LEAN PUBLIC CONSTRUCTION IN THE PROJECT DEFINITION PHASE: THE CASE OF PERU

Public construction in developing countries is characterized by a lack of quality design information, poor front-end engineering studies, fragmented procurement, and financial obstacles. As a result, projects exhibit major delays, cost overruns, and contract resolution during construction which end up in failed projects. These issues cause dramatic losses in value for end-users and society. Current literature suggests that the main issues in public construction are rooted in the strategic definition, briefing, and concept design. To tackle these problems, the current research will focus on understanding the value-generating principles of public construction at the project definition phase by using the Lean Project Delivery System (LPDS). The methodology in this research is inductive and based on qualitative data. The case of Peru was used as a case representing a developing country. The findings show that the value-generating principles for public construction are end-user consideration, asset functionality, transparency, efficiency, predictability, and efficacy. However, the institutional pressures both enable and constrain public managers’ ability to deliver the expected outcomes and value. This represents a great opportunity to deploy lean methods at the beginning of the project to improve transparency, collaboration, and drive innovation. Future studies can develop a lean-enabled framework for public construction and scrutinize the constraints for value generation.