Jefferies, D and Schweber, L (2022) Professional judgement: An institutional logic approach to contractor tender pricing. Buildings & Cities, 3(1), pp. 518-533. ISSN 2632-6655
Abstract
Competitive tendering is the default procurement route for most types of construction projects in the UK. As a process, it is costly, time-consuming and complicated, involving input from upwards of 200 separate organisations per project. Existing research has mainly focused on identifying discrete factors that influence contractor pricing. While many scholars and professionals treat the level of mark-up as a technical problem, others acknowledge the role of professional judgement. This paper uses the neo-institutional concept of 'hybrid institutional logics' and an exploratory study into two projects in one firm to explore the way in which different types of professionals work together to produce a single price. The research documents the existence of two distinct logics: a first-principles cost estimation logic and strategic mark-up logic. These are combined in a highly structured process, with moments of separation, bridging and demarcation. These findings explain how firms purposefully balance multiple cognitive schemas to manage resources and position themselves in the market. The research also offers a novel theoretical approach to the study of multidisciplinary collaboration which can be used to address issues of integration more generally.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | competitive tendering; contractor pricing; estimation; hybrid organisations; institutional logics; professional judgement |
| Index terms: | documents, collaboration, construction project, integration, cost estimating, default, pricing, competitive tendering, mark-up, institutional logic, estimation, exploratory study |
| Subjects: | theoretical framing, management, tendering, research methods, production management, professional development, organizational analysis, price determination, dispute resolution, economic analysis, financial and cost management |
| Topics: | Information Management, Project Management, Research Practice, Cost Management, Business Strategy, Procurement, Legal Issues, Organizational Design |
| 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