i

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

ii

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.

iii

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

iv

There are no secrets to success.

It is the result of preparation, hard work and learning from failure.

-Colin L. Powell-

v

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.

vi

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.

vii

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

viii

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

ix

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

x

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

1

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)

2

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.

3

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.

4

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.

5

Figure 1: The Regulatory Framework for Construction Procurement in South Africa

Source: The Construction Industry Development Board (2006:14)

6

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

7

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.

8

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

9

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

10

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?

11

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.

12

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.

13

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.

14

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

15

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.

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.

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.

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.

19

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.

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.

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.

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.

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.

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.

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.

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,

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.

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.

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).

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.

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.

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.

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.

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: _____________________________________________________

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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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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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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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: _____________________________________________________

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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?