PPP project procurement model selection in China: Does it matter?

Pu, W; Xu, F; Chen, R and Marques, R C (2020) PPP project procurement model selection in China: Does it matter? Construction Management and Economics, 38(2), pp. 126-139. ISSN 01446193

Abstract

Procurement models play a key role in determining the success of a public–private–partnership (PPP) project because they can help the government select the best bidder. Yet, few studies have systematically examined the selection of different procurement models. A content analysis is performed to discuss the institutional and legal framework along with the features of different procurement models in China. A multinomial logistic regression model is then applied to empirically investigate the relationship between the selection of different procurement models and the internal characteristics of the projects, including the investment, duration, operation mode, sector and region. Besides, a questionnaire survey to Chinese officials participating in PPP project procurement is conducted to identify the critical factors affecting the selection preferences. The regression analysis shows that the PPP project procurement model selection in China varies significantly with the internal characteristics of the projects. Moreover, the three most important factors identified are the laws and regulations, internal characteristics of the projects and advice from consultant agencies. These results indicate that the PPP project procurement model selection in China does matter. Helpful policy suggestions for the governments of China and other countries are also provided.

Item Type: Article
Uncontrolled Keywords: China; procurement; public sector procurement; public–private partnerships
Index terms: public sector procurement, survey, content analysis, regulation, questionnaire, multinomial, project procurement, China, preference, agency, logistic regression, critical factor, partnership, bidder, regression analysis, duration
Subjects: political science, statistical analysis, project controls, partnership management, sociology, Geography, decision-making and reasoning, data analysis and analytics, contractual arrangements, bidding, risk assessment, data collection methods
Topics: Governance, Procurement, Risk Management, Stakeholder Management, Research Practice, Geographical Context, Time Control
Descriptive scope: 5 PCTEA

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