money', while contractors aim to optimize profit and improve reputation. Counter-intuitively, the research found that construction industry experts engaged early assisted in translating owner's needs expression, established and maintained good interface relationships, and moderated contract variations. With period and price fixed, process transparency was improved, tenderers concentrated on submitting 'value for money' offers, tender assessment time and cost were reduced, and the contract completed without dispute. Increased design and construction risk was transferred to and accepted by the Contractor, and provided innovative opportunities pre and post contract award for owner and contractor. © 2014 Springer-Verlag Berlin Heidelberg.