Risks in the tendering process faced by the contractors while tendering for design-bid-build projects in Pakistan | |
| Author | Khan, Muhammad Abbas |
| Call Number | AIT Thesis no.CM-19-23 |
| Subject(s) | Construction contracts--Pakistan Building--Estimates--Pakistan |
| Note | A thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering in Construction, Engineering and Infrastructure Management |
| Publisher | Asian Institute of Technology |
| Abstract | Construction projects are procured by the contractors through tendering mostly which is a critical stage for not only the contractors, but for all the stakeholders to effectively benefit each other. The traditional way of competitive tendering is still widely in practice along with the traditional project delivery method of design-bid-build. Like every stage of construction, tendering process also has a lot of risks, which needs to be identified in the early stage and then mitigated for the achievement of better project performance. But most of the contractors oversee these risks and bid a low rate, which eventually leads to huge overruns in terms of cost as well as time. These overruns not only effect the contractor alone, but the client is also affected, and sometimes huge losses are incurred. The identification and then mitigating the risks in the tendering process can lead to a better result later on in the execution. In this research, through the thorough review of literature, the risks in tendering process are identified and then grouped according to its generation. The risks in tendering process are generated either by the general contractors, the subcontractors and suppliers, or the clients including their hired consultants through prepared tender documents. Thirty-seven risks factors are identified after literature review which was then grouped into four groups later on while conducting exploratory factor analysis. But before conducting any analysis, questionnaire survey after expert validation and pilot testing was conducted in four major cities of Pakistan which includes Islamabad, Lahore, Rawalpindi, and Peshawar. In the questionnaire survey, eighty-two respondents were involved which were only the ones who worked as top managers in their companies, for example general managers, project directors, project managers, managing directors, executive directors, and head of departments. In the analysis of this research, necessary tests before analysis were conducted, which are reliability test and normality test. It was revealed that the data collected was not entirely reliable and to make it reliable, twenty factors were removed and only seventeen factors were retained. It was also revealed that the data is not normally distributed. Moreover, the research demands the comparison of the perception of Islamabad based contractors with the perception of the other three cities combinedly, so independent samples t-tests were conducted. As mentioned before, exploratory factor analysis indicates four groups of risks in tendering process which are top management generated risk, bid team generated risk, subcontractors and suppliers generated risk, and client generated risk. The results revealed that the most dominating risks are generated either by the top management or by the client as both of these groups were ranked on the higher side. The result also revealed that apart from two factors there is no difference in the perception of Islamabad based contractors and the perception of the contractors in the other cities. The difference is observed in only two factors of risks in tendering process which belongs to client generated risk. It means that the clients in Islamabad behave differently as compared to the other cities of Lahore, Rawalpindi, and Peshawar. The behaviour of the contractors remains the same in all the cities of Pakistan |
| Year | 2019 |
| Type | Thesis |
| School | School of Engineering and Technology (SET) |
| Department | Department of Civil and Infrastucture Engineering (DCIE) |
| Academic Program/FoS | Construction Engineering and Infrastructure Management (CM) |
| Chairperson(s) | Chotchai Charoenngam; |
| Examination Committee(s) | Hadikusumo, Bonaventura H.W.;Santoso, Djoen San; |
| Scholarship Donor(s) | Royal Thai Government Fellowship; |
| Degree | Thesis (M. Eng.) - Asian Institute of Technology, 2019 |