Tendering procedures, contractual arrangements and Latham: The contractors' view

Olomolaiye, Paul O.; Holt, Gary D.; Olomolaiye, Paul; Harris, Frank C.

Abstract

The procedural and administrative aspects of UK tendering have remained largely unaltered for decades but this may soon change in light of the recent review of the construction sector, headed by Sir Michael Latham. This paper presents findings of a nationwide survey of UK construction contractors assessing their opinion of the Latham procurement recommendations, along with their opinion of the authors' proposals for alternative selection procedure. Contractor usage/opinion of current tendering methods, tendering documentation and contractual arrangements are also identified. Analysis techniques primarily involve the derivation of contractor preference, agreement and importance indices (Pri, Agi and Imi respectively). Results show that clients are attempting to cut costs by increased use of open tendering coupled with plan and specification tender documentation, but that savings are offset by clients ultimately paying for contractors' costs associated with their achieving contract award for only 1 in 5 bids. Generally, contractors are in tune with the ideals of the Latham review and characteristics pertaining to the HOLT (Highlight Optimum Legitimate Tender) selection technique. © 1996, MCB UP Limited

• Journal Article Type: Review
• Publication Date: Jan 1, 1996
• Journal: Engineering, Construction and Architectural Management
• Print ISSN: 0969-9988
• Electronic ISSN: 1365-232X
• Publisher: Emerald
• Peer Reviewed: Peer Reviewed
• Volume: 3
• Issue: 1-2
• Pages: 97-115
• DOI: https://doi.org/10.1108/eb021025
• Keywords: tendering procedures, contracts, contractors
• Public URL: https://uwe-repository.worktribe.com/output/1105678
• Publisher URL: http://www.emeraldinsight.com/