Procurement Of Construction Services Research Articles

Risk analysis of tender failure in the procurement of construction services

Risk analysis of tender failure in the procurement of construction services

Factors affecting contractors’ bid or no-bid and mark-up decisions: a case of the Jilin province, China

PurposeContractors of different scales, operating in different construction industries of varying institutional and economic settings, have different considerations when making bid or no-bid and mark-up decisions. Focusing on the large and medium-sized contractors in the Jilin province, China, the purpose of this study is to examine important factors affecting their decision to bid (d2b) and mark-up decisions and investigate differences between large and medium-sized contractors in evaluating the importance of the various factors affecting their d2b and mark-up decisions.Design/methodology/approachThis study used a survey design for timely data collection from a large population. Contractors’ bidding attitudes was collected using an online survey questionnaire with a list of 40 key factors. Statistical analytical methods were applied for comparing the two groups of contractors.FindingsThe results of this study indicate that factors related to client conditions are most critical for both large and medium-sized contractors in their d2b and mark-up decisions. The results also show statistically significant differences between the two groups of contractors on a subset of factors affecting their d2b and mark-up decisions. The large contractors have placed more emphasis on projects' potential financial and strategic benefits. Another notable finding is that both groups of contractors have placed great emphasise on “government legislations” in their d2b and mark-up decisions.Research limitations/implicationsThese findings should be interpreted in consideration of several limitations. Firstly, the sample size is relatively small, and the focus was on a single province in the China construction industry. Next, this study only explores differences between large and medium-sized contractors in evaluating the importance of the various factors affecting their d2b and mark-up decisions.Practical implicationsContractors could refer list of critical factors in competing for jobs in Jilin province or other provinces of similar institutional and economic settings. Construction clients, on the other hand, should consider the list of critical factors in the formulation of their competitive tendering procedures, thus enhancing the efficiency in their procurement of construction services.Originality/valueResearch on contractors’ bidding decision-making in the context of Chinese construction industry remains scarce; the research findings have implications for the industry stakeholders.

Critical Factors Affecting Contractors’ Decision to Bid: A Global Perspective

Given that project selection is a vital and recurring strategic decision for construction firms, there is a sizeable collection of studies that examine the factors affecting contractors’ decision to bid (d2b). With the aim to provide a global perspective of factors affecting contractors’ d2b, this study meta-analytically reviews 24 relevant studies published between 1988 and 2021. The results show that that there are 28 critical factors, and the top five factors are (i) project payment terms, (ii) financial capacity of client, (iii) client’s reputation in the industry, (iv) the history of client’s payments in the past projects, and (v) project size. The heterogeneity test results, which show no statistically significant heterogeneity across the included studies, reinforce the generalisability of the findings to a global context. The research findings have practical implications for construction clients in their procurement of construction services, highlighting the importance of good reputation and payment history. For contractors, they now have access to a list of critical factors from a global perspective in facilitating their d2b decision. There are methodological implications for the research community in guiding future efforts in replicating studies.

Rancang Bangun Aplikasi Inventory Material Jasa Pelaksana Kontruksi PT. Bawan Permai Group Berbasis Website

Bawan Permai Group is a company engaged in the procurement of construction services (contractor). So a computerized system is created which aims as a medium that facilitates and assists the company in managing, recording or controlling the inventory of construction services materials. The methodology used in making this application, namely Waterfall According to Summerville in 2011, which has stages, namely Requirements Definition which is carried out by making Flowcharts of the old system and the new system. System and Software Design is made by making Data Flow Diagrams (DFD) and Entity Relationship Diagrams (ERD). Implementation and Unit Testing is carried out by the realization of the system in the previous stage into the PHP programming language and MySQL database.Integration and System Testing is retested using Blackbox Testing. Blackbox Testing focuses on the functional specifications of the program. After testing, the results can be seen, namely the system can run properly. However, this application must always be monitored, developed and updated so that information can be conveyed properly and according to user needs.

A strategy of survival during Nigeria’s economic downturn

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This research paper concentrates on the reasons why the labor-only procurement of construction services is being commonly used in Nigeria. Adopting a survival strategy for hard economic times of accepting labor-only work benefits small- and medium-sized contractors by providing quick sources of cash flow and by allowing them to build more client relationships, while small private clients benefit from cost savings and from controlling material quality. Originality/value The briefing saves busy executives, strategists, and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Foreign experience in risk management in the procurement of goods, works and services in the field of construction

In the article, with the help of theory and practice, the essence of foreign experience of risk management in the system of procurement of goods, works and services in the field of construction, its application content is disclosed. The main objectives of controlling purchases in the field of construction, which are provided with planning functions, are analyzed; analytical function; information function; coordination function. An important place is taken into assimilating of the different approaches to insurance of risks in the system of procurement of goods, works and services in the field of construction, differing in the degree of public participation. It is determined that the system of state purchases plays a strategic role in the construction sphere and promotes: modernization of infrastructure in the construction industry; creation of new methods and technologies of construction; housing and communal services development; improvement of personnel training, etc. It is stated that the achievement of the goals of organizing the procurement process in the construction and operation of facilities is based on the principles of openness and transparency of information contained in contracts for the procurement of construction services; provision of competition; professionalism of clients; stimulating innovation; harmony of contractual systems in the construction procurement field; realization of state and municipal needs. Changing the functions of the state in the complex conditions of development of the new economic system in one way or another affects all aspects of state participation in the economy, including in the construction sector. The state carries out the functions that their implementation is associated with significant material costs and is accompanied by mandatory costs for the purchase of certain types of construction goods, works and services.In general, the public procurement process is proposed to be seen as a mechanism by which countries allocate accumulated public funds to meet public needs and ensure the functioning of the country. The stimulating, innovative role of procurement in construction is manifested in the fact that the state, acting as a customer, is also the «first buyer» of new types of construction products and samples of experimental products in the field of construction, which have not, so far, been serial.

Tinjauan Atas Kesiapan Kementerian Pekerjaan Umum Dan Perumahan Rakyat Terkait Keikutsertaan Indonesia Dalam Government Procurement Agreement (GPA)

<p><strong><em>Abstarct</em></strong></p><em>Basically ratification of the GPA for Indonesia is the opening of the Indonesian market (market access) to the entrepreneur/companies from other countries, which means allowing entrepreneur/foreign companies to participate in the process of procurement of goods and services (PBJ) government in Indonesia. Similarly, the reverse with Indonesian companies. The existence of market acess makes the relation between national with international law. This is a reason of authors are interested to know further the relationship conformity with international law related to the readiness of the national Ministry of Public Works and Public Housing (PUPR) when Indonesia ratified the GPA views of the setting methods for selecting/ auction in the construction sector in national legislation. The method used is a normative juridical research and the purpose of research to give recommendation to the Ministry PUPR particularly regarding setting methods for selecting the procurement of construction services when Indonesia ratified the GPA. If viewed from the side PBJ arrangements in the Government in the field of construction, especially regarding the purpose, principles and method of election of, the results showed that Ministry PUPR not ready when Indonesia ratified the GPA, because there is a difference between setting purpose PBJ contained in Perpres No. 54/2010 and its amendments as well as Permen PU No 07/2010 and amendments that more give protection to national companies, while GPA has the open principle. In addition there are differences about the method of selecting good views of the types/forms (nomenclature) and its meaning. So that when Indonesia will ratify the GPA, the Government and the Ministry PUPR in particular need to make adjustments to the "purpose" of regulation PBJ as contained in the Perpres/Permen PU with "purpose" contained in the GPA. Similarly, adjustments to the forms (nomenclature) and the meaning of the audition method.</em>

Enhancing Ethics and the Competitive Environment by Accounting for Conflict of Interest in Project Procurement

AbstractConflicts of interest, whether actual, potential, or simply a situation having the appearance thereof, occur often in the global facilities and infrastructure design and construction industry, of which engineers are an important and integral part. The procurement of engineering services by governments and agencies can be the first checkpoint for preserving ethical conduct, and the enhanced ethics from this process can then propagate down the value chain in the subsequent delivery of design services, the procurement of construction services, equipment, materials, and supplies needed for construction, and the provision of ancillary services. This paper proposes to account for a range of properly disclosed conflicts of interest, using a scoring framework in the selection process that includes the benefits of accepting a certain degree or level of conflict of interest and weighing it, in a transparent process, against the adverse risks and consequences of a conflict. A two-part metric is proposed: the...

Information Feedback and Learning in Construction Bidding

Information feedback condition in recurrent construction bidding is an important design variable about optimal procurement design. Contractors tend to optimize their bids in recurrent bidding with positive review of historic bids. Our experiment examines the effects of partial and no information feedback conditions on student (inexperienced) bidders’ bidding trends, and the extent to which their bidding trends agree with the behavioural patterns proposed by learning direction theory. The results show that the variations in bids over time for both information feedback conditions are statistically significant. Although the bidders with partial bidding feedback information are more likely to vary their bids as indicated by learning direction theory, their bids are less competitive than those with no bidding feedback information. Construction clients would need to consider the information feedback conditions in their procurement of construction services with the goal to achieve efficiency in construction bidding.

Individual Business Travel at Boehringer Ingelheim: A Best Value Procurement Pilot

Problems in the delivery of construction are supply chain issues in the procurement area, and not caused by the complexity of the construction industry. In order to prove this, Best Value Procurement has been applied in procuring travel services within pharmaceutical company Boehringer Ingelheim. In this paper the authors propose that there are similarities in the procurement of services at BI and the procurement of construction services. It is proposed that the best value PIPS process makes a procurement officer a professional, able to deliver any service. The BVP PIPS test to deliver travel services increased value and performance and minimized the cost of the service. The conclusion is that the best value PIPS process has great potential to increase the value and performance in the delivery of other services.