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
Keywords
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, no…
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.