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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

Open Access
Article
Publication date: 29 March 2022

Neil Govender, Samuel Laryea and Ron Watermeyer

Several researchers in the construction industry have mentioned that quality of tender documents is declining without tangibly assessing quality. Similarly, in practice, no…

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Abstract

Purpose

Several researchers in the construction industry have mentioned that quality of tender documents is declining without tangibly assessing quality. Similarly, in practice, no standardised instrument exists to assess tender document quality. Therefore, the aim of this paper was to develop a framework to assess the quality of tender documents produced by built environment professionals in the construction industry. A framework was chosen to address the gaps in theory and practice as it provides a flexible but structured mechanism to assess tender document quality.

Design/methodology/approach

The research methodology contained three stages, namely: multi-investigator triangulation, a workshop with infrastructure experts and framework development and validation. A consolidated list of key quality indicators was developed following the literature review and multi-investigator triangulation. The indicators were discussed with ten experts in the South African construction industry, who were responsible for validating and providing insight on whether additional indicators were required. This informed development of the framework.

Findings

This paper proposes a framework to assess tender document quality by evaluating six key quality indicators namely: accuracy, clarity, completeness, standardisation, relevance and certainty.

Research limitations/implications

The framework is limited to the assessment of tender document quality in the construction industry and is suited to the “Design by Employer” contracting strategy. From an academic perspective, this paper provides researchers with a framework to measure and benchmark quality of tender documents in future studies.

Practical implications

This framework can be used by clients to continuously assess and benchmark quality of tender documents produced by professionals.

Originality/value

A comprehensive and standardised approach to assess tender document quality was not available in the construction literature or the construction industry. Therefore, this paper addressed this gap in knowledge, by providing consumers (clients and contractors) of tender documents and researchers a mechanism to assess quality.

Details

Built Environment Project and Asset Management, vol. 12 no. 4
Type: Research Article
ISSN: 2044-124X

Keywords

Open Access
Article
Publication date: 5 August 2022

Christopher Amoah and Demetri Steyn

Complying with the code of conduct by professionals in the construction industry worldwide has become a significant issue over the years. This has led to projects' failure…

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Abstract

Purpose

Complying with the code of conduct by professionals in the construction industry worldwide has become a significant issue over the years. This has led to projects' failure, leading to losses to both the client and contractors. The study's objective is to identify the challenges of construction professionals in complying with their code of conduct and preventing corrupt practices.

Design/methodology/approach

Quantitative approach was used to collect empirical data by sending questionnaires to 56 construction professionals in South Africa. Data gathered were analysed through Excel statistical tool. Mean values were calculated for the quantitative data, whilst thematic content analyses were used to generate frequencies and percentages for qualitative data.

Findings

The findings indicate that construction professionals experience many unethical issues in their work duties such as inflated tender prices, overpricing the rates, tender-based kickbacks, bribes for projects, unethical methods of project execution, use of lower grade materials than specified, discrimination, among others. However, issues such as greediness, acceptance of corruption as usual practice, lack of knowledge about the code of conduct, the only way to get contracts, part of the process, and peer pressure create a challenge in complying with the code of conduct and preventing corrupt practices among construction professionals.

Practical implications

Construction professionals face many unethical and corrupt practices in their project management and execution, which they cannot overcome due to many factors. Therefore, there is the need to sensitise the professionals in the construction industry regarding their code of conduct as well as the danger associated with engaging in corrupt practices in their work and their implication on project performance.

Originality/value

The findings give an insight into the critical factors curtailing the construction professional's ability to comply with their code of conduct and be corrupt-free in their line of duty. Thus, professional associations can use the findings in guiding their members.

Details

International Journal of Building Pathology and Adaptation, vol. 41 no. 6
Type: Research Article
ISSN: 2398-4708

Keywords

Open Access
Article
Publication date: 2 April 2021

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…

3230

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.

Details

Accounting, Auditing & Accountability Journal, vol. 34 no. 9
Type: Research Article
ISSN: 0951-3574

Keywords

Open Access
Article
Publication date: 1 May 2018

Kirsi Aaltonen and Virpi Turkulainen

The purpose of this paper is to elaborate the understanding of socialization in the context of temporary operations and organizational settings, using project alliance – the most…

2855

Abstract

Purpose

The purpose of this paper is to elaborate the understanding of socialization in the context of temporary operations and organizational settings, using project alliance – the most contemporary approach to the management of large and complex projects – as an example. In particular, the paper also assesses how informal and formal socialization mechanisms are used to facilitate relational capital in such a setting.

Design/methodology/approach

Data were collected by two case studies of complex infrastructure projects in a Northern European city. The analysis focuses on how socialization is managed across organizational interfaces within the alliance organization during the project tendering and development phase to create relational capital.

Findings

The findings indicate that significant emphasis is put on socialization in project alliances. However, while in the tendering phase both informal and formal socialization mechanisms are used to create relational capital; in the development phase informal socialization mechanisms are associated with higher levels of relational capital and formal socialization mechanisms are used to maintain the level of relational capital.

Originality/value

While operations and supply chain management research argues that socialization is critical to manage organizational interfaces and to create relational capital in buyer-supplier relationships, research has mainly focused on ongoing operations. This study complements the prior research by developing further insight into socialization in the context of temporary operations and organizational settings; such settings create a unique empirical context, posing different managerial challenges as the results also indicate.

Details

International Journal of Operations & Production Management, vol. 38 no. 6
Type: Research Article
ISSN: 0144-3577

Keywords

Open Access
Article
Publication date: 13 February 2024

Elina Karttunen, Aki Jääskeläinen, Iryna Malacina, Katrina Lintukangas, Anni-Kaisa Kähkönen and Frederik G.S. Vos

This study aims to build on the dynamic capability view by examining dynamic capabilities associated with public value in public procurement.

Abstract

Purpose

This study aims to build on the dynamic capability view by examining dynamic capabilities associated with public value in public procurement.

Design/methodology/approach

A qualitative case study approach is used in this study. The interview and secondary data consist of eight cases of value-creating procurement from four public organizations.

Findings

The findings connect dynamic capabilities and public value in terms of innovation generation and promotion, well-functioning supplier markets, public procurement process effectiveness, environmental and social sustainability and quality and availability of products or services.

Social implications

Dynamic capabilities in public procurement are necessary to improve public procurement.

Originality/value

This study extends understanding of how sensing, seizing and transforming capabilities contribute to public value creation in both innovative and less innovative (i.e. ordinary) procurement scenarios.

Details

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

Keywords

Open Access
Article
Publication date: 19 August 2021

Helen Reijonen, Jani Saastamoinen and Timo Tammi

The aim is to examine the importance small and medium-sized enterprises (SMEs) see in different network partners regarding successful tendering in public procurement, and whether…

2136

Abstract

Purpose

The aim is to examine the importance small and medium-sized enterprises (SMEs) see in different network partners regarding successful tendering in public procurement, and whether this perception predicts the number of joint bids and wins.

Design/methodology/approach

The data were collected by an electronic questionnaire which was sent to the registered users of the leading electronic platform for public procurement in Finland. The data were analysed with statistical methods.

Findings

The findings suggest that a favourable perception of the importance of horizontal networks in public procurement is associated with a larger number of joint bids and better success in joint bidding. However, the results do not establish a positive correlation between vertical networks and consortium bidding.

Research limitations/implications

The data were collected from a single EU country. Since the criteria for bidding consortia may vary between countries, different results might have been achieved from other countries.

Practical implications

SMEs should be encouraged to form bidding consortia and acquire related experience. Policymakers should minimise barriers to consortium bidding, e.g. by offering more information. They should also assess the merits of joint bidding because they rarely encourage SMEs to bid as a consortium.

Social implications

Consortium bidding is a way of enhancing SMEs’ possibilities to participate in public tender contests, even in large contracts.

Originality/value

While consortium bidding has been recognised to enhance SMEs’ possibilities of participating in public procurement, there is limited research into how SMEs’ network collaborations relate to bidding as a consortium.

Details

International Journal of Public Sector Management, vol. 35 no. 1
Type: Research Article
ISSN: 0951-3558

Keywords

Open Access
Article
Publication date: 2 June 2023

Jad EL Bizri, Elina Karttunen and Katrina Lintukangas

This study aims to build on social capital theory (SCT) and its dimensions by examining the role of social capital in the public procurement process and by identifying related…

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Abstract

Purpose

This study aims to build on social capital theory (SCT) and its dimensions by examining the role of social capital in the public procurement process and by identifying related contingencies that may influence procurement performance.

Design/methodology/approach

A systematic literature review and a thematic analysis regarding social capital in procurement are conducted. The antecedent–behaviour–consequence (ABC) model is used for illuminating linkages between social capital, contingencies and procurement performance.

Findings

The dimensions of social capital are investigated in the procurement process; however, the extent of social capital role can vary between the phases of the process. It is concluded that the contingencies of social dynamics are linked with social capital and may influence the outcomes and performance of the procurement process.

Practical implications

Social capital can ease interactions between public buyers and private suppliers by contributing to effective tendering, improving social interaction in negotiations and balancing rigidity in contract management, supporting the interests of both parties. The provided framework helps decision makers to comprehend the social dynamics in public procurement.

Social implications

Improving social dynamics and solutions in public procurement.

Originality/value

This study extends social capital research in the field of public procurement and creates a framework connecting social capital and prevailing contingency factors to procurement process performance.

Details

Journal of Public Procurement, vol. 23 no. 2
Type: Research Article
ISSN: 1535-0118

Keywords

Open Access
Article
Publication date: 21 July 2022

Anna-Therése Järvenpää, Johan Larsson and Per Erik Eriksson

This paper aims to identify how a public client’s use of control systems (process, output and social control) affect innovation possibilities in construction projects.

Abstract

Purpose

This paper aims to identify how a public client’s use of control systems (process, output and social control) affect innovation possibilities in construction projects.

Design/methodology/approach

Semi-structured interviews about six infrastructure projects were conducted to identify respondents’ views on innovation possibilities. These possibilities were then analyzed from an organizational control perspective within principal–agent relationships between the Swedish Transport Administration (STA) and their contractors.

Findings

How the client uses control systems affects innovation possibilities. Relying on process control could negatively affect innovation opportunities, whereas output control could have a positive influence. In addition, social control seems to have a weak effect, as the STA appears not to use social control to facilitate joint innovation. Public clients must comply with the Public Procurement Act and, therefore, retain the requirements specified in the tendering documents. Much of the steering of the execution is connected to the ex ante phase (before signing the contract), which affects innovation possibilities in the design and execution phases for the contractor.

Research limitations/implications

This study was conducted with only one client, thus limiting its generalizability. However, the findings provide an important stepping stone to further investigation into balancing control systems and creating innovation possibilities in a principal–agent relationship.

Originality/value

Although public procurement has increasingly been emphasized as a major potential source of innovation, studying how a public client’s use of organizational control systems affects innovation possibilities in the construction sector has received scant attention.

Details

Construction Innovation , vol. 24 no. 7
Type: Research Article
ISSN: 1471-4175

Keywords

Open Access
Article
Publication date: 13 June 2016

Jan Bröchner, Carolina Camén, Henrik Eriksson and Rickard Garvare

The purpose of this paper is to assess the applicability of care quality concepts as contract award criteria for public procurement of health and social care, using the case of…

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Abstract

Purpose

The purpose of this paper is to assess the applicability of care quality concepts as contract award criteria for public procurement of health and social care, using the case of Sweden.

Design/methodology/approach

Based on a literature review, European and Swedish legal texts, government regulations as well as 26 Swedish court review cases concerning care procurement have been analysed.

Findings

Methods used for assessing care quality are seldom useful for predicting the quality to be delivered by a potential contractor. Legal principles of transparency and equal treatment of tenderers make it necessary to apply strict requirements for verification.

Research limitations/implications

Results refer primarily to a Swedish context but could be applicable throughout the EU. Further studies of relations between award criteria and public/private collaborative practices for improving care quality during contractual periods are desirable.

Practical implications

Local and regional procurement officials should benefit from a better understanding of how quality criteria should be designed and applied to the award procedures for care contracts. Care providers in the private sector would also be able to develop their quality strategies and present their abilities more efficiently when tendering for public contracts.

Social implications

Issues of quality of health and social care are of obvious importance for social sustainability. Public awareness of care quality problems is evident and often a cause of media concern.

Originality/value

This investigation pinpoints the difference between traditional care quality thinking and the legal principles underlying contract award in public procurement of care services.

1 – 10 of 351