A theoretical framework for reducing tendering costs in the procurement of infrastructure projects

Jin, Xiaohua, Zuo, Jian, Xia, Bo, & Ke, Yongjian (2014) A theoretical framework for reducing tendering costs in the procurement of infrastructure projects. In International Cost Engineering Council, World Congress, 20-22 October 2014, Milan (Italy).


Purpose of this paper

One way in which the tendering process can be further improved is by reviewing and clarifying the high costs that participants face during the course of the tendering phase. The study aims to provide project teams working in construction tender preparation a clear picture of what to expect when tendering for infrastructure projects.


Firstly, a review of current literature on tendering in infrastructure projects is conducted to identify the associated costs affecting traditional and PPP procurements as well as the potential measures contributing to tendering cost-reduction. A theoretical framework and its corresponding research hypotheses, which are based on the literature reviewed, are then proposed. An industry-wide questionnaire survey is currently under design to solicit industry practitioners’ views on tendering costs and the associated tendering cost-reduction measures. The data collected in the survey will subject to statistical analysis to test the proposed research hypotheses, which will be reported in a forthcoming paper.

Findings and value

The direct and indirect costs in public-private procurement have been identified and have been categorised into internal and external costs arising from working on tender submissions. A theoretical framework, mainly composed of five mechanisms of cost reduction, has been proposed and will be tested in a forthcoming industry-wide questionnaire survey.

Originality/value of paper

The findings are expected to lead to a transparent tendering process in infrastructure procurement, in which there is increased engagement from the private sector as well as an increase in competitive tendering.

Impact and interest:

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ID Code: 84341
Item Type: Conference Paper
Refereed: Yes
Additional URLs:
Keywords: Tendering cost, Infrastructure, Public-private-partnership, Australia
ISBN: 9788894014105
Subjects: Australian and New Zealand Standard Research Classification > BUILT ENVIRONMENT AND DESIGN (120000) > BUILDING (120200) > Building Construction Management and Project Planning (120201)
Divisions: Current > Schools > School of Civil Engineering & Built Environment
Current > QUT Faculties and Divisions > Science & Engineering Faculty
Copyright Owner: Copyright 2014 [please consult the author]
Deposited On: 20 May 2015 03:26
Last Modified: 21 May 2015 01:04

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