Procurement management in construction: study of Czech municipalities

Abstract

Efficient spending of public money is a crucial requirement of public procurement. This requirement is even more important in the case of public works contracts since construction projects are usually very costly. Accordingly, public authorities should manage the procurement process in an efficient way. The aim of this paper is to analyse municipal procurement practices focusing on small-scale public contracts for construction works. The Czech Republic is the study area for this analysis. Data concerning procurement practices were collected through a questionnaire survey and on the basis of available internal municipal directives that govern the procurement process. The results show that a majority of municipalities use internal directives and specify financial categories for small-scale public contracts. It has also been found that the majority of municipalities contract external consulting companies for specific contracts or subsidised public contracts. Directives usually concern the issue of responsibility and the approval procedure related to the public contract. Based on the research findings, general recommendations for awarding public contracts have been formulated. These findings can potentially contribute to the dissemination of best practices among contracting authorities in the Czech Republic.

Keywords

• public contracts for construction works
• municipality
• small-scale public contracts
• internal directives