Price Adjustment Practice of Road Projects in Nepal

2020 ◽  
Vol 05 (3&4) ◽  
pp. 20-31
Author(s):  
Anjay Kumar Mishra ◽  
Keyword(s):  
Local Governments ◽  
Public Procurement ◽  
Likert Scale ◽  
Price Adjustment ◽  
Importance Index ◽  
Value Range ◽  
Completion Date ◽  
Road Projects ◽  
Procurement System ◽  
The Cost

The construction industry always faces problems on price fluctuation and adjustment of the price to compensate the cost fluctuation becomes necessary. There is dilemma on which formula of price adjustment to use in construction contracts. Price adjustment affects all the stakeholders i.e. Client, Consultant and Contractor. This research revealed about the trend of the cost of components of construction i.e. Labor, Material, Fuel, equipment etc. Compare the different formulas of price adjustment and understand the view of client, Consultant and Contractor regarding price adjustment. Questionnaire was distributed to the Client, Contractor and consultant’s representative who are a part of the above projects. For the questions based on Likert scale, afive point Likert scale ranging from 1 to 5 is adopted and Relative Importance Index wascalculated and for other questions the result is presented in the form of pie chart and bar chart. From our study, it can be concluded that most of the Clients, Contractors and Consultants are affected by price adjustment. PPMO formula should be used for price adjustments in construction contracts.After the initial completion date of contract has crossed and extension of time has been done, the price adjustment factor should be calculated based on the indices before and upto the initial completion date only and Price adjustment should be provided after the initial completion date of contract also. The research findings also suggest that 25% of bidders bid for the value range of 0-5% below the Engineers’ Estimate while only 13.85% of bidders in case of E-bidding bid for the same range. The researcher believes that the findings of this study are useful for reviewing the existing provision of public procurement system. This also supports the conviction that more constructive roles has to be played in public procurement of infrastructure projects by local governments in Newly Constituted Federal Structure of Nepal.

Estimation of procurement costs incurred by public customers: a case study of a Russian region

2018 ◽  
Vol 18 (1) ◽  
pp. 68-87
Author(s):  
Andrei Yakovlev ◽  
Olga Balaeva ◽  
Andrey Tkachenko
Keyword(s):  
Public Procurement ◽  
Methodological Approach ◽  
Policy Implications ◽  
Cost Evaluation ◽  
Content Type ◽  
Russian Region ◽  
Procurement Cost ◽  
Procurement System ◽  
The Cost

Purpose This paper aims to measure the cost of procurement because public procurement procedures prescribed by legislation not only enhance transparency and competition but also entail certain transaction costs for both customers and suppliers. Design/methodology/approach These costs are important to the efficiency of the procurement system. However, very few previous studies have focused on estimating procurement costs. This paper proposes a methodology for public procurement cost evaluation. Findings This paper shows how procurement costs can be calculated using a formalized survey of public customers. This methodology was tested with a representative group of public customers operating in one region of the Russian Federation. Originality/value The authors formulate the policy implications of this paper, as they relate to the improvement of public procurement regulations and argue that this methodological approach can be applied in other developing and transitioning economies.

scholarly journals The public procurement system in Belarus: a regional aspect

2014 ◽  
Vol 36 (3) ◽  
Author(s):  
Yuri Krivorotko
Keyword(s):  
Local Governments ◽  
Public Procurement ◽  
National Level ◽  
Joint Stock Company ◽  
Stock Company ◽  
Commodity Exchange ◽  
The Public ◽  
Regional Aspect ◽  
On Line ◽  
Procurement System

The paper presented here is the country research and has an analytical character concerning a regional aspect of the public procurement system in Belarus. Stages of the public procurements system’s formation and its legislative base and the development of the electronicization of purchases are considered. The public procurement system at the sub- national level is analyzed and weak points are emphasized. Corruption aspects and ways of their minimization in the public procurement activity are showed. Debatable issues and ways of procurement activity improvement in Belarus regions are presented. The methodology of research is based on the analysis of a series of data on public procurements in the regions of Belarus, including budgetary expenditures on public procurement in the local governments of the Belarus regions and the e-auctions procurement at the Universal Commodity Exchange. Statistical data for analysis was obtained from official sources, such as the State Statistics Committees, Ministry of Finance, Open Joint Stock Company (OJSC) Belarusian Universal Commodity Exchange, and on-line databases of analytical centres working in this field, etc.

scholarly journals Public Procurement Act 2007 and Economic Growth in Nigeria: South-South Perspective

2019 ◽  
pp. 7-12
Author(s):  
Omekwe, Sunday Omiekuma
Keyword(s):  
Resource Allocation ◽  
Economic Development ◽  
Local Governments ◽  
Capital Expenditure ◽  
Public Procurement ◽  
Cost Effective ◽  
Cultural Value ◽  
Value For Money ◽  
The Public ◽  
Procurement System

Economic development may be achievable through efficient and effective allocation of resources. In same vein, effective and cost effective resource allocation can only be powered by an equally ‘effective and transparent’ procurement process or system. Accordingly, the PUBLIC PROCUREMENT ACT 2007, was established to among other reasons, midwife an effective procurement system for the country that will ensure value for money for resource allocation. Annual capital expenditure provision in national budgets for the last five years had averaged about 24.7%. Records available from the Bureau of Public Procurement (midwife of the Act) indicated that the South-South geo-political zone did enjoy (probably not commensurate with her resource contributions) part of these national budgetary allocations. Analysis of same records, unfortunately showed that the intent to achieving value creation and development in the area could not have been achieved, for many reasons including, inadequate provisions and allocations, poor conception/implementation/execution, inadequate monitoring for the referenced restive region. Given the findings above, it is therefore suggested amongst others that there should be establishment of strong and compelling institutions, amidst the pervading corruption that has become Nigeria socio-cultural value. Also, there should be domestication of public procurement law by all the 36 states and the entire 774 local governments in Nigeria. All these will contribute towards an effective creation of ‘value for money’ in resource allocation for desired regional economic development.

Cost Risk Management for Variation Orders in Road Projects in Iraq

2020 ◽  
Vol 38 (2A) ◽  
pp. 166-172
Author(s):  
Abeer J. Hassana ◽  
Raid S. i Abd Al ◽  
Hassan H. Joni
Keyword(s):  
Risk Management ◽  
Relative Importance ◽  
Change Orders ◽  
The Public ◽  
Importance Index ◽  
Main Effect ◽  
Road Projects ◽  
Change Order ◽  
The Cost ◽  
Cost Risk

This paper aims to develop appropriate solutions for each of the causes for the change orders, which help to manage the cost risk in road projects in Iraq. The literature was reviewed in detail, and the objectives were implemented by using a questionnaire that was distributed to specialists in the public sector to survey all possible causes for exceeding the cost of road projects. As a result, 35 causes were identified for a large number of change orders in road projects and their classification into four axes: design, implementation, financial, and other causes. The results of the questionnaire were analyzed using the relative importance index (RII). As a result, the main causes of the change orders were the variations in design and the quantities of work. The main effect was found to be an increase in the cost of the project. Finally, solutions were collected for each of the factors causing the change order through personal interviews with professionals and consultants.

Use of Social Media in the Public E-Procurement

2020 ◽  
Vol 16 (4) ◽  
pp. 113-132
Author(s):  
Sharif As-Saber ◽  
Wahed Waheduzzaman ◽  
Shams Rahman
Keyword(s):  
Social Media ◽  
Good Governance ◽  
Public Procurement ◽  
Group Discussion ◽  
Public Officials ◽  
Media Technologies ◽  
Study Approach ◽  
Use Of Social Media ◽  
Procurement System ◽  
The Cost

This paper reports the results of a research project addressing governance issues in public e-procurement using social media technologies. A case study approach was adopted where Australian senior public service managers involved in public procurement were interviewed to assess the potential of using social media as a tool for enhancing efficiency, transparency, accountability, and responsiveness of the e-procurement system. In addition, a focused group discussion was held involving public officials and e-procurement experts for exploring in-depth insights into the topic. Despite acknowledging the potential benefits of using social media, most officials interviewed have expressed reservations including the security of data, the cost in managing opinions, the structure and mechanism of using social media, and the burden to handle multiple suppliers. These findings have implications for understanding the designs and potentials of using existing social media for enhancing good governance in public e-procurements.

scholarly journals ОСНОВНІ ТЕНДЕНЦІЇ УКРАЇНСЬКОГО РИНКУ ПУБЛІЧНИХ ЗАКУПІВЕЛЬ У 2018 РОЦІ

2019 ◽  
Vol 129 (6) ◽  
pp. 38-47
Author(s):  
Любов Вікторівна Мурована
Keyword(s):  
Supplier Selection ◽  
System Analysis ◽  
Public Procurement ◽  
Equity Capital ◽  
Analysis And Synthesis ◽  
System Functioning ◽  
Security Funds ◽  
Procurement System ◽  
The Cost ◽  
Large Groups

The paper presents an overview of the general framework for public procurement system functioning in Ukraine. Insights are provided on the key trends in the sector of public purchase of goods, works and services by customers in 2018. Specific features of each of the procurement procedures based on quantitative and qualitative indicators across Ukraine’s regions have been identified. A thorough analysis of the structure of the Ukrainian public procurement market laid the basis for public procurement classification subject to market trends and in compliance with applicable laws and regulations. Thus, all public purchase of goods, works and services conducted in Ukraine depending on the supplier selection method can be divided into two large groups: competitive and non-competitive procedures. Within competitive procurement procedures at the stage of a supplier selection, holding an electronic auction is mandatory, whereas under the non-competitive procurement process, customers select the supplier at their own discretion with regard to the current realia of economic, social and legal public procurement market environment. The top five regions-customers who use competitive procurement procedures are represented by Kyiv region (about 39,81% of the cost of total open bidding), Dnipropetrovsk (of 7.91%), Lviv (6,0%), Kharkiv (5,69%) and Donetsk regions (5,25%). Among the leaders of the regions-customers following non-competitive procurement procedures, the top five include Kyiv, Kharkiv, Odesa, Dnipropetrovsk and Donetsk regions. At large, public procurement refers to transactions on purchase and sale of tangible and intangible goods at the expense of budget expenditure, social security funds, funds from the Central Bank of Ukraine, financing by the state-owned and communal ownership enterprises with government share of more than 50% of the equity capital. To attain the goal and objectives set in this study, general research methods such as the read-across approach, methods of system analysis and synthesis were employed.

Public Procurement and Innovative Economy Forming

2010 ◽  
pp. 108-117 ◽  
Author(s):  
I. Smotritskaya ◽  
S. Chernykh
Keyword(s):  
Conceptual Framework ◽  
Public Procurement ◽  
Innovative Activity ◽  
Institutional Framework ◽  
Effective Management ◽  
Russian Economy ◽  
Public Resources ◽  
Innovative Economy ◽  
Procurement System

The article analyzes the conceptual framework of public procurement system as an integral part of public regulation to ensure effective management of public resources. The authors consider the problems of transition to a new "quality" of the procurement system, increasing its innovative activity. They put forward proposals for institutional framework and mechanisms of regulating procurement, meeting the needs in innovative upgrading and modernization of the Russian economy.

Researching the public procurement system: An analysis of winning organizations

2020 ◽  
Vol 16 (5) ◽  
pp. 860-884
Author(s):  
V.G. Kogdenko ◽  
A.A. Sanzharov
Keyword(s):  
Public Procurement ◽  
The Public ◽  
Debt Capital ◽  
Scientific Principles ◽  
General Scientific ◽  
Marketing Information ◽  
High Level ◽  
Return On Sales ◽  
Procurement System ◽  
Social Components

Subject. The article deals with the analysis of suppliers in the public procurement system based on reasonable prequalification parameters. Objectives. The aim is to test the hypothesis about strong reputation characteristics of the winners in the public procurement system and develop a methodology for assessing the reputation of suppliers for prequalification purposes. Methods. We employ general scientific principles and methods of research, like abstraction, generalization of approaches used by domestic and foreign authors for prequalification and assessment of reputation of public procurement participants. Results. To test the hypothesis, we calculated four groups of indicators on corporate, financial, market, and social components of reputation. The methodology was tested on the data obtained from SPARK-Interfax and SPARK-Marketing information resources. Conclusions. The study revealed that not all reputational characteristics of public procurement winners can be regarded as high level. In terms of the corporate component, it is the low level of share capital, indicating the mistrust on the part of owners and their reluctance to invest in the business, and the low percentage of non-current assets. In terms of the market component, it is a low sales growth rate, as well as low return on sales. As to the financial component, it is a low capitalization of winners, low share of long-term debt capital and low credit limit. With respect to the social component, it is a below-average tax burden.

FEATURES OF THE STRUCTURE AND SUBJECTIVE COMPOSITION OF CONTRACTUAL RELATIONS WITH THE PARTICIPATION OF JSC «SCIENTIFIC AND PRODUCTION CORPORATION «PRECISION INSTRUMENTATION SYSTEMS»

2020 ◽  
Vol 1 (6) ◽  
pp. 42-46
Author(s):  
S.V. DOROZHINSKY ◽  
Keyword(s):  
Public Procurement ◽  
Legal Regulation ◽  
The State ◽  
Regulatory Framework ◽  
Contractual Relations ◽  
Procurement System ◽  
State Defense

The article discusses the features of procurement in the framework of the state defense order by conducting trade procedures. The analysis shows that the regulatory framework for state defense orders includes both general acts for the entire public procurement system and special acts regulating relations specifically in the field of defense orders. The features of legal regulation in this sphere are determined, first of all, by the defense order specifics, but, primarily, this sphere as a whole is subject to the rules of legal regulation common to the sphere of public procurement.

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