COST EFFICIENCY OF COMMUNITY CONTRACTING VERSUS COMMERCIAL CONTRACTING IN MALAWI’S PUBLIC PROCUREMENT: EVIDENCE FROM COVID-19 SCHOOL CONSTRUCTION PROJECTS

Abstract

The primary aim of this study was to compare the cost-efficiency of two public procurement models namely community contracting and commercial contracting in Malawi during the COVID-19 pandemic. Utilizing evidence from the construction of school blocks during this period, the study was motivated by the notable use of the community contracting model, despite the Public Procurement and Disposal Act (PPDA) No. 27 primarily emphasizing the commercial contracting model (PPDA Act, 2017). To achieve its objectives, the study employed a mixed methods research approach, collecting primary data through interviews, focus group discussions, and observations, while also gathering secondary data from various official sources.The findings of the study indicate that the community contracting model provides greater cost-saving opportunities compared to commercial contracting. A key insight is that the rigid and inflexible nature of commercial contracting often leads to prolonged timelines and elevated costs. Furthermore, the study reveals that community contracting yields more significant advantages, including community empowerment, enhanced quality, skill transfer, job creation, and a strengthened sense of ownership among participants.In conclusion, the community contracting model is identified as the more cost-efficient public procurement option for low-cost community projects qualifying under low-cost Requests for Quotations (RfQs) when compared to the commercial contracting model utilized by private contractors. Overall, the community contracting model demonstrates superior performance in terms of cost, time, quality, and community benefits factors that are recognised as essential proxies for cost efficiency in the literature.