scholarly journals Foreign experience in risk management in the procurement of goods, works and services in the field of construction

2018 ◽  
Vol 6 (1-2) ◽  
pp. 37-41
Author(s):  
O. M. Nepomnyashchyy ◽  
T. K. Mitropan

In the article, with the help of theory and practice, the essence of foreign experience of risk management in the system of procurement of goods, works and services in the field of construction, its application content is disclosed. The main objectives of controlling purchases in the field of construction, which are provided with planning functions, are analyzed; analytical function; information function; coordination function. An important place is taken into assimilating of the different approaches to insurance of risks in the system of procurement of goods, works and services in the field of construction, differing in the degree of public participation. It is determined that the system of state purchases plays a strategic role in the construction sphere and promotes: modernization of infrastructure in the construction industry; creation of new methods and technologies of construction; housing and communal services development; improvement of personnel training, etc. It is stated that the achievement of the goals of organizing the procurement process in the construction and operation of facilities is based on the principles of openness and transparency of information contained in contracts for the procurement of construction services; provision of competition; professionalism of clients; stimulating innovation; harmony of contractual systems in the construction procurement field; realization of state and municipal needs. Changing the functions of the state in the complex conditions of development of the new economic system in one way or another affects all aspects of state participation in the economy, including in the construction sector. The state carries out the functions that their implementation is associated with significant material costs and is accompanied by mandatory costs for the purchase of certain types of construction goods, works and services.In general, the public procurement process is proposed to be seen as a mechanism by which countries allocate accumulated public funds to meet public needs and ensure the functioning of the country. The stimulating, innovative role of procurement in construction is manifested in the fact that the state, acting as a customer, is also the «first buyer» of new types of construction products and samples of experimental products in the field of construction, which have not, so far, been serial.

2021 ◽  
pp. 142-148
Author(s):  
Walery Okulicz-Kozaryn ◽  
◽  
Kateryna Melnyk ◽  

United territorial communities in the context of decentralization are authorized to carry out public procurement at their own discretion. However, additional responsibility reinforces the need to involve the institution of audit as a guarantor of the economic and social feasibility of the process. The purpose of the article is to determine the place of public procurement as one of the objects of the national audit system in order to increase the efficiency of management of united territorial communities. It was found that, despite the improvement of legislative regulation in the sphere of public procurement, the illegal, often “lobbied” use of budgetary funds requires increased control, both from the state and the public, and from the actual administration of the united territorial communities. The theoretical and methodological foundations of the state audit of public procurement were revealed. The directions of improving the state audit of the public procurement process in united rural territorial communities were proposed, while observing the priority of sustainable development goals. The capabilities of the electronic public procurement platform Prozorro were critically assessed. The reasons and prerequisites for the elimination of the corruption component of the public procurement process at the local (united territorial communities) and global (national economy) levels were identified. The need for IT-auditing in the field of legality and economic feasibility of using budget funds in rural territorial communities was proved. The impact of the audit on the general system of information and analytical support of management consists in assessing the effectiveness of activity processes, information processes and control procedures in order to improve the management model of activity and, accordingly, the decision-making system.


2019 ◽  
Vol 4 (3) ◽  
pp. 273-281
Author(s):  
Anna SLOBODIANYK

Introduction. In the civilized world, the principles of public procurement are based on austerity criteria; fairness and impartiality of contract award decisions; publicity of the procurement process; efficiency of the procurement process; the importance of accountability. The purpose of the research is to analyze the transfer of the procurement system in electronic format as an effective tool for the goods acquisition, works and services in order to financially support the functioning of state structures to serve public needs, which are maintained mainly at the expense of the state and local budgets. Results. The article deals with the concept essence of «electronic procurement» – that is the newest way of procurement, because it is the passing and controlling in the electronic environment of all stages of the procurement cycle, including marketing research, determining the range of economic agents, procedures for purchasing, placing orders, delivering and paying for them, budgeting and planning for purchases by government agencies. An efficient e-procurement system is highlighted, the key to which is the electronicization of the procurement process, which helps to reduce the operating costs of customers and suppliers; speeding up the procurement process and saving time; a wide range of suppliers; simple and convenient management of the procurement process; clear and transparent access to purchasing information. Conclusions. The electronic public procurement system makes it easier for participants to get started with the state, find the right procurement, submit a bid and win bidding, since all the procurement information is available on the procurement page, and in the change case in the tender documentation, all previous revisions of documents remain in the system, which can be downloaded and viewed. Such transparency of the procedure makes it possible to prevent corruption risks and is a way to develop democratic and open processes in society. Keywords: public procurement, participant, customer, Law of Ukraine "On Public Procurement", tender, auction, public procurement, bidding, open bidding.


Author(s):  
S. N. Kovalenko

This article discusses issues related to the effectiveness of the use of federal budget funds, provides references to legislative and regulatory acts related to the issue under study, forms an algorithm for the stages of the procurement process, highlights the distinctive features and characteristics of public procurement in the institution of the zrdavookhraneniya system (on the example of the State Budgetary Institution of the State Budgetary Institution named after S. P. Botkin), provides materials for the study of the effectiveness of the use of budget funds of public sector organizations, including in the healthcare sector, and also gives an assessment.


Author(s):  
Larysa Strashynska ◽  
◽  
Andrii Nykonenko ◽  

Public procurement in Ukraine is an area where marketing is underused. Marketing potential in public tendering remains poorly understood. The article is devoted to the study of this potential for improving the performance of domestic state customers. Marketing in the state customer's activities is limited by a number of factors. This is dependence on legislation and competitive trading procedures. The main directions of marketing in the activities of the state customer are public relations and market research. Domestic state customers do not pay sufficient attention to public relations, which leads to a low level of confidence of business and society in tenders. The central tool of market research for the state customer are market consultations. It includes several stages, such as an invitation to participate in market consultations, filling out a questionnaire by an enterprise, holding a meeting of a prospective customer with a potential bidder and preparing a report. Marketing research of the market is used insufficiently by state customers. Market consultations are mainly addressed to those customers who are financed by international financial organizations. At the same time, market consultations hold enormous potential to improve the efficiency of public procurement. They allow you to correctly formulate the requirements for the procurement item and its expected value. This speeds up the process of preparing tender documents. In addition, market consultations draw the attention of a potential tenderer to this state customer. This contributes to an increase in the number of tenderers and to a decrease in the price of the subject of the procurement. As a result of the study of the theory and practice of using marketing in public procurement, it was proposed to introduce social and ethical marketing in this area.


Author(s):  
Costel Ceocea ◽  
Raluca Alexandra Ceocea ◽  
Adrian Vatamaniuc ◽  
Vasile Mihălaș

Public procurement involves adequate risk management, specific to the procurement portfolio established at the level of the organization. In order to achieve the proposed objectives, in accordance with the regulated framework established at the level of public institutions from Romania, decisions made at the level of contracting authorities must be based on risk management tools and mechanisms. These tools and mechanisms are defined on the basis of analyses of public procurement processes, carried out in compliance with the legal framework applicable at both European and national level. The new context created at the level of the contracting authorities in Romania, with the onset of the COVID-19 crisis, forced the management factors to adopt emergency decisions, to manage new risks and to implement rapid changes in public procurement processes, in the context of high uncertainty. This paper aims at analyzing the way decisions are made at the level of contracting authorities in Romania, in order to identify specific risk management mechanisms, based on the assessment and anticipation of risks related to public procurement organized in an matter of emergency.<div id="mouseposition-extension-element-full-container" style="position: fixed; top: 0px; left: 0px; right: 0px; bottom: 0px; pointer-events: none; z-index: 2147483647; font-weight: 400;"> </div><div id="mouseposition-extension-element-full-container" style="position: fixed; top: 0px; left: 0px; right: 0px; bottom: 0px; pointer-events: none; z-index: 2147483647; font-weight: 400;"> </div><div id="mouseposition-extension-element-full-container" style="position: fixed; top: 0px; left: 0px; right: 0px; bottom: 0px; pointer-events: none; z-index: 2147483647; font-weight: 400;"> </div><div id="mouseposition-extension-element-full-container" style="position: fixed; top: 0px; left: 0px; right: 0px; bottom: 0px; pointer-events: none; z-index: 2147483647; font-weight: 400;"> </div>


2020 ◽  
pp. 278-286
Author(s):  
GVANTSA SISOSHVILI

The spread of the new coronavirus in the world, including in Georgia, had a significant negative impact on both public and private organizations, which has affected the public procurement process in the country. Georgia has spent a large amount of money to deal with the virus. As a result, administrative costs have been reduced in order to finance the 2020 state budget deficit - 57 million GEL for labor costs and 107 million GEL for goods and services. It should be noted that 195 million GEL is used on arranging quarantine spaces and other additional health care costs while 1.31 billion GEL is provided for goods and services. During the pandemic, demand from the state increased significantly in the health sector, while declining in other areas, many planned purchases were canceled, tenders were not held, were suspended or their announcement was delayed. This has affected companies whose major activities include state orders. Also rising inflation and currency devaluation have made goods and services more expensive. Consequently, complex problems arose for the entities participating in public procurement, namely: - From the moment the first case of the virus was reported in Georgia, it became mandatory for public and private organizations to follow the recommendations of the World Health Organization and the National Center for Disease Control and Public Health. So, large amount of money was spent on hygiene, disinfection and other means of protecting against the virus to ensure the safety of customers and employees. - Some public and private organizations continued to work remotely, for which they incurred additional costs for equipping employees at home (with computer or other technological resources). Other organizations, which were not prohibited the operation, funded the transportation of staff to the workplace, because of emergency was declared and public transport was restricted. - In order to free up financial resources, procurement organizations have restricted the announcement of planned tenders. Even the winner had already been identified or the bidder had been invited to sign the contract. At the same time, according to the Unified Public Procurement Electronic System a number of tenders have been suspended, including largescale infrastructure projects, most of which were in the selection stage or successful bidder was revealed and invited to sign the contract. - Due to the global pandemic, most companies failed to meet their contractual obligations on time. Contract authorities change the terms of the contract, including increased delivery time and services. In the case of infrastructure projects, based on the decree of the Government of Georgia, contract authorities were given the right to increase the contract value by 10% -20% in order to finance the increase of supplier costs on construction materials - Amendments were made to the legislation governing public procurement. For example, Procurement of goods and services under the many of CPV codes were restricted to contract authorities without the consent of the Government of Georgia. In the original version of the resolution, only 30 out of 200 codes were restricted, and from April 1, 2020, the number of restricted CPV codes has increased to 160. There are number of classified goods and services, whose purchase does not require government consent: agricultural and food products, outerwear, pharmaceutical products, miscellaneous transport equipment and spare parts, Works for complete or part construction and civil engineering work, laboratory services, refuse and waste related services. Because agreement with the government and electronic procedures takes a long time, procurement organizations were forced to purchase goods and services through a simplified procurement in the case of urgent necessity. This means that in accordance with the law, the contract authorities directly signed a contract with the company and after agreed with the State Procurement Agency. Therefore, it is necessary to analyze the additional costs incurred in the field of public procurement due to the coronavirus to make predictions about the procurement process for the next year.


Author(s):  
Alexey Komzolov ◽  
Tatiana Kirichenko ◽  
Yulia Nazarova ◽  
Olga Kirichenko ◽  
Vladimir Barkhatov ◽  
...  

The subject of this research is the key element of ensuring the economic interests of company owners &ndash; the system of risk management and internal control. Special attention &nbsp;is given to the methodology of risk management for the analysis of normative documents &ndash; laws, recommendations and standards, as well as the experience of their practical application. Comparative analysis is conducted on the corporate norms with the approaches in national strategic goal-setting with regards to national, economic and energy security, in order to develop the theory and practice of ensuring economic security of the economic entities based on the instruments devised within the system of national goal-setting. The object of this research is the economic entities and investment projects of fuel and energy complex. The scientific novelty lies in adjustment of the hierarchy of construction of challenges, threats and risks of the national strategic goal-setting in the sphere of economic security to solution of the tasks aimed at ensuring economic security of the economic entities. The relevance of the acquired results is substantiated by the difference of the authorial approach towards risk analysis in fuel and energy complex in the economic entities. Comparing to the approach of standards recommended by the economic activity regulators, which implies a single category of insecurities &ndash; &ldquo;risk&rdquo;, the distinction consists in implementation of the concept of hierarchical construction of the system of insecurities: challenge, threat, risk (concepts from the goal-setting documents on ensuring economic security of the state) in the new sphere of risk management of the economic entity. The authors&rsquo; original research indicate that introduction of the hierarchy of insecurities (challenges, threats, and risks) at the stage of risk identification allows simplifying and clarifying the procedure of risk assessment.


2016 ◽  
Vol 26 (1) ◽  
pp. 83-101 ◽  
Author(s):  
Ronald Tumuhairwe ◽  
Arthur Ahimbisibwe

Purpose – Procurement records are critical for the effective execution of the procurement process and have been applied as tools to measure compliance and performance of Public Procuring and Disposing Entities (PDEs) by the regulating authority in Uganda – the Public Procurement and Disposal of Assets Authority (PPDA). However, the state of records in various Ugandan PDEs depicts poor records management. This situation has adversely affected the effective creation, usage and storage of public procurement records. This compromises the value and importance of records within the procurement process, with most documents being unavailable and unreliable. The purpose of this study is to investigate the relationship between procurement records compliance, effective risk management and records management performance in Ugandan PDEs. Design/methodology/approach – The study adopted a quantitative research design and used a cross-sectional survey. The researchers developed a questionnaire on the study constructs of procurement records compliance, effective risk management and records management performance using measurement scales derived from previous empirical studies which were modified to suit the current study. Findings – The results indicate quantitative evidence of significant positive relationships between procurement records compliance, effective risk management and records management performance. Findings also reveal that procurement records compliance and effective risk management are significant predictors of record management performance. The results also suggest that effective risk management has a stronger influence on records management performance than that on procurement records compliance. Research limitations/implications – The study context is sub-Saharan Africa, and the findings are, therefore, limited to that context; they reflect existing knowledge in other contexts. The use of a standard questionnaire limited the ability to collect views about information outside the questions asked. The study was only cross-sectional, and the study variables could not be analyzed over a long time. Common methods bias remains a potential threat; future studies should use different source data. Practical implications – Custodians of procurement records, that is, procurement officers, records officers and accounting officers for Ugandan PDEs need to pay special attention to prevailing records laws and policies to minimize risks associated with the poor management of records, as well as improve performance in the management of records creation, storage, retrieval, access and the preservation of vital records. Originality/value – The study contributes to an important area which has not been given attention in the context of sub-Saharan Africa, especially Uganda where there is a difficulty of linking the value of records management to business processes due to a lack of quantitative evidence.


Author(s):  
Ioana Manea ◽  
Ioana Popa

Public procurement represents an important part of the current economy reality. Throughout the procurement process, due to the effect of the interaction among the components of the public procurement system, certain actions with significant negative effects on its optimal operation may occur. Risks may turn into certainty either because of a simple error in the development and administration of the procurement process, or because of a deliberate deviation from the existing legal provisions. Therefore, there is an imperative for the implementation of certain risk-avoiding measures, as well as of measures aiming to reduce their negative effects in case of their occurrence.


Sign in / Sign up

Export Citation Format

Share Document