Balancing the additional costs of purchasing and the vendor set dimension to reduce public procurement costs

Non-Price Criteria for the Evaluation of the Tender Offers in Public Procurement of Ukraine

Traditionally, public procurement has been associated with the measurement of achieving savings. However, recent research shows that the economic impact of public procurement is not limited only to savings, but by measuring the impact of four capitals—natural, human, social, and economic—on sustainable well-being over time. Ukraine is a country with a very low gross domestic product (GDP) per capita, which exacerbates the problem of the impact of public procurement results on the population’s welfare. Ukrainian public procurement legislation allows customers to apply non-price criteria (the share of non-price criteria cannot be more than 70%), which, together, are taken into account in the formula of the quoted price. The studies show that the effect of the use of non-price criteria depends on the relevance of the method of the evaluation of non-price criteria. The most important non-price criteria for Ukrainian customers by product categories and the methods of their evaluation are analyzed according to the Bi.prozorro.org analytics module. Therefore, it is concluded that the quoted price method, which is used in Ukrainian practice, is not relevant in comparison with the method used in the EU. A survey of the government buyers on the practice of applying non-price criteria was conducted, and the areas of their use were identified.

Project delivery methods in European social housing energy renovations

Purpose

The aim of the present study was to characterize the main project delivery methods that are used for the renovation of social housing, and to analyse the advantages and disadvantages of their application for energy renovations in order to assist social housing organisations in making an informed decision on the choice of a project delivery method that suits their organizational context.

Design/methodology/approach

The study is based on a literature review, five case studies of renovation processes by five social housing organizations in four EU countries, a questionnaire completed by 36 social housing organizations from eight EU countries, and a series of 14 interviews with energy renovation experts from ten EU countries.

Findings

Four main project delivery methods were identified: iterative minor renovations, design‐bid‐build, design‐build and design‐build‐maintain. Design‐build‐maintain has the maximum potential to deliver energy savings because it facilitates collaboration between the various actors and promotes their commitment to achieving project goals.

Research limitations/implications

The presented data is not meant to be representative for a country or the sector as a whole, but aims to indicate the main characteristics of the current energy renovations carried out by European social housing organizations.

Practical implications

Social housing organizations are provided with useful information about the advantages and disadvantages of different project delivery methods for energy renovation projects, assisting them to choose the option that suits their organizational context.

Originality/value

This study fills a knowledge gap about the project delivery methods currently used in social housing energy renovations and their potential for energy renovations.