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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…

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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

Keywords

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…

1872

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.

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

Keywords

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

Keywords

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…

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

Article
Publication date: 12 April 2022

Ahmed Khouja, Nadia Lehoux and Yan Cimon

In highly competitive industries such as the construction sector, companies with limited capabilities struggle to maintain their current standing, let alone acquire more…

Abstract

Purpose

In highly competitive industries such as the construction sector, companies with limited capabilities struggle to maintain their current standing, let alone acquire more market share. Before they are able to address their shortcomings, these companies need to pinpoint where their performance stands when it comes to market demand. Furthermore, competitiveness is strongly linked with companies' ability to win tenders and deliver the associated construction projects. Tenders are, therefore, a mechanism that reflects the strengths and weaknesses of construction firms and can be deemed an indicator of competitiveness. This paper aims to help small and medium-sized enterprises (SMEs) increase their presence in the construction sector by suggesting a systematic approach to evaluate their competitiveness.

Design/methodology/approach

Participation requirements were extracted from 11 calls for tenders and organized into categories using a qualitative content analysis. These requirements along with winning assets deduced from the literature constitute the basis of the tool. The qualitative evaluation of the difficulty in satisfying requirements or acquiring assets was transformed into unified, quantifiable scores by means of fuzzy numbers.

Findings

A total of 233 requirements were found and classified in 3 main categories. In addition, a list of 54 assets organized into five categories was compiled. The entire methodology led to a five-step assessment tool whose output can be depicted on the proposed competitiveness readiness matrix (CRM).

Research limitations/implications

This study contributes to the limited number of articles discussing the contractor's side in the tendering process. Furthermore, it combines three theoretical perspectives (i.e. resource-based view, relational view, and industry structure perspective), which are scarcely applied in the construction management field. Consideration of the calls for tenders when developing solutions is also a unique aspect of this research when compared to previous studies.

Practical implications

This tool may help practitioners navigate the rather elusive tendering process by outlining the necessary elements to participate in and win tenders. It may also allow construction firms to better position themselves in the market with respect to customers' requirements and competitors' performances.

Originality/value

This study provides an approach of both self-assessment and market benchmarking. It assists companies in formulating strategies to become more competitive in general and make better bidding decisions. This is especially interesting because of three aspects: the study is based on a fundamental element of the construction competitiveness concept, i.e. calls for tenders; it offers a mechanism to transform systematically qualitative attributes into quantifiable scores; and it provides a practical and reliable display of the assessment results.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

Keywords

Abstract

Details

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

Article
Publication date: 10 March 2022

Juha-Matti Lehtonen and Kai Virtanen

The purpose of this paper is to propose and test a multi-criteria decision analysis (MCDA) approach based on an additive value function (AVF) to select the most…

Abstract

Purpose

The purpose of this paper is to propose and test a multi-criteria decision analysis (MCDA) approach based on an additive value function (AVF) to select the most economically advantageous tender under European Union public procurement regulations.

Design/methodology/approach

A case study in which the AVF tender evaluation model is constructed by the procurement personnel and the results of the original, real-life public procurement evaluation model are compared to those discovered by the MCDA approach.

Findings

The AVF model captures the preferences of the procurement authority in a more reliable and transparent manner than commonly used evaluation models based on scoring formulas.

Practical implications

While commonly used in public procurement, relative scoring formulas can neither present the preferences of a procurement unit accurately nor do they enable bidders to draft bids according to these preferences. The proposed MCDA approach can achieve both.

Originality/value

The contribution of this paper is threefold. First, the successful construction of the AVF model with procurement personnel is introduced. Second, the model is used in an actual, real-life case. Third, a thoughtful comparison of features, structures and results of the AVF model and the evaluation model using scoring formulas is presented.

Details

Journal of Public Procurement, vol. 22 no. 2
Type: Research Article
ISSN: 1535-0118

Keywords

Article
Publication date: 8 February 2022

Hector Martin, Ashlee Miller, Amrita Milling and Marie Martin

Business-to-government corruption has destroyed many businesses and debilitated numerous countries. The paradox of plenty, or the curse of resources, is exacerbated in…

Abstract

Purpose

Business-to-government corruption has destroyed many businesses and debilitated numerous countries. The paradox of plenty, or the curse of resources, is exacerbated in emerging oil and gas economies, where corruption is rampant. Corruption most frequently occurs within the tendering stage of construction projects and the current debate fails to arrest this ubiquitous boundless construct in small island developing states (SIDSs). The purpose of this study is to explain how the unique features of SIDS contributes to an understanding of B2G corruption during construction tendering.

Design/methodology/approach

This study elucidates corruption in the tendering process through the lens of collective action and principal–agent theories. Interviews with three experts and a questionnaire survey with 115 practitioners evaluated corruption in Trinidad’s construction industry. Principal component analysis reduced 33 corruption variables to 5 primary causes. In addition, the relative importance of potential solutions for curtailing corruption was assessed.

Findings

The derived factors highlight that governance within SID oil and gas economies, inadequate tender procedures and practices, reprehensible business growth strategies, unethical misconduct and the social networking context characterise public infrastructure tendering. The recommendations for minimising corruption in tendering are grounded in behaviour and deterrence theories and infused with technological advances.

Research limitations/implications

Using surveys and interviews circumvents the limitation of the inability to measure corruption because of the confines of respondents’ recall triggers. However, corruption is mediated by cultural norms, which limits the generalisation of the findings.

Originality/value

The study concludes that corruption results from a lack of transparency in the construction supply chain. It leads to an awareness gap between project stakeholders, which is a major risk factor and source of mistrust. The result is a lack of traceable processes and coordination among stakeholders. Consequently, the study fills the gap in responsible socio-economic consumption in SIDSs.

Details

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

Keywords

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