Moving to e-bidding: Examining the changes in the bidding process and the bid mark-up decisions of Thai contractors

Abstract

Purpose

This study aims to examine the influences of shifting the bidding system of Thai public infrastructure projects from e-auction to e-bidding.

Design/methodology/approach

A questionnaire survey was conducted with owners or senior managers with direct responsibility in deciding the mark-up of 72 small and medium-sized contractor firms. Five senior professionals were interviewed to provide insights into and to strengthen the discussion of the findings. The Wilcoxon test was applied to analyze the difference in the importance of the factors between e-auction and e-bidding.

Findings

The results revealed a shift in the importance of the factors, from those related to the financial aspects in the e-auction to the situational aspects in the e-bidding. The comparison test results also suggested that the majority of factors become significantly less important in the e-bidding system, with “identity of competitors” and “general expense of the bidding process” having the most apparent mean differences. The interview results supported by data on winning prices and estimations strongly indicated that bid collusions likely exist in the e-auction. By shifting to e-bidding, the data also show that the Thai Government can save public money in its infrastructure project development.

Originality/value

The study provides an analysis from the perspectives of contractor firms on how e-auction and e-bidding options influence bid mark-up decisions. Many studies have focused on the issues and advantages provided by the e-procurement mainly from the owner (government)’s perspective but how the change influences the contractor’s attitude has been less explored.

Citation

Santoso, D.S. and Bourpanus, N. (2019), "Moving to e-bidding: Examining the changes in the bidding process and the bid mark-up decisions of Thai contractors", Journal of Financial Management of Property and Construction, Vol. 24 No. 1, pp. 2-18. https://doi.org/10.1108/JFMPC-05-2018-0025