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Article
Publication date: 1 December 1996

Abdullah M.Y. Sirajuddin and Farhan K. Al‐Bulaihed

The evaluation of maintenance tenders is a task that involves not only consideration of the prices offered, but the financial and technical expertise of the tenderers as…

Abstract

The evaluation of maintenance tenders is a task that involves not only consideration of the prices offered, but the financial and technical expertise of the tenderers as well. The evaluations can be highly complicated and lengthy when dealing with large projects and numerous tenderers. Presents an evaluation methodology in the form of a tabular procedure to be used by the evaluators of maintenance contracts. Develops seven tables to provide quantitative values for the submitted tenders. The first five tables are designed to evaluate the technical efficiency of the tenderers, while the sixth table is designed for the final evaluation including prices. In the first table, the tender compliance as per the requirement of the tender document is evaluated. Uses the second table to evaluate the support and maintenance plan. The third table presents an evaluation of the experience and the financial status of the tenderer. The fourth and fifth tables are used to evaluate the tenderer’s staffing proposal and how it is related to the requirements of the project. The sixth table summarizes the evaluation of the previous four tables for each evaluator. The seventh table illustrates the final evaluation of each tenderer, and hence a decision could be made. By adding the average technical score of each tenderer to his price score, the evaluator can easily rate each tenderer’s ability to carry out the work rather than depending only on price, which might not always mean a good choice.

Details

Journal of Quality in Maintenance Engineering, vol. 2 no. 4
Type: Research Article
ISSN: 1355-2511

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Article
Publication date: 1 February 2000

JOHN G. PERRY and MARTIN BARNES

Target cost contracts are growing in popularity but concerns remain about the interplay between fee, target, sharing ratios and the final price. This paper offers a…

Abstract

Target cost contracts are growing in popularity but concerns remain about the interplay between fee, target, sharing ratios and the final price. This paper offers a fundamental analysis of the principles under‐pinning target contracts. It shows that there is scope for manipulation of tenders and that suboptimal methods of tender evaluation are in use. The paper analyses both fixed fee and percentage fee contracts. Methods of tender evaluation are proposed that will both reduce the scope for manipulation by tenderers and increase the likelihood of the contract being awarded to the tenderer whose final price will be the lowest. The analysis reveals a strong case for setting the contractor's share of cost overrun or underrun at a value that is not less than 50%. Finally, the paper proposes two simplifications that would reduce the number of variables in target cost contracts of the future. One is for the employer to set the fee and the other requires only that a target be tendered but with the fee built into it.

Details

Engineering, Construction and Architectural Management, vol. 7 no. 2
Type: Research Article
ISSN: 0969-9988

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Article
Publication date: 1 June 2001

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…

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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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…

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

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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…

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. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2044-124X

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Book part
Publication date: 4 April 2016

Farley Grubb

The British North American colonies were the first western economies to rely on legislature-issued paper monies as an important internal media of exchange. This system…

Abstract

The British North American colonies were the first western economies to rely on legislature-issued paper monies as an important internal media of exchange. This system arose piecemeal. In the absence of banks and treasuries that exchanged paper monies at face value for specie monies on demand, colonial governments experimented with other ways to anchor their paper monies to real values in the economy. These mechanisms included tax-redemption, land-backed loans, sinking funds, interest-bearing notes, and legal tender laws. I assess and explain the structure and performance of these mechanisms. This was monetary experimentation on a grand scale.

Details

Research in Economic History
Type: Book
ISBN: 978-1-78635-276-7

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Book part
Publication date: 5 October 2018

Olalekan Shamsideen Oshodi and Ka Chi Lam

Fluctuations in the tender price index have an adverse effect on the construction sector and the economy at large. This is largely due to the positive relationship that…

Abstract

Fluctuations in the tender price index have an adverse effect on the construction sector and the economy at large. This is largely due to the positive relationship that exists between the construction industry and economic growth. The consequences of these variations include cost overruns and schedule delays, among others. An accurate forecast of the tender price index is good for controlling the uncertainty associated with its variation. In the present study, the efficacy of using an adaptive neuro-fuzzy inference system (ANFIS) for tender price forecasting is investigated. In addition, the Box–Jenkins model, which is considered a benchmark technique, was used to evaluate the performance of the ANFIS model. The results demonstrate that the ANFIS model is superior to the Box–Jenkins model in terms of the accuracy and reliability of the forecast. The ANFIS could provide an accurate and reliable forecast of the tender price index in the medium term (i.e. over a three-year period). This chapter provides evidence of the advantages of applying nonlinear modelling techniques (such as the ANFIS) to tender price index forecasting. Although the proposed ANFIS model is applied to the tender price index in this study, it can also be applied to a wider range of problems in the field of construction engineering and management.

Details

Fuzzy Hybrid Computing in Construction Engineering and Management
Type: Book
ISBN: 978-1-78743-868-2

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Article
Publication date: 15 February 2021

Kofi Agyekum, Emmanuel Adinyira and Judith Amudjie

The purpose of this paper is to examine the views of construction practitioners on the prevalence of ethical misconduct within the invitation to tender and tender

Abstract

Purpose

The purpose of this paper is to examine the views of construction practitioners on the prevalence of ethical misconduct within the invitation to tender and tender evaluation and award stages of construction contracts in Ghana.

Design/methodology/approach

Following a critical comparative review of literature resulting in the identification of 18 potential misconducts within the invitation to tender and 11 potential misconducts within the tender evaluation and award stages of construction contracts, a questionnaire survey was conducted among 65 construction professionals. Data obtained from the survey were analysed using both descriptive (i.e. frequencies, mean scores and standard deviations) and inferential statistics (paired t-test), followed by gap analysis.

Findings

The findings revealed that corrupt, fraudulent, collusive or coercive practices, client divulging more information to the preferred bidder and inflating tender prices by tenderers in return for kickbacks are key unethical practices prevalent at the invitation to tender stage. Following these key unethical practices, the findings further suggested through gap analysis that submission of bids on non-working days and inadequate time for preparation and submission of tenders were the top two unethical practices that needed serious interventions at this stage. At the tender evaluation and award stage, the findings revealed that interference by influential people in political positions, fake tendering and bid shopping are prevalent. Again, from the gap analysis, interference by influential people in political positions and poor definition of selection criteria were identified to be the two key unethical practices that need urgent intervention at this stage of construction contracts.

Practical implications

This study holds a significant practical implication in the sense that key unethical practices at the invitation to tender and tender evaluation and award stages of construction contracts have been identified, and this provides a suitable basis for stakeholders that spearhead such activities to offer suitable interventions to control such practices.

Originality/value

This study contributes to the body of knowledge as it uncovers ethical misconducts within two important phases of construction contracts in a developing country setting. As there is a continuous effort by the international community towards finding lasting solutions to such misconducts, the findings from this study can be used as a starting point for appropriate policies to be put in place in Ghana to control such misconducts.

Details

Journal of Engineering, Design and Technology , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1726-0531

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Book part
Publication date: 21 June 2005

John Preston

Abstract

Details

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

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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…

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. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2044-124X

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