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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

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: 2 June 2023

Souad Nassir, Imane Lebdaoui, Youssef Chetioui and Hind Lebdaoui

Despite the digitalization reforms attempting to enhance public service quality, paper-based tendering is still widely used in a number of developing countries (i.e. Morocco)…

Abstract

Purpose

Despite the digitalization reforms attempting to enhance public service quality, paper-based tendering is still widely used in a number of developing countries (i.e. Morocco). This has led to many issues including waste of time, higher costs as well as labor-intensive issues. E-tendering has been widely recommended as a key resolution. Still, both scholars and practitioners raised concerns related the readiness of small and medium enterprises (SMEs) to this digitalization process. The current research aims to investigate the key drivers of SMEs intention to adopt electronic tendering in the context of an emerging African market (i.e. Morocco). Specifically, the authors focus on SMEs contributing to the public procurement process and registered in the online portal recently created by the Moroccan government.

Design/methodology/approach

To achieve this goal, the authors proposed a conceptual model combining the unified theory of acceptance and use of technology (UTAUT) and technology acceptance model (TAM). Based on data collected from suppliers participating in Moroccan public tenders, the authors empirically tested the conceptual model using a partial least squares (PLS) estimation.

Findings

Facilitating conditions and social influence had a positive impact on SMEs intention to adopt electronic tendering. The study’s findings also convey a negative impact of effort expectancy on SMEs intent to adopt e-tendering. Unexpectedly, perceived performance had no significant impact on the intention to adopt electronic bidding among Moroccan SMEs.

Originality/value

This research filled the gap in the literature with regards to SMEs e-Tendering readiness in emerging markets. With the recent digitalization reforms of public tendering in many developing economies (i.e. Morocco), the study findings can be used to improve not only government implementation of electronic bidding but also SMEs' user experience.

Details

Journal of Economic and Administrative Sciences, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1026-4116

Keywords

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: 28 June 2023

Ahmed M. Ibrahim, Mohammad A. Hassanain and Mohamed H. Salaheldin

This research compares consultants' and contractors' professional practices and perspectives on the use of specifications in the engineering of built environment projects.

Abstract

Purpose

This research compares consultants' and contractors' professional practices and perspectives on the use of specifications in the engineering of built environment projects.

Design/methodology/approach

The study initiates with a review of literature, toward realizing (1) the need for inclusion of specifications, throughout the projects' stages (design, tender, construction and handing over), as well as the (2) causes and effects of defective specifications in design and execution of engineered projects. Additionally (3) the study investigates the challenges and causes of specification variations to projects' design and execution. The systematic methodology adopted in this research utilizes frequency indicators, to rank and correlate the perspectives of 60 professionals, who are experienced in consulting and contracting of mega public and private projects.

Findings

The research considers the uncertainties and differences that could be present in engineering developments and use of design specifications for projects' execution and handing over. The two groups of experts' (consultants and contractors) perspectives are usually observed as conflicting, in practice. Practices comparison of their experiences with engineering projects' specifications usability provides unique empirical findings. The analysis and assessment of the experts' knowledge, this research addresses gaps identified in the literature, providing valuable insights.

Originality/value

The study provides in-depth recommendations and discusses possible trends and methods for enhancing specifications' usability in design engineering and execution of built environment projects. The analysis and recommendations present and assess experts' knowledge while bridge gaps identified from the literature.

Details

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

Keywords

Article
Publication date: 8 March 2024

Henrik Gislason, Jørgen Hvid, Steffen Gøth, Per Rønne-Nielsen and Christian Hallum

An increasing number of Danish municipalities wish to minimize tax avoidance due to profit shifting in their public procurement. To facilitate this effort, this study aims to…

Abstract

Purpose

An increasing number of Danish municipalities wish to minimize tax avoidance due to profit shifting in their public procurement. To facilitate this effort, this study aims to develop a firm-level indicator to assess the potential risk of profit shifting (PS-risk) from Danish subsidiaries of multinational corporations to subsidiaries in low-tax jurisdictions.

Design/methodology/approach

Drawing from previous research, PS-risk is assumed to depend on the maximum difference in the effective corporate tax rate between the Danish subsidiary and other subsidiaries under the global ultimate owner, in conjunction with the tax regulations relevant to profit shifting. The top 400 contractors in Danish municipalities from 2017 to 2019 are identified and their relative PS-risk is estimated by combining information about corporate ownership structure with country-specific information on corporate tax rates, tax regulations and profit shifting from three independent data sets.

Findings

The PS-risk estimates are highly significantly positively correlated across the data sets and show that 17%–23% of the total procurement sum of the Danish municipalities has been spent on contracts with corporations having a medium to high PS-risk. On average, PS-risk is highest for large non-Scandinavian multinational contractors in sectors such as construction, health and information processing.

Social implications

Danish public procurers may use the indicator to screen potential suppliers and, if procurement regulations permit, to ensure high-PS-risk bidders document their tax practices.

Originality/value

The PS-risk indicator is novel, and to the best of the authors’ knowledge, the analysis provides the first estimate of PS-risk in Danish public procurement.

Details

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

Keywords

Article
Publication date: 26 January 2024

Mohammad Alhusban, Faris Elghaish, M. Reza Hosseini and Mohammad Mayouf

Previous studies have established to a great extent that regulatory frameworks and, in particular, procurement approaches – that are common in a particular context – have a major…

Abstract

Purpose

Previous studies have established to a great extent that regulatory frameworks and, in particular, procurement approaches – that are common in a particular context – have a major impact on the success of building information modelling (BIM) implementation in construction projects. Despite the close links between these two concepts, research on the effect of procurement approaches on BIM implementation is scarce. To address this gap, this paper aims to investigate the barriers that affect BIM implementation through the lens of procurement approaches.

Design/methodology/approach

A mixed-method approach was adopted using a questionnaire survey (n = 116) and interviews with key stakeholders (n = 12) in Jordan. The outcomes of the quantitative parts were augmented with findings from interviews.

Findings

It was revealed that the deployment of unfavourable construction procurement approaches represents a major hurdle towards BIM implementation. Though essential for enhancing BIM implementation, it is revealed that a fundamental change from the common design-bid-build (DBB) to more collaborative procurement approaches remains infeasible in view of the realities that govern the construction industry.

Research limitations/implications

It was revealed the deployment of unfavourable construction procurement approaches represents a major hurdle towards BIM implementation. Though essential for enhancing BIM implementation, it is revealed that a fundamental change from the common DBB to more collaborative procurement approaches remains infeasible given the realities that govern the construction industry.

Originality/value

As the first of its kind, a set of recommendations for establishing supportive, workable procurement that does not deviate significantly from common procedures and practices is presented. Rather than advocating a shift to procurement approaches that are aligned with BIM, the findings offer novel insight into the necessity of developing a framework within the boundaries of the current and widely adopted procurement approaches to address the identified construction procurement issues and facilitate BIM implementation.

Details

Smart and Sustainable Built Environment, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2046-6099

Keywords

Article
Publication date: 6 March 2023

Desalegn Girma Mengistu, Daniel Alemayehu Ashene and Handebo Ayele Halabo

The purpose of this study is to investigate the challenges and potential improvement mechanisms for the development of technology and innovation in the Ethiopian construction…

Abstract

Purpose

The purpose of this study is to investigate the challenges and potential improvement mechanisms for the development of technology and innovation in the Ethiopian construction industry.

Design/methodology/approach

In this study both quantitative and qualitative research approaches were adopted. While a structured questionnaire was used for the quantitative data collection, semi-structured interview was used for qualitative data collection. In analyzing the quantitative data, mean score was used to rank the variables and factor analysis was conducted to identify the underlying dimensions of the research constructs. The qualitative data was analyzed thematically focusing on specific objectives of the study; the challenges and improvement mechanisms of technology and innovation development.

Findings

The findings indicate that the major challenges are nature of the industry and lack of awareness, weak capacity of companies and the regulatory instruments, inadequate tender duration and poor monitoring and controlling practice. The suggested improvement mechanisms are effective coordination of the process and awareness creation, promoting technology and innovation in the procurement process and technology and innovation consideration in construction project registration.

Originality/value

Effectiveness of construction industry improvement programmes is affected by inappropriateness of the adopted implementation mechanisms. Understanding the operating environment; the enablers and potential barriers, is important for the success of any envisioned improvement programme. The improvement framework proposed by this study indicates the potential intervention areas and improvement mechanisms to effectively induce and enhance technology and innovation development in the construction industry. Major pillars of the improvement framework are improving regulatory framework, raising awareness and stakeholder engagement and continual monitoring and controlling of the practice.

Details

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

Keywords

Article
Publication date: 16 March 2022

Adekunle Sabitu Oyegoke, Saheed Ajayi, Muhammad Azeem Abbas and Stephen Ogunlana

The problem of long delay and waiting time in Disabled Facilities Grants (DFG) housing adaptation has been ongoing for years. This study aimed at constructing an innovative smart…

166

Abstract

Purpose

The problem of long delay and waiting time in Disabled Facilities Grants (DFG) housing adaptation has been ongoing for years. This study aimed at constructing an innovative smart solution to streamline the housing adaptation process to prevent lengthy delays for disabled and elderly people.

Design/methodology/approach

The Adapt-ABLE approach is suggested based on a constructive research approach, where extensive theoretical development of the Adapt-ABLE concept is developed. It consists of four integrated platforms that undergo theoretical and analogical development and validations through applicable theories, a workshop, four brainstorming sessions and a focus group.

Findings

The proposed Adapt-ABLE approach utilises process optimisation techniques through an IT system for streamlining the process. The merits of the semi-automated system include the development of a preventive measure that allows measurement of suitability index of homes for the occupants, indicative assessment that shorten the application duration, procurement and contracting platform that utilises principles based on framework agreement and call-off contract, and a platform that standardised performance management for continuous improvement.

Originality/value

The Adapt-ABLE solution will cut the application journey of non-qualified applicants and suggest where help can be sought. The qualified applicants' application journey will also be shortened through an online indicative assessment regime and early online resources (means) testing. Overall, the proposed system reduces the waiting time, and timely delivery improves the applicant's quality of life by living independently. It will potentially save the NHS billions of pounds used to replace hips and residential care costs due to lengthy delays in the housing adaptations process.

Details

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

Keywords

Article
Publication date: 28 December 2023

Cláudia Rafaela Saraiva de Melo Simões Nascimento, Adiel Teixeira de Almeida-Filho and Rachel Perez Palha

This paper proposes selecting a construction project portfolio in the context of a public institution, which makes it possible to assess quantitative and qualitative criteria…

Abstract

Purpose

This paper proposes selecting a construction project portfolio in the context of a public institution, which makes it possible to assess quantitative and qualitative criteria, thereby meeting the needs of the institution and the existing constraints.

Design/methodology/approach

The research design follows a framework using technique for order preference by similarity to ideal solution (TOPSIS) associated with integer linear programming.

Findings

The method involves a flow of assessments allowing criteria and weights to be elicited where outcomes are based on the experts' intra-criteria assessment of alternatives and decision-makers' inter-criteria assessment. This is of utmost interest to public organizations, where selections must result in benefits and lower costs, integrating the experts' technical and management perspectives.

Social implications

Public institutions are characterized by having limited financial and personnel resources for project development despite having a high demand for requests not associated with profits, making it essential to have a framework that enables using multiple criteria to better evaluate the benefits related to these decisions.

Originality/value

The main contributions of this article are: (1) the proposition of a framework for selecting construction project portfolios considering the organization's strategic needs; (2) identifying quantitative and qualitative assessment criteria for project selection; (3) integrating TOPSIS with an optimization process for selecting the construction project portfolios and (4) providing a structured decision process for selecting the portfolio that best represents the interests of the institution within its limited resources and personnel.

Details

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

Keywords

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