Introduction: Procuring Road Infrastructure (RI) is crucial for a nation's economic and social development. However, achieving Value for Money (VFM) in Public Procurement (PP) is challenging in South Africa owing to complexities in the PP processes. The central focus of this study is to explore how state-owned organisations understand, measure and apply the VFM principles when evaluating RI projects in LP. Literature Review: The study examined theories behind PV's impact on VFM, focusing on agency theory and stakeholder interests. It highlighted differences in public and private sector procurement objectives and the challenges of VFM in the public sector (PS). The study also looked at rules and regulations governing PP, which shaped procurement method selection and VFM outcomes. Critical research gaps included the lack of consensus on what constitutes VFM, the unintended consequences of over-focusing on VFM and challenges to the realisation of VFM, such as the agency problem, decisions on who determines PV and the procurement methods. Methodology: The study adopted a pragmatism research paradigm, emphasising a practical understanding of VFM in RI procurement. Using a qualitative method, it focused on two state-owned entities in Limpopo Province through a multi-case design, allowing a comprehensive exploration of stakeholder perspectives in the procurement process. Findings: The research indicated that while organisations recognised the importance of VFM, their understanding of the economy pillar and its associated trade-offs remain rudimentary. Even with strict adherence to procurement regulations, direct emphasis on VFM was often lacking. Certain measures that could enhance VFM were overlooked owing to concerns about potential non-compliance. The personal interests of public officials frequently complicated the bidding processes. Moreover, organisational goals were established without a comprehensive assessment of the impact on rival public values (PVs). Recommendations: This research proposes improved training for procurement officials, streamlined supply chain and compliance practices, and the development of clear VFM guidelines by the government. The study provides valuable academic insights into VFM, PP and agency theory while also proposing a framework for the investigation of VFM in PP.
- A value for money assessment in public procurement of road infrastructure
- Hobyane Magopa
- Tatenda Mbara
- University of Johannesburg; MCom
- MCom, University of Johannesburg
- 9942002607691
- University of Johannesburg
- College of Business & Economics (CBE); Department of Business Management; University of Johannesburg
- English
- Thesis