Procurement strategy in major infrastructure projects
Piloting a new approach in Norway
Infrastructure investment has been at the forefront of the political debate for more
than two decades. Despite decades of theoretical study and experimentation in practice,
“how to” actually procure infrastructure still lacks a complete and evidence-based
guide, relying heavily on subjective perception and judgement. Procurement strategy
mistakes can substantially increase the cost of infrastructure, delay its delivery,
or reduce its quality and value to the public.
The OECD has trialled a new evidence- based tool to inform procurement decisions on
major projects called Support Tool for Effective Procurement Strategy or STEPS. The
tool was applied toon two major road projects in Norway. STEPS can improve the efficiency
and effectiveness of public procurement of infrastructure and beyond.
It should improve the Value for Money propositions of both traditional and privately
financed infrastructure projects. It is also an effective tool against bid rigging,
the effects of abnormally low bids, and corruption in public procurement. Because
the procurement choices of the public sector impact the market structure of the infrastructure
supplier market, it could be considered an instrument of implicit market regulation,
working against market concentration. STEPS thus supports a range of OECD recommendations
and G20 positions on infrastructure governance, private investment in infrastructure,
and procurement in general.
Published on November 09, 2021
In series:OECD Public Governance Policy Papersview more titles