Factors affecting marketing decision making with an ethical content : collusive tendering in the construction contract market

Reports of immoral marketing practices i n the construction industry attract political, media and public but not much academic interest. This paper adopts a behavioural perspective and proposes a model for applying marketing ethics concepts and methods in the study of collusion in the construction contract market. An extensive multidisciplinary review of existing literature identified a lack of adequate conceptualisation of the mechanisms and decision making factors of collusive tendering. The process of developing the model is detailed in this paper. The objectives and methodology of the research project that tested the model are also outlined. The paper concludes with a brief note on the contributions and application of the proposed model.

Human factors in estimating

It is commonly held that the ability of the estimator to apply professional skill and judgement is an important factor in the production of an accurate cost estimate. This chapter identifies these abilities and attributes of the individual estimator that affects estimating accuracy. These human factors are examined under the headings of the role of the estimators, skills of the estimator, characteristics of the estimator, interpretation of data, and the influence of expertise.

Which procurement system? Towards a universal procurement selection technique

Two approaches are described, which aid the selection of the most appropriate procurement arrangements for a building project. The first is a multi-attribute technique based on the National Economic Development Office procurement path decision chart. A small study is described in which the utility factors involved were weighted by averaging the scores of five 'experts' for three hypothetical building projects. A concordance analysis is used to provide some evidence of any abnormal data sources. When applied to the study data, one of the experts was seen to be atypical. The second approach is by means of discriminant analysis. This was found to provide reasonably consistent predictions through three discriminant functions. The analysis also showed the quality criteria to have no significant impact on the decision process. Both approaches provided identical and intuitively correct answers in the study described. Some concluding remarks are made on the potential of discriminant analysis for future research and development in procurement selection techniques.

Reforming the procurement of construction and financing of Australian infrastructure : advancing capacity, competition and investment

Funded by an Australian Research Council (ARC) Linkage grant over four years (2009–13), the Major Infrastructure Procurement project sought to find more effective and efficient ways of procuring and delivering the nation’s social and economic infrastructure by investigating constraints relating to construction capacity, competition, and finance in new public sector major infrastructure.1 The research team comprised researchers in construction economics and finance from Queensland University of Technology (QUT), Griffith University (GU), The University of Hong Kong (UHK), and The University of Newcastle (UoN). Project partners included state government departments and agencies responsible for infrastructure procurement and delivery from all Australian mainland states, and private sector companies and peak bodies in the infrastructure sector (see “Introduction” for complete list). There are a number of major outcomes from this research project. The first of these is a scientifically developed decisionmaking model for procurement of infrastructure that deploys a novel and state-of-the-art integration of dominant microeconomic theory (including theories developed by two Nobel Prize winners). The model has been established through empirical testing and substantial experiential evidence as a valid and reliable guide to configuring procurement of new major and mega infrastructure projects in pursuance of superior Valuefor- Money (VfM). The model specifically addresses issues of project size, bundling of contracts, and exchange relationships. In so doing, the model determines the suitability of adopting a Public-Private Partnership (PPP) mode.

Minimizing the effects of overfitting and collinearity in construction cost estimation : a new hybird approach

Research problem: Overfitting and collinearity problems commonly exist in current construction cost estimation applications and obstruct researchers and practitioners in achieving better modelling results. Research objective and method: A hybrid approach of Akaike information criterion (AIC) stepwise regression and principal component regression (PCR) is proposed to help solve overfitting and collinearity problems. Utilization of this approach in linear regression is validated by comparing it with other commonly used approaches. The mean square error obtained by leave-one-out cross validation (MSELOOCV) is used in model selection in deciding predictive variables.

Developing green procurement framework for construction projects in Malaysia

With the current emerging development pattern in Malaysia, Malaysian government has enthusiastically promoted green procurement approach that will help the construction project being green. Previous studies highlighted that the concept of green procurement is still very new to the Malaysian construction industry, and this increases the needs for further research in this area. This paper addresses the needs of guidelines for stakeholders to procure environmentally-friendly construction. Currently, there is a limited practical guideline for stakeholders to procure green projects. This paper discusses the progress to date of a research project aimed at developing a green procurement framework for construction projects in the Malaysian construction industry. This framework will guide the stakeholders to plan the green procurement implementation to procure a construction projects. Through literature and expert opinion, this paper explores the list of green practices within procurement practices which becomes the basis to develop a survey instrument that will be used in the later part of this study. The paper will shed useful information for construction researchers and practitioners in exploring the green procurement concept for construction industry in Malaysia.

Green procurement framework for the Malaysian construction industry

Construction projects have a negative impact on the environment. As Malaysia is planning more construction projects to cater for its current and future development needs, practitioners are urged to undertake greener approaches to construction. One of the efforts is the introduction of green procurement, which is promoted under the Malaysian Government’s MyHijau initiative. Construction procurement is recognised as a tool to shift the construction business into a greener industry. However, the implementation of green procurement in Malaysia is still in its infancy and faces a number of challenges, such as the lack of knowledge. A significant gap has been found between policy formulation and actual project delivery as there are no practical guidelines for stakeholders to procure environmental-friendly construction projects. To address this problem, the present research (as part of an ongoing PhD project) aims to develop a green procurement framework that guides stakeholders in procuring green projects in Malaysia. This article highlights the concept of green procurement in Malaysia, the work carried out to date to achieve the research objectives and the preliminary framework that has been established. It is hoped that this research will help academics and practitioners to further explore the potential of green procurement to improve sustainability in the current construction industry practices.

Deriving optimal competition in infrastructure procurement

Typically only a limited number of consortiums are able to competitively bid for Public Private Partnership (PPP) projects. Consequently, this may lead to oligopoly pricing constraints and ineffective competition, thus engendering ex ante market failure. In addressing this issue, this paper aims to determine the optimal number of bidders required to ensure a healthy level of competition is available to procure major infrastructure projects. The theories of Structure-Conduct-Performance (SCP) paradigm; Game Theory and Auction Theory and Transaction Cost Economics are reviewed and discussed and used to produce an optimal level of competition for major infrastructure procurement, that prevents market failure ex ante (lack of competition) and market failure ex post (due to asymmetric lock-in).

Models for engaging public-private partnerships in civil infrastructure projects: A case of ‘having your cake and eating it too’?

Public-Private Partnerships (PPP) are established globally as an important mode of procurement and the features of PPP, not least of which the transfer of risk, appeal to governments and particularly in the current economic climate. There are many other advantages of PPP that are claimed as outweighing the costs of PPP and affording Value for Money (VfM) relative to traditionally financed projects or non-PPP. That said, it is the case that we lack comparative whole-life empirical studies of VfM in PPP and non-PPP. Whilst we await this kind of study, the pace and trajectory of PPP seem set to continue and so in the meantime, the virtues of seeking to improve PPP appear incontrovertible. The decision about which projects, or parts of projects, to offer to the market as a PPP and the decision concerning the allocation or sharing risks as part of engagement of the PPP consortium are among the most fundamental decisions that determine whether PPP deliver VfM. The focus in the paper is on latter decision concerning governments’ attitudes towards risk and more specifically, the effect of this decision on the nature of the emergent PPP consortium, or PPP model, including its economic behavior and outcomes. This paper presents an exploration into the extent to which the seemingly incompatible alternatives of risk allocation and risk sharing, represented by the orthodox/conventional PPP model and the heterodox/alliance PPP model respectively, can be reconciled along with suggestions for new research directions to inform this reconciliation. In so doing, an important step is taken towards charting a path by which governments can harness the relative strengths of both kinds of PPP model.

Intranet and internet uptake and usage within UK building surveying practices. A user based evaluation of advantages and disadvantages

The ‘single most important technological discovery since the birth of the p.c.’, (Gates, 1996). The swift increase in Internet utilisation within businesses and surveying has changed working methods within UK based Surveying practices. User numbers expanded rapidly since the early 1990’s and estimates place a figure of 150 million internet users globally (www.Yahoo.com, 2000). Sloan and Kee Low (2000) established that ‘e-commerce’ is a revolutionary way of trading and conducting business activities. There are opportunities for surveying practices including, reducing communication time, increasing revenues from new and existing sources, enhanced client satisfaction and competitive advantage (Cronin, 1996). Others (Dixon, 1998) perceive threats, such as ‘disintermediation’, to the traditional role of the surveyor.

This research examined the levels of internet and intranet access within the UK Building and Quantity Surveying practices and corporate firms to establish how the internet has affected working methods and client requirements. The research method comprised a qualitative approach using an email and postal questionnaire survey of a random sample of practices. The questionnaire findings formed the basis of semi structured interviews conducted with senior management of large practices to gain a deeper understanding of the issues identified within the survey.

Data analysis revealed the traditional role of the surveyor as a broker of information may be under threat in the long term. Generally levels of internet access in the sample exceed that of general business levels (Dti, 2000) with the largest growth pre 1997. The perceived advantages and barriers to Intranet and Internet usage were identified by the research.

Australian quantity surveyors utilize ICT and ERP system improving efficiency

Despite Information Communication Technology (ICT) can help to improve efficiency and Enterprise Resource Planning (ERP) system has been widely perceives as an efficient mean, diffusion rate is slow in construction industry and amongst quantity surveying profession. Today, quantity surveyor must frequently communicate with other stakeholder throughout the design and construct process and using information technology is a must. The more technologies evolve, the more quantity surveying with change and evolve to utilize these technologies. This paper, through literature review, firstly identifies perceived benefits of using ICT/ERP system, secondly concludes the critical success factors that may affect decision of adopting ICT/ERP tool in practice, and thirdly to suggest three effective evaluation tools before/after implementing ICT/ERP strategy. The ultimate goal is to advise how Australian quantity surveyors (QS) can utilize ICT and ERP system to improve efficiency.

Contractor quantity surveyor using ERP system in cost reporting

Quantity surveying is the key profession in cost management for construction business. However, construction industry is notorious in using information technology that makes reporting inefficient. A construction company in Hong Kong has been using an enterprise resource planning system as the information communication technology in management and cost reporting backbone since 2003. This paper investigates if such system represents an efficient tool for quantity surveyors and any intervening actions are required to enhance its efficiency. In doing so, a team of surveyors interviewed and then the soft system methodology was used as the research approach to depict the situation. This leads to the improvement needs and list of actions. Participants have prioritized working closely with top/senior management to design a proper report format; avoiding unnecessary adjustments and undue influence to reporting, and ensuring accurate data as the top three critical actions crucial for reliable cost reporting.

Why do tenders vary?

This paper describes the development of hypothetical models of tendering sets. Each tender is theorized as consisting of two variable components, the cost estimate and the mark-up, and in consideration of these variables, the concept of a 'winning zone' is postulated.