Infrastructure delivery systems governance and implementation issues

Management in the Built Environment Series Editor: Low Sui Pheng Bankole Osita Awuzie Peter McDermott Infrastructure Delivery Systems Governance and Implementation Issues Management in the Built Environment Series Editor Low Sui Pheng, National University of Singapore, Singapore, Singapore Editorial Board Abdul Rashid Bin Abdul Aziz, University Science Malaysia, Penang, Malaysia An Min, Salford University, Salford, UK Azlan Shah Ali, Faculty of Built Environment, University of Malaya, Department of Building Surveying, Kuala Lumpur, Malaysia Faisal M Arain, Niagara College, Makkah Campus, Welland, ON, Canada Fang Dongping, Tsinghua University, Beijing, China Gao Shang, University of Melbourne, Parkville, VIC, Australia George Ofori, London South Bank University, London, UK Hamzah A Rahman, University of Malaya, Kuala Lumpur, Malaysia Javier Cuervo, Department of Management and Marketing, University of Macau, Taipa, Macau, Guangdong, China Liu Junying, Department of Construction Management, Tianjin University, Nankai, Tianjin, China Oluwayomi K Babatunde, Construction Economics & Management, University of the Witwatersrand, Johannesburg, Gauteng, South Africa Oswald Chong, School of Sustainable Engineering and the Built Environment, Arizona State University, Tempe, AZ, USA The aim of this book series is to provide a platform to build and consolidate a rigorous and significant repository of academic, practice and research publications that contribute to further knowledge relating to management in the built environment Its objectives are to: (1) Disseminate new and contemporary knowledge relating to research and practice in the built environment (2) Promote synergy across different research and practice domains in the built environment and (3) Advance cutting-edge research and best practice in the built environment The scope of this book series is not limited to “management” issues per se because this then begs the question of what exactly are we managing in the built environment While the primary focus is on management issues in the building and construction industry, its scope has been extended upstream to the design management phase and downstream to the post-occupancy facilities management phase Management in the built environment also involves other closely allied disciplines in the areas of economics, environment, legal and technology Hence, the starting point of this book series lies with project management, extends into construction and ends with facilities management In between this spectrum, there are also other management-related issues that are allied with or relevant to the built environment These can include, for example cost management, disaster management, contract management and management of technology This book series serves to engage and encourage the generation of new knowledge in these areas and to offer a publishing platform within which different strands of management in the built environment can be positioned to promote synergistic collaboration at their interfaces This book series also provides a platform for other authors to benchmark their thoughts to identify innovative ideas that they can further build on to further advance cutting-edge research and best practice in the built environment If you are interested in submitting a proposal for this series, please kindly contact the Series Editor or the Publishing Editor at Springer: Low Sui Pheng (bdglowsp@nus.edu.sg) or Ramesh Premnath (Ramesh.premnath@springer.com) More information about this series at http://www.springer.com/series/15765 Bankole Osita Awuzie Peter McDermott • Infrastructure Delivery Systems Governance and Implementation Issues 123 Bankole Osita Awuzie Department of Built Environment Central University of Technology Bloemfontein, Free State, South Africa Peter McDermott School of the Built Environment University of Salford Manchester, UK ISSN 2522-0047 ISSN 2522-0055 (electronic) Management in the Built Environment ISBN 978-981-13-7290-2 ISBN 978-981-13-7291-9 (eBook) https://doi.org/10.1007/978-981-13-7291-9 © Springer Nature Singapore Pte Ltd 2019 This work is subject to copyright All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed The use of general descriptive names, registered names, trademarks, service marks, etc in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations This Springer imprint is published by the registered company Springer Nature Singapore Pte Ltd The registered company address is: 152 Beach Road, #21-01/04 Gateway East, Singapore 189721, Singapore This study is dedicated to God Almighty Preface Upon the realisation of procurement’s significance in driving the implementation of socio-economic policies, successive governments across the globe are increasingly demanding more from suppliers as it pertains to the delivery of associated benefits This has resulted in a significant shift in what constitutes success in the respective projects which they commission; from factors related to the ‘iron triangle’ to contributions of the project to the growth of the local economy Policies such as the Social Value Act, and the Nigerian Oil and Gas Industry Content Development Act (NOGICDA) in the United Kingdom and Nigeria, respectively, readily come to mind Judging by the plethora of literature bemoaning the prevailing high poverty and unemployment rates in developing and resource-rich countries such as Nigeria, the implementation of such policies has failed to deliver the expected outcomes This opinion is affirmed by several studies which point to the possibility of implementation failure in such countries Surprisingly, none of these studies has made any attempt to explore the way implementation is organised and governed Obviously, the seeming absence of a veritable platform for implementation analysis poses a challenge As a result of this, previous investigations have failed to properly tackle this problem from a holistic and systemic perspective To bridge this gap, this study reported in this book embarked upon an evaluation of the implementation process using the NOGICD Act as an exemplar The failure of other economic sectors in Nigeria to achieve considerable backward linkage with the oil and gas industry, as evidenced by the reported failure of local suppliers to enter the supply chains of major infrastructure projects contributed to this choice The Viable Systems and Temporary Multi-Organisations theoretical lenses were applied in the conceptualisation of complex interorganisational relationships, thus resulting in the development of a Viable Infrastructure Delivery Systems Model (VIDM), a model premised on systemic and cybernetic principles The VIDM was then applied in conceptualising and evaluating extant interorganisational relationships within selected infrastructure delivery system case studies in Nigeria and the United Kingdom vii viii Preface It was observed that the VIDM was better positioned to conceptualise and evaluate the influence of various interorganisational interactions within infrastructure delivery systems on implementation success Furthermore, the application of the VIDM within the selected cases enabled the discovery of various issues within the IDS capable of undermining successful implementation such as non-alignment of goals within the IDS, excessive government interference, lack of appropriate criteria for measurement of benefits and cognition-related issues It is expected that the VIDM will be deployed by implementation advisors in conceptualising and evaluating interorganisational relationships during policy or strategy implementation cycles and/or for (re)designing implementation processes for viability within the Nigerian oil and gas industry and beyond Bloemfontein, South Africa Salford, United Kingdom Bankole Osita Awuzie Peter McDermott Contents Introduction 1.1 Background 1.2 Rationale for the Study 1.3 Research Questions and Proposition 1.3.1 Research Questions 1.3.2 Research Propositions 1.4 Aim and Objectives of the Study 1.4.1 Aim 1.4.2 Study Objectives 1.5 Scope of the Study 1.6 Contribution to Knowledge 1.7 Chapter Outline 1.8 Chapter Summary and Link References Procurement as a Medium for Implementing Local Content Development Policies 2.1 Chapter Introduction 2.2 Local Content Development 2.2.1 What is Local Content? 2.2.2 Evolution of Local Content Development Policies (LCDPs) 2.2.3 The Case ‘For’ and ‘Against’ LCDPs 2.2.4 Review of LCDPs in Literature 2.3 Procurement Systems 2.3.1 Procurement Systems—A Definition 2.3.2 Procurement Systems as a Medium for Policy Implementation 1 6 7 8 10 10 15 15 16 16 17 18 19 22 22 24 ix x Contents 2.4 Infrastructure 2.4.1 What is Infrastructure? 2.4.2 Relationship Between Infrastructure Capital and Economic Growth 2.4.3 Country Perspective—Nigeria and the United Kingdom (UK) 2.4.4 Nigeria—Country Profile 2.5 Chapter Summary and Link References 24 24 25 Infrastructure Delivery Systems: An Organisational Viability Perspective 3.1 Chapter Introduction 3.2 Systems 3.2.1 Systems Thinking—A Definition 3.2.2 Evolution of Systems Thinking Practice 3.2.3 A Systems Approach to Policy Implementation 3.3 Cybernetics 3.3.1 Defining Cybernetics 3.3.2 Origin of Cybernetics 3.4 Complexity 3.4.1 Complexity Defined 3.4.2 Types of Complexity Encountered in Infrastructure Delivery Systems 3.4.3 Factors Causing Complexity in Infrastructure Delivery Systems 3.4.4 Infrastructure Delivery Systems as Complex Systems 3.5 Viability 3.5.1 Concept of Viability 3.5.2 Emergence of the Viable Systems Model (VSM) 3.5.3 Understanding Policy Implementation from a VSM Perspective 3.6 Organisations and Infrastructure Delivery 3.6.1 Relationship Between Theories of Organisation and Infrastructure 3.6.2 Infrastructure Delivery Systems as Temporary Multi-organisations 3.7 Governance 3.7.1 Definition of Governance 3.7.2 Governing Organisations—Transaction Cost Approach or Institution Theory? 3.7.3 Project Level Governance 26 26 44 45 49 49 50 50 51 53 54 54 55 56 56 56 57 58 58 58 60 63 65 65 66 69 69 71 72 ... in Infrastructure Delivery Systems 3.4.3 Factors Causing Complexity in Infrastructure Delivery Systems 3.4.4 Infrastructure Delivery. .. http://www.springer.com/series/15765 Bankole Osita Awuzie Peter McDermott • Infrastructure Delivery Systems Governance and Implementation Issues 123 Bankole Osita Awuzie Department of Built Environment Central... Development and Validation of a Viable Infrastructure Delivery System Model (VIDM) 7.3.4 Understanding of the Existing Organisational Structures and Governance Modes and the Attendant