1 (Imp)
1 (Imp)
1 (Imp)
ASSIGNMENT
BNV7200
TOPIC
BASEER-UR-REHMAN
BCU ID: 23207366/1
Abstract 05
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4.7 Questionnaire design 16
4.8 Data collection and analysis 16
Chapter 7: References
7.1 References 19
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ABSTRACT
It is always risky and complicated to work in the construction industry. Consequently,
Contractors in the construction industry are facing difficulties during the tendering process as a result of
complex designs, non-professional participation, short tender submission deadlines, design issues,
unfinished design usage in tenders, discrepancies in tender documents, corruption in tendering, an
incorrect form of contract selection, unethical practice in the construction industry, misunderstanding,
communication gaps, difficulties identifying risks in tenders, difficult risk assessment, complicated risk
management process, estimation errors, lack of innovation, lack of collaboration and integration of
technology in tendering, poor documentation, the client selected the wrong procurement strategy and
the wrong tender type, and the contract was amended in the client's favor. In this research, perceptions
the discrepancies between tender document, obstacle for estimation of tender, tender team negligence
in tendering process and also identify mitigation measures to improve the current tendering system in
construction industry. The purpose of this dissertation study is to identify the complications in
tendering, and how they might be controlled. Various literatures reviewed and also conducted
questionnaire survey for generating this dissertation.
In order to identify the weak gaps in the current tendering system, the literature about tendering,
tender types, tendering legal perspectives in the construction industry, tendering methods, tendering
processes, and E-tendering is reviewed. As part of reviewing literature and understanding current
tendering system, mitigation measures can be established to improve these weak gaps. Mitigation
measures are discussed in this dissertation, including comprehensive procurement strategies as per
project nature, and IT integration. It can be improved by updating electronic devices, introducing
organization codes of ethics and conduct, education and training, mitigating risks, utilizing BIM
technology, integrating and collaborating traditional tenders with E-tendering, etc.
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CHAPTER 1
1. RESEARCH INTRODUCTION
1.1 Introduction
The first chapter will provide an overview of the study's background and the problems it
addresses. Gaps will be identified through this examination of previous research, which will be filled by
this research. Aims and objectives will be addressed within limitations and scope of the methodology and
the dissertation structure will also be defined.
UAE's economic position has slowly improved since the 2008 global financial crisis. Oil is the
major source of income, followed by tourism, trade, real estate, and retail sales. According to the IMF
survey in 2014, GDP increased 4.3%. As a result of rapid economic growth and the rise in population of
the United Arab Emirates, mega development infrastructure projects have become necessary, according
to the World Bank Report (2007) on construction development. It follows that the UAE Government
plans to invest money in infrastructure projects like the Etihad Rail Network, which connects all UAE
cities with other Gulf countries (Gulf News, 13 February 2017).
Owners or clients want their projects delivered smoothly with no disputes and complications
during construction process. Clients also want their investments protected and increased in value. In
order to deliver construction infrastructure projects successfully, a carefully selected and appropriate
procurement strategy is necessary. The client invites a tender to select a contractor who will submit the
highest price offer to complete the project based on drawing, specifications, time schedule, and contract
terms. The tender process can be problematic due to some gaps and these gaps make selecting the
appropriate contractor difficult.
The aim of this study to identify solutions to improve the tendering system, this study identifies
difficulties Contractor’s face while working on Infrastructure projects in the UAE during the tendering
process.
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Research methodology is demonstrated through the diagram as follows:
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LITERATURE REVIEW
CHAPTER 2
2.0 COMPLICATION IN TENDERING PROCESS
2.1 Introduction
In this chapter, a literature review is presented about tendering complications in tendering processes,
including estimating, opening tenders, and awarding tenders. The tendering process has been affected by
the amendment of FIDIC clauses for the benefit of the client. It is explained in this chapter why it is very
complicated during the tender process to consider its impacts in the tender estimation, as well as the risks
which created the problems during the tender process. We will discuss why wrong estimation occurs in
tendering and its impact on construction.
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CHAPTER 3
3.0 PROPOSED THE MITIGATION MEASURE TO IMPROVE THE TENDERING
3.1 Introduction
This chapter discusses the solution of problems encountered during the tendering process for
infrastructure projects. Mitigation measures were proposed, including selecting an appropriate
procurement strategy, adopting advanced procurement approaches, integrating IT into the tendering
process, minimizing errors through the use of BIM technology during tendering, implementing
sustainability concepts in tendering, responding to risks, providing training and education, and taking
precautions at tender stage.
3.2 Selection of suitable Procurement strategy for improve the Current Tendering System
By choosing an appropriate procurement strategy, construction industry tendering can be
improved and complications can be eliminated. In the early stages of strategy preparation, it provides
solutions to tendering problems. According to Peter Davis (2006), clients can take into account all
obstacles during the finalization of strategy, including political, legal, social, cultural, economic, project
size, changes in legislation, construction difficulties, and selection criteria for contractors along with
tendering methods. Therefore, the project must be constructed based on a wide-ranging procurement
strategy. The procurement approach helps identify the most suitable methodologies for completing a
project on time, within budget, and with good quality. In a study by Gordon (1994), it was found that a
good selection of procurement route can result in a sustainable tendering process by reducing 5% the cost
of a project. Using new approaches to procurement, such as partnering, two-stage tendering, etc., can
eliminate risk in the tendering and construction processes. Choosing the right procurement route has
delivered the project on time, within budget, efficiently, and fairly.
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3.3 Minimized the Errors through the usage of BIM Technology in Tendering
According to Latham (1994), construction industry problems include design deficiencies,
inadequate tender documents, poor performance of the industry as a result of mismanagement, generating
BOQs with incorrect measurements and insufficient descriptions for tendering, and over procurement of
materials due to manual quantity takeoff errors. The industry needs to adopt new technologies and
integrate them with current tendering systems. BIM is a new development in construction. Through BIM
technology, these problems gap can be filled in construction by estimating tendering, analyzing tenders,
and easily submitting tenders within timeframe, generating BOQs, taking of quantities, estimating costs,
cash flow, controlling costs, scheduling, interim payments, and material calculations within a short period
of time.
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CHAPTER 4
4.0 RESEARCH METHODOLOGY
4.1 Introduction
According to Santiago-Dele Fosse et al., 2016, research methodology should span a broad
range and be able to cover every step of the research process. Research methodology supports finding the
easy solution to eliminate problems, Rajasekar et al (2006). As a result, the collected field data is
deliberated and compared with the literature review to reach the final conclusion. Research can be
conducted using various methods. Various selection criteria will be used to determine the most
appropriate techniques.
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quantitative research is delivered the numerical data for statistical analysis through deep studies.
The quantitative research is required data to collect through several methods such as paper survey, online
surveys, telephonic survey, and personnel interviews with same topic professionals etc.
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4.7 Questionnaire Design Survey
As a method of collecting data, questionnaire surveys are used. Using their professional
experience or opinion is supported to get the information. Information collected should be accurate,
reliable, and supported by objectives. Survey questionnaire is sent to respond, questionnaire itself needs
to be designed.
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CHAPTER 5
5.0 QUESTIONNAIRE ANALYSIS
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CHAPTER 6
6.0 CONCLUSIONS AND RECOMENDATION
6.1 Conclusions
Many problems have been encountered during the tendering process in the construction
industry. It is During the literature review and case study, these major problems were identified,
including difficult identification and assessment of internal and external risks, discrepancies in tender
documents, unethical practices in construction, corruption, a lack of innovation in the tendering process,
estimation errors, wrong assumptions considered in tendering, negligence by the tendering team, complex
design, incomplete design during tendering, design faults by the generate designer, etc. Identifying weak
gaps in current tendering system and associated problems such as lack of innovation collaboration, lack
of professionals, lack of knowledge of local laws, knowledge of market trends, lack of resources, lack of
planning, professionals feeling uncertain about adopting new approaches. Based on the analysis of
various type trend related literature, proposed mitigation techniques, such as new procurement
approaches, IT integration with traditional tending, risk reduction or transfer strategies, etc. These
mitigation measures can help improve tending.
6.2 Recommendations
According to the study, the most important areas on which to focus in order to reduce or
minimize the complications associated with tendering are those that need to be addressed so that an
enlightening tender system can be developed in the future. Based on the literature review, the case
studies, and the questionnaire survey conducted as part of this study, recommendations will now be made
based on the findings of the study.
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CHAPTER 7
7.0 REFERENCES
Creswell, J. W. (2003). Research design: Qualitative, quantitative, and mixed methods approach (2nd ed.).
Thousand Oaks, CA: Sage Publications, Inc.
Creswell, J. W., & Clark, V. L. (2007). Designing and conducting mixed methods research. Thousand Oaks,
CA: Sage Publications, Inc.
Kajewski. S (2006) 'CRC Construction Innovation.' Guidelines for Successful E- Tendering Implementation, 1-6
Brian Eggleston (2006) 3rd edn. The NEC 3 Engineering and Construction Contract Gulf Construction, Two-
stage tendering is a useful option, Dec 31 2008 Issue
Chartered Institute of Building (CIOB) (2006) Corruption in the UK Construction Industry
:Available at: http://www.ciob.org.uk/document/corruption-uk-construction-industry.
Brown, D. J., & Lord, R. G. (1999). The utility of experimental research in the study of
transformational/charismatic leadership. Leadership Quarterly, 10(4), 531-539
Al-Hasan, M. et al (2005) An investigate into current cost estimate practice of specialist trade contractor,
Liverpool John Moores University, Liverpool, UK.
BCIS (2009), eTendering Survey Report, Published by BCIS cost information service of RICS, UK.
Brook, M 2008, Estimating and Tendering For Construction Work , 4th ed. uk . Brook, M. (2012). Estimating
and tendering for construction work .
James ,B.Longbottom, Brian E Rawling& Associates.(2002) construction cost data
workbook,World Bank.US.
Alexandersson, G.,Hulten, S. (2003) The problems of Predatory Bidding in Competitive Tendering. Swedish.
Infrastructure Tender Process In UAE available on
http://www.emiratesbusinesslaw.com/infrastructure-tender-process- in-the-uae/ Method of tendering available
on ;https://theconstructor.org/construction/types-of- tendering-methods-in-construction/6372/
Tender evaluation: https://www.inf.gov.nt.ca/sites/inf/files/3.8_tender_evaluation.pdf
http://gulfnews.com/business/economy/uae-s-gdp-growth-projected-to-bounce-back-in- 2018-1.2059299
Andi (2006) The importance and allocation of risk in Indonesian construction projects, Construction
management and economics, vol-24, p 69-80
Sustainable tendering guidelines http://www.lgnsw.org.au/files/imce- uploads/39/sustainable-tendering-
guidelines.pdf.
Code of ethics available on:
http://www.longservice.nsw.gov.au/data/assets/pdf_file/0016/3283/TIPP_2.5_Code_of Ethics_and_Conduct.pdf
Tender process :http://www.emiratesbusinesslaw.com/infrastructure-tender-process- in- the-uae/
Code of ethics https://www.icaew.com/membership/regulations-standards-and- guidance/ethics/code-of-ethics-
b/part-b-200-230
Ramus,J.,Birchall, S. and Griffiths,P. (2006) Contract Practice for Surveyors. 4th ed. uk.
Murdoch, J. and Hughes, W. (2000) Construction Contracts Law and Management. 3rd .uk.
Evans Peck Pty Limited, (2006) Tender guidelines for tendering for Australians Construction Association.
BCIS (2009), eTendering Survey Report, Published by BCIS cost information service of RICS, UK.
Alexandersson, G.,Hulten, S. (2003) The problems of Predatory Bidding in Competitive Tendering. Swedish.
Al-Hasan, M., Ross, A., & Kirkham, R. (2006). An investigation into current cost estimating practice of
specialist trade contractors.
FIDIC 1999 Conditions of Contract for construction of building and engineering works.
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