Abstract
The construction sector is one of the major contributors to the South African GDP and a major creator of employment in South Africa. Procurement systems are vital in the implementation and delivery of a construction project. The type of procurement system adopted determines the success or failure of these projects. There are, therefore, many factors to consider before selecting the right procurement system for a construction project. Hence, this study appraises the South African construction industry's public-private partnership (PPP) procurement system. A detailed review of the literature was done on procurement systems. A structured questionnaire was employed for data collection. The targeted respondents were quantity surveyors, project managers, construction managers, construction project managers, contractors, engineers, and architects from the public and private sectors in the South African construction industry. A total of 200 questionnaires were distributed and 105 were completed and returned representing a 53% response rate. Descriptive and explanatory factor analyses were used in analysing the data. From the findings, it was revealed that Build and Transfer, Design-Build- Operate Transfer (DBOT), Design-Build Finance-Operate (DBFO), and Build-Operate-Transfer (BOT) were the most used PPP procurement systems in South Africa. Furthermore, the demand for more infrastructure, the need to achieve economic development, and high demands for public infrastructure facilities were found to be the drivers of PPP in South Africa. Furthermore, the study revealed that having a commitment from both parties, having good suppliers which perform well, and having appropriate procedures were the critical success factors. The findings of this study showed that the benefits of PPPs in the South African construction industry were long-term value for money, improved service delivery, improved local economic development and economic benefits, economic benefits, cost certainty, schedule certainty, effective risk-sharing, transfer of risk, innovation, and technology, provision of high-quality services, and increased flexibility in the provision of services. From the findings of the study, it can be concluded that all construction stakeholders that participate in a PPP project should be well-trained so that the construction project can be successful.
Keywords: Public-private partnerships, procurement systems, construction industry, critical success factors.