Dorée, A G (1996) Tendering practice of Dutch municipalities. PhD thesis, University of Twente, Netherlands.
Abstract
The dissertation concerns the construction procurement and tendering practice of Dutch municipalities. The results of the study show the problematic nature of the construction market, and the strategies adopted by the municipalities to overcome this problem. In their effort to gain more control over separate projects municipalities deliberately select contractors on past projects' performance (in terms of quality as well as flexible co-operation). The contractors anticipate on this habit. For them there is more at stake than the earnings of specific projects. A satisfied client is a relative certain source of future turn-over. To protect this potential turn-over contractors become less opportunistic, and tend to be more aware of client satisfaction. The municipalities use this characteristic of the construction market. Proverbially they control the contractors' performance through the carrot of future assignments, instead of the stick of legal sanctions. To award well performing contractors the municipalities prefer private tendering and avoid the open public tendering procedures. Subsequent recurrent transactions alter the relationships between the municipalities and contractors, from just ad-hoc contracting parties towards co-makership. The contractor obtains a kind of preferred supplier status. The research is conducted out of the paradigm and perspective of Transaction Costs Economics (esp. O.E. Williamson). The findings are coherent with the results predicted by this theoretical framework. The outcome of the study raises questions about the adequacy of the European procurement directives, especially about the emphasis on open public tendering combined with price competition. It appears that the underlying views on the functioning of the construction market are more idealistic than realistic. The directives ignore the problematic nature of transactions in the field of construction and building, and disregard the value of the procurement (tendering) as an effective tool in project control.
| Item Type: | Thesis (Doctoral) |
|---|---|
| Uncontrolled Keywords: | competition; market; client satisfaction; construction procurement; co-operation; project control; tendering; client; supplier; transaction cost; Netherlands |
| Index terms: | dissertation, construction procurement, competition, preferred supplier, client satisfaction, construction market, habit, strategy, contracting party, Netherlands, project control, municipality, paradigm, transaction cost |
| Subjects: | education and knowledge transfer, control systems, contractual arrangements, management, research dissemination and communication, Geography, client relations, health behaviours and lifestyles, financial analysis, practitioner, market analysis, administrative law |
| Topics: | Research Practice, Roles and Professions, Stakeholder Management, Cost Management, Procurement, Legal Issues, Geographical Context, Business Strategy, Project Management |
| Descriptive scope: | 3 PCT |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here