Public procurement of engineering services: Governance and control mechanisms

Prior research has emphasized the importance of the early phases in construction projects. However, procuring engineering services for early phases is considered complex due to the high uncertainties and the information asymmetry favouring the service provider. This study explores public procurement of engineering services in the Swedish infrastructure sector, focusing on governance and control mechanisms. The purpose is to investigate the choice of governance and control mechanisms in engineering contracts from two perspectives, the public client's and the service providers. The findings are based on interviews with managers from the Swedish Transport Administration as well as from different engineering consulting companies. Findings indicate that the respondents from both sides seem to describe other choices and combinations of reward system and performance evaluation, compared to previous studies. This could be explained by the fact that the engineering contracts are less formalized than construction contracts in Sweden. This study shows that there are situations when clients have an information advantage in relation to their service suppliers and in-depth knowledge of the tasks procured, which affects the development of procurement strategies.