Analysis of Request for Proposals in Construction Industry

Michal Tkáč (1), Radoslav Delina (2), Martina Sabolová (3)
(1) University of Economics in Bratislava, Slovakia,
(2) Technical University of Kosice, Slovakia,
(3) University of Economics in Bratislava, Slovakia

Abstract

Purpose: The purpose of this paper is to identify and determine reasons why construction companies reject some of the request for proposals (RFPS) suitable for them.
Methodology/Approach: The research has several parts. Within the first part the list of reasons which lead to rejection of RFPS and thus potential client are identified. Then the comparison of differences between groups of rejected RFPS with different configuration is made. The last part of research use Pareto analysis to determine most obvious and most costly reasons of rejection of RFPS.
Findings: The paper identifies 12 reasons, why construction companies decline to prepare proposal for their potential clients. It also doesn’t confirm that configuration of RFPS has significant impact on the rejection of RFPS. Moreover the results on the other hand showed that insufficient trust represent the main barrier which influences the rejection of RFPS in selected company.
Research Limitation/implication: The main limitation of the research is that it is based on single case study. Although, the quantitative results have to be generalised very carefully, on the other hand paper provide list of the possible reasons why construction companies decline to compete for an offer.
Originality/Value of paper: The paper provides unique perspective because apart from traditional attitude, where only the submitted RFPS are evaluated, this paper analyses rejected RFPS and tries to identify and determine reasons why construction companies decide not to prepare proposal and thus reduce the possibility to acquire new contract.

Full text article

Generated from XML file

References

Ballesteros-Pérez, P., Skitmore, M., Pellicer, E. and González-Cruz, M.C., 2015. Scoring rules and abnormally low bids criteria in construction tenders: a taxonomic review. Construction Management and Economics, 33(4), pp.259-278. Available at: http://www.tandfonline.com/doi/pdf/10.1080/01446193.2015.1059951

Ballesteros-Pérez, P., Skitmore, M., Pellicer, E. and Gutiérrez-

Bahamondes, J.H., 2016. Improving the estimation of probability of bidder participation in procurement auctions. International Journal of Project Management, 34(2), pp.158-172. Available at: http://www.sciencedirect.com/science/article/pii/S0263786315001775

Delina, R., 2014. Transparency In Electronic Business Negotiations–Evidence Based Analysis. Quality Innovation Prosperity, 18(2), pp.79-89. Available at: http://www.qip-journal.eu/index.php/QIP/article/view/417

Doležal, J., Fireš, B. and Míková, M., 1992. Finan?ní ú?etníctví [Financial Accounting]. Praha: Grada.

Doucek, P., 2004. E-society–perspectives and risks for European Integration. In: Proceedings IDIMT-2004, České Budejovice, Czech Republic, 15 – 17 September 2004, edited by Ch. Hofer and G. Chroust. Schriftenreihe Informatik, 12, pp.35-42.

Eadie, R., Perera, S. and Heaney, G., 2010. A cross-discipline comparison of rankings for e-procurement drivers and barriers within UK construction organisations. Journal of Information Technology in Construction (ITcon), 15, pp.217-233. Available at: http://www.itcon.org/cgi-bin/works/Show?2010_17.

Eriksson, P.E. and Westerberg, M., 2011. Effects of cooperative procurement procedures on construction project performance: A conceptual framework. International Journal of Project Management, 29(2), pp.197-208. Available at: http://www.sciencedirect.com/science/article/pii/S0263786310000050

Ibem, E.O. and Laryea, S., 2014. Survey of digital technologies in procurement of construction projects. Automation in Construction, 46, pp.11-21. Available at: http://www.sciencedirect.com/science/article/pii/S092658051400154X

Ruparathna, R. and Hewage, K., 2015. Sustainable procurement in the Canadian construction industry: current practices, drivers and opportunities. Journal of Cleaner Production, 109, pp.305-314. Available at: http://www.sciencedirect.com/science/article/pii/S0959652615008872

Szabo, S., 2015. Determinants of Supplier Selection in E - procurement Tenders. Journal of Applied Economic Sciences, 10(7), pp.1153-1159.

Sabolová, M. and Tká?, M., 2015. Characterization of procurement process in the construction company. Investment management and financial innovations: international research journal, 12, pp.166-170.

Tká?, M. and Sabolová, M., 2015. The Analysis of price offers in construction industry from participant's point of view. In: IDIMT-2015. Information technology and society interaction and interdependence : 23nd Interdisciplinary information management talks, 9-11 September 2015. Poděbrady, Czech Republic, pp.271-278.

UVO: Úrad pre verejné obstarávanie: Zákon o verejnom obstarávaní a o zmene a doplnení niektorých zákonov [UVO: The Office for Public Procurement: Law on public procurement and on the amendment of certain laws]. [online]. Available at: https://www.uvo.gov.sk/zakon [Acessed 10 January 2016].

Veber, J., 2004. Nové prístupy managementu - II. Část [New attitudes to management – II. Part]. Ekonomika a management podniku, 2(2), pp.6-19.

Zunk, B., Marchner, M., Uitz, I., Lerch, C. and Schiele, H., 2014. The Role of E-Procurement in the Austrian Construction Industry: Adoption Rate, Benefits and Barriers. International journal of industrial engineering and management, 5(1), pp.13-21. Available at: http://www.iim.ftn.uns.ac.rs/casopis/volume5/ijiem_vol5_no1_2.pdf

Authors

Michal Tkáč
michal.tkac1@euke.sk (Primary Contact)
Radoslav Delina
Martina Sabolová
Author Biographies

Michal Tkáč, University of Economics in Bratislava

Faculty of Business Economics with seat in Košice, Department of Financial Management

Radoslav Delina, Technical University of Kosice

Department of Banking and Investment at Faculty of Economics

Martina Sabolová, University of Economics in Bratislava

Faculty of Business Economics with seat in Košice, Department of Financial Management
Tkáč, M., Delina, R., & Sabolová, M. (2016). Analysis of Request for Proposals in Construction Industry. Quality Innovation Prosperity, 20(1), 104–117. https://doi.org/10.12776/qip.v20i1.686

Article Details

Most read articles by the same author(s)

Similar Articles

1 2 3 > >> 

You may also start an advanced similarity search for this article.

Customers’ Intention to Recommend Takeaway Food during COVID-19 Pandemic

Yulia Yeni, Vera Pujani, Laura Syahrul
Abstract View : 1226
Download :815