The effects of state's construction procurement policy implementation on the outcome of local construction projects: the Libyan case

The successful execution of public construction projects and keeping them within estimated cost and prescribed schedules, quality and satisfying policy goals depend on a methodology that requires sound engineering and managerial judgment. This problem is more evident in the public traditional or adversarial type of contracts in which the contract is awarded to the lowest bidder. Construction procurement policy of public projects has been utilised by many countries as an important tool for achieving economic, social, political and other objectives in developing all aspects of change in the construction industry. Although the construction industry in Libya has suffered ever since the UN sanctions, recent events in the region coupled with the restructuring of the economy, lifting the sanctions and re-establishing new relations with the developed world and global free trade organisations, and attracting foreign investments are expected to yield an unprecedented growth in the construction activities. The Libyan infrastructure is in desperate need for development projects in many areas, especially in the fields of water collection and distribution, tourism and housing. As a result, an unprecedented number of projects are currently under planning and contract awarding stages, which poses as a potentially effective opportunity to drive for change in the construction industry and beyond. This research is an insight of the issue of how construction procurement policies are made and how they affect the outcome of a local public construction project in the current Libyan setting. This was achieved by dividing the first theoretical part in to three pillars or elements of research concerned with, Public policy in the context of construction procurement; Public Sector construction procurement and Public Sector Projects Outcome to build a solid platform of a conceptual knowledge before embarking on a case study investigation to give the required realistic background to the scientific research. Three case studies were selected based upon criteria drawn from the literature review. An intra and cross case study analysis were carried out based mainly on projects' a review and analysis of projects' documentation, but supported by questionnaires and an interviews for each project case study, which enabled a process of contrast comparison, replication and interpretation of findings. It was found that public construction procurement policy in the Libyan local context lacked clarity in defining policy goals. Moreover, construction procurement is perceived as a contract strategy or an arrangement, where by emphasis on the technical aspect was far greater than emphasis on other related policy as a drive-for-change aspects. The policy of restricting the form of public projects contracts made for hard to local public clients to embrace other procurement systems, which might have been more beneficial to the outcome of projects in terms of satisfying policy goals. It appeared that State bodies are more concerned with the administrative side of these projects. Technical and project managerial aspects are usually left for their consultants, either public or private. This caused a serious detachment of control and therefore difficulties and shortcomings in using the construction procurement of local public projects as a policy tool. The main findings of the analysis were based on taxonomy of documentary data collected in the case studies, which assisted in generating conclusions linking back to the theory of the three research elements mentioned above. Finally recommendations along the lines of enhancing transparency, the communication process, the need for a comprehensive State guidelines and the need for vocational education and training to participating State bodies were presented as an attempt to inform and possibly assist academics and Libyan policy makers to achieve positive and fruitful goals in local construction projects through good construction procurement policy making and implementation.