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Article
Publication date: 10 June 2014

Jean Claude Mutiganda

This study aims to analyse the role of circuits of power in institutionalising competitive tendering in public sector organisations and effects on accountability among public…

Abstract

Purpose

This study aims to analyse the role of circuits of power in institutionalising competitive tendering in public sector organisations and effects on accountability among public decision makers.

Design/methodology/approach

The study used intensive field research data based on interviews, meeting observations and document analysis in a city, referred to as Sunset City, in Finland from 2008 to 2013.

Findings

The relationship between institutionalisation of competitive tendering and accountability for total costs of public services depends on how public officials use management accounting and control systems to limit procurement risks and how political decision makers hold public officials to account. This study uses the concept of organisational outflanking within the circuits of power to analyse and explain the finding of ceremonial accountability.

Research limitations/implications

Empirical findings cannot be generalised to other situations, but the theoretical framework used in this study can be applied elsewhere.

Practical implications

It is advisable to avoid institutionalising macro-institutional market-based mechanisms, such as open competitive tendering in public health care organisations and municipalities in the EU, the consequences of which in terms of total costs, quality of services and accountability among organisational actors at local levels cannot be foreseen, minimised or controlled.

Originality/value

This study uses the framework of circuits of power to extend the Burns and Scapens institutional framework to accountability for using public funds in outsourcing services during the ongoing financial crisis.

Details

Qualitative Research in Accounting & Management, vol. 11 no. 2
Type: Research Article
ISSN: 1176-6093

Keywords

Article
Publication date: 12 November 2020

Kaveesha Gihani Dewagoda, B.A.K.S. Perera and Sepani Senaratne

Knowledge is a critical asset that places contractor organisations at a competitive advantage when they take part in competitive tendering. However, a dearth of literature exists…

Abstract

Purpose

Knowledge is a critical asset that places contractor organisations at a competitive advantage when they take part in competitive tendering. However, a dearth of literature exists on the mechanisms that contractor organisations can adopt to utilise knowledge to gain competitive advantage and win tenders through competitive tendering.

Design/methodology/approach

The study adopted an interpretive stance with a qualitative approach that comprised a literature review, 15 expert interviews and three case studies. The literature review and expert interview findings were used to develop an intermediate framework of knowledge value chain (KVC), while the case study findings were used to develop the final KVC framework with the intermediate framework as the basis.

Findings

The study developed, in three distinctive steps, a KVC framework based on Powell's (2001) KVC for use by the tendering divisions/units of contractor organisations employing quantity surveyors (QSs) to handle tendering work and to increase their chances of winning tenders.

Originality/value

The study developed a KVC framework for the use of contractor organisations to maximise their chances of winning tenders in the field of quantity surveying.

Details

Built Environment Project and Asset Management, vol. 11 no. 4
Type: Research Article
ISSN: 2044-124X

Keywords

Article
Publication date: 15 February 2013

O.A. Adedokun, O.T. Ibironke and S.O. Babatunde

The purpose of this paper is to assess educational building projects with a view to determining the level of utilization of competitive tendering methods, factors influencing…

2126

Abstract

Purpose

The purpose of this paper is to assess educational building projects with a view to determining the level of utilization of competitive tendering methods, factors influencing their choice and predisposition to risk factors, in order to ensure effective construction project delivery.

Design/methodology/approach

The paper assessed the level of utilization of competitive tendering methods, the factors influencing their choice and finally the predisposition of each of the methods to risk factors, adopting survey method which involved primary data, obtained by using multiple‐choice questionnaire administered to the respondents (architects, quantity surveyors, builders, structural engineers, civil engineers, mechanical and electrical engineers).

Findings

It was found that the usage of open competitive tendering methods outweighed selective tendering method of procurement as a result of accountability and price competition involved, which made it predisposed to not only financial risk factors, but also political and logistics factors.

Research limitations/implications

Multiple‐choice questionnaire administered to the respondents (architects, quantity surveyors, builders, structural engineers, civil engineers, mechanical and electrical engineers) was limited to selected institutions in the southwestern zone of Nigeria.

Practical implications

The most widely adopted method (open competitive tendering method) suffers from risk factors such as selective but high premium being placed on financial and logistic risk factors in order to achieve hitch‐free construction project delivery. These measures will help the stakeholders in assessing degrees of project complexity and better manage the potential risks that might be induced to different levels of competitive tendering methods of project procurement in relation to educational building projects.

Originality/value

This empirical investigation provides strong evidence on the procurement of educational building projects in response to due process policy. The findings provided insightful perspectives to define and understand project complexity. For stakeholders, understanding and addressing the complexity help to improve project planning and implementation.

Details

Journal of Facilities Management, vol. 11 no. 1
Type: Research Article
ISSN: 1472-5967

Keywords

Article
Publication date: 4 July 2020

Jemima Antwiwaa Ottou, Bernard Kofi Baiden and Gabriel Nani

Project management tools and techniques have been widely adopted in the construction industry; however, its combination with Six Sigma and application in construction procurement…

1056

Abstract

Purpose

Project management tools and techniques have been widely adopted in the construction industry; however, its combination with Six Sigma and application in construction procurement has not been widely researched. This paper explores the use of Six Sigma Project Procurement (SSPP) and its potential applications in public sector construction procurement.

Design/methodology/approach

The role of Six Sigma and project management in construction is critically evaluated using three case studies to demonstrate their application in public procurement.

Findings

The use of SSPP by public sector organisations creates efficient and effective construction procurement processes by addressing delays. The proposed timelines for competitive tendering in the Ghanaian Public Procurement Manual are not realistic.

Research limitations/implications

This paper contributes to and broadens the limited body of evidence and knowledge of applying SSPP to public procurement processes and identifies areas for further research.

Practical implications

Project management will continue to expand in the global construction industry. However, what will eventually determine if SSPP is embraced by public sector construction depends on the leadership and success of its execution. The application of SSPP to public construction procurement will address delays and lead to significant time reduction of the process. This will eliminate the major issue (delay) accounting for deficiencies in the process.

Originality/value

The paper yields immense value to construction project management researchers and practitioners, especially in the public sector. It recommends the inclusion of Six Sigma to promote focus on actual instead of perceived problems and advocates for decisions-making based on facts which will ensure continuous improvement.

Details

International Journal of Quality & Reliability Management, vol. 38 no. 2
Type: Research Article
ISSN: 0265-671X

Keywords

Article
Publication date: 1 June 1996

Clare Kelliher

Seeks to evaluate the policy of competitive tendering for ancillary services in the National Health Service, by reference to a number of case studies of catering services. Argues…

792

Abstract

Seeks to evaluate the policy of competitive tendering for ancillary services in the National Health Service, by reference to a number of case studies of catering services. Argues that the success of the policy was dependent on certain assumptions being met about the extent of competitive pressure and the potential for savings, largely labour cost savings, to be made. Shows by case studies that these conditions frequently did not occur and hence the policy was flawed. Furthermore, even where these conditions did occur, the evidence shows that a range of other factors influenced the extent to which labour cost savings could be made.

Details

Employee Relations, vol. 18 no. 3
Type: Research Article
ISSN: 0142-5455

Keywords

Article
Publication date: 31 March 2021

Collins Ameyaw, Blondel Akun Abaitey, Sarfo Mensah and Emmanuel Manu

The purpose of this study was to determine the transaction cost (TC) contractors incur when tendering for a project as well as establish a correlation between the TC of tender and…

Abstract

Purpose

The purpose of this study was to determine the transaction cost (TC) contractors incur when tendering for a project as well as establish a correlation between the TC of tender and tender amount of projects procured through the national competitive bidding procurement method.

Design/methodology/approach

The research draws extensively documentary analysis, observation and interviews to collect cost data on 14 different tenders submitted by a D1/K1 contractor. Using TC theory, the data are analyzed and the actual cost is determined. Further, Spearman rank correlation is employed to establish a relationship between tender price (TP) and the cost of tender by the aid of Statistical Package for Social Sciences.

Findings

The research developed a tender preparation conceptual framework highlighting the components of TC in competitive tendering in Ghana and also revealed that, apart from the emotional and psychological costs, contractors in Ghana incur approximately Gh₵ 4,625 (US$ 925)–Gh₵ 2,520 (US$ 504) to prepare and submit a competitive tender. In relation to the tender figure, the TC of tender in Ghana ranges from 0.05% to 0.65% and an average of 0.33%. Also, there is an inverse correlation between TP and the percentage cost of tender.

Research limitations/implications

The research relied on 14 competitive tenders and also limited to public sector works. Findings from the study should therefore be applied with caution.

Originality/value

This study is the only known research that has focused on assessing the TC of public sector competitive tendering from a contractor's perspective and within a developing sub-Saharan African context.

Details

Built Environment Project and Asset Management, vol. 11 no. 5
Type: Research Article
ISSN: 2044-124X

Keywords

Article
Publication date: 10 June 2021

Stephen Kelly, Donna Marshall, Helen Walker and John Israilidis

This paper aims to explore the supplier perspective on competitive tendering processes and build on an increasing and developing interest in supplier satisfaction with public…

Abstract

Purpose

This paper aims to explore the supplier perspective on competitive tendering processes and build on an increasing and developing interest in supplier satisfaction with public sector procurement activities.

Design/methodology/approach

Qualitative data was collected from 20 interviews with a variety of suppliers to the UK public sector, which was then analysed using Nvivo and a series of empirically supported propositions developed.

Findings

The findings are combined into an integrated supplier satisfaction model, which explains how a multi-layered set of expectations (past and ideal) and quality dimensions (fairness, ambiguity, unnecessary information, tender focus, relationship irrelevance, unresponsiveness, outcome success) lead to dissatisfaction. This paper also establishes the implications of these judgments (non-response, poor quality and relationship impact) and that they are impacted by comparison to alternatives.

Practical implications

Supplier dissatisfaction can have serious ramifications for public sector buying organisations by reducing the pool of applicants, creating relationship barriers and a disconnect between the tender and the eventual services provided. This paper gives empirically derived advice to managers and policymakers on how to avoid these issues.

Social implications

Ensuring that as wide a pool of possible suppliers can respond to tender requests, means that the services that are provided by the public sector can make the most effective and efficient use of available resources. In addition, small to medium-sized enterprises may be encouraged to overcome their feelings of dissatisfaction and respond more frequently and readily to tender requests.

Originality/value

This paper contributes to the field of public sector procurement and in particular that which looks at increasing supplier satisfaction, by developing a supplier satisfaction model based on supplier generated data, which uses disconfirmation theory to explain the dynamics of how individuals make judgments by comparing perceptions of performance with a multi-layered set of expectations. This paper identifies service quality dimensions that influence satisfaction judgments and the implications of these judgments.

Details

Journal of Public Procurement, vol. 21 no. 2
Type: Research Article
ISSN: 1535-0118

Keywords

Article
Publication date: 1 January 1986

R. Mailly

The provision of services by private contractors in the National Health Service rather than by direct labour is not a recent phenomenon. Certain services, eg. the erection and…

Abstract

The provision of services by private contractors in the National Health Service rather than by direct labour is not a recent phenomenon. Certain services, eg. the erection and repair of buildings, have been performed by contractors in the majority of health authorities. In some instances, catering and domestic services have been performed by outside contractors for a number of years (although this has been the case only in a very small minority of hospitals). What is novel is a policy which says health authorities must invite companies to tender competitively against their own in‐house services, and choose the tender which is the least costly.

Details

Employee Relations, vol. 8 no. 1
Type: Research Article
ISSN: 0142-5455

Article
Publication date: 1 June 1998

Gaye Pottinger

Property is a key resource for the delivery of public services and needs to be managed well. The previous Conservative government had a conviction that better value public…

1345

Abstract

Property is a key resource for the delivery of public services and needs to be managed well. The previous Conservative government had a conviction that better value public services could be delivered by harnessing private sector expertise and, since the late 1980s, embarked on an unprecedented level of competitive tendering. This procurement method had extended to the appointment of property consultants, but the system encountered difficulties which research by the College of Estate Management (CEM) sought to explain. The research, undertaken in 1995 and 1996, involved interviews and major questionnaire surveys covering managers and property professionals in the public and private sectors, leading to recommendations about changes to practice and policy. This paper traces developments in local government, by comparison with central government, from before the advent of compulsory competitive tendering (CCT) for property services in April 1996 through to the latest changes proposed by the new Labour government after May 1997. It concludes that competition is an important management tool, but recommends greater flexibility in the way procurement is implemented.

Details

Property Management, vol. 16 no. 2
Type: Research Article
ISSN: 0263-7472

Keywords

Abstract

Details

Handbook of Transport Strategy, Policy and Institutions
Type: Book
ISBN: 978-0-0804-4115-3

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