Applicability of integrated project delivery procurement method to public sector construction contracts in Sri Lanka

Abstract

The effective utilization of public funds in construction procurement is a critical concern for the public sector of Sri Lanka. This study examines the issues and challenges associated with the traditional procurement system currently employed in public sector construction contracts in Sri Lanka. It evaluates the potential of Integrated Project Delivery (IPD) as a modern alternative approach. It has been identified that traditional procurement methods used in the current public sector context suffer from several issues, including inefficiencies, fragmented stakeholder collaboration, and delays in project delivery. Drawing on global trends, IPD offers a collaborative, value-driven approach that integrates stakeholders from the early stages of a project, promoting a shared risk and reward system and improved outcomes in terms of cost, time, and quality. The research begins with a review of existing literature, identifying systemic issues in traditional procurement, including root causes, IPD definitions and its core values, principles and the IPD process. The globally highlighted benefits and challenges of IPD were also identified. It reveals that while IPD has gained traction internationally, its application in Sri Lanka’s public sector remains unexplored. To bridge this gap, qualitative data were collected through semi-structured interviews with industry professionals. The findings confirm that IPD core values (09) and principles (09) are applicable to public sector construction contracts under the identified strategic approaches. Furthermore, the IPD process is characterized as a flexible flow, which contrasts with the traditional approach, and it can also be applied to Sri Lanka’s public sector under legal, cultural, and systemic reform. Possible strategies for implementation have been identified, including the formation of a public sector unit for IPD implementation and the initiation of pilot projects. Moreover, the applicability of existing rules, regulations, guidelines, and manuals also revealed and identified the non-availability of a multi-party standard form as a gap in implementing IPD. To overcome regulatory challenges, several strategies were proposed. Additionally, the benefits and challenges of the application of IPD in the public sector of Sri Lanka were identified, and strategies were also proposed to overcome cultural, technological, legal, financial and procurement environment-related challenges. Key recommendations include adopting a two-stage bidding process with prequalification, implementing quality-based evaluation systems, conducting IPD and team alignment workshops, and securing early budget approvals. Further, the study also emphasizes the need for legal reforms, cultural reforms, institutional support, capacity building, and phased pilot projects to facilitate IPD implementation. Ultimately, the research concludes that IPD can significantly enhance procurement efficiency and project outcomes in Sri Lanka’s public construction sector, particularly for large-scale, complex, and strategic projects. This study lays the groundwork for future empirical research and policy development requirements aimed at IPD implementation public procurement in Sri Lanka.