Public tendering process for construction projects: problem identifications, analysis, and proposed solutions

Abstract

The current tendering process has vulnerabilities that can be exploited to negatively impact project delivery. There are many research papers that discussed the occurrences of these exploitations (i.e., funds embezzlement, fraud invoicing, etc.), but there has not been one that focused on the study of the tendering process itself, nor presented problem analysis and mitigation options. The aims of this research are to identify and analyze problems in every stage of public tendering process, then offer potential solutions to resolve or curb these problems. In addition to utilizing publicly available studies and interviews were used as starting point of problems identifications. Questionnaires were then distributed to tendering practitioners. Likert scale assessment and factor analysis were used to measure the questionnaires and analyze the data respectively, while proposed solutions were established from experts’ judgement.This study showed that there are 135 problems that occur during tendering process. The most common problem is the bidding system’s inability to provide a complete database of contractors with their personnel, past works and experiences, and performance evaluation. The limited human resources in both number and competency is another important issue to consider. Proposed solution to solve these issues are based on four pillars of reformation concept done by public procurement agency.