A Review on PDM Decision-Making for Public Sector Construction Projects Using PESTEL Analysis Framework

Abstract

Successful public sector construction project delivery is crucial for public benefit and national economic growth. Project delivery performance typically depends on the appropriateness of the project delivery method (PDM), which plays a significant role in project development. This paper comprehensively reviews the public sector’s macro-environment perspective in applying descriptive and structured PDM decision-making for public sector construction projects. Based on a systematic literature review, the public sector macro-environment opportunities and threats in PDM decision-making are assessed using a strategic management tool, the political, economic, social, technological, environmental, and legal (PESTEL) analysis framework. Findings reveal that political direction, consultant and contractor abilities, and public sector personnel culture are significant threats that influence the public sector to uphold prescriptive and authoritarian decision-making in PDM selection. Financial conditions, technology integration, and strict public sector policy, rules, and regulations are significant opportunities for the public sector to improvise if determining to adopt various potential PDMs in public sector construction projects. An adequate understanding of the public sector macro-environment perspective in adopting proliferated PDMs contributes to different philosophical views on public sector PDM decision-making. The findings of this paper are substantial in establishing relevant criteria for developing a workable PDM decision-making framework for the public sector.