One of the most complex services the public sector procures is construction. The process is manual and protracted. The price tags and the stakes are high. If anything goes wrong, the whole community sees it.
Part of what makes public construction procurement so challenging is that many of the traditional construction procurement methods are outmoded. Laborious and burdensome, they do not take advantage of efficient, modern means of hiring contractors to build, renovate and maintain facilities and infrastructure. While these old school methods may be entrenched within public procurement offices, they are no longer the only ways to get work done. Let’s dive into six ways the public sector can modernize construction procurement.
1. Prioritize Simplicity
Procurement processes in the public sector are hampered by well-intentioned complexities layered atop one another to prevent corrupt practices and ensure public funds are spent with the taxpayer’s interests in mind. As it concerns public construction procurement, the processes are even more complex because the costs are high and the work is specialized. Thus, important projects are delayed while all the boxes are checked, and any snags in the workflow threaten to send the process back to Step One.
While the motivations for these complex processes are noble, in practice, they can be more cumbersome than necessary. To modernize construction procurement, public agencies must take a step back, examine their processes, identify slowdowns and choke points, and determine where they can create efficiencies while maintaining fairness and transparency. This is not easy. The exercise may require personnel from multiple departments, and several attempts before getting it right. The outcomes, however, are worth it.
When public procurement offices prioritize simplicity, it makes their processes simpler to deploy and easier to respond to. Creating a clear workflow with more transparency and less friction enables faster decision-making. And when it comes to construction, faster decision-making means delivering better services and creating better experiences for the public.
2. Embrace Digital Tools
Historically speaking, public construction procurement has required mountains of literal paperwork. Physical requests for proposals (RFPs), advertisements in print resources, paper bids and proposals from interested contractors. Not only is all this paperwork difficult to handle, manage and store, it naturally limits visibility and creates barriers to entry for interested vendors — especially the Mom-and-Pop shops.
Digital procurement tools help public entities cast a wider net and open opportunities for more businesses. But the benefits aren’t all external. Within an organization’s walls, paperless platforms make documents easier to organize and store, and they enhance process transparency. Any department can
keep tabs on progress easily, without asking for updates from a single point of contact who already has enough on their plate. In short, digital procurement helps everyone help themselves.
Furthermore, “going digital” makes it far easier to track and measure the efficacy of the procurement office. Today’s platforms allow the public sector to track spending, vendor performance, project speed and more. Measuring these KPIs helps identify areas of improvement, so organizations can deliver better
services to their communities.
3. Be Open to Vendor Expertise
Public sector procurement professionals are skilled at procurement, not construction. Thus, another way to modernize construction procurement is to define needs at a high level, without getting into the minutia, and allowing contractors to propose solutions that can be completed within the project timeline and budget.
The positive effects of this are twofold: One, the private sector introduces new construction methods and materials to the public sector, helping them make the best possible use of their limited time, money and personnel. Two, public procurement staff spend more of their time on procurement and less of their time double-checking plans and specs. When all parties focus on what they do best, procurement is faster, smarter and more agile.
Hear construction procurement experts dig into more modernization techniques in this engaging discussion.
4. Think Strategically About Outcomes
Modern construction procurement embeds social goals and desired outcomes into every purchasing decision. Community character is inorganic. Character does not just happen; it is engineered, one decision at a time. A lot of those decisions are made in the government procurement office.
Procurement professionals decide how construction work is done, who does it and what experiences are created by the end result. In essence, procurement professionals shape the future of the communities they serve. That’s a weighty responsibility, and one that requires thoughtfulness at every step.
5. Create a Culture of Empowerment
Innovation thrives when people feel free to try new things, even if they don’t work out. Today’s private firms empower their employees to “fail fast,” so they can learn what works and what doesn’t, then use that experience to inform their future work. This approach is seldom reflected in the public sector, where procurement teams are under immense pressure to adhere to the status quo. Public sector employees are discouraged from failing fast, and as a result, processes become entrenched, even if they stand in the way of progress.
When public leaders create a safe space for experimentation and innovation, the community wins. Frontline workers are closest to the work of procurement. They have front row seats to spot process gaps and opportunities for improvement. By holding their established processes less preciously and giving employees the freedom to fail fast, public construction procurement will modernize in a hurry.
6. Develop Contractor Partnerships
Let’s stipulate this from the beginning: Gordian does not promote favoritism or cronyism. We totally, 100%, want the public sector to spread the opportunity around and operate within the law.
That said, collaboration isn’t a crime.
Building relationships with area construction companies creates several positive outcomes. Chiefly, contractors develop an understanding of the public entity’s needs and a feel for how it operates. They can be useful for partners for ensuring the procurement office delivers on its vision and builds a better community.
Gordian’s Cooperative JOC: A Turn-Key Modernization Tool
One surefire way the public sector can modernize its construction procurement is by leveraging Gordian’s Cooperative Job Order Contracting (JOC). Far more efficient than the construction methods of yesteryear, this project delivery innovation allows many projects to be completed with a single contract. This approach accelerates the speed to construction by as much as 25%, according to report from NIGP and Gordian.
The JOC bidding process is completely digital, ensuring easy organization and program transparency. The same goes for project management. Our customers access Price Proposals, project milestones and other important documentation in a safe, secure software platform accessible to many stakeholders. This platform also serves as a repository for program performance, so procurement teams see where they’re strong and where they can do better.
Finally, Gordian JOC programs create collaborative relationships with vetted local contractors who are incentivized to be good business partners. These professionals aide in scope development, find opportunities for extending the budget and offer creative solutions for saving time and/or money without sacrificing performance.
Gordian’s Cooperative Job Order Contracting creates efficiency and agility, enabling the public sector to complete construction work. It’s a proven, modern solution for building better communities.
