Circular prequalification and bidding practices at contractor firms

Kjerulf, L and Haugbølle, K (2021) Circular prequalification and bidding practices at contractor firms. In: Scott, L and Neilson, C J (eds.) Proceedings of 37th Annual ARCOM Conference, 6-7 September 2021, Online Event, UK.

Abstract

Developing new prequalification and bidding practices are paramount to the implementation of circular refurbishment and new building projects. Understanding tendering practices is essential as prequalification and bidding represent the two most important competitive parameters for contractor firms. However, little is known about the actual prequalification practices and bidding practices at contractor firms due to the sensitivity and confidentiality of the subject.The purpose of this paper is to investigate how practices of prequalification and bidding in contractor firms may support or hinder a circular transformation of refurbishment and new building. Further, this paper will discuss how clients' procurement practices shape the contractor firm’s possibilities for a circular transition.The study applies activity theory as the theoretical grounding. It is based on an integrative literature review that will review, critically appraise, and synthesise representative literature in an integrated way to generate new frameworks and perspectives on the research question.The study points at two main findings, which demonstrates the barriers and levers for a circular transition of contractor firms. The two main findings are related to 1) intra-organisational prequalification and bidding practices with regard to the activity system of contractors, and 2) inter-organisational procurement practices with regard to the activity system of clients. First, the intra-organisational barriers show that contractor firms' bidding processes are highly controlled by tradition-bound practices. Moreover, contractor firms have a strong focus on the short-term goal of winning the subsequent construction project combined with complex supply chains. Second, the inter-organisational barriers include the building clients' low-risk willingness in terms of setting innovative requirements and a knowledge gap regarding the suppliers' innovation potential.In conclusion, this paper will generate new insights on prequalification and bidding practices for both researchers and practitioners into the possibilities and obstacles for renewing the building industry and transforming it towards a circular future.

Item Type: Conference Paper (Paper)
Uncontrolled Keywords: bidding; competitiveness; contractor selection; organisation; sustainable building
Index terms: bidding, implementation, competitiveness, practitioner, confidentiality, sustainable building, building industry, construction project, transformation, activity theory, literature review, contractor firm, contractor selection
Subjects: theoretical framing, tendering, production management, sustainable construction, market analysis, professional ethics, industry analysis, business, organization, practitioner, bidding, contractual arrangements, data analysis and analytics
Topics: Roles and Professions, Procurement, Sustainability, Business Strategy, Project Management, Research Practice, Organizational Design, Legal Issues
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