Chapter One: General Introduction
- Introduction
Public sector projects are an essential aspect of development and service delivery. Every government’s role in development is to deliver services through various sectors. Infrastructure is one of the main service delivery and development channels (Bardhan & Mookherjee 2006, p. 101). Government delivers service through departments, ministries, and agencies. These form public sector clients. Public sector clients are responsible for infrastructural development. Public sector infrastructure procurement is marred with a number of problems, which limit the capacity of these clients. Proper infrastructural procurement is dependent on the ability or capacity of clients to resolve problems associated with their roles (Garland 2013, p. 19).
The infrastructure procurement process has common problems regardless of its sector. Private and public sector clients face common challenges when procuring infrastructure. However, the private sector has developed measures that improve their infrastructure procurement process by categorically resolving problems (National Audit Office, 2005). Unlike the private sector, public sector clients are faced with structural problems such as bureaucracy and institutional problems such as corruption. An intelligent public sector client manages these problems with the aim of improving infrastructure procurement and service delivery (Aritua, Male, & Bower 2009, p. 1).
Saudi Arabia is among the wealthiest countries in the Middle East (Al-Rasheed 2010, p. 6). This project focuses on infrastructure procurement in Saudi Arabia, and enhancing how public sector clients in the country manage infrastructure projects.
- Background to the Research
Infrastructure Procurement
Infrastructure development involves investment of funds into and development of infrastructural capacity in areas with optimal possible returns or benefit to the public (Infrastructure UK 2013, p. 7). A public sector client makes considerations across its function before making infrastructural development decisions. An infrastructure procurement routemap provides the best practices in procuring infrastructure (Bower & Couzens, 2013, p. 99). This routemap ensures that all public sector infrastructure projects follow best practices. The aim is to improve the quality of the project by improving efficiency and uniformity in project implementation.
It is pertinent for a government to set an infrastructure procurement routemap that can be adopted by its public sector clients (National Audit Office 2005, p. 2). The infrastructure procurement routemap outlines how a public sector infrastructural development project should be carried out. It draws out best and preferred practices for clients, sponsors, and supply chains (Bower & Couzens, 2013, p. 99). There is an elaborate benefit of adopting a general infrastructure procurement routemap. In the course of public service provision, there is often a need for collaboration and assistance among clients. Joint projects are common around the world. Adopting a common routemap allows efficient collaboration where each client is knowledgeable of the preferred practices (Partington 2000, p. 54). This forms an intelligent collaboration in the infrastructure project.
Intelligent Client
The intelligent client is an essential part of optimal infrastructure development. An intelligent client is one that is well rounded and knowledgeable of infrastructure procurement best practices. An intelligent client also has an objective decision making structure that determines the appropriate infrastructure projects to carry out. The role of the intelligent client in infrastructural development is paramount. While the government sets development goals, the client implements. Implementation requires intelligence and effectiveness (McAuley, Duberley, & Cohen 2000, p. 88).
An intelligent client in the context of infrastructure procurement routemap is responsible for the customization of the routemap to fit the needs of the project (Bower & Couzens 2013, p. 99). Each project is unique. Therefore, despite the routemap providing guidelines, there is a need for adaptation. Adaptations allow the routemap to fit the needs of the specific client (Aritua, Male, & Bower, 2009, p. 1). For instance, a roads or transport client will require customizing the routemap to fit the unique features of roads and transport infrastructure. Similarly, different adaptations will be required for the implementation of a rail client infrastructure project. Intelligent clients have the ability to adapt the routemap to their functions.
The intelligent client is developed to improve capacity. In the context of infrastructure procurement, client capability refers to the ability of the client to carry out infrastructure projects effectively within the guidelines of the routemap and in appropriate timelines (Whetten & Cameron 2005, p. 37). It is a reality in the public sector that different clients within the government have different capacities in regard to project implementation. This capacity is influenced by various factors including skill gaps (Bower & Couzens, 2013, p. 99). An important function of the infrastructure procurement road map is to identify gaps in client capability and eliminate or reduce the margins to negligible sizes. Effective public service requires an equal public sector.
Project and Program Complexity
Public sector projects are subject to a number of processes and guidelines. These ensure that the correct approach to infrastructure development is taken. An infrastructure procurement routemap provides guidelines to programs and projects in infrastructure development (Winter & Szczepanek 2008, p. 95). There is a unique complexity associated with public sector projects that is not evident in the private sector. Public sector clients are subject to evaluation and scrutiny from a number of other clients (Garland, 2013, p. 3). They have to be accountable for the developments they undertake and the benefits or lack thereof from the project.
For instance, in transport a client seeking to build roads in many countries, will require the approval of a political client, the supervision of a regulatory client, evaluation of other clients such as treasury and finally has to account for the project implementation. This complexity is unique to public sector programs.
Public Sector Organization, Roles, Skills, and Capacity
The public sector is organized in functional units. These form public sector clients under the government. The functional organization allows different clients to carry out specialized infrastructure procurement projects concurrently (Winter & Szczepanek 2008, p. 95). The functional units also allow for efficient evaluation and effective change. According to Fernandez and Rainey (2006), the public sector organization is essential for infrastructural development. The scholars seek to find out how to efficiently and effectively manage public sector changes. Since each client in the public sector has defined roles, it is practical to effect unit changes without changing other clients.
The infrastructure procurement routemap indicates skill and capacity gaps among clients in the public sector (Cherns & Bryant 2006, p. 3). The development of essential infrastructure is dependent on the skill and capacity borne by the client. Skills of a client have an impact on the capacity of the public sector (Whetten & Cameron, 2005, p. 37). Collaborative measures among clients in the public sector help share skills in infrastructure development.
Summary
Aritua, Male, Bower and Madter 2011, suggest that any organization’s performance is closely related to the people who work in it. Their contributions to the organization inform the performance of the organization. These scholars then relate this to the public sector. According to them, public sector clients are responsible for the performance of the government (Llewellyn & Tappin 2003, p. 956). Since these clients are responsible for the implementation of projects, they are essential in developing government agenda in the country. Intelligent clients understand their role in the national context. Each client is aware of the role it plays. In a well organized governance structure, clients are required to present individual goals and strategies. In the case of infrastructure procurement, each client is expected to base their goals on the infrastructure routemap and develop strategies of achieving these goals (Partington, 2000, p. 269). The intelligent client is effective in achieving goals.
The complexity of public sector infrastructure projects is often seen as an impediment for growth and achievement of goals. However, the complexity can be seen as an opportunity. Infrastructural projects are dependent on the skills at the client’s disposal and funding among others. There are usually multiple projects competing for scarce resources. An intelligent client adapts the infrastructure routemap as closely as possible (McAuley, Duberley, & Cohen 2000, p. 89). This ensures that the complexities favor the client’s project.
Managing infrastructure projects requires optimal approach by the client. Each client often carries out multiple projects. Capacity building is important. For a client to manage projects efficiently, they need capacity. Capacity in infrastructure procurement includes skill and funds (Cabinet Office 2011, p. 7). Both of these are scarce for every client. One way to mitigate the scarcity is to collaborate with other clients. This ensures that the clients share the costs of infrastructure procurement and provide ample skills for the projects.
- Aims and Objectives
Aim
While many developed countries have well defined infrastructure procurement routemaps, countries that have emerged in the last two decades lack essential routemaps that guide infrastructural development. Saudi Arabia is mainly supported by the oil sector. This sector involves the public and private sector. The private sector is mainly comprised of foreign clients. Their infrastructural procurement is already well structured and effective. However, the public sector is lacking. There is minimal involvement of the existing routemap in infrastructure development. While the country has seen infrastructure development in the last few decades, the potential for optimal growth is high. Consequently, Saudi Arabia could use a progressive infrastructure routemap. The aim of this project is to develop a new infrastructure procurement routemap for Saudi Arabia public sector client to manage infrastructure projects.
Objectives
The achievement of the above aim is dependent on the realization of a set of objectives. Objectives in this project expound on the problem area and guide the development of the infrastructure routemap for Saudi Arabia. These objectives include:
The objectives above focus on five areas in infrastructure development. These include, identifying the problems, understanding the complexities, determining the client capability, developing tools and guidelines, and validating the relevance of the tools and guidelines in the Saudi Arabia client context. These objectives are derived from other infrastructure procurement routemaps developed in the past. However, it is important to note that while the objectives are similar, the expected outcome is different. Each client is faced by unique problems, often influenced by the national situation. The current United Kingdom infrastructure routemap published in January of 2013 was based on the problems facing the UK at that time (Pinsent Masons, 2013, p. 5). The objectives of this project seek to develop an appropriate public sector infrastructure routemap for Saudi Arabia.
- Definition of Key technologies
A client is a person, firm, government or any other entity for whom a service is conducted for a fee. In the context of infrastructure development, a client is a firm or government agency that undertakes to develop infrastructure within its function and jurisdiction (Infrastructure UK 2013, p. 5). In Saudi Arabia, the government is a client in relation to infrastructure development. The Saudi Arabia client is involved to infrastructure development in relation to multiple industries such as tourism and transport infrastructure.
Intelligent Client
An intelligent client is a client with a holistic view of infrastructure development. This client has a clear understanding of the needs in its sector and assigns appropriate focus to each element of infrastructure development (Pinsent Masons, 2013, p. 7). An intelligent client will evaluate core needs of the sector and apply the routemap to achieve the long-term infrastructure goals.
Infrastructure Procurement Routemap
This document outlines the best practices in managing infrastructure projects. It outlines the methodology and application of these principles in complex public projects. It is addressed to public sector clients, supply chain managers, and project sponsors (Infrastructure UK, 2013, p. 35).
Capability and Complexity
Capability is the competence to achieve a certain level in ones field. Capability in infrastructure procurement refers to clients’ ability to manage infrastructure projects and achieve optimal results. Complexity refers to the number of parameters involved in an infrastructure project (Cherns & Bryant, 2006, p. 3).
Organization
Organization refers to the unit of governance that controls infrastructure projects. The public sector client is an organization. An organization is used as a central part of the project (Llewellyn & Tappin, 2003, p. 956). Every aspect of the project is represented by the organization, from problems to the infrastructure routemap.
Project and Program management
Project and program management refers to the function of controlling all elements involved in an infrastructure project. Management is aimed at ensuring efficient and effective use of resources within the project (Winter & Szczepanek 2008, p. 95). The result of the project is hinged on the management success of the project.
Role and Skills
Role refers to the function of a client within the larger field. Every element within a project plays a role in the implementation. Skills in infrastructure procurement play an important role. The availability and concentration of skills determines the quality of the results of the project (McAuley, Duberley, & Cohen, 2000, p. 89).
- Scope and Limitations of the Study
Scope
The scope of this study is the geographical area of Saudi Arabia. The scope is specifically focused on infrastructure development in Saudi Arabia. Saudi Arabia client is involved in multiple field infrastructure development (Gallarotti, Filali, & Yahia 2013, p. 59). The scope of this study revolves around these industries such as transport and energy.
Limitations
Another core limitation of this study is insufficient and inaccurate information. Saudi Arabia is a monarch and, therefore, large amount of data is protected and or corrupted before release to the public. Incorrect data could lead to the development of an ineffective routemap for Saudi Arabia (Gallarotti, Filali, & Yahia 2013, p. 60).
Another limitation of the study is that the number of public sector clients is low. Private sector clients dominate the market in Saudi Arabia. Since most proceeds of the country’s resources are shared among a few, there is little to no interest in infrastructure development in most areas without resource endowments. This presents a challenge in the effectiveness of the infrastructure procurement routemap developed by this study (Smith Diwan 2009, p. 345).
This study is limited by resource availability. To study Saudi Arabia’s infrastructure and its capacity extensively would require substantial level of resources. Resources available for this study are not enough for an extensive study. This limitation could be alleviated by sponsorship from private of public institutions.
- Contribution to Knowledge
Present knowledge in the field of infrastructure procurement is based on the case studies in Western countries. Western countries have managed to deploy infrastructure procurement routemaps in the past (Cabinet Office, 2011, p. 7). These have led to the development of these countries public service provision through infrastructure. China has also deployed an infrastructure procurement routemap that focuses on creating the largest network of public infrastructure in the world. This has been effective.
This study’s contribution to knowledge is infrastructure procurement in the Middle East. It has been indicated that every country has unique problems and resources. There is little knowledge of infrastructure development based on an established routemap in the Middle East. Although Saudi Arabia has developed infrastructure drastically in the past, there lacks a route-to guides this development. This project will create an infrastructure procurement routemap that is appropriate for the oil rich country.
The application of this routemap in the Middle Eastern country will be a starting point for more research in the future. Based on the findings of this study, other scholars and public sector clients can create appropriate routemaps for their infrastructural functions. This represents another contribution to knowledge.
- Structure of the Transfer Report
- Abstract
- Introduction
- Background
- Rationale
- Research Problem
- Literature Review
- Current Research
- Research Plan
- Conclusions
Chapter Two: Literature Review
Literature available on infrastructure procurement routemaps is generally from western countries. Western countries have a wide range of infrastructural development managed by a large number of public sector clients. It also emerges that most low-income countries such as Saudi Arabia (per capita income), have policies in place that resemble a routemap. However, most of these countries rarely apply these policies in infrastructural development. The most recent release of an infrastructure routemap was by the UK in January 2013
Chapter Three: Methodology
This study will be in the form of a case study. The study will collect data in Saudi Arabia. Secondary sources such as policy papers will be used as well as questionnaires and interviews. Data collection will be guided by the study objectives. The data will be analyzed and presented in the form of charts and predictive models (Stake, 2006, p. 12). The information collected will be used in the development of tools for public sector clients to manage infrastructure projects.
References
Al-Rasheed, M. (2010). A history of Saudi Arabia. Cambridge University Press.
Aritua, B., Male, S., & Bower, D. (2009). Defining the intelligent public sector construction procurement client. London: White Rose research.
Aritua, B., Male, S., Bower, D., & Madter, N. (2011). Competencies for the intelligent public sector construction client. Management, Procurement and Law, 164(MP4) , 193-202.
Bardhan, P., & Mookherjee, D. (2006). Decentralisation and Accountability in Infrastructure Delivery in Developing Countries. The Economic Journal, 116(508), 101-127.
Bower, D., & Couzens, A. (2013). The new infrastructure procurement routemap: a global guide to improving delivery capability. Civil Engineering, 166(CE3), 99.
Cabinet Office (2011). Managing Successful Programmes. London: The Stationery Office.
Cherns, A. B., & Bryant, D. T. (2006). Studying the client's role in construction. London: Loghborough.
Fernandez, S., & Rainey, H. G. (2006). Managing Successful Organizational. Public Adminisration Review • March | April 2006 , 168-177.
Gallarotti, G. M., Filali, A., & Yahia, I. (2013). The Soft Power of Saudi Arabia. International Studies.
Garland, R. (2013). Programme and project accountability: the governance of capital investments. London: The Stationery Office.
Infrastructure UK. (2013). Infrastructure procurement routemap: a guide to improving delivery capability. London: HM Treasury.
Llewellyn, S., & Tappin, E. (2003 ). Strategy in the Public Sector: Management in the Wilderness. Journal of Management Studies 40(4), 0022-2380.
McAuley, J., Duberley, J., & Cohen, L. (2000). The meaning professionals give to management and strategy. Human Relations, 53(1), 87–116.
National Audit Office (2005). Improving Public Services through better construction. London: Comptroller and Auditor General.
Partington, D. (2000). Implementing strategy through programmes of projects In: Turner JR, Simister SJ, editors. Gower handbook of project management. Gower: Aldershot.
Pinsent Masons (2013). Infrastructure in the New Era. London: Pinsent Masons.
Smith Diwan, K. (2009). Sovereign dilemmas: Saudi Arabia and sovereign wealth funds. Geopolitics, 14(2), 345-359.
Stake, R. (2006). Multiple Case Study Analysis. New York: Guilford Press.
Whetten, D., & Cameron, K. (2005). Developing Managerial Skills, 5th edn. . Hoboken, NJ: Pearson–Prentice Hall.
Winter, M., & Szczepanek, T. (2008). Projects and programmes as value creation processes: A new perspective and some practical implications. International Journal of Project Management 26, 95–103.
