Impact of ineffective tendering processes on construction projects

Abstract

Tendering process is the method adopting in procurement for the selection of the contractor, who is responsible for carrying out the construction works. The tendering process is built up with several functions, performed by main tendering stakeholders. Certain substandard practices of the stakeholders during the tendering process create an ineffective tendering process. It directly results in adverse outcomes during the post contract stage of a construction project. Due to the high involvement of these ineffective tendering outcomes, the construction project is impacted adversely and may fail in fulfilling the project objectives effectively. The research investigated the impact of the ineffective tendering process to the construction project and it was equipped by questionnaire survey while the analyses are carried out in a specific analysis method developed for this research. Initially the research found the contribution of the substandard practices to cause the ineffective tendering process. Then the probabilistic impacts to the construction project were investigated through the probabilistic outcomes from the ineffective tendering process. Additionally, the research has brought some effective solutions to mitigate ineffective tendering process. The findings of the research indicated that the effect from the ineffective tendering process to the construction project can be mitigated by properly following the governing tender rules, adhering to good codes of conduct and ethics, managing the future risks during the estimating process by the bidders and maintaining better communication during tendering.