In the last few decades, there has been well documented evidence that the performance of the public building projects in local authorities in Indonesia does not fully meet the expectation of the stakeholders involved and demonstrates sustainable practices. This mediocre performance impacts on the competitiveness of building industry, and therefore would require the development of a strategic approach to address these fundamental structural and cultural issues. The strategic approach, which facilitates sustainable practices, to a large extent, depends on the local priorities, goals and success criteria, which are dynamic and influenced by the expectations of various stakeholders involved in the procurement of public buildings. This research aims to develop a conceptual framework that will help local authorities to enhance sustainable practices of public building management. The empirical research work adopted case study strategy involving interviews with 24 public building practitioners and investigation of building defects on 34 projects. This research proposes LACU model, which represents a triangular relationship between contractors, local authorities and building end-users to illustrate the interactions between parties when undertaking their tasks throughout the project lifecycle. A framework of Sustainable-Dynamic Capabilities was developed and applied to enhance understanding of sustainability provisions in public building development. Based on this framework and stakeholders’ mapping illustrated by LACU model, this research has enhanced understanding on strategies of local authority to implement sustainable practices on public building projects. A template analysis through interview transcripts has been adopted to identify strategic approaches of local authority to deliver successful project by determining the roles of stakeholder at three different levels, provincial, regency or city and special authority. This research provides a novel empirically-based guidance for the local authorities to undertake sustainable public building procurement throughout project life cycle by adopting strategic approaches, such as employing innovative construction method, appropriate policy intervention by local leader, and changing business orientation
