Edouni, A R (2004) Competitive bidding, contractor pre-qualifying, and their impact on public works construction contracting: An analysis of municipal public works construction contracting in California. DPA thesis, University of La Verne, USA.
Abstract
Purpose. The study examined the role of the contractor pre-qualifying process in public works construction contracting, its essential elements, as well as its impact on the performance of competitively bid and awarded public works construction contracts, as perceived and experienced by city governments in California. The study also focused on the perceived impact of competitive bidding on the performance of public works construction contracts. Theoretical framework. The theoretical framework for this study is rooted in the principal-agent theory, which identifies certain problems that arise in a contractual relationship between a principal and its agent. The adverse selection and the moral hazard problems comprise the central issue in the principal-agent theory, for which the theory presents processes aimed to provide potential solutions to such problems. Methodology. The research methodology for this study is based on quantitative analysis of primary research data collected from cities in California for the purpose of this research. The data were collected using a research questionnaire, and were analyzed using descriptive and inferential statistical research analyses. Findings. California cities experience cost overage, delays, extra work claims, adversarial city-contractor relations, and work quality problems at varying rates. The majority of California cities perceive competitive bidding to have negative effects on public works construction contracts performance. In addition, California cities that pre-qualify contractors for their competitively bid and awarded public works construction contracts tend to have a more favorable view of contractor pre-qualifying than cities that do not pre-qualify contractors. Finally, California cities that pre-qualify contractors for their competitively bid and awarded construction contracts experience less adversarial city-contractor relations and work quality problems on such contracts, than cities that do not pre-qualify contractors. Conclusions and recommendations. California city governments may find the use of contractor pre-qualifying on competitively bid and awarded public works construction contracts to be beneficial. Especially in the areas of adversarial city contractor relations and work quality problems experienced on public works construction contracts. While contractor pre-qualifying may not be the solution to certain performance problems experienced on competitively bid and awarded public works construction contracts, it appears to be a part of the solution.
| Item Type: | Thesis (Doctoral) |
|---|---|
| Thesis advisor: | Park, K |
| Uncontrolled Keywords: | competitive bidding; moral hazard; bidding; quantitative analysis; government |
| Index terms: | competitive bidding, moral hazard, questionnaire, methodology, contractual relationship, bidding, agent, quantitative analysis, adverse selection, research methodology, construction contract, public work |
| Subjects: | data analysis and analytics, bidding, practitioner, data collection methods, research design and methodology, contractual relationship, contract type, infrastructure engineering, financial risk, research methods |
| Topics: | Roles and Professions, Cost Management, Research Practice, Contract Administration, Procurement, Engineering Principles |
| Descriptive scope: | 4 PCTA |
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