Public Procurement of Construction Works: Significance, Challenges, and the Impact of VAT Changes on Procurement Efficiency
DOI:
https://doi.org/10.51704/cjce.2024.vol10.iss1.pp49-55Keywords:
Public procurement, construction works, VAT changeAbstract
Public procurement plays a pivotal role in the functioning of government and public sector organizations, facilitating the acquisition of goods, services, and construction works essential for delivering public services and infrastructure development. In the context of construction, public procurement ensures the planning, funding, and execution of critical projects such as roads, bridges, schools, and hospitals, contributing to economic growth and societal well-being. However, the complexities inherent in public procurement processes often lead to significant challenges that can hinder efficiency and effectiveness. These challenges are particularly pronounced in the procurement of construction works, where issues such as cost overruns, delays, and quality control frequently arise due to the scale and complexity of projects.The impact of Value Added Tax (VAT) increases on public procurement is a multifaceted issue that has garnered significant attention in economic research. For construction projects, VAT changes can substantially affect project budgets, contractor pricing, and overall fiscal planning. A nuanced understanding of these dynamics is essential for developing procurement strategies that can adapt to the challenges posed by changing tax policies, ensuring that critical construction projects are delivered efficiently and within budget.
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