Procurement innovation for public construction projects: A study of agent-construction system and public-private partnership in China

Purpose – The purpose of this paper is to attempt to shed light on procurement innovation by examining two state-of-the-art procurement systems in China – an agent-construction system (ACS or in Chinese Dai Jian Zhi) and public-private partnership (PPP), with special consideration given to the systems’ particular political, economic, social, technological, environmental, and legal (PESTEL) background. Design/methodology/approach – The paper does so by using content analyses, semi-structured interviews, and a “PESTEL-Procurement Innovation” framework. Findings – It is found that PPP has not been as popular as expected, while the ACS, which is little known to the international construction management community, is widespread in China. The study of ACS and PPP further reveals that congruence between a procurement system and its external PESTEL conditions is essential for procurement innovation. Research limitations/implications – The “PESTEL-Procurement Innovation” framework could be a useful tool for devisi...

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