The thesis focuses on researching mechanisms of public administration of risks during procurements in construction. The work presents a solution to the relevant scientific assignment consisting in theoretical reasoning of conceptual grounds for forming and functioning of the public administration mechanisms for risks during procurement of goods, works, and services in construction and suggests new approaches to and recommendations for improving mechanisms of public administration of procurement procedures.
The author provides their own definition of state administration of procurement process in construction as a form of the state’s targeted impact through a system of economic, legal, and administrative methods to ensure or support production processes aimed at selling construction products as well as to achieve goals of the governmental construction policy in general.
On the basis of analyzing scientific sources, the author characterizes organization of goods, works, and services procurement in construction as a managerial function that includes delivering the tasks linked to studying demands of the construction market, clients’ needs, construction products supply, price, interactional of customers, etc. The thesis analyzes retrospective development of the public regulation of procurements, which is based on a new proposed periodization of procurement procedures development in Ukraine derived from their content and core by singling out five fundamental stages. The procurements are divided by types based on the object of procurement, subject of procurement depending on the source of funding, and procurement procedures.
The thesis reveals gaps in the procurement regulation, updates the necessity to adjust the legislation to the needs of the state’s development in general and construction sector in particular by means of introducing international experience on condition of considering national facts of life, legislation, traditions, and risks (including economic and political instability and construction regulation lability in view of corruption aspects).
The author justifies a complex mechanism of public administration of risks in the procurement system for goods, works, and services in construction on the grounds of a conceptual model of structural and functional support to the procurement procedures public regulation, which is distinguished by a new approach to implementing investment construction projects on the basis of the construction facility’s lifecycle (including pre-design stage and stages of design, construction, and operation) and differentiation of approaches to procurements depending on specialties of a construction facility. The paper suggests differentiating the approaches to carry out procurements drawing on the facility’s consequence class as a complex indicator of risk evaluation by the degree of possible material losses or social losses related to the operation termination or loss of its integrity. The thesis gives reasons to ways of improving public administration during procurements in construction through: updating main directions of implementing the “Strategy for reforming the public procurement system” with an emphasis on a corresponding sectoral direction; integration of PROZORRO electronic system with the “Unified public electronic system in the field of construction;” combating price dumping in construction biddings; engaging a consulting engineer to the cycle organization as a criterion of evaluating tender proposals.
The author prepares practical advice as haw to improve the national legislation by introducing a new competitive procedure for the procurement of services that have signs of intellectual activities; definition and formalization of qualification requirements during engineering services procurement in construction; and establishing an effective insurance system.
Keywords: public administration mechanisms, risk, risk management, procurement of goods, works and services in construction, engineering services.
