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1 – 10 of over 6000Jemima Antwiwaa Ottou, Bernard Kofi Baiden, Gabriel Nani and Martin Morgan Tuuli
This research investigates the implementation of Six Sigma in competitive tendering processes to address persistent delays by identifying the potential benefits and challenges of…
Abstract
Purpose
This research investigates the implementation of Six Sigma in competitive tendering processes to address persistent delays by identifying the potential benefits and challenges of implementing Six Sigma in construction competitive tendering processes. The results seek to encourage practitioners to implement Six Sigma in addressing competitive tendering process delays.
Design/methodology/approach
Literature was reviewed to identify the benefits and challenges of Six Sigma implementation in construction processes and categorized under broad headings. Three case studies were used to authenticate the literature findings by applying Define-Measure-Analyse-Improve-Control to their construction competitive tendering processes. Furthermore, quality tools and techniques together with documentary analysis, content analysis and determination of frequencies of quantitised qualitative data were employed to identify potential benefits and challenges.
Findings
The most common Six Sigma benefits achievable in construction competitive tendering are Time Related benefits. Other benefits likely to emanate as ripple effects are Customer Focus Related, Quality Related, Process Improvement Related, Human Resource Related, Finance Related and Decision Related. However, implementation challenges should be expected.
Practical implications
Six Sigma implementation in construction competitive tendering promotes time efficiency. It is expected that this will encourage quantity surveyors, procurement practitioners and their institutions to implement Six Sigma in addressing persistent delays in their competitive tendering processes.
Originality/value
This paper demonstrates the use of merged approach under mixed method to identify the benefits and challenges of Six Sigma implementation in construction competitive tendering process within the Ghanaian context.
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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…
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.
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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.
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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.
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A.C. Sidwell, D. Budiawan and T. Ma
During the tendering process for most major construction contracts there is the opportunity for bidders to suggest alternative innovative solutions. Clearly clients are keen to…
Abstract
During the tendering process for most major construction contracts there is the opportunity for bidders to suggest alternative innovative solutions. Clearly clients are keen to take advantage of these opportunities, and equally contractors want to use their expertise to establish competitive advantage. Both parties may very well benefit from the encouragement of such innovation and the availability of cheaper methods of construction than have been contemplated by the tendering authority. However recent developments in common law have raised doubts about the ability of owners to seek alternative tenders without placing themselves at risk of litigation. This common law has recognised the existence of the so‐called “tendering contract” or “process contract”. Since the tendering process is inherently price competitive, the application of the tendering contract concept is likely to severely inhibit the opportunity for alternative tenders. The “tendering contract” is automatically brought into being upon the timely submission of a conforming tender. This is contrary to the traditional view that an invitation to tender was considered to be no more than an invitation to treat, therefore submission of a tender creates obligations for neither party. Under the “tendering contract”, the owner becomes obliged to treat all tenderers equally and fairly. This paper is primarily based on the literature review. The aim of this paper is to highlight the problems with the competitive tendering process in relation to contractor‐led innovation and explore ways in which owners can develop procurement procedures that will allow and encourage innovation from contractors.
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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.
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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…
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.
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Jean Claude Mutiganda and Janne T. Järvinen
Research was conducted to investigate whether, and how, political accountability might stabilise when agents are faced with profound changes in external structures such as…
Abstract
Purpose
Research was conducted to investigate whether, and how, political accountability might stabilise when agents are faced with profound changes in external structures such as competition laws and austerity policies.
Design/methodology/approach
We performed a field study from 2007 to 2015 in a regional hub in Finland and worked with data from document analysis, interviews and meeting observations. We have used embedded research design, where we apply methodological bracketing as well as composite sequence analysis for field research.
Findings
Accountability declined when irresistible external structures were the dominant influence on the unreflective actions of agents-in-focus. With time, however, the agents started acting critically by drawing on structures that could facilitate strategic actions to stabilise political accountability.
Research limitations/implications
The field research and interpretation of the data were limited to the organisation analysed; however, the theoretical arguments allow for analytical generalisations.
Practical implications
The research demonstrates how public officials and political decision-makers can eventually adopt a strategic approach when faced with irresistible change in external structures.
Social implications
The research demonstrates how public officials and political decision-makers can eventually adopt a strategic approach when faced with irresistible changes in external structures.
Originality/value
The study locates political accountability in the context of strong structuration theory and discusses how it is redefined by external structures.
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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.
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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.