Public organizations have a major part in the construction industry in Denmark, characterized by changes in their environments and conditions, forcing them to be dynamic by constantly adjusting or developing. Therefore, the purpose of this study is to examine how development departments in public organizations in the construction industry can benefit from the use of dynamic capabilities. The theoretical basis of this study is mainly based on theories such as resource-based view and dynamic capabilities but uses tools from other theories as well. Through a process of finding relevant literature using the Snowball-method and a categorization of the sources found, six core themes are determined in the context of the subject. These six core themes become the basis for the areas of the analysis, where a public organization in the construction industry forms the empirical basis consisting of seven informants.An assessment tool based on existing theories and other tools, is developed to examine and evaluate the possibilities of new dynamic capabilities with a focus on efficiency. The findings shows that a public organizations resources and capabilities are interrelated, where six new dynamic capabilities are found, that have the potential to improve efficiency. The six new dynamic capabilities are found to directly affect the development department’s core resource, but also indirectly affects the organization’s core resources. The newly developed assessment tool finds that Output management, Requirements management and Internal collaboration management are found to be the types of dynamic capabilities that can create the best improvement in efficiency at development departments. The focus on efficiency through dynamic capabilities is found to align with public organizations, and therefore dynamic capabilities and public organizations are a relevant match, that can and should be further researched.