Impact of Competition on Prices in Public Sector Procurement

Hanák, Tomáš; Muchová, Petra

doi:10.1016/j.procs.2015.08.601

Cited by 30 publications

(38 citation statements)

References 13 publications

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“…After implementation of the new Act, the economically most advantageous offer was introduced as an obligatory criterion. Hanak [28] indicates that the lowest cost practice in project procurement is still present in a number of countries.…”

Section: Overview Of Legal Basis and Current State Of The Artmentioning

confidence: 99%

“…Apart from procurement model, the buildings also differ according to their occupancy, technical and architectural complexity, type of construction contract, total construction cost, etc. GRAĐEVINAR 71 (2019) 1, [21][22][23][24][25][26][27][28][29][30][31][32] Utjecaj načina financiranja na troškovno-vremenske aspekte javnih i društvenih građevina Building characteristics, i.e. the building data considered significant with regard to the theme and objective of the research, are briefly presented in Table 2.…”

Section: Presentation Of Researchmentioning

confidence: 99%

“…Some authors [8] define the value for money as the best combination of the quantity, quality, features and costs as expected throughout the entire life-cycle of the project, or it is often simply stated that the value for money is the real value for the funds invested. The [11] GRAĐEVINAR 71 (2019) 1, [21][22][23][24][25][26][27][28][29][30][31][32] Impact of funding on cost-time aspects of public and social buildings public sector cost comparator is defined in the Public-Private Partnership Act [9] as the comparison of the present value of total costs within the specified time of the project according to the traditional procurement model, as compared to the same type of costs based on the PPP model. If the expected present value of total life-cycle costs based on traditional model is higher that the total life-cycle costs according to the PPP model, than it is considered justified to procure the building according to the PPP model as it can reasonably be expected that the implementation of this model will lead to savings in public expenditures [10].…”

Section: Introductionmentioning

confidence: 99%

“…Comparison between traditional and PPP procurement models based on construction cost variation coefficients per square meter of gross areaThe coefficient of variation of construction cost per square meter of gross area amounts to 36.7 % for PPP buildings, while GRAĐEVINAR 71 (2019) 1,[21][22][23][24][25][26][27][28][29][30][31][32] …”

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confidence: 99%

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Impact of funding on cost-time aspects of public and social buildings

Tijanić

Car-Pušić

Čulo

2019

JCE

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The comparison of the traditional (budget-funded) public building procurement model with the public private partnership (non-budget funded) model is presented in the paper. Public service buildings procured based on the traditional model and those procured according to the PPP model are compared in the scope of research involving nine buildings realized in the Republic of Croatia. The results point to greater efficiency of the PPP model in the construction of public service buildings, with regard to both cost and time of construction work. Utjecaj načina financiranja na troškovno-vremenske aspekte javnih i društvenih građevinaU radu je prikazana usporedba tradicionalnog (proračunskog) modela nabave javnih i društvenih građevina s modelom javno-privatnog partnerstva (neproračunski model). Istraživanjem kojim je obuhvaćeno devet izgrađenih građevina s područja Republike Hrvatske, usporedno su analizirane javne i društvene građevine isporučene tradicionalno i po modelu JPP-a. Rezultati pokazuju veću efikasnost JPP modela u izgradnji javnih i društvenih građevina unutar planiranog proračuna i roka građenja. Ključne riječi: tradicionalni model nabave, JPP, javne i društvene građevine, troškovi, rok građenja Übersichtsarbeit Ksenija Tijanić, Diana Car-Pušić, Ksenija Čulo Auswirkungen der Art der Finanzierung auf die Kosten-Zeit-Aspekte öffentlicher und sozialer BautenIn der Abhandlung wird der Vergleich des traditionellen (Haushalts-)Modells der Beschaffung öffentlicher und sozialer Bauten mit dem Modell der öffentlich-privaten Partnerschaft (Nicht-Haushalts-Modell) dargelegt. Bei der Untersuchung, mit welcher neun errichtete Gebäude auf dem Gebiet der Republik Kroatien umfasst wurden, wurden parallel öffentliche und soziale Bauten, die auf traditionelle und nach dem ÖPP-Modell ausgeliefert wurden, analysiert. Die Ergebnisse zeigen eine höhere Effizienz bei den ÖPP-Modellen beim Bau öffentlicher und sozialer Gebäude innerhalb des geplanten Haushalts und der Baufrist.

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Section: Overview Of Legal Basis and Current State Of The Artmentioning

confidence: 99%

Section: Presentation Of Researchmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

mentioning

confidence: 99%

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Impact of funding on cost-time aspects of public and social buildings

Tijanić

Car-Pušić

Čulo

2019

JCE

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“…The state's effort is to achieve savings in the area of public spending, and the public procurement (PP) system should also be supported (Šípoš, 2012), (Šípoš & Klátik, 2013). Its priority role is to ensure efficient spending of state funds, which simplification means achieving public savings (Nemec et al 2005), (Hanák & Muchová, 2015). This is only possible when the procurement process is transparent and there is sufficient competition on the supply side (Krasnokutskaya & Seim, 2011).…”

Section: Introductionmentioning

confidence: 99%

Public procurement efficiency in agriculture and forestry in Slovakia

Gavurová¹,

Tuček²,

Tkáčová³

et al. 2018

AMP

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Agriculture and forestry in Slovakia is a sector that includes the highest number of contract awards in public procurement. The main aim of this article is to identify an influence of selected determinants on public procurement efficiency in agricultural and forestry sector in Slovakia. There are created two basic types of models based on a sample of 291 contracts, which were formed by means of a multiple linear regression in program R. The first model examines an influence of variables on public procurement savings that is defined as a rate of the final and probable price of the contract. This model confirms a positive influence of a number of offers on savings' formation, where each next offer increases saving of approximately 8.816 %. On the other hand, a subcontractor's presence reduces saving by 19.9 %. The second model examines and influence of variables on a number of offers in public procurement. The number of offers in a given sector positively influences a public competition, while there is usually of three offers more than in the negotiating process. However, the number of offers decreases when a contract is financing from the EU funds and when contract specifies a criterion of quality.

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Effect of a new potential supplier on business to business negotiations performance: evidence-based analysis

Delina

Olejarova

Doucek

2021

Electron Commer Res

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Technology innovations significantly determine supplier selection and competition in supply chains. We are enhancing current research using empirical data and examining new supplier effect on procurement performance in terms of (1) transparency (2) market structure (3) competition and (4) effect size. Through clustering, Mann-Whitney U tests, correlation effect size and CHAID classification algorithm we have found that a new potential supplier generates higher savings than only qualified suppliers in negotiation with higher effect in a transparent environment (additional 3.4% savings). We have identified the effect of the price premium for the procurer between 1.9 and 9.1% based on different procurement strategies.

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Impact of Competition on Prices in Public Sector Procurement

Cited by 30 publications

References 13 publications

Impact of funding on cost-time aspects of public and social buildings

Impact of funding on cost-time aspects of public and social buildings

Public procurement efficiency in agriculture and forestry in Slovakia

Effect of a new potential supplier on business to business negotiations performance: evidence-based analysis

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