E-tendering implementation best practice

Chapter 1: Introduction

1.0 Research title

E-Tendering Implementation: Best practice

1.1 Abstract

E-Tendering is a web tendering service offered on a pay-per-tender basis where allows clients and their consultants to run tenders through a secure website. But not all the countries involved are fully implemented e-Tendering. They are only implementing e-Tendering at certain stages. This research is carried out to study the best practice in the implementation of e-Tendering worldwide. The anticipated findings are each countries involved are not fully implemented e-Tendering because of certain problems and constraint. The benchmark was developing for the best practice of e-tendering. This research will narrate for government and construction industry itself where it stands in terms of e-Tendering implementation compared to its peer countries.

Introduction

Construction industry all over the world have demonstrated the need to improve the service delivery and being able to handle issues swiftly and satisfactorily. The advent of Internet Technology has made it possible for authority of construction industry to transform themselves by offering traditional services especially tendering process through online. Tendering is considered to be one of the fairest means of awarding government contracts and the method most likely to secure a favourable outcome for a government in its spending of public money. The basic principles of the tendering process have been applied to many business areas, such as purchasing goods seeking service providers, business consulting, or the selection of main contractors for construction work. With the expand and spread of Information and Communications Technology (ICT) in world and this country, government of Malaysia under Public Works Department (JKR) collaborate with Construction Industry Development Board (CIDB) to implement the National E-Tendering Initiatives (NeTI) program. E-tendering program will provide all tendering process through online. At this stage, JKR and CIDB implement e-tendering for government construction project only.

According to Royal Institute of Chartered Surveyors, “e-Tendering is a Web tendering service offered on a pay-per-tender basis. E-Tendering allows clients and their consultants (buyers) to run tenders through a secure website. It offers a simple, secure, standard, efficient and cost effective way to manage tenders online. It provides a major opportunity to replace existing paper based procedures and achieve significant cost savings, while producing a more efficient and reliable process. Use of the system is charged on a per tender basis to buyers, there are no subscription fees. Use of the system is free to contractors (suppliers).” This reason bring to government of Malaysia and countries over the world to use and implement e-tendering, which offer a simple, secure, standard, efficient and cost effective and also can avoid corruption. That means contractors all over the country can register and get tender through online and do not have to use the traditional tender process which is paper-based, more costly and sometimes bias tender awarded.

Problem statement

Most of the developed and develop countries have their own channels to publish the notification of tenders through the Internet, which are displayed in their official websites. However, implementation of electronic tendering is not complete in the reality world because of certain barriers and problems.

In Malaysia, the tendering process is still based on manual activities even though they have National E-Tendering Initiatives (NeTI) program, which website program that conduct tender process through internet. In the current situation, government of Malaysia only advertises their tender through online. When looking entire the world, same situation of e-tendering implementation happens. Many countries like India and Singapore conduct and organize tender process through online in the half way. Different countries have their different nature of technology and construction industry. In UK, e-tendering is already implemented in the most efficient manner. Player of construction industry in UK, especially contractor, they have enough technology and equipment to adopt e-tendering.

Now the question is what is the best practice to adopt e-tendering in present time? Benchmarking best practice need to develop to give some guideline to the develop countries what is the best way to implement e-tendering. Researcher recognize that most of people are tend to do benchmarking in IT and supply management but lack of study in benchmarking the best practice of e-Tendering. So the gap of knowledge must be filled and explore to produce the new findings that might be give benefits to people and construction industry itself. For above statement, this research has explored the best practice of e-Tendering implementation in few countries. This research has identified e-Tendering processes involved and compares it with each country selected. By the end of this research, the best practice of e-Tendering implementation is recommended for the benchmark.

Aims

This research is carried out to study the best practice in the implementation of e-Tendering worldwide.

Objectives

1. To identify the countries in the world who have implemented e-Tendering
2. To study & compare the best practice of e-Tendering implementation as identified above.
3. To recommend the best practice of e-Tendering implementation.

Research questions

1. What countries that already implemented e-Tendering in their construction industry?
2. What are the processes of e-Tendering?
3. Are they fully implemented e-Tendering in their construction industry?
4. What is the best practice of e-Tendering for their construction industry currently?

Research methodology

1. Literature review

In order to provide good background information of the study area, literature review is very important. Literatures reading were carried out to collect all information and studied to get better understanding about e-Tendering implementation in Malaysia and others countries worldwide. All the sources are collected from internet, journals, books, past master thesis and dissertation related to this topic.

2. Desk study

All the sources are analyse and make interpretation. From literature study, data were collected and distinguish what are the needs in this research. Quantitative interpretation is the main method to carry out this research which based on data and more relevant with the current issues.

Significance of research

This research is about best practice of e-Tendering implementation worldwide was done for the following major reasons:

1. The Malaysia government needs to know where it stands in terms of e-Tendering implementation compared to its peer countries to mark its current progress of milestone achievement.
2. Malaysia construction industry needs to know with their current status e-Tendering implementation compare to others countries.
3. Benchmark for e-tendering is very important to recognize the best practice of e-tendering implementation worldwide.
4. To discuss the current status e-Tendering worldwide.

Overview of content

Chapter 1: Introduction

Chapter 2: An overview on conventional tendering

Chapter 3: New version of tendering system- Electronic Tendering

Chapter 4: Methodology

Chapter 5: Case study & discussion

Chapter 6: Recommendation & conclusion