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Article
Publication date: 8 April 2024

Malik Lakshan Hasantha, Anuradha Samarajeewa Waidyasekara and Hasith Chathuranga Victar

Insufficient time allocation for the bidding period occurs, causing drawbacks to both parties, the client and the bidder. Hence, this study aims to evaluate the time allocated for…

Abstract

Purpose

Insufficient time allocation for the bidding period occurs, causing drawbacks to both parties, the client and the bidder. Hence, this study aims to evaluate the time allocated for preparing a bid proposal as per the National Competitive Bidding (NCB) in the Sri Lankan context.

Design/methodology/approach

The study has adopted a mixed method approach and expert interviews and document review to detect, analyse and validate the issues, and solutions based on NCB along with the adequacy of the allocated bidding period used as main data collection tools. Both qualitative and quantitative data were analysed through manual content analysis and inferential analysis respectively.

Findings

Overall, 24 local issues with the existing competitive bidding process and solutions for each were identified. Among the 24 local issues, it was unanimously agreed by all interviewees that three specific issues require attention and improvement. These issues are related to the standard and incompleteness of bidding documents, inaccurate BOQ quantities measured by the consultant or the main contractor, and the excessive number of bidding document amendments by the consultant. It was revealed that a maximum of 42 calendar days (6 weeks) is sufficient for the bidding process while a minimum of 21 calendar days (3 weeks) is insufficient.

Originality/value

The findings of this study would be recommended that Information and Communication Technology Agency (ICTA) understand the necessity of revising the NCB reference to the time allocated for the preparation of bids. By recognising the importance of sufficient time allocation for bid preparation, this research serves as a practical guide for authorities involved in policy formulation, aiding them in implementing revisions that align with the dynamic requirements of bidding procedures.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 13 November 2023

Khaled Hesham Hyari and Mujahed Thneibat

Skewed pricing is a typical tactic used by tenderers in unit price projects to gain additional advantages at the expense of the owner or other competing tenderers. This paper aims…

Abstract

Purpose

Skewed pricing is a typical tactic used by tenderers in unit price projects to gain additional advantages at the expense of the owner or other competing tenderers. This paper aims to describe the development of a model for detecting skewed pricing in competitive tendering for unit price contracts.

Design/methodology/approach

The model evaluates how much the offered unit rates for work items deviate from the reasonable rate identified from the item’s submitted unit rates. Item rate deviations are integrated into a total deviation score for each submitted tender based on the relative weight of the work item to the total project amount. The model allows for assigning higher weights to work items that are more prone to skewed pricing, such as those that are performed early and those that are expected to experience quantity fluctuations.

Findings

The paper presents a detection model that uses only the submitted prices of the competing tenderers to perform the needed calculations, which reduces subjectivity in identifying skewed tenders. Two examples are given to demonstrate how the model may be used to detect skewed tenders.

Originality/value

The model supports tendering officials in the challenging task of identifying skewed tenders, which is required by rules and regulations governing public procurement. The model’s ease of use is expected to make it more widely used as a decision-support tool during the tender evaluation stage of real-world projects.

Details

Construction Innovation , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1471-4175

Keywords

Article
Publication date: 31 January 2024

Sigrid Betzelt, Ingo Bode and Sarina Parschick

Regarding how the public regulation of human services is perceived within welfare organizations and how the latter cope with it, the role of emotions (as mediators between…

Abstract

Purpose

Regarding how the public regulation of human services is perceived within welfare organizations and how the latter cope with it, the role of emotions (as mediators between structure and agency) proves highly relevant while often being hidden beneath the surface. This article shows how a specific approach to such regulation – here: managerialism – may impact on “emotional regimes” at the organizational and individual level, affecting the attainment of organizational goals and workers' health.

Design/methodology/approach

The article primarily draws on multiple qualitative case studies across two welfare sectors (four organizations) in Germany (continuing education/active inclusion; long-term care). The study research was conducted between 2020 and 2022 and based on 36 interviews with caseworkers and managers, focus group interviews and expert dialogues at industry level.

Findings

The results suggest that the managerialist regulation of welfare services breeds complex and ambiguous emotional regimes. Business-like management techniques elicit various emotions, affecting the motivational basis of human service work. While the experience of hard challenges may raise positive feelings, coping patterns often put strain on organizations and staff alike. In the short run, related emotional regimes tend to make service delivery proceed smoothly, yet in the long run they may have corrosive effects and problematic repercussions on macro-level developments.

Originality/value

The study highlights the role of emotions in publicly regulated human service settings by intermingling macro- and micro-level processes and thereby broadens the perspective of welfare state research as it reveals the impact of (managerialist) regulation on the dynamic organizational chemistry of such settings.

Details

International Journal of Sociology and Social Policy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-333X

Keywords

Open Access
Article
Publication date: 7 December 2023

Neil Govender, Samuel Laryea and Ron Watermeyer

Competitive tendering in South Africa is often associated with procurement based on the lowest fee tendered. Previous research on this topic did not provide in-depth examinations…

Abstract

Purpose

Competitive tendering in South Africa is often associated with procurement based on the lowest fee tendered. Previous research on this topic did not provide in-depth examinations of how pricing within consulting engineering companies was affected by competitive tendering nor did it illuminate the extent to which professional services were impacted by competitive tendering. This paper aims to examine the implications of competitive tendering on pricing and delivery of consulting engineering services in South Africa.

Design/methodology/approach

A survey research strategy with a questionnaire as the research instrument elicited qualitative data from 28 experienced consulting engineers in South Africa. Thematic analysis was used to analyse qualitative data from the questionnaires.

Findings

Three key themes were identified, namely: considerations when determining consulting engineering fees on competitively tendered projects; the impact of reduced fees due to competitive tendering on the delivery of consulting engineering services; and interventions to prevent unsustainably “low” professional fees. Many consulting engineers in South Africa still determine fees using fee scales, while other considerations include resources, project complexity, risk, etc. Most participants asserted that design optimisation/value engineering, training, meetings and construction monitoring were adversely impacted by “low” fees.

Originality/value

This paper provides in-depth qualitative feedback from experienced consulting engineers (most having more than 20 years’ experience) on a topical issue in the South African construction industry. Thematic analysis was a novel method of analysis that was not used previously in this area of study.

Details

Journal of Financial Management of Property and Construction , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1366-4387

Keywords

Article
Publication date: 15 December 2022

Cong Wang, Henry Liu, Michael C.P. Sing and Jin Wu

Pre-construction of a project comprises stages that are pivotal for the procurement performance. It is defined as the duration from the project's initiation to construction…

Abstract

Purpose

Pre-construction of a project comprises stages that are pivotal for the procurement performance. It is defined as the duration from the project's initiation to construction. However, Private Public Partnerships (PPPs) have been subjected to a long pre-construction, thereby leading to an inefficient development process. Therefore, the purpose of this paper is to pay attention to the influencing factors elongating the pre-construction duration.

Design/methodology/approach

Based on data of 5,677 PPP projects between 2009 and 2021 in China, the authors adopt the Accelerated Failure Time (AFT) model in duration analysis to empirically analyze the following underlying dynamics determining the duration of PPP pre-construction stages: (1) policy uncertainty; (2) corruption; and (3) procurement method selection. To observe the influencing paths more specifically, the authors divided the pre-construction duration into the pre-tendering period and tendering period and regressed them separately.

Findings

The results indicate that the pre-construction duration is significantly prolonged with increased policy uncertainty and corruption degree as well as the use of tendering methods. Meanwhile, the above factors have a greater impact on the pre-tendering period than the tendering period.

Originality/value

The contribution of this study is twofold: (1) theoretically, this paper provides new evidence on the impact of PPP policy uncertainty, corruption and procurement method selection on the pre-construction duration. It complements empirical studies on the factors elongating the time efficiency of PPPs projects. (2) In practice, it provides a specific path for the government to improve the time efficiency of PPPs.

Details

Engineering, Construction and Architectural Management, vol. 31 no. 4
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 23 August 2022

Yixi Zhang, Bee Lan Oo and Benson Teck-Heng Lim

Contractors of different scales, operating in different construction industries of varying institutional and economic settings, have different considerations when making bid or…

Abstract

Purpose

Contractors of different scales, operating in different construction industries of varying institutional and economic settings, have different considerations when making bid or no-bid and mark-up decisions. Focusing on the large and medium-sized contractors in the Jilin province, China, the purpose of this study is to examine important factors affecting their decision to bid (d2b) and mark-up decisions and investigate differences between large and medium-sized contractors in evaluating the importance of the various factors affecting their d2b and mark-up decisions.

Design/methodology/approach

This study used a survey design for timely data collection from a large population. Contractors’ bidding attitudes was collected using an online survey questionnaire with a list of 40 key factors. Statistical analytical methods were applied for comparing the two groups of contractors.

Findings

The results of this study indicate that factors related to client conditions are most critical for both large and medium-sized contractors in their d2b and mark-up decisions. The results also show statistically significant differences between the two groups of contractors on a subset of factors affecting their d2b and mark-up decisions. The large contractors have placed more emphasis on projects' potential financial and strategic benefits. Another notable finding is that both groups of contractors have placed great emphasise on “government legislations” in their d2b and mark-up decisions.

Research limitations/implications

These findings should be interpreted in consideration of several limitations. Firstly, the sample size is relatively small, and the focus was on a single province in the China construction industry. Next, this study only explores differences between large and medium-sized contractors in evaluating the importance of the various factors affecting their d2b and mark-up decisions.

Practical implications

Contractors could refer list of critical factors in competing for jobs in Jilin province or other provinces of similar institutional and economic settings. Construction clients, on the other hand, should consider the list of critical factors in the formulation of their competitive tendering procedures, thus enhancing the efficiency in their procurement of construction services.

Originality/value

Research on contractors’ bidding decision-making in the context of Chinese construction industry remains scarce; the research findings have implications for the industry stakeholders.

Details

Construction Innovation , vol. 23 no. 5
Type: Research Article
ISSN: 1471-4175

Keywords

Open Access
Article
Publication date: 25 January 2024

Joseph Kuruneri and Wiston Zivanai

Governments worldwide seek to optimize value in public project bids. Social procurement (SP) has become a global tool for achieving project goals. The purpose of this study is to…

Abstract

Purpose

Governments worldwide seek to optimize value in public project bids. Social procurement (SP) has become a global tool for achieving project goals. The purpose of this study is to assess the understanding of SP among contractors and identify its drivers to optimize the value associated with public projects.

Design/methodology/approach

A total of 15 major contractors were interviewed to obtain their views on SP, appreciate their current practices and identify the main drivers of SP in projects. A semistructured interview was used to gather relevant data. Neo-institutional theory is the lens of the study used to provide the focus of the research. The collected data were analyzed using the thematic data analysis technique.

Findings

The study found that SP is understood as corporate social responsibility and is not handled in a structured manner guided by policies or clearly defined procedures. Additionally, research has shown that compliance requirements, rather than value and goodwill, are the main inspiration for SP practices.

Research limitations/implications

The study’s limitation is the fact that it was conducted in the context of Botswana and only used the interview technique as the solo data collection method. The other limitation is the lack of empirical literature on SP concerning the lack of SP policy in Botswana.

Originality/value

This study raises awareness of the concept of SP among contractors in Botswana and eases its implementation within the industry.

Details

Modern Supply Chain Research and Applications, vol. 6 no. 1
Type: Research Article
ISSN: 2631-3871

Keywords

Article
Publication date: 5 September 2023

Garima Bhagat and Kumar Neeraj Jha

With the surge in public procurement, especially in developing countries, ensuring fair competition in procurement has assumed paramount importance. Academic endeavors in the…

Abstract

Purpose

With the surge in public procurement, especially in developing countries, ensuring fair competition in procurement has assumed paramount importance. Academic endeavors in the domain of competition issues have often lacked the views of field-level functionaries. This study aims to involve a large number of expert practitioners in India to identify the significant contemporary competition risks in public procurement from the procurer and supplier sides and develop a model depicting the hierarchy of competition-restrictive actions (CRAs) in procurement based on their mutual interactions.

Design/methodology/approach

The significant CRAs along the procurement cycle are identified through literature survey, interactive workshops and expert interviews. A questionnaire survey covering 143 respondents from 12 public organizations is used to evaluate their impact. Considering the complex causal interactions involved, interpretive structural modeling followed by MICMAC (Iimpact matrix cross-reference multiplication applied to a classification analysis is used to develop a hierarchical model of competition risks in procurement.

Findings

Tailor-made contracts, splitting of a project below competition thresholds, restrictive selection criteria and awarding the contract on nomination emerge as CRAs with the highest driving power. Horizontal collusion among vendors strongly depends on practices followed in the procuring organization.

Research limitations/implications

The survey data and the experts’ opinions emanate from practitioners in India, which is a limitation. However, with necessary contextual calibrations, the study is of high functional utility to policymakers and practitioners.

Social implications

The research facilitates a comprehensive understanding to procurement managers/policymakers of the CRAs along the procurement cycle and their interdependencies. It offers valuable insights for improving competition, which is foundational for optimal procurement outcomes.

Originality/value

The study enriches the public procurement domain knowledge by identifying and assessing the significant contemporary CRAs, examining their mutual interactions and developing an interpretive structural model. Although contributing to the body of knowledge, the study is unique in being grounded in field realities.

Details

Journal of Public Procurement, vol. 23 no. 3/4
Type: Research Article
ISSN: 1535-0118

Keywords

Open Access
Article
Publication date: 24 August 2023

David Fridner

In industrial buyer–supplier relationships, being an attractive customer has been found to result in superior supplier performance. However, there is a limited understanding of…

Abstract

Purpose

In industrial buyer–supplier relationships, being an attractive customer has been found to result in superior supplier performance. However, there is a limited understanding of how these benefits transfer to the public domain. This study aims to explore the influence of customer attractiveness on supplier resource mobilization efforts toward the public sector.

Design/methodology/approach

A qualitative approach was used, focusing on in-depth interviews with 23 informants from 3 critical and complex supplier markets. The data were processed using inductive coding and thematic analysis.

Findings

The findings indicate that customer attractiveness in the public sector influences suppliers’ mobilization efforts on several dimensions. In addition to stimulating competition in the tender phase, customer attractiveness can yield important benefits to quality, supply stability and innovation during the business relationship. It appears imperative for the public sector to improve its standings with suppliers to both mitigate the apparent risk of sub-par treatment and to unlock the preferential supplier treatment associated with being an attractive customer.

Social implications

Receiving increased mobilization from suppliers will result in better use of public money and help improve resilience and innovation in public procurement.

Originality/value

This study extends the research on customer attractiveness in the public sector by being the first to explore the range and nature of its influence on supplier mobilization efforts.

Details

Journal of Public Procurement, vol. 24 no. 1
Type: Research Article
ISSN: 1535-0118

Keywords

Open Access
Article
Publication date: 19 April 2024

Atupakisye Mwakolo, Meshack Siwandeti, Leticia Mahuwi and Baraka Israel

The study aims to explore the role of procurement of good governance (PGG) on value for money (VfM) achievement in public construction projects. By investigating various…

Abstract

Purpose

The study aims to explore the role of procurement of good governance (PGG) on value for money (VfM) achievement in public construction projects. By investigating various dimensions of PGG, including transparency, accountability, competition and integrity, this study provides insights into how these factors contribute to the successful achievement of VfM outcomes in public construction projects.

Design/methodology/approach

The data were sourced from 203 construction project practitioners from 24 selected procuring entities in Tanzania using a census approach and a cross-sectional questionnaire survey. Confirmatory factor analysis (CFA) and structural equation modelling (SEM) were used for data analysis.

Findings

The findings of the study revealed a positive and significant impact of various dimensions of PGG on VfM. Specifically, transparency, accountability, competition and integrity were positively and significantly related to VfM, with p-values <0.001. Based on the study findings, we conclude that PGG is an important predictor of VfM achievement in public construction projects.

Practical implications

The study offers policy implications for streamlined PGG and VfM achievement in public construction projects. It is suggested that procuring entities can enhance VfM by enforcing compliance with the principles of PGG throughout the entirety of construction projects. In this case, streamlined legislative frameworks and control mechanisms are crucial components that could enhance PGG and the achievement of VfM.

Originality/value

This study contributes to the academic literature on the strategic role of PGG in enhancing VfM achievement. This is one of the research domains, which has not been adequately researched, particularly in Tanzania’s context. In addition, the study provides valuable insights to policymakers, practitioners and stakeholders involved in public construction projects to improve project outcomes and resource allocation.

Details

LBS Journal of Management & Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0972-8031

Keywords

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