Effects Of Tendering Methods Construction Essay

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In the areas of architecture along with civil engineering, construction is a process that consists of the building or assembling of infrastructure. Distant from being a single movement, large scale construction is an achievement of multitasking. Usually the job is directed by the project manager and administered by the construction manager, design engineer, structure engineer or project architect. (Alexander, J. (2004))

For the thriving execution of a project, efficient planning is important. Those concerned with the design and carrying out of the infrastructure in question have to consider the environmental influence of the job, the thriving scheduling, budgeting, and site security, accessibility of materials, logistics, and difficulty to the public caused by construction stoppages, preparing tender documents, and so on. (Alexander, J. (2004))

In the UK numerous local authorities request companies to tender from a favored supplier or tender list. Admittedly, the technique to get your business name on to one of these lists differs as of power to power and organization to organization, however there are a lot of good examples that we could discover from. (Amstrong, J.S. and Overton, T.S. (1977))

Development Agency, One Northeast is such an instance of how the tendering procedure can be made easy. One Northeast has allocated a region of its website to E-Tendering where features of all tenders are shown and application data can be accessed. Besides this, an online registration form can be accomplished, placing your company on the list of companies to obtain tender opportunities by means of electronic mail. One may feel coming across schemes that need a more in detail application, which includes the obedience of situations from clients. This then places your corporation on a favored supplier list, based on the results of your submission.

I have exposed that numerous authorities in the UK do not grasp their own tender lists; they operate one of numerous websites, based in the UK, with which companies catalog and are placed. If you converse with each influence you can realize which list they access in their tendering procedure and make sure your corporation is registered with them.

The creation industry is accountable for 5.4% of the UK's GDP and so, represents a main economic sector (Department of Trade and Industry, 2003a). Consistent with the Construction Statistics Annual of 2003 (Department of Trade and Industry, 2003b), clients of construction projects were not completely content when asked concerning their level of contentment with the ended product/facility. On a scale of 1 to 10 (in which 10 meant completely satisfied, 5/6 neither satisfied nor disgruntled and 1 totally disgruntled), 22% of the respondents scored less than 8. Therefore, in such a significant industry, there is room for development in terms of customer satisfaction. An experiential study conducted by Torbica and Stroh (1999) established that the implementation of entirety quality management (TQM) in the division was absolutely related to customer contentment. (Amstrong, J.S. and Overton, T.S. (1977))

TQM is the mutual partnership in a company intended at producing value-for-money products and services so as to meet and surpass customer requirements and potential (Dale, 2003). It has been productively applied in the manufacturing division to organize processes and avoid deficiencies, leading not merely to savings in terms of money along with time (Lahndt, 1999) excluding also to high levels of customer approval (Oakland, 1994).

Construction projects

Sooner than discussing the tools/techniques, it is essential to describe construction projects and processes in order to improve appreciate how the tools might be practical.

Consistent with the Construction Statistics Annual (Department of Trade and Industry, 2003b), there are two main types of building project: building along with civil engineering. Austen and Neale (1984) highlighted the dissimilarity among the two kinds of projects by stating that buildings were structures in which people would work or exist whilst civil engineering works were connected to manipulating the natural surroundings to present an 'infrastructure', e.g. roads, airports as well as bridges. Conventionally, a construction project has included numerous steps called the construction procedure, and is based on globally established practice (Austen and Neale, 1984).

The obviously defined stages differ from project to project depending on the contractual agreements. Campbell, B. (2002) summarized different forms for example cost reimbursable contracts, two stage tendering, serial contracts as well as management propose. Further lately, the American Institute of Architects (AIA, 2004) defined three of the most widespread procurement approaches that are being used nowadays inside the industry: design-bid-build, design-build and construction management in danger. At the same time as the first is normally documented as the 'traditional' delivery technique in which two separate contracts are typical, owner-designer as well as owner-builder, the second, makes use of just one contract, designer-builder. In terms of the last technique, a construction executive takes the risk of building a scheme and an architect is hired beneath a divide contract. Once more, the stages depicted may vary depending on the contractual arrangements take on for the specific project; though, in this piece of study the traditional technique will be used.

As can be seen there are five stages there in construction projects, meeting, scheming, tendering, and construction as well as commissioning. In the briefing stage, the customer (who could be either the customer or the user) specifies the project reason and the probable budget. As a result, architects, engineers and intend team are capable to understand the customer's needs and necessities and provide their cost estimates. The project brief is confirmed at the designing stage in which the plan, design, methods of construction as well as estimated costs is detailed. The client and the suitable authorities endorse the project formerly they are persuaded that it satisfies the necessities. All the basic production information - for example working drawings, schedules, and bills of quantities, time scales and requirements - are equipped prepared for the tendering phase. The main reason at this stage is to employ a building contractor (it could be one or more), who will perform the site construction effort. It is not unusual for the cheapest offer to win the agreement. Since the final conclusion is based on cost, excellence and emergency costs are ignored leading to troubles latterly of the construction procedure (Chen and Liew, 2003).

The construction stage is disturbed with structure the structure inside the accepted time, budget and superiority limits. Appropriate supervision of the work is prearranged to confirm conformance to both excellence standards and legal necessities. Lastly, at the commissioning stage the construction or the civil engineering work is inspected to make sure that it conforms to the contractual and legal necessities and that all the facilities work sufficiently.

Certificates of observance for the definite construction together with any essential operating instructions are given to the client. It is at this phase that any last amendments for example repairs of leaks (recognized following the construction stage) are carried out.


Tendering is as well recognized as pitching or procurement in various areas. Pitching is usually referred to as the pre-visualization of ideas and concepts in extremely elementary or written form. This is chiefly presented in the TV and media deal as well as explicit, web and architectural examples.

In TV, a business pitches to its producers an idea or an estimation of an idea to be taken on in work afterwards. This comprises rough sketches as well as ideas drawn up, even recorded, and shown to the clients who then ask for the work is consequently undertaken to create an unsoiled, refined shape for broadcast. Frequently this is or fraction of a promotion campaign. This way resembles the film industry's behaviour submission, which is not a view or revelation of a product or project obligation, but in fact an entire idea or idea submitted as a probable project of its own. This as well happens in TV for yet unchartered land and concepts that have not been green lighted. A field perhaps made throughout the submission, and consequently, a pitch may be submitted to reward the most suitable director, studio, production organization etc. Pitches are usually remunerated for time if an important amount of work has previously been undertaken or requested to be taken on.

A comparable ancestry is engaged in numerous diverse industries. The tender will as well be done with the materials and the major contractor will be in control of this.

This is a variation of tendering, which is almost immediately to be made illegal in the UK after a long union battle alongside thinker property rights intrusion. Tenders are genuine finished or near-finished pieces of art, concepts, Tele-visual pieces as well as design jobs. Tendering is not illegal in the architectural trade for which detailed laws protect designers, artists as well as engineers. "Compensated tendering" is not intended to be prohibited in any division, as the artists are paid a pre-agreed sum to cover base materials as well as time, to defend the artist or company from lost earnings in the period. The sum rewarded is not a premium nor is it a payment for rights or licensing of the art shape.

Procurement is the work of yielding earlier examples of work quality, a timeframe and estimated costs as well as any extra integers in an easy structure to the outsourcing business or person. Mostly government-based means this is the safest method for companies to place themselves forward for projects as they do not require to whole any definite work on the jobs which may result in voluntary time and materials if the pitch is discarded. It as well gives employing entities the option devoid of making committals. (Dale, B.G. (2003))

Being 'awarded' an agreement, or 'winning a pitch' is when a corporation or person has been selected from tenders, procurement lists or inclined ideas. The business is then given a contract detailing the lawful requirements of both or all parties which has been preapproved by all upon recognition of the project accountability.

Companies are more frequently creating a legal alternative to tendering, which involves creating, editing or visualizing an invented scheme (for example a marketing poster or advertisement campaign) to which no IP is of value, and all tender candidates are given an identical plane to compete. Both parties must have the same estimation to not later use the shaped pieces in any shape.

Modern Construction Methods:

Classically MMC involves the manufacture of house parts offsite in a particularly designed factory. The two major products of MMC are:

• Panels - counting ready-made walls, floors as well as roofs. These are transferred to the site and accumulated rapidly, frequently during a day. Some panels have cabling and plumbing by now within them, making construction even earlier.

• Modules - off the rack rooms, which can be portioned jointly to make an entire house or flat but are used most regularly for bathrooms or kitchens, where all the fittings are added in the factory. As well known as 'pods', MMC can as well include inventive site-based methods for example use of concrete moulds. A variety of resources is used for MMC, the most widespread being wood, steel as well as concrete, though a lot of houses built in the UK using MMC have a block outer layer and so look similar to traditional houses.

Numerous of the benefits of using MMC for housing are as yet unverified or controversial. The issues segment later in this article covers each in more aspect. On the other hand, Government and manufacturers propose the main benefits of MMC are:

• Economic - MMC houses naturally have fewer imperfections and can be built more rapidly

• Environmental - the houses can be more power well-organized, may engage less transport of materials, and create less waste.

• Social - there possibly will be fewer accidents and less influence on local residents throughout construction.

The mainstream of homes in the UK is motionless constructed by means of traditional 'brick and block' stonework. On the other hand, within the last few years there has been amplified use of MMC for covering, driven by a variety of factors together with demands for faster construction and skills deficiencies. (Dale, B.G. (2003))

There is ambiguity regarding the amount of MMC accommodation being built. A few great classified house builders have lately invested in MMC factories so manufacture will augment. It is expected by the National House Building Council that regarding 10% of new UK homes are built using lumber frames, and 5% using other MMC; correspondent to concerning 25,000 MMC homes per year. There are dissimilarities inside the UK, most particularly in Scotland, where timber frames have long been favored, comprising about 60% of new housing. Other countries previously make superior use of MMC than the UK.

The UK Government sees modern methods of construction (MMC) as fundamental to its capacity to deliver 200,000 extra homes by 2016 and the formation of sustainable communities.

Timber frame is the 'original' contemporary technique of construction. It's as typical and low risk as you can get if you're a developer or housing involvement interested in embracing MMC, but it embodies all the advantages:

Full variety of timber frame systems to match the dissimilar MMC categories - open panel, congested panel, volumetric, hybrid systems and SIPs

All calculated and shaped with factory accuracy

An incorporated process, providing competence savings at every stage - intend, offsite manufacturing and on-site creation

Embraces the 'Egan agenda', counting the strength of partnering and supply chain addition

Competitive vs. Negotiated tenders:

Tendering in UK construction is based on a very much fair and competitive basis in very exceptional and rare cases the tender may take place as a result of negotiation. The advantages of competitive tendering are: ((Dale, B.G. (2003))

More and more participants bid and gofor the tenders offering competitive prices leaving the government and concerned bodies with high range of choice and selection.

Competitive tendering encourages the contractors to go for better prices while apply for tender in order to acquire a work order from the government.

The disadvantages are:

The environment of competitiveness is discouraged and the candidates may feel that discrimination may have been done.

Fair and low prices may be lost as in the cases of negotiation the normal trend is that the rates for the project are higher and government may not be able to save money.

Best value for money:

The modern trends used for tendering by using the electronic media and tendering for projects online enable both the contractors and the government bodies to save the cost of publicity and advertisements as the government can advertise the projects on its websites and the bidding can be done online. The aim of UK government is to assign projects to those contractors who not only bid with reasonable costs but at the same time posses' positive image and good reputation the construction industry of UK so that the government can get good value for money.


Procurement explains the merging of behavior undertaken by the customer to get a building. There are a lot of different methods of building procurement; though the three most widespread types of procurement are:

Traditional (Design-bid-build)

Design and Build

Management Contracting


This is the most widespread method of construction procurement and is well recognized and renowned. In this agreement, the designer or engineer acts as the project planner. His or her responsibility is to intend the works, prepare the requirements and create construction drawings, administer the contract, tender the works, and supervise the works from beginning to conclusion. There are direct contractual links among the architect's client and the major contractor. Any subcontractor will have a straight contractual relationship with the major contractor.

Design and build

This method has turn out to be more general in recent years and comprises an entire finished package, together with fixtures, fittings and tools where essential, to create a finished fully purposeful building. In various cases, the Design and Build (D & B) package can as well comprise finding the site, arranging funding and applying for all essential constitutional consents. (Dale, B.G. (2003))

The owner produces a list of requirements for a project, giving an overall view of the project's goals. Several D&B contractors present different ideas about how to accomplish these goals. The owner selects the ideas he likes best and hires the suitable contractor. Frequently, it is not just one contractor, but a association of numerous contractors working together. Once a contractor (or consortium/consortia) has been hired, they start building the first phase of the scheme. As they construct phase 1, they design phase 2. This is in difference to a design-bid-build contract, where the project is entirely designed by the owner, then bid on, then finished.

Kent Hansen, director of engineering for the National Asphalt Pavement Association (NAPA), pointed out that state departments of transportation (DOTs) typically use design construct contracts as a method of getting projects completed when states don't have the possessions. In DOTs, design build contracts are typically used for very great projects.

Management procurement systems

In this understanding the customer plays an active function in the procurement structure by entering into separate contracts with the designer (designer or engineer), the construction manager, and individual trade contractors. The client takes on the contractual responsibility, while the construction or project manager gives the lively role of managing the separate trade contracts, and ensuring that they all labour easily and efficiently together.

Management procurement systems are frequently used to accelerate the procurement processes, let the client greater suppleness in design difference throughout the contract, the ability to employ individual work contractors, divide contractual accountability on each individual during the contract, and to give greater customer control. (Dale, B.G. (2003))

UK current issues:


While the Government is eager to persuade use of MMC for house building, study is still ongoing to review its benefits. Issues take place over the cost of MMC; the industry capability; its environmental advantages; the excellence of such housing; public receipt; and planning and building system. These questions are measured underneath.


Though some house builders disagree that MMC is less costly than traditional ways, industry sources designate amplified costs of around 7-10%. Reasons for the elevated costs are hard to discern since most project financial data is commercially classified, and traditional stonework building costs vary extensively too. It may be that the costs comes out high since some benefits of using MMC, for example better superiority housing and fewer accidents, are not noticeably reflected in project accounts. Blouin, D.C. and Riopelle, A.J. (2004)

MMC housing is faster to construct, plummeting on-site construction time by equal to 50%, and thus reducing work costs. Faster construction is an extra advantage for builders of apartments (since viewing often starts simply once all flats are completed), and for Housing Associations, who obtain rent earlier. On the other hand, it is less vital for private house builders as they infrequently sell all the properties on a new growth immediately.

An additional deliberation is that the majority of factory transparency costs, e.g. labor, are fixed despite of output. On the contrary, site-based construction costs are just incurred if building is arising. It is consequently less easy with MMC to react to changeable demand.

Industry capacity

Industry ability may be an obstacle to growing the number of houses built using MMC. Difficulties fall into two categories: a lack of skills, and the factory ability to manufacture parts.


There is a deficiency of skilled labor in the UK construction industry, with over 80% of house builders reporting difficulties with employment. Using MMC to build house parts in factories, and faster on-site construction, means that fewer laborers are necessary.

Factory workers through preceding experience in other sectors, such as the car manufacturing, can as well be used. (Dale, B.G. (2003))

Though, there is vagueness about the level of skills wanted for MMC compared with stonework construction. MMC can involve highly skilled effort for accurate on-site assemblage of factory-made house parts. Several of the problems with manufactured housing built throughout the 20th century stalked from poor skills, rather than faults with the housing resources. The Construction Industry Training Board (recognized as CITB Construction Skills), funded by business and Government, is developing MMC training courses for the anticipated 2,000 workers erecting MMC housing with no proper qualifications. Government has as well recommended a need for preparation for other industry professionals, together with surveyors, credit lenders, and planners, to make sure they are completely aware of MMC.


There are at present over 30 house building factories in the UK. A current review found there is current industry capability to produce over 30,000 MMC homes per year. Consequently existing factory capability should be adequate to create about 17% of new UK housing, based on a present building rate of 175,000 homes per year. Production could be augmented by implementing further factory shifts. Blouin, D.C. and Riopelle, A.J. (2004)

It costs over £10 million to put up an MMC factory as well as train staff. To make this speculation, companies have to to be sure of long-standing demand for MMC housing. Government support for MMC in the social housing sector, and its chief house building programme, has consequently abridged this asset risk.

Environmental benefits

The Government is endorsing the environmental benefits of MMC, as are lots of of the manufacturers. Research conducted by the Building Research Establishment (BRE) found MMC homes to be further power efficient; however there was no important evidence of waste and transportation reductions. Evaluating the environmental benefits of a new MMC housing growth is complex because it is complicated to characteristic outcomes exclusively to the use of MMC

Energy savings

Houses built by means of MMC characteristically necessitate less energy to heat since of increased levels of lagging fitted in the walls and roof, and as well less air leakage as of the building. One of the reasons house builders are concerned in MMC is because they expect that the energy obligations of the UK building regulations will shortly turn into more severe. The 2003 Energy White Paper dedicated the Government to implementing new energy connected building regulations by 2005. (Blouin, D.C. and Riopelle, A.J. (2004))


Construction and demolition waste comprises 25% of UK waste. The quantity of waste produced using MMC is expected to be abridged since factory materials can be prearranged to precise specifications, and there is a inferior risk of on-site spoilage, e.g. throughout wet weather. On the other hand, there is little research corroborating such reductions. (Dale, B.G. (2003))


Building homes in factories may decrease the total number of trips to a building location. This is of growing significance as more house building takes place on 'Brownfield' sites in built-up areas. Little thorough psychiatry has been conducted to date on transport advantages, but they are expected to differ considerably depending on the distance among the building site and the plant.

Quality and accreditation

The number of defects in conventionally built homes in the UK is substantial, with house builders allocating up to £2,000 per house to correct problems. Better use of factory production can decrease defects since there is less risk of climate damage during construction, and resources can more effortlessly be standardized and tested. (Blouin, D.C. and Riopelle, A.J. (2004))

Though, if there is tardily found to be a difficulty with a exacting MMC then this would have been simulated in numerous homes, since they are mass shaped. Housing is built to last a minimum of 60 years, so difficulties could go ignored for some time. For this cause building insurers, mortgage lenders, and surveyors are careful about greater use of MMC. For instance, some insurers are concerned concerning the resilience of MMC to flooding. On the contrary, the risks of conventional site-based stonework construction are renowned since the technique has been used for a long time. (Alexander, J. (2004))

Authorization systems to test the presentation of housing products are managed by the British Board of Agreement and BRE Certification. However the procedure can conquest a year and cost up to £100,000, significance that not all companies apply. Six housing MMC have been decided accreditation thus far, with three more in the tube. If houses are built using unaccredited methods then it can be hard to increase buildings insurance, and hence a mortgage. A number of manufacturers argue that Government should offer grants to help with authorization.

The Council of Mortgage Lenders proposes that the Housing Corporation should make it obligatory to use credited methods when building social accommodation. The Housing Corporation is unwilling to do so since it believes the decision regarding which MMC to use should be taken by person Housing Associations. As well, with the 25% MMC target commencing in 2004, there are concerns that there would be inadequate industry capability if Housing Associations were limited to using credited manufacturers. Government and industry bodies are in beginning discussions about options for a 'fast-track' accreditation system.

Public attitudes

There are business concerns regarding the public suitability of MMC housing. A review of MMC manufacturers recognized lack of market demand and public awareness as the two most significant limitations on expansion.5 Industry concerns reproduce public opinion: in a 2001 MORI poll, 69% of respondents felt a block built home would obtain better price.8 Negative attitudes towards MMC may branch from extremely publicized difficulties with historical use of manufactured housing. There are as well concerns that if more innovative MMC is used completely for social housing the characteristic design may signify residents are stigmatized. Though, all but one occupant of a new social housing MMC growth in London said they would be eager to buy a comparable home. (Amstrong, J.S. and Overton, T.S. (1977))

In addition, because most UK MMC developments are made to appear like traditional brick houses, possible occupants may be uninformed of the building method.


The planning structure has an imperative indirect authority on the MMC market since of its role in determining the supply of land for house building. Government planning policy is laid down in Planning Policy Guidance (PPG), one of which (PPG3) is regarding housing. PPG3 covers issues for example housing density, but use of MMC is not at present mentioned, and planning guidance would not normally cover such details regarding construction style.

Building Regulations

The UK building regulations do not identify building materials or construction method, however instead set minimum presentation standards. Proposed changes to the building regulations covering energy competence, broadband access and structural truthfulness are approaching. These changes possibly will make it cheaper and easier for MMC to meet the guidelines evaluated with traditional masonry construction. (Alexander, J. (2004))

Health and safety

The construction business is one of the most hazardous for workers, with regarding 100 deaths per year in the UK.

MMC could progress safety since there is a reduced risk of accidents in a proscribed factory environment, and least time is spent on the construction site. The Health as well as Safety Executive, who normalize construction safety, is persuading the use of MMC.