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Tender in the Public Sector of the
Construction Industry
Submitted in partial fulfilment for the requirements of the
degree of
Bachelor of Technology: Quantity Surveying
in the
Faculty of Engineering and the Built Environment
at the
Durban University of Technology
Tanushree Pillay
National Diploma: Building
September 2012
BLDE401: Building Entrepreneurship IV
Lecturer: Dr Peter Utting
Academic Mentor: Mr D Moodley
Industry Mentor: Mr HL Patel
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Abstract
The South African government dedicates a considerable percentage
of public money
to provide physical infrastructure that the country needs for
economic and social
development. In conjunction; with the worldwide ethics of
integrity, transparency and
accountability, individuals who procure any physical
infrastructure for government
have to ensure that public money is spent efficiently and
wisely.
South Africa has a legal framework that guides government
spending. The
Construction Industry Development Board (CIDB) Act is part of
this framework and
prescribes the rules applicable to construction procurement
where public money is
spent.
Construction Procurement can be defined as procurement that
includes the invitation,
award and management of construction contracts. It covers
supplies, services, works
and disposals within the construction industry.
The purpose of this study is to explore the current construction
process and technical
difficulties within South Africa, applicable in the public
sector, as the complexity of the
preparation and interpretation of the tender documentation seems
not only to confuse
the contractor into being compliant but a lack of understanding
and interpretation
from a clients perspective could place consultants in a
laborious situation when
structuring and streamlining the document.
A qualitative approach is adopted to gain insights into the
understanding by Clients,
Consultants and Contractors (tenderers) in a naturalistic form.
Data is also collected
from the Construction Industry Board (CIDB) guidelines and
articles. Research
instruments included pre-determined interview questions which
were used to
interview the individuals who interact in the tender process; be
it the client, consultant
or contractor.
The results revealed that Contractors experienced technical
difficulties when
responding to tender documentation. Consultants adopted systems
in place when
preparing tender documentation to assure a systematic and
uniform documentation,
taking into consideration their Clients requirements. Both
Contractors and
Consultants are in agreement to the introduction of standarised
tender
documentation, as both parties justify to why they are in
agreement.
In conclusion, the ideal solution to the technical difficulties
experienced by
Contractors and Consultants would be to establish standarised
tender
documentation for client bodies i.e. Public works, Eskom, etc.
pertaining to different
types of contracts within the public and private sectors to
eliminate the non-
responsiveness of the contractor and confusion by the
client.
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DECLARATION
1. I know and understand that plagiarism is using another
persons work and pretending it is
ones own, which is wrong.
2. This report/project is my own work.
3. I have appropriately referenced the work of other people I
have used.
4. I have not allowed, and will not allow, anyone to copy my
work with the intention of
passing it off as his or her own work.
5. I have checked for plagiarism and found an overall content
match of ??%.
_________________________________________
Signature
_________________________________________
Name (in capital letters)
_________________________________________
Student number
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There are no secrets to success.
It is the result of preparation, hard work and learning from
failure.
-Colin L. Powell-
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DEDICATION
To my parents, Kenny and Premla Pillay and my brother Sashen.
You have inspired me by
your unconditional support, encouragement and patience
throughout this journey. Your
encouragement and love has made me aim to reach for the stars
and bring out the best
potential in myself.
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ACKNOWLEDGEMENTS
I would like to thank the following people:
My supervisor, Mr P Utting, for his unconditional support and
guidance through this
research study.
My industry mentor, Mr HL Patel, for his support, guidance and
passion to the Construction
Industry, which has shown me that it takes a few individuals
perseverance to make a mark
in an ideal construction environment.
My parents, who have supported me and helped me through this
research study.
My brother, Sashen, for his sense of humour through the
stressful times.
The participants, who enabled this study by expressing their
views and sharing their
experiences.
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CONTENTS
Abstract i
Declaration ii
Dedication iv
Acknowledgements v
Contents vi
List of Tables ix
List of Figures ix
1. Chapter 1: Introduction 1
1.1 Background to this Study 1
1.2 Procurement in the South African Context 1
1.3 The Aim and Research Questions 2
1.4 Participants in the Study 3
1.5 Structure of the Study 3
2. Chapter 2: Literature Review 4
2.1 Introduction to Public Procurement 4
2.1.1 What is Procurement? 4
2.1.2 Categories of Public Construction Procurement 4
2.1.3 The Legislative Framework 5
2.1.4 Benefits of Regulatory Framework for Construction
Procurement 6
2.1.4.1 Benefits to Clients 6
2.1.4.2 Benefits to Contractors 6
2.1.4.3 Benefits to Construction Industry 6
2.1.4.4 Benefits to South Africa 7
2.1.5 Stages of Construction Procurement Compliance 7
2.1.5.1 Principal Procurement Activities 8
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3. Chapter 3: Research Questions 10
Research Question One 10
Research Question Two 10
Research Question Three 10
4. Chapter 4: Research Methodology 11
4.1 Introduction 11
4.2 Research Design 11
4.3 Qualitative Approach 11
4.4 Participants 11
4.4.1 Clients 11 4.4.1.2 Procedures for Data Collection 12
4.4.2 Consultants 12
4.4.2.1 Procedures for Data Collection 12
4.4.3 Contractors 12
4.4.3.1 Procedures for Data Collection 13
4.5 Reliability and Validity 13
4.6 Research Limitations 13
5. Chapter 5: Results 15
5.1 Introduction 15
5.2 Results from Clients, Consultants and Contractors 15
5.2.1 Demographic Profile of Clients, Consultants and
Contractors 15
5.3 Results Specific to Questions 16
5.3.1 Clients Questionnaire 16
5.3.2 Consultants Questionnaire 16
5.3.3 Contractors Questionnaire 20
6. Chapter 6: Discussion of Results 26
6.1 Introduction 26
6.2 Demographic Profile of Clients, Consultants and Contractors
26
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6.2.1 Gender Group 26
6.3 Results Specific to Research Questions 26
6.3.1 As a contractor, before responding to tender
documentation,
what are some of the technical difficulties that are
experienced
in terms of ensuring your compliance to the tender
documentation? 26
6.3.2 Being a consultant, who prepares tender documentation, is
it essential
to have a standard system in place when preparing tender
documentation? 27
6.3.3 Should standardised tender documentation be implemented
for client
bodies pertaining to different types of contracts in the private
and public
sectors? 29
7. Chapter 7: Conclusion and Recommendations 31
7.1 Introduction into a Systems Approach of Standarised
Tender Documentation 31
7.2 Recommendations for Future Research 32
References 33
Appendices 34
Appendix 2: Research Questionnaires: Contractor 34
Appendix 3: Research Questionnaire: Consultant 38
Appendix 4: Research Questionnaire: Client 44
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List of Tables
Table 1: Categories of Construction Procurement 4
Table 2: Tender Documentation 17
Table 3: Summary of Views on the necessity for standard tender
documentation for
client bodies pertaining to different types on contracts in the
private and public sectors 18
Table 4: Summary of Views on the reasons to why there is no
standard tender
documentation implemented for client bodies pertaining to
different types on contracts
in the private and public sectors 18
Table 5: Summary of Views on the common errors encountered by
Tenderers when
returning tender documentation 19
Table 6: Summary of Views to whether Tenderers understand to
what is required when
responding to tender documentation and the occurrences take
place in public/private
sectors 20
Table 7: Tender Documentation Difficulties and Experiences
21
Table 8: Summary of Views on the structure of tender
documentation applicable to
private or public sector contracts 22
Table 9: Summary of Views on the complexity of tender
documentation applicable to
private or public sector contracts 23
Table 10: Summary of Views on the complexity of tender
documentation that required
external party services in assistance for response of tender
documents, applicable to
private or public sector contracts 23
Table 11: Summary of Views on the implementation of standard
tender documentation
from Contractors perspective 24
Table 12: Summary of Views on Contractors awareness of workshops
and seminars available on tender documentation 25
List of Figures
Figure 1: The Regulatory Framework for Construction Procurement
in South Africa 5
Figure 2: Principal Procurement Activities 8 Figure 3: Stages of
Construction Procurement Compliance 9
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Chapter 1: Introduction
1.1 Background to the Study
Governments need to deliver services and to construct and
maintain infrastructure for the
people they serve. This responsibility often results in the
purchase goods and/or services s
from, and payment to, the private sector to render services and
perform work on their behalf.
During the past decade there has been a trend within government
to privatise services and
activities traditionally provided by government. This has
increased the use of public sector
procurement to secure services of private contractors who either
enter into relationships with
public bodies to provide these services or to undertake these
activities on the behalf of such
bodies.
In this context, the private sector is used to substitute the
government itself (Govender and
Watermeyer n.d.:1).
1.2 Procurement in the South African Context
Procurement can be defined as the process, which creates,
manages and terminates
contracts. Procurement is therefore concerned with activities
that both precede and follow
the signing of a contract. It is practice in many countries to
regulate public sector
procurement in a legal framework. Therefore, the manner in which
goods, services and
works are procured, and the manner in which rights are granted,
is controlled (Govender and
Watermeyer n.d.:1).
The construction industry can be regarded as a broad
conglomeration of industries and
sectors which add value in the creation and maintenance of fixed
assets within the built
environment. This industry is central to the process of economic
and social development in
any country and as such may be regarded as an engine of growth
Govender and
Watermeyer.
The government of South Africa is committed to good governance
and the use of
procurement as an instrument of social policy. The new
Constitution of South Africa
prescribes that procurement for any organ of state should be
dealt with through a system
that is fair, competitive, equitable, transparent and cost
effective (Green Paper on Public
Sector Procurement Reform, 1997). The Constitution also allows
the implementation of
procurement policies providing for categories of preference in
the allocation of contracts and
the protection, or advancement, of persons, or categories of
persons, disadvantaged by
unfair discrimination.
This will not be achievable without adhering in sound financial
management, which includes
the principle value of money, good financial control,
eliminating and counter corruption and
requiring all contractors to have a good standing in terms of
their tax and service charge
obligations (Pautz, Watermeyer and Jacquet 2003)
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1.3 The Aim and Research Question
The aim of this study is to explore the current construction
process and technical difficulties
within South Africa, applicable in the public sector by means of
the analysis of a series of
questionnaires that was distributed vastly to clients,
contractors and consultants within the
construction industry and interpret their views and conflicts
involved in the current
construction process. In this way the study will illuminate the
relationship between the client,
contractor and consultant with the preparation and
interpretation of the tender
documentation and tendering in practice.
The research questions below listed, explores current
construction process and technical
difficulties within South Africa, applicable in the public
sector.
Research Question 1:
As a contractor, before responding to tender documentation, what
are some of the technical
difficulties that are experienced in terms of ensuring your
compliance to the tender
documentation?
Research Question 2:
Being a consultant, who prepares tender documentation, is it
essential to have a standard
system in place when preparing tender documentation?
Research Question 3:
Should standard tender documentation be implemented for client
bodies pertaining to
different types of contracts in the private and public
sectors?
1.4 Participants of the Study
The scope of research is described by the views and definitions
in the following relevant
terms:
Clients that include male and female individuals who are part of
the public and
private sector works, within the construction industry.
Consultants that include male and female individuals who are
professionals such
as quantity surveyors, mechanical and electrical engineers and
any individuals
regardless of their qualification who prepare or price tender
documentation for the
public and private sectors, within the construction
industry.
Contractors that include main contractors, selected
sub-contractors or nominated
sub-contractors who include the individuals that work for or are
the owners of the
construction company, that respond to the tender documentation,
for public and
private sectors, within the construction industry.
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1.5 Structure of the Study
The study is divided into seven chapters, with this introduction
to the problem definition
being the first chapter (Chapter 1).
The following chapter (Chapter 2) presents a review of the
literature on the concepts that are
investigated in the study, namely public construction
procurement.
In Chapter 3 the specific research questions to be are addressed
in this study are
postulated.
Chapter 4 explains the research methodology employed with a
detailed overview of the
method of qualitative research that was used for data
collection.
Chapters 5 and 6 present the research findings and the
discussion of the results,
respectively.
The study concludes in Chapter 7 with the explanation to why
standardised tender
documentation to client bodies should be implemented and
recommendations for future
research studies.
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Chapter 2: Literature Review
2.1 Introduction to Public Procurement
2.1.1 What is Procurement?
The Construction Industry Development Board (CIDB) (2006:11)
defines procurement as
follows:
Procurement may be described as the process that creates,
manages and fulfils
contracts. Procurement is as such concerned with establishing
and documenting
what is required; soliciting from the private sector tender
offers to provide supplies or
services / to construct or maintain infrastructure / to
undertake disposals; awarding
contracts to successful tenderers; monitoring that which was
contracted to be
provided is indeed provided; and paying contractors for
executing their contracts.
2.1.2 Categories of Public Construction Procurement
Table 1 describes the categories in public construction
procurement which includes the
provision of supplies, services engineering and construction
works and disposals.
CATEGORY OF CONSTRUCTION PROCUREMENT
DESCRIPTION
Disposals The divestiture of public assets, by any means,
including sale, rental, lease, licenses, tenancies, franchises,
auction or any combination thereof.
Engineering and construction works
The provision of a combination of supplies and services,
arranged for the development, extension, installation, repair,
maintenance, renewal, removal, renovation, alteration, dismantling
or demolition of structures, including building and engineering
infrastructure
Services The provision of labour or work, including
knowledge-based expertise, carried out by hand, or with the
assistance of equipment and plant.
Supplies The provision of materials or commodities made
available for purchase.
Table 1: Categories of Construction Procurement.
Source: The Construction Industry Development Board
(2006:11).
2.1.3 The Legislative Framework
Public sector clients involved in construction procurement must
comply with the relevant
regulation as depicted in Figure 1. Besides the legal imperative
everyone benefits both
directly and indirectly which is discussed in section 2.1.4.
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Figure 1: The Regulatory Framework for Construction Procurement
in South Africa
Source: The Construction Industry Development Board
(2006:14)
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Figure 1 depicts the regulatory framework for construction
procurement in South Africa,
before individuals or companies progress; the question should be
raised to whether your
procurement is complaint?
2.1.4 Benefits of Regulatory Framework for Construction
Procurement
2.1.4.1 Benefits to Clients
The benefits to clients include any individuals who procures
infrastructure for government
(The Construction Industry Development Board n.d.:4). Some
benefits to clients that the
regulatory framework provide if compliant:
The regulations assist you to spend public money responsible and
according to
procedure;
The regulations are in line with worldwide principals of
transparency and
accountability;
By complying to regulations, you limit unethical practices such
as fraud,
corruption, nepotism, conflict of interest, favouritism,
wasteful expenditure and
abuse of power; and
Targeting the right contractors with the right interventions to
grow their skills and
businesses.
2.1.4.2 Benefits to Contractors
Some benefits to contractors that the regulatory framework
provides if compliant (The
Construction Industry Development Board n.d.:4):
Allows the contractor to tender for any work that he is capable
of handling;
Provides the contractor with the same opportunity as any of
their competitors to
tender as all the information is openly available on the
Register of Projects; and
When clients use uniform documents and contracts, a contractor
can save time,
effort and resources by having fewer documents to interpret and
familiarise
themselves with.
2.1.4.3 Benefits to Construction Industry
The information is recorded on the Register of Projects, all
stakeholders in the
industry can access details on government spending on
infrastructure, how much
they are spending and what projects they are spending;
The performance information is shared on the Register of
Projects, all
stakeholders in the industry can locate which companies or
contractors are
awarded contracts and which are delivering good standards on the
contracts; and
Industry stakeholders can adopt strategies to improve their
chances of getting
additional contracts or to improve the overall performance;
and
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Industry stakeholders can forecast their labour and decide which
skills to retail
and which skills they need to develop in order to stay
competitive (The
Construction Industry Board n.d.:4).
2.1.4.4 Benefits to South Africa
The government is a major client in the construction sector and
therefore has the
ability to make significant impact on the employment creation
through investment
of infrastructure;
South African citizens can monitor whether government spends
construction
budgets for the greater good;
South African citizens can hold government accountable for
construction funds
allocated but not spent or ill spent; and
Quality construction procurement leads to quality
infrastructure, quality
relationships and a greater quality of work on all levels (The
Construction Industry
Board n.d.:4).
2.1.5 Stages of Construction Procurement Compliance
According to the Construction Industry Development Board
(2006:6) Procurement can be
defined as follows:
Procurement is by definition a process, the succession of
logically related actions
occurring or performed in a definite manner which culminates in
the completion of a
contract for the provision of engineering and construction
works, supplies or services
or disposals.
The commencement of procurement activities is initiated once the
need for procurement is
identified, and the process is completed when the transaction is
completed, Construction
Industry Development Board (2007:1)
Construction Industry Development Board (2006:21) identifies
those decisions involved in
the construction procurement process experienced could be
complex, however,
Uniform procurement processes should be adopted, in order to
streamline
processes and avoid confusion between different procurement
methods.
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2.1.5.1 Principal Procurement Activities
There are six principal procurement activities which will be
represented on the flow chart
(figure 2), which proceed to the following activity once its
previous activity has been
completed.
Figure 2: Principal Procurement Activities
Source: The Construction Industry Development Board (2007:2)
Figure 2 depicted above, depicts a brief lifecycle of the
principal procurement activities,
commencing from stage one and ending at stage 6. The arrows
represent the
interdependence of each activity, which means that each activity
has to be completed in a
sequence, to ensure the commencement to next activity.
Although, the principal procurement activities are
interdependent on each other, they are
also reliant on the generic steps that are identified as inputs
or procedural milestone, within a
procurement process and require decisions to be passed, in order
to proceed to the next
stage, Construction Industry Development Board (2006:2)
Stage 2: Decide on
procurement strategies
Stage 3: Solicit
tender offers
Stage 4: Evaluate
tender offers
Stage 5: Award Contract
Stage 6: Administer
contracts and confirm
compliance with
requirements
Stage 1: Establish what is to
be procured
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Figure 3 depicted, explains the stages of Construction
Procurement Compliance including
the generic steps that works in relation to the regulatory
framework (figure 1) which guides
government spending.
Figure 3: Stages of Construction Procurement Compliance
Source: The Construction Industry Development Board (n.d.)
Stages of
Compliance
Standard
Methods,
Systems,
Documentation
Register of
Projects
Register of
Contractors
Prepare Tender
Advertise Tender
Evaluate Tender
Award Tender on Register of
Projects
Complete/Terminate Project
Prepare Data/Specifications
according to Standard for
Uniformity
Only Evaluate according to
Tender Data specified in
Tender Document
Advertise tender on CIDB
iTender System:
1. Free
2. Contractors
immediately informed
3. CIDB tracks project
Register award on Register
of Projects including form of
contract awarded,
contractor name, CRS
number and contract period
Register tender cancellation
on Register of Projects
Register project completion
on Register of Projects
Register project termination
on Register of Projects
Specify CIDB contractor
registration grade
Tenders must meet
contractor grading
requirements specified in
the tender document
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Chapter 3: Research Questions
Given the phenomenon of the technical difficulties within the
construction industry,
applicable to tender documentation preparation, interpretation
and understanding, it is
important to gain understanding of the relationship linking
clients, consultants and
contractors.
Furthermore, for the purposes of this study, we will explore the
link between clients,
consultants and contractors in terms of tender documentation and
explore the need for
standardised tender documentation in South Africa.
The objectives of this research study are to:
Investigate the understanding and interpretation of tender
documentation from a
clients perspective;
Investigate the complexity of the preparation of tender
documentation from the
consultants perspective;
Investigate the complexity of the responsiveness of the
contractor to tender
documentation; and
Establish the view of standardised tender documentation for
client bodies pertaining
to different types of contracts applicable to the public and
private sectors.
The following research questions are proposed to address the
objectives outlined above
namely:
Research Question 1:
As a contractor, before responding to tender documentation, what
are some of the technical
difficulties that are experienced in terms of ensuring your
compliance to the tender
documentation?
Research Question 2:
Being a consultant, who prepares tender documentation, is it
essential to have a standard
system in place when preparing tender documentation?
Research Question 3:
Should standard tender documentation be implemented for client
bodies pertaining to
different types of contracts in the private and public
sectors?
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Chapter 4: Research Methodology
4.1 Introduction
The purpose of this study was to firstly, explore the technical
difficulties within the
construction industry, thereafter, the link between clients,
consultants and contractors
regarding tender documentation, and lastly discuss the views
about implementation of
standard tender documentation to South Africa.
4.2 Research Design
The research process commenced by identifying the research
problems, as discussed in
chapter 3. The research problems were conceptualised, by
identifying the link between the
Client, Consultant and Contractor and the relevance of tender
documentation that affects
each party. To identify the concept of construction procurement
which relates these parties
to each other, a literature reviewed was conducted to briefly
guide the reader, as discussed
in chapter 2.
4.3 Qualitative Approach
Marshall and Rossman (2006) suggest the approach to qualitative
research when the
researcher wants to gain insights and discover new ideas. The
qualitative approach is
recommended for its design allowing the researcher to focus on
the importance of context
and the respondents view on a particular topic.
The study aims to explore the link between Clients, Consultants
and Contractors allowing
an in-depth analysis into the understanding and complexity of
tender documentation.
In this research study, respondents freely commented on their
views of past and current
experiences relating to tender documentation, either publicly or
privately. Since the aim of
this study was to explore the technical difficulties within the
construction industry, the
researcher focussed on a qualitative approach to gain insights
and understanding into the
research problems, and in the process explore the idea of the
impact that standard tender
documentation could have on the construction industry.
4.4 Participants
Participants in this study were divided into three groups. They
were the Clients, Consultants
and Contractors.
4.4.1 Clients
Clients were approached to complete an open-ended questionnaire
in order to create a
deeper understanding of the research problems. The aim was to
obtain the views of
understanding and interpretation of tender documentation from a
clients perspective, within
the construction industry, applicable to the public sector.
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Unfortunately, there was no participation from the Clients due
to unforeseen reasons, on
their part.
4.4.1.2 Procedures for Data Collection
Four Clients were contacted telephonically to explain the nature
of the study and request
their permission to complete the questionnaires. Two Clients
agreed to part-take in the
study. The questionnaires were distributed to the two Clients by
means of dropping the
questionnaire off at their offices. Unfortunately, when
contacted a week later, the Clients
were not able to complete the questionnaire, due to reasons
unforeseen. The questionnaire
is attached as Appendix 4.
The questionnaire was designed to extract the views into three
main aspects, namely
understanding, interpretation of tender documentation and their
view of standarised tender
documentation pertaining to different types of contract,
applicable within the construction
industry.
4.4.2 Consultants
Consultants were approached to complete an open-ended
questionnaire in order to create a
deeper understanding of the research problems. The aim was to
obtain the views on the
complexity during which tender documentation is prepared and
what factors affect the
Consultants during the preparation of tender documentation.
4.4.2.1 Procedures for Data Collection
Seven Consultants were contacted telephonically to explain the
nature of the study and
request their permission to complete the questionnaires. Five
Consultants agreed to part-
take in the study. The questionnaires were distributed to the
five Consultants by means of
dropping the questionnaire off at their offices and were
returned by means of picking up the
questionnaire. The questionnaire is attached as Appendix 3.
The questionnaire was designed to extract the views into the
complexity of tender
documentation, the system Consultants have in place when
preparing tender documents
and their view to the implementation of standard tender
documentation, applicable within the
construction industry.
4.4.3 Contractors
Contractors were approached to complete an open-ended
questionnaire in order to create a
deeper understanding of the research problems. The aim was to
obtain the views on the
complexity of the responsiveness on the part of the Contractor
into ensuring his compliance
when returning tender documents, either publicly or
privately.
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4.4.3.1 Procedures for Data Collection
Ten Contractors were contacted telephonically to explain the
nature of the study and
request their permission to complete the questionnaires. Four
Contractors agreed to part-
take in the study. The questionnaires were distributed to the
five Contractors by means of
dropping the questionnaire off at their offices and were
returned by means of picking up the
questionnaire. The questionnaire is attached as Appendix 2.
The questionnaire was designed to extract the views on the
complexity that is experienced
by Contractors when responding to tender documentation, as well
as the difficulties that
occurs into assuring they are compliant when submitting tender
documentation, and their
view to the implementation of standard tender documentation,
applicable within the
construction industry.
4.5 Reliability and Validity
Merriam (1998) states that qualitative research needs to
convince the reader that the study
makes sense, unlike quantitative research that has to convince
the reader that procedures
have been followed systematically.
The information obtained from Contractors and Consultants
questionnaires were either
actively involved with tender documentation, being responding
directly or involved in the
process of preparing to tender documentation, privately or
publicly.
The majority of the documentation in regards to construction
procurement and tender
documentation was obtained from the Construction Industry
Development Board (CIDB)
website, thereby adding to the reliability of the study.
Although every effort was made to ensure ultimate coverage of
the most important issues
relating to tender documentation and technical difficulties that
are encountered by
Contractors and Consultants, possible obstacles encountered to
the reliability and validity of
the study could be omissions with regards to, the views obtained
from Contractors,
Consultants, literature, and the sources of which, I am not
aware of.
4.6 Research Limitations
Limitations of this study include the following:
No Clients participated in the questionnaires. If Clients
participated in this study, the
study would have gained insights of their perspectives on tender
documentation, as
well as the implementation on standardisation tender
documentation.
The Clients views could have changed or impacted on the
conclusion to this study.
Only male Consultants and Contractors responded to the
questionnaires. It would
have been advisable for equal responses from males and females
from consultants
and contractors, but unfortunately, this occurrence was hard to
come by as, the
construction industry is limited to females.
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Contractor development workshops on procurement were hard to
locate, due to the
response, that these workshops are currently being implemented
and made available
by the Construction Industry Development Board (2012).
The lack of South Africa research relating to standardised
tender documentation does not
exist, therefore making it difficult to judge whether the
findings are generalised by the
Consultants and Contractors
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Chapter 5: Results
5.1 Introduction
This chapter describes the results of the findings in an attempt
to address the research
objectives that outline this study. The results of the data
analysis of the Clients, Consultants
and Contractors are presented as follows:
Clients, Consultants and Contractors
- Demographic Profile to clients, consultants and
contractors.
- Results to specific questions.
Key phrases; and
Discussion of Results.
5.2 Results from Clients, Consultants and Contractors
5.2.1 Demographic Profile of Clients, Consultants and
Contractors
For this research study, five Clients, Consultants and
Contractors were approached to
participate in this research study.
There was no participation on the part of the five Clients that
were approached to partake in
this research study.
Five Consultants were available to complete and return the
questionnaires to the best of
their ability.
Four Contractors were available to complete and return the
questionnaires to the best of
their abilities.
Client, Consultants and Contractors Gender Group
There was no participation on the part of the Clients that were
approached.
All five Consultants that participated in this study were (100%)
male.
Three out of Four Contractors that participated in this study
were male and the One
Contractor that participated in this study was female.
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16
5.3 Results Specific to Questions
5.3.1 Clients Questionnaire
Since there were no participation on the part of the Clients
questionnaire (Appendix 4) in the
public and private sectors, it was difficult to come to the
conclusion on their view of tender
documentation and the need for the standardisation of tender
documentation for client
bodies pertaining to different types of contracts, applicable
within the construction industry.
5.3.2 Consultants Questionnaire
Responses to the open-ended questions as per questionnaire
(Appendix 3) are presented
below. The sample of excerpts from the Consultants responses
will provide the reader with
the summary of views of the Consultants in respect to tender
documentation, applicable to
the public sector, within South Africa.
Question 1 to 5: Tender Documentation
The purposes of these questions are to obtain views on tender
documentation that they have
encountered as Consultants and in South Africa.
Consultants were requested to express their views on tender
documentation in terms of the
difficulties that are experienced, the system they have in place
for the preparation of tender
documentation, the sectors they prefer preparing tender
documentation and the difference
between preparing tender documentation for the public and
private sectors.
Table 2 provides a summary of the views of the Consultants in
respect to tender
documentation listed in the questionnaire. The experts are in
agreement, that there are
some improvements that need to be implemented to improve the
nature and system of
tender documentation in South Africa.
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17
Table 2: Tender Documentation
Characteristics Excerpts from Consultants
Tender Documentation in South Africa
Tender Documentation is vague and not properly prepared; as a
result one ends up querying many items. Satisfied with tender
documentation, but one has to be well experienced in the field of
the tender, that one is bidding for.
Simplicity and difficulty depends on that particular client.
Difficulties experienced when preparing Tender Documentation
Conditions of tender requirements are not easily available to
include in the tender documents. Each client has their own
structure that they require to be used in terms of tender
documentation. The supplementary information tends to change in
different departments. The architect specification does not always
correspond with the drawings that are issued. Covering all the
unforeseen items that could change the whole budget and scope of
works.
Bills of quantities challenging to include the correct
quantities.
Preference to Public/Private sector Tender Documentation
Only public sector, would like the opportunity to prepare tender
documentation for private sector, in order to distinguish the
difference between the both. Private sector, as clients are easy to
talk too directly and prepare the tender document to suite the
clients needs. Public sector but this sector is disadvantageous as
their payments for the services are late.
Public sector, the tender document is uniform.
Both, as we have adopted a standard approach for them both.
System implemented when preparing Tender Documentation
One document, inclusive of bills of quantities and returnables
for a small project. Larger projects are divided into volumes.
Dependent on client requirements.
Returnables and bills of quantities are separated into two
documents.
The Consultants responses to five pertinent questions that this
study seeks to address
namely questions 7 11 are presented below. The sample of
excerpts of Consultants
responses will provide the reader with a summary of views of the
Consultants in respect to
standardisation of tender documentation, applicable to the
public and private sectors, within
South Africa.
Question 7: If there was standard tender documentation in place
for client bodies
pertaining to different types of contracts in the private and
public sectors, would this
be beneficial to consultants during the preparation of tender
documentation?
Table 3 represents a summary of views of Consultants on whether
there is a necessity for
standard tender documentation for client bodies pertaining to
different types of contracts.
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18
Table 3: Summary of Views on the necessity for standard tender
documentation for
client bodies pertaining to different types on contracts in the
private and public
sectors.
Consultants Excerpts from Consultants
Consultant 1 Beneficial to consultants, saving time and
providing clients what they request without leaving out
information.
Consultant 2
Consultants could then pull their attention to bills of
quantities and scope of works instead of compiling the standard
documentation. Tenderers will be able to access the document and
become familiar with the essential documents that need to be
returned to ensure they are compliant.
Consultant 3 Save time.
Consultant 4 Easier to follow one standard, than to change to
suit different standards.
It is apparent from the consultants views as shown in Table 3
that there is a necessity for
standard tender documentation for client bodies, applicable to
the public and private sectors.
These views of these professionals should give some light into
the request for this proposal
of standard tender documentation in South Africa.
Question 8: Why is there no standard tender documentation
implemented in South
Africa, for client bodies within the private and public
sectors?
Table 4 below represents a summary of views of Consultants on
the views to why there is
no standard tender documentation implemented for client bodies
pertaining to different types
of contracts.
Table 4: Summary of Views on the reasons to why there is no
standard tender
documentation implemented for client bodies pertaining to
different types on
contracts in the private and public sectors.
Consultants Excerpts from Consultants
Consultant 1 Unsure, but the CIDB needs to provide the relevant
documentation. CIDB needs to further categorise mechanical
engineering for specialist installation.
Consultant 2 Different clients require different items in tender
documentation.
Consultant 3 Differences in private and sector tender document
preparation in terms of civil works; structural; mechanical and
electrical, that is why there is not one standard document.
Consultant 4 All works are different but as a consultant, if
standard document implemented it should allow consultant to add
information to suite ones work.
It is evident from Table 4, shows that the reasons to why there
are no standardised tender
documentation is on the onus of the CIDB and the different types
of contracts that require
different data from the consultants, when preparing tender
documentation.
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Question 9: The common errors tenderers make when returning
tender
documentation that leads to their non-compliance?
Table 5 represents a summary of views of Consultants on the
views to the common errors
that Tenderers tend to make upon returning tender documentation
and as a result the non-
compliance of the tender.
Table 5: Summary of Views on the common errors encountered by
Tenderers when
returning tender documentation
Consultants Excerpts from Consultants
Consultant 1 Not providing original documents, although
specified in the document. Also not returning all the returnable
documents and not signing all the relevant documents.
Consultant 2 Omitting important annexures and not returning all
important documents. Not complying with procurement policies,
tendering procedures and requirements.
Consultant 3 Invalid tax clearance certificates, incorrect GB
grading and not signing all relevant documents.
Consultant 4 Dont read document properly as a result not all
returnables returned. Tenderers tender on work that they are not
qualified to do.
According to the summary of views that is shown above in Table
5,it is evident that
Tenderers need to be more aware and to understand what is
expected from them when
returning tender documentation to prevent them from being
non-compliant and as a result
being disqualified from the tender.
Question 10 and 11: Do tenderers understand what is required
from them when
responding to tenders and does this occur in the private and
public sectors?
Table 6 below represents a summary of views of Consultants on
the views to whether
tenderers understand what is necessary when responding to tender
documentation and in
which sectors does this occurrence take place in.
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20
Table 6: Summary of Views to whether Tenderers understand to
what is required
when responding to tender documentation and the occurrences take
place in
public/private sectors
Consultants Excerpts from Consultants
Consultant 1
Not all understand, the reason being they feel they can tender
on everything, even though they are not qualified in performing the
work. Occurs mainly in public sector, as the people in charge of
the tenders dont follow protocol and award the tenders to
unqualified companies, resulting in high levels in corruption in
government departments.
Consultant 2
Tenderers, who dont understand, think that tenders are based
only on price and tend to ignore the other parts of the tender
document. Public sector as contractors dont have the proper
training when it comes tendering for work.
Consultant 3
CIDB needs to implement workshops for contractors in regards to
responding to tender documentation.
Public sectors as contractors not familiar with tendering
procedures.
Consultant 4
Contractors who tender regularly have an idea to what is
required from them. They tend to familiarise themselves with the
changes when it occurs. Private sectors tend to be simple and easy
tendering system. Public sectors tends to be continuously changing,
due to government policies, affirmative actions and differences
that occurs from province to province,
According to the summary of views that is shown above in Table
6, most of the Consultants
are in agreement that Contractors tend to have some
difficulties, especially on public sector
projects, when responding to tender documentation. Contractors
are not equipped to tender
on work that they are not suitable to perform but seem to think
they are suitable to tender on
any work regardless of their qualifications.
In conclusion, to the consultants questionnaires some
improvements need to be
implemented to improve the nature and system of tender
documentation in South Africa.
These improvements could include the implementation of
standardised tender
documentation, which could be made accessible to contractors to
become familiar with
therefore improving their responsiveness when tendering and the
most important variable
understanding what is required from them when completing a
tender document. This does
not only include price for work but adhering to the governments
procurement and tendering
policies and regulations.
5.3.3 Contractors Questionnaire
Responses to the open-ended questions as per questionnaire
(Appendix 2) are presented
below. The sample of excerpts from the Contractors responses
will provide the reader with
the summary of views of the Contractors in respect to tender
documentation, applicable to
the public sector, within South Africa.
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21
Question 1 to 2: Tender Documentation Difficulties and
Experiences
The purposes of these questions are to obtain views on the
difficulties and experiences of
tender documentation that have been encountered by Contractors
in South Africa.
Contractors were requested to express their views on tender
documentation in terms of the
difficulties that are experienced when responding to tender
documentation, either being the
private or public sectors, and the positive and negative
experiences in terms of structure and
format of the tender document.
Table 7 provides a summary of the views of the Contractors in
respect to tender
documentation listed in the questionnaire. The tenderers are in
agreement, that there are
some improvements that need to be implemented to improve the
nature and system of
tender documentation therefore making it more understandable and
uniform when
responding from a Contractors point of view.
Table 7: Tender Documentation Difficulties and Experiences
Characteristics Excerpts from Contractors
Difficulties experienced with Tender Documents
The pick-up of the tender document before the day of the site
meeting creates a double cost to the company, especially if the
contract that is tendered on is not situated in a close proximity
to the offices. Many returnables to be provided upon returning the
document. Calculation errors could cause the non-compliance of our
part. Tender documents may not give full, adequate and precise
information, especially in the scope of works. Suppliers take long
to give prices on materials as they work with a system of first
come-first out. Quotations from suppliers, time allocation to
respond to the tender documents and returnable schedules that
require information that is irrelevant. Private The consultants
that prepare the documents in some cases request returnables that
are only applicable to public sector tenders, which take time on
the Contractors part to produce. Public Overwhelmed with all the
returnable documents that must be produced and ensure it is
provided otherwise be disqualified.
Positive and Negative experiences with Tender Documents being it
Public or Private sectors
Positive Clients have different styles of documentation
therefore we are learning new things. Negative Ensure all
compulsory documents are included otherwise expect
disqualification. Positive Private sector tenders format are
user-friendly and easy to price. Negative Public sector tenders
require unnecessary documents. Positive Public sector Being awarded
the tender and pricing competitively. Negative Having the tender
being disqualified and submitting the tender in the wrong box.
Negative Public sector Not all documents have a uniform structure,
if one looks at the same public entity that has prepared the
document for a certain school and the same public entity puts out a
different document the structure and returnables will be
different.
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22
The Contractors responses to six pertinent questions that this
study seeks to address
namely questions 3 - 8 are presented below. The sample of
excerpts of Contractors
responses will provide the reader with a summary of views of the
Contractors in respect to
structure, complexity and compliance of tender
documentation.
Also one needs to address if workshops and seminars are made
available to Contractors
responding to public and private tenders, and the necessity of
these workshops to the
betterment of Contractors responsiveness to tenders.
Question 3: As a contractor, did you ever take notice of the
structure of tender
documentation that you have tendered on, was it public or
private sector tenders?
Table 8 represents a summary of views of Contractors on whether
they take notice of the
structure of tender documentation that is tendered on, either
private or public sector
contracts.
Table 8: Summary of Views on the structure of tender
documentation applicable to
private or public sector contracts
Contractors Excerpts from Contractors
Contractors 1 Public tender dependant on the CIDB grade, stage 1
structure is easy to comply with whilst stage 5 and upwards becomes
complex to respond.
Contractors 2 Structure of tender documents is important for
helping the contractors pricing of the document.
Contractors 3 My view is that public tenders structure follow
the same structure.
Contractors 4 We are consultants, that also respond to tenders
from a contractors behalf, and often take notice that private
tenders are simple to understand whilst public tenders have to be
scrutinised each page to ensure nothing has been left out.
According to the summary of views that is shown above in Table
8, most of the Contractors
are in agreement that Public sector structures of tender
documentation seems to be complex
to respond to, especially the higher the CIDB grading that is
requested in the tender
documentation, the more difficult to ensure the responsiveness
on the Contractors part.
Question 4: Did you experience a situation where the tender
documentation was so
complex that you did not understand what was required from you,
as a tenderer, even
though you were interested in the works, was it a public or
private sector tender?
Table 9 represents a summary of views of Contractors on the
complexity of tender
documentation that is tendered on, either private or public
sector contracts.
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23
Table 9: Summary of Views on the complexity of tender
documentation applicable to
private or public sector contracts
Contractors Excerpts from Contractors
Contractors 1 Public tender As civil contractors, we are
requested to quote on electrical and mechanical trades, as a result
the rate is not submitted in time, therefore not able to submit the
tender on time.
Contractors 2 No comment
Contractors 3 Public tender Transnet Tender.
Contractors 4 Public tender Tenderers are often forwarded to our
consultation services by contractors often dont know where to start
in terms of being compliant, questionnaires and how to price bills
of quantities.
According to the summary of views that is shown above in Table
9, most of the Contractors,
especially when responding to public sector tenders i.e. public
entities such as Ithala
Development Finance Corporation, Dube TradePort Corporation and
Prasa, there seems to
be difficulty when responding to such public entities due to the
fact of the information /
returnables that is required for the Contractors to ensure their
compliance to the tender
documentation. The fact remains that Contractors see most
returnables as unnecessary and
as a result of non-submission could have the end-result of the
Contractors being dis-
qualified.
Question 5: Did you experience a situation that the tender was
so complex, that you
had the engage the services of an external party i.e. consultant
to help you respond to
the tender and ensure that you were responsive to prevent you
from being dis-
qualified from the tender?
Table 10 represents a summary of views of Contractors on the
complexity of tender
documentation that required the engagement of an external party
services to respond to the
required tender documentation, either private or public sector
contracts.
Table 10: Summary of Views on the complexity of tender
documentation that required
external party services in assistance for response of tender
documents, applicable to
private or public sector contracts
Contractors Excerpts from Contractors
Contractors 1 The engagement of electrical and mechanical
contractors for works such as pumps stations and treatment works
that we dont specialise in.
Contractors 2 No Comment
Contractors 3 No Comment
Contractors 4 We often consult with other consultants to ensure
we are on the right track and make sure we understand the new
regulations to prevent the Contractor from being non-compliant.
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24
It is evident from summary of views that is shown above in Table
10, that 50% of the
Contractors engage external services i.e. consultants or
contractors that specialise in that
specific trade to help them in terms of pricing or as a whole
adopt the consultation services
to respond from the Contractors behalf to tenders that they are
not familiar with and when
they want to ensure a competitive price.
One needs to distinguish whether the engagement of external
services of consultants from
the Contractors part could be a result to inadequate staff, lack
of experience to tender on
specific tenders, the Contractors capacity to take upon many
tenders or due to the
complexity on specific tender documentation would result in the
engagement of external
services.
Question 6: Do you think there should be a standard tender
documentation in place to
ensure that tenders are easily understood by the tenderers and
ensure tenderers are
compliant?
Table 11 represents a summary of views of Contractors on the
implementation of standard
tender documentation that could ensure the compliance from the
Contractors part.
Table 11: Summary of Views on the implementation of standard
tender documentation
from Contractors perspective
Contractors Excerpts from Contractors
Contractors 1 Result in the betterment to contractors, as
clients always want new things that they dont even use, resulting
in the disqualification of tenders. Clients often give tenders to
their connections or friends.
Contractors 2 Tender documents should have a norm that would
help tenderers speed up the process when completing tenders.
Contractors 3 It would be beneficial, but to date tenders are
not standard across the board.
Contractors 4 Beneficial, at least contractors could be one step
ahead so they can familiarise themselves with the tender document
and prevent being non-compliant and embarrassed.
Table 11 clearly establishes that Contractors are in agreement
that the implementation of
standard tender documentation is highly recommended to ensure a
uniform procedure in
terms of ensuring that Clients dont discriminate and treat
Contractors unfairly when
disqualifying and awarding tenders.
The introduction of standard tender documentation could be
beneficial from the Contractors
perspective, as Contractors could familiarise themselves with a
standard document
therefore ensuring that every aspect is understood at all levels
and ensure less errors
resulting in non-compliance and disappointment due to the time
invested in a disqualified
tender.
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25
Question 7 and 8: Do you know of any workshops or seminars that
are in place in
South Africa to help tenderers that advises or teaches them, how
to respond correctly
to tender documentation and ensure they are always compliant and
that their tender
returnables are structured and streamlined?
Table 12 represents a summary of views of Contractors on the
awareness of workshops or
seminars available on tender documentation and the impact it
could have on Contractors.
Table 12: Summary of Views on Contractors awareness of workshops
and seminars
available on tender documentation
Contractors Excerpts from Contractors
Contractors 1 No comment
Contractors 2 Workshops are available but not aware for what?
Beneficial to those who want to excel.
Contractors 3 None available. Beneficial.
Contractors 4 None, but there are practice notes available on
how to tender. Practice notes not always useful as we dont
understand the terms.
According to Table 12, it is evident that Contractors are
unaware of the workshops that are
available due to the fact simply, that either they are CIDB
registered and unaware what The
Construction Industry Development Board offers or they are not
CIDB registered therefore
these workshops would not be made available to them.
Contractors are well aware of the many practice notes that are
made available by Provincial
Departments and The Construction Industry Development Board, but
seem to experience
difficulty in understanding the practice notes made
available.
However, international countries such as Australia, London and
Brisbane are a few of many
countries worldwide whereby external consultation companies are
outsourced by the
Government to help Contractors in terms of workshops to further
prepare them by offering
seminars with manuals to how they should respond to tender
documentation pertaining to
their relevant country or city.
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26
Chapter 6: Discussion of Results
6.1 Introduction
In this Chapter, the findings of the study was evaluated and
interpreted in terms of the
research problems. The purpose is to discuss the findings from
the three main groups that
participated in this study which two out of the three groups
participated, namely the
Consultants and Contractors.
Firstly, the demographic profiles of the Consultants and
Contractors are discussed.
Thereafter, a discussion into the specific research questions
will be addressed.
6.2 Demographic Profile of Clients, Consultants and
Contractors
6.2.1 Gender Group
As discussed in Section 5, sub-section 5.2.1, all the
Consultants and majority of the
Contractors were male leading to homogeneity.
6.3 Results Specific to Research Questions
The study proceeds to answer the following research
questions.
6.3.1 As a contractor, before responding to tender
documentation, what are some of
the technical difficulties that are experienced in terms of
ensuring your
compliance to the tender documentation?
From the study, there are certain technical difficulties that
Contractors experience,
especially when responding to public sector tender
documentation.
These include the following difficulties:
Tender documents are not always well structured, therefore
making it difficult for
Contractors to know what it expected from them in terms of
returnable documents
and understanding the scope of works;
Ensuring that they have all the relevant rates filled in the
bills of quantities, as some
Contractors experience difficulties when requesting quotations
from their suppliers;
Ensuring that the tender is submitted before the closing date
and time, as any tender
received late after the closing time will be deemed
non-compliant;
Submitting the tender documentation to the wrong location is a
common error with
Contractors. Although this seems simple, delivering tender
documents to the wrong
tender box is a common error with many Contractors; and
Not answering or complying with all the requirements of the
tender documents results
in disqualification. Many Contractors believe that not all
returnables are essential,
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27
but the fact remains if Contractors dont respond as requested,
there was no point to
waste their time and money on tender documents in the first
place.
It is evident from the findings of the study, that certain
Contractors mainly do not understand
the relevance of the compulsory documentation that are required
from them, when
completing tender documentation and ensuring their compliance at
all times. It is essential
that contractors assess tender documents and even request
external consultation services
to ensure to what the extent of the works is required from them,
and in additional the
compulsory and original documents to ensure their compliance to
a specific tender.
From the study, I have drawn to the result that many Contractors
whether being registered
with the Construction Industry Development Board (cidb) or not
are unaware of workshops to
help Contractors respond effectively and correctly to tender
documentation. This is due to
the fact that there were no workshops made available in recent
years.
According to the CIDB, Notification of Special Board Meeting
(2012:31), the CIDB annual
performance plan depicts Procurement Focus support workshops for
contractor
development and growth in 2012/2013, offering two Procurement
Focus workshops per
province by the end of September 2012 and end of March 2013.
However, the Construction Industry Development Board (cidb) will
be implementing
workshops for contractor development, to help eliminate the
non-responsiveness and non-
compliance to tender documentation. The Procurement Focus
workshops, that are offered to
the Contractors, will hopefully be utilised and be beneficial to
many Contractors provincially
within South Africa.
6.3.2 Being a consultant, who prepares tender documentation, is
it essential to have
a standard system in place when preparing tender
documentation?
The research verifies, that having a system in place when
preparing tender documentation is
an essential part to ensure a well-structured and streamlined
documents.
Consultants illustrate their insights as follows:
One document, inclusive of bills of quantities and returnables
for small projects.
Larger projects are divided into volumes. Consultant #3
Dependant on Client requirements. Consultant #2
It becomes apparent, that different consultants whether their
consultation services be
quantity surveying, civil, mechanical, electrical or structural
services, they indeed have
something in common, preparing tender documentation either for
private or public sectors or
even both.
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28
As far as having a standard system in place when preparing
tender documentation, is
dependent on the person / company preparing the tender and the
programmes or formats
they have made available to them to ensure a well-structured
tender document.
Another factor to consider, is what the client wants? It is
essential to put the interests of the
client above ones system and deliver essentially to what the
client expects of the Consultant
being from the private or public sectors.
When consultants prepare tender documentation, they have to
ensure a well-constructed
tender documentation. They have to keep in mind that responding
to tender documents can
be challenging from the Contractors perspective. A result of an
un-structured and un-
streamlined document causes stress and uncertainty from the
Contractors part and could
result too many clarification questions and poor quality
submissions.
Preparing tender documentations is a lengthy process but if a
standard system is in place
from the Consultant, it will result in a less stressful and
tedious process.
Consultants should ensure the following recommendations when
preparing tender
documentation Porteous (2012):
Planning the structure of the tender and ensuring that a
checklist includes all the
relevant documents that needs to be included in the tender
documentation;
Glossary is essential to the tenderer as the Consultant may
understand what the
acronyms mean but the tenderer may not be too familiar with the
document;
Explain the scope of works and what is requested from the bidder
or tenderer, in
much detail as possible to prevent further clarification
questions;
Provide the tenderers with the professionals and client involved
in the works with any
relevant contact details regarding the tender if any queries
should arise;
Ensure that there are clear instructions about where the tenders
are to be submitted,
date and time;
Include a checklist of all the returnables that need to be
submitted and to how you
want them prepared. Make it clear to the tenderers that if they
fail to submit any
compulsory documents it could result in disqualification and
implications will follow if
instructions are not followed;
Contract term and conditions applicable to the works must be
included; and
Explain the evaluation criteria when assessing tender
documentation, include the
weightings on price, quality, services and BBBEE;
It can be concluded, that if Consultants have a system in place
for preparing tender
documentation, that works for that individual or company, in
which the client is satisfactory
with, they should safe-guard their system and always ensure they
up to date with the current
regulations or trends to ensure a structured, streamlined and
uniform document and in the
same instance save time with their system, as preparation of
tender documentation is a
tedious process.
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29
6.3.3 Should standardised tender documentation be implemented
for client bodies
pertaining to different types of contracts in the private and
public sectors?
The research findings are evident by both Consultants and
Contractors that they are in
agreement into the introduction of standardised tender
documentation being implemented by
the relevant bodies.
Consultants illustrate their insights as follows:
Beneficial to consultants, saving time and providing clients
what they request
without leaving out information. Consultant #1
Consultants could then pull their attention to bills of
quantities and scope of works
instead of compiling the standard documentation. Tenderers will
be able to access
the document and become familiar with the essential documents
that need to be
returned to ensure they are compliant. Consultant #2
Contractors illustrate their insights as follows:
Result in the betterment to contractors, as clients always want
new things that they
dont even use, resulting in the disqualification of tenders.
Clients often give tenders
to their connections or friends. Contractor #1
Beneficial, at least contractors could be one step ahead so they
can familiarise
themselves with the tender document and prevent being
non-compliant and
embarrassed.
However the following was also presented, to why South Africa
has not implemented
standarised tender documentation to date.
Different clients require different items in tender
documentation. Consultant #2
Differences in private and sector tender document preparation in
terms of civil
works; structural; mechanical and electrical, that is why there
is not one standard
document. Consultant #3
Govender and Watermeyer (n.d.) states that the reform
requirements on the standard format
for procurement documentation are as follows:
A standard format for the compilation of bidding packages is
required. This format
should be flexible enough for use in all categories of contract
via goods, services and
works irrespective of any sub-categorisation.
However, Govender and Watermeyer (n.d.) explains that the
actions to date are as follows:
The National Working Group developed a standard format for the
compilation of
bidding packages. This format has been endorsed by the
Inter-ministerial Task Team
on the Construction Industry Development Board (CIDB).
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30
The format is sufficiently is flexible to accommodate all
generic types of contracts and
different contracting strategies within works contractors
including design and build,
construction management and develop and construct.
The introduction into standardisation tender documentation,
should be documentation that
should be highly considered by the Construction Industry
Development Board CIDB) and the
provincial government, taking into consideration the stress and
time that are experiences by
Consultants when preparing tender documentation and
responsiveness to the tender
documentation of Contractors, that seem to encounter stress and
frustration to ensure their
compliance at all times.
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31
Chapter 7: Conclusions and Recommendations
This chapter will present the findings into the introduction to
standardised tender
documentation, based on the findings from the study. Finally,
recommendations for future
research are presented.
7.1 Introduction into a Systems Approach of Standarised Tender
Documentation
According to the Construction Industry Development Board
(2006:8) the introduction into a
systems approach to the delivery of projects suggest as
follows:
Standardisation in procurement documentation, designs of
buildings, specifications,
procurement, pricing, contracting and targeting strategies
within a particular
infrastructure programme can bring about significant
efficiencies in the time and cost
of delivery of projects and improvements in project outcomes
measured by quality
and end user satisfaction.
Standardisation not only reduces the internal and external
professional inputs
required to deliver projects but also affords contractors the
opportunity to be more
productive and profitable.
A systems approach enables more infrastructure to be delivered
and budgets to be
spent in shorter time frames and more consistently. This
increases the volume of
work that is available to contractors and provides a solid base
for sustainable
enterprise development.
The key findings as discussed in Chapter 6, sub-section 6.3.3
relating to standarised tender
documentation, suggests that standardisation tender
documentation be highly recommended
for future procurement documentation within the construction
industry, applicable to South
Africa.
From this study, it is evident that the Consultants and
Contractors are in agreement to this
suggestion of standardised tender documentation, applicable to
public and private sector
contracts, be implemented for future use to prevent one of the
most occurring factors that is
fraud, which is currently a major problem within our
construction industry.
One needs to consider, the individuals who fraudulently
eliminate tenders because the
tenders are so called non-responsive or have been disqualified
to unforeseen reasons,
due to the fact that not all tender documentation are uniform
and well-structured.
Therefore, the introduction of standardisation of tender
documentation could neutralise the
manner in which tender fraud is occurring, if a standardised
system is implemented into our
construction industry.
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32
7.2 Recommendations for Future Research
As a result of the research findings, suggested future research
could include:
Exploring the effect of tender documentation on Contractors that
are registered with
the Construction Industry Development Board (CIDB) are compare
the results to
Contractors that are not registered with the Construction
Industry Development
Board (CIDB).
Explore the impact of the current tender documentation to
students who are entering
into consultation services and the impact it would have on their
learning experiences.
Explore the impact of future standarised tender documentation on
students who are
who are entering into consultation services and the views into
how it has affected
their career.
Develop a model of the introduction od standarised tender
documentation.
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33
Reference List
Govender, J.N and Watermeyer, R.B. n.d. Potential Procurement
Strategies for Construction
Industry Development in the SADC Region. (2000) Pretoria.
Available at: www:
sabeex.co.za/papers/RBW%20Botswana-2000 pdf. (Accessed 13 May
2012)
Green Paper on Public Sector Procurement Reform in South Africa,
An initiative of the
Ministry of Finance and Ministry of Public Works, April
1997.
Marshall, C. and Rossman, G.B. (2006) Designing Qualitative
Research. Fourth Edition.
London: Sage Publications
Merriam, S.B. 1998. Qualitative Research and Case Study
Applications in Education.
Second Edition. San Francisco: Josey- Bass Inc., Publishers
Pautz, M, Watermeyer, R, Jacquet, A. 2003. Public construction
procurement in a global
economy. Johannesburg. Available at:
www.sabeex.co.za/papers/Pautz.pdf. (Accessed 12
June 2012)
Porteous, E. 2012. 10 Tips on Preparing Better Tender Documents
(online). Available www:
http://EzineArticles.com/?expert=Elaine_Porteous (Accessed 25
February 2012)
The Construction Industry Development Board. 2007. December.
Edition 3: CIDB Document
1001. Best Practice Guideline A1: The Procurement Cycle.
Available at: www:
cidb.org.za/toolkit06/./5S02%20PGA1%20edition%202.0pdf.(Accessed
07 February 2012)
The Construction Industry Development Board.2006.March. Toolkit
2006: Infrastructure Delivery Management Guidelines. Module 5
Construction Procurement. Available at: www:
cidb.org.za/Toolkit06/index.htm (Accessed 08 March 2012) The
Construction Industry Development Board. n.d. Creating Value with
Procurementthe
CIDB way. Cape Town. Brooklyn Square.
The Construction Industry Development Board. August 2012.
Notification of Special Board
Meeting. Meeting No.82.Pretoria. SABS Campus, Groenkloof, 2 Dr
Lategaan Road.
The Construction Industry Development Board. Inform Practice
Note #1. August 2006.
Scaling up Delivery and Accelerating Empowerment. Cape Town.
Brooklyn Square.
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34
Appendix 2: Research Questionnaire Contractor / Contractor
Estimator Questionnaire
Questionnaire for Bachelor of Technology: Quantity Surveying
Research Report
Construction Management and Quantity Surveying
The information gathered from this questionnaire will be used
for the analysis in a research report
investigating Tender in the Public Sector in the Construction
Industry.
For the purpose of this study clients, consultants and
contractors within the construction industry will
be interviewed to explore the complexity of the preparation and
interpretation of the tender
documentation.
The results of this survey will be used for research purposes
only. The responses to this questionnaire
will be treated strictly confidential.
A: RESPONDENT INFORMATION
Name of Respondent:
___________________________________________________
Position in Company:
___________________________________________________
Name of Company:
_____________________________________________________
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35
B: QUESTIONS
1. What are some of the difficulties as a tenderer that you
experience with tender
documents?
Please Explain.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
2. Discuss some of your positive and negative experiences with
tender documentation?
Was it a public or private sector tender?
Please explain in terms of (structure, format, streamlining of
document, if any).
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
3. As a contractor, did you ever take notice of the structure of
tender documentation that
you have tendered on, was it a public or private sector
tender?
Please Explain.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
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36
4. Did you experience a situation where the tender documentation
was so complex that
you did not understand what was required from you, as a
tenderer, even though you
were interested in the works, was it a public or private sector
tender?
Please Explain.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
5. Did you experience a situation that the tender was so
complex, that you had the engage
the services of an external party i.e. consultant to help you
respond to the tender and
ensure that you were responsive to prevent you from being
dis-qualified from the
tender?
Please Explain.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
6. Do you think there should be a standard tender documentation
in place to ensure that
tenders are easily understood by the tenderers and ensure
tenderers are compliant?
What is your view?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
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37
7. Do you know of any workshops or seminars that are in place in
South Africa to help
tenderers that advises or teaches them, how to respond correctly
to tender
documentation and ensure they are always compliant and that
their tender returnables
are structured and streamlined?
If you know of any workshops that are similar to the above
mentioned statement, please
name the workshop, the province which it currently or was run
and if you attended.
Please List and Explain.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
8. What is your view on the above mentioned workshops? If these
workshops are in place
do you think it will be beneficial to tenderers?
Please Explain.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
~Thank you for your participation in this research study. ~
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38
Appendix 3: Research Questionnaire Consultant Questionnaire
Questionnaire for Bachelor of Technology: Quantity Surveying
Research Report
Construction Management and Quantity Surveying
The information gathered from this questionnaire will be used
for the analysis in a research report
investigating Tender in the Public Sector in the Construction
Industry.
For the purpose of this study clients, consultants and
contractors within the construction industry will
be interviewed to explore the complexity of the preparation and
interpretation of the tender
documentation.
The results of this survey will be used for research purposes
only. The responses to this questionnaire
will be treated strictly confidential.
A: RESPONDENT INFORMATION
Name of Respondent:
___________________________________________________
Position in Company:
___________________________________________________
Name of Company:
_____________________________________________________
-
39
B: QUESTIONS
1. What is your view on tender documentation in South
Africa?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
2. What are some of the difficulties that you experience, as a
consultant, when preparing
tender documentation?