ASSESSING INNOVATION IN COMPARATIVE TENDER ASSESSMENT IN THE ROAD SECTOR
Pardeep Kumar Oad Master of Engineering (Research), Bachelor of Engineering (Civil)
Submitted in fulfilment of the requirements for the degree of Doctor of Philosophy
School of Architecture and Built Environment Faculty of Engineering Queensland University of Technology 2021
Keywords
Road industry; Bid evaluation; Innovation; Road construction, Project management, Factors of innovation; Global warming; Tendering.
Assessing Innovation in Comparative Tender Assessment in the Road Sector i
Abstract
Innovation in the field of road construction offers significant community and industry benefits by making an important contribution to economic growth and enhancing the quality of projects. However, achieving better innovative practices to improve existing construction processes and to heighten competitiveness has become a challenge for the road industry. Innovation in the context of this research refers to the use of suitable materials in the construction of roads, such as eco-friendly roads, solar roads, and recycled materials. Moreover, innovation in the road construction industry is cocreated in a multiparty designed, shaped and environment, therefore it is important to analysis the bidder’s skills and resource capability against the project requirements. Therefore, in the bid evaluation process in the road construction sector, it is important to consider innovation as well as the other factors. This research examines the factors related to innovation in the bid evaluation process in the road construction sector. It proposes a model of innovation and bid evaluation to explore a variety of components and factors of innovation in the road sector, including innovative activities, impacts, benefits, inputs, drivers, factors, enablers and bidders’ capabilities in developing suitable roads. The research is evaluated qualitatively and quantitatively. For the qualitative phase of this study, nine experts in the field of bid evaluation and innovation in the road sector were interviewed. However, to evaluate the proposed factors of innovation further quantitively, a further 216 experts in the road sector participated in this study. The key research findings from both Qualitative and Quantitative studies are that both private and public sectors in Australia offer or have the potential to offer innovative products and work methods based on the contract. Therefore, innovation during the bid evaluation process is welcomed and sometimes strongly encouraged. Further, it is important to have strong research in to how to effectively determine value for money in the context of developing suitable and quality roads. Therefore, this research is useful in the context of evaluating factors that help to understand value for money in the road sector. Finally, the research results show that road contractors’ experience in the use of new and innovative materials in road development is essential, as this could boost the bidders’ confidence, the satisfaction of government bodies and lead to the improved quality of roads in this rapidly changing environment.
ii Assessing Innovation in Comparative Tender Assessment in the Road Sector
Table of Contents
Keywords ...... i Abstract ...... ii Table of Contents ...... iii List of Figures ...... vii List of Tables ...... ix List of Abbreviations ...... x List of Publications ...... xii Statement of Original Authorship ...... xiii Acknowledgements ...... xiv Chapter 1: Introduction ...... 1 1.1 Motivations ...... 1 1.2 Scope of the research work ...... 3 1.3 Research aims and objectives ...... 3 1.4 Research questions...... 4 1.5 Research contributions...... 5 1.5.1 Critical analysis of knowledge of the bid evaluation process and innovation in the road industry ...... 5 1.5.2 Sustainable and innovative roads in Australia ...... 6 1.5.3 Qualitative evaluation of innovation and related factors in the bidding process ...... 6 1.5.4 Quantitative evaluation of innovation and its related factors in the bidding process ...... 8 1.6 Thesis outline ...... 9 Chapter 2: Literature Review ...... 13 2.1 Introduction ...... 13 2.2 The process of literature review planning...... 14 2.3 Evaluation of bids in the road construction industry ...... 14 2.4 Indicators and methods of bid evaluation ...... 16 2.4.1 Road construction budget ...... 16 2.4.2 The cost or price consideration ...... 20 2.4.3 Road construction contractor selection ...... 21 2.4.4 Information about contractors ...... 21 2.4.5 Contractor performance ...... 22 2.4.6 Pre-qualification and bids Assessment ...... 22 2.4.7 Management of construction risk ...... 23 2.4.8 Methods of bid evaluation ...... 23 2.5 Bid evaluation process in different countries ...... 25 2.5.1 Bidding process in the U.S...... 25 2.5.2 Bidding process in France ...... 25 2.5.3 Bidding process in Germany ...... 26
Assessing Innovation in Comparative Tender Assessment in the Road Sector iii
2.5.4 Innovation in the construction industry in the Netherlands ...... 26 2.5.5 Bid evaluation process in Australia ...... 28 2.5.6 Bid evaluation process in the Middle East ...... 31 2.6 Innovation in the road construction industry ...... 34 2.7 Indicators of innovation ...... 36 2.7.1 Education ...... 37 2.7.2 Industry ...... 38 2.7.3 Government ...... 38 2.7.4 Research and development ...... 39 2.7.5 Culture and ambition ...... 40 2.8 Recommendations for tendering evaluation ...... 42 2.9 Summary ...... 42 Chapter 3: The road sector in the Australian context of this research ...... 45 3.1 Introduction ...... 45 3.2 Road construction industry in Australia and Innovation ...... 46 3.3 Innovation in the road construction industry ...... 48 3.3.1 Challenges and risks associated with innovation ...... 49 3.3.2 Innovation criteria for the assessment of road construction tenders ...... 50 3.4 Innovation in the road sector: Analysis of different case studies ...... 53 3.4.1 Use of recycling material in the road industry ...... 55 3.4.2 First road developed from plastic bags and glass bottles in Australia ...... 56 3.4.3 An innovative eco-friendly road solution ...... 57 3.4.4 Solar roads ...... 58 3.4.5 Use of technology in traffic control ...... 58 3.4.6 Precast Pre-Stressed Concrete Pavement ...... 59 3.4.7 The Jet Stream Super-Highway ...... 64 3.4.8 EME2 technology and high modulus Asphalt EME2 Pavement Design ...... 64 3.4.9 Foamed bitumen stabilised roadways ...... 65 3.4.10 Plastic roads ...... 66 3.5 Summary ...... 66 Chapter 4: Research Design and methodology ...... 69 4.1 Introduction ...... 69 4.2 Research philosophy ...... 69 4.3 Research plan ...... 73 4.4 Research Design ...... 74 4.5 Research methods ...... 77 4.6 Theory testing criteria ...... 77 4.7 Quantitative study ...... 78 4.7.1 Data collection and analysis (Quantitative study)...... 78 4.7.2 Data analysis and research hypothesis modification ...... 79 4.8 Pilot interviews (qualitative study) ...... 80 4.8.1 Coding and data analysis (qualitative and quantitative) ...... 80 4.9 Expected research outcome ...... 81 4.10 Research ethics ...... 83
iv Assessing Innovation in Comparative Tender Assessment in the Road Sector
4.11 Summary ...... 84 Chapter 5: Qualitative studies ...... 87 5.1 Introduction ...... 87 5.2 Background and Related work ...... 88 5.3 Innovation ...... 90 5.4 Participant interview mechanism ...... 92 5.5 Data sampling technique for qualitative study ...... 93 5.5.1 Purposive data sampling technique ...... 94 5.5.2 Interview process ...... 97 5.6 Thematic analysis method and qualitative data analysis ...... 99 5.7 Thematic analysis using NVivo software ...... 102 5.8 Measurement ...... 108 5.8.1 Company experience and the bid evaluation process ...... 108 5.8.2 Innovation and bid evaluation process ...... 109 5.8.3 Performance ranking and bid evaluation process ...... 111 5.8.4 Management skills and bid evaluation process ...... 112 5.8.5 Resources and bid evaluation process ...... 113 5.8.6 Management system and bid evaluation process ...... 114 5.8.7 Project cost and bid evaluation process ...... 115 5.9 Bid evaluation factor fit ...... 116 5.9.1 Loading of sub-factors on their parent factor in bid evaluation ...... 118 5.9.2 Loading of company experience and bid evaluation ...... 120 5.9.3 Loading of innovation and bid evaluation ...... 121 5.9.4 Loading of company resources factor and bid evaluation ...... 122 5.9.5 Loading of company management system factor and bid evaluation ...... 123 5.9.6 Loading of project cost factor and bid evaluation ...... 123 5.10 Summary ...... 124 Chapter 6: Quantitative data collection, analysis and findings ...... 125 6.1 Introduction ...... 125 6.2 Methodology ...... 126 6.3 Data collection in the quantitative study...... 129 6.3.1 Design of the questionnaire ...... 130 6.3.2 Data sampling techniques ...... 133 6.3.3 The preliminary stage of data analysis ...... 133 6.3.4 Data screening and cleaning ...... 134 6.4 Quantitative data analysis results ...... 138 6.4.1 Demographic profile ...... 138 6.4.2 Study participants’ occupation ...... 140 6.4.3 Study participants’ sector role in the construction industry ...... 141 6.4.4 Number of employees in each selected construction company ...... 142 6.4.5 Introduction of innovation in the road construction industry ...... 143 6.4.6 Key drivers of innovation ...... 145 6.4.7 Bid evaluation and innovation ...... 147 6.5 Factor analysis in bid evaluation ...... 151 6.5.1 CFA: Confirmatory factor analysis ...... 151 6.6 Summary ...... 159
Assessing Innovation in Comparative Tender Assessment in the Road Sector v
Chapter 7: Conclusions and future research ...... 160 7.1 Introduction ...... 160 7.2 Summary of the work ...... 160 7.3 Answering research objectives and research summary ...... 161 7.4 research Findings ...... 163 7.4.1 Improvement of bid evaluation and value of money ...... 164 7.4.2 Introduction of innovation and its awareness during tendering ...... 164 7.4.3 Motivation of innovation and methods of bid evaluation ...... 165 7.4.4 What attract bidders to participate in the bid? ...... 165 7.4.5 Government investigation of bidder’s innovative skills ...... 166 7.4.6 An environmental policy for the evaluation of innovative methods ...... 166 7.5 Research implications ...... 167 7.6 Limitations and Future work ...... 168 Bibliography ...... 169 Appendices ...... 193 Appendix A: Study Questionnaire, Survey and Ethic approval ...... 193 Sample approach email ...... 208
vi Assessing Innovation in Comparative Tender Assessment in the Road Sector
List of Figures
Figure 1-1: Thesis outline ...... 11 Figure 2-1: Kilometres of Road Length in Australia (Australian Bureau of Statistics, 2015) ...... 17 Figure 2-2: Lane-Kilometres of Road Length (LKRL) in Australia (Australian Bureau of Statistics, 2015) ...... 18 Figure 2-3: Australian infrastructure budget-AIB 2017-2018 (Australian infrastructure budget, 2017-2018) ...... 19 Figure 2-4: Proportion of total state and territory expenditure on roads (Australian infrastructure budget, 2017-2018) ...... 20 Figure 2-5: Dynamic paint and Glowing lines-(Dubé, 2014) ...... 27 Figure 2-6: Innovation Value Chain(Kandybin et al., 2004) ...... 35 Figure 2-7: School education funding and outcomes, 2004-05 to 2015-16 (Innovation and Science Australia, 2018, p28) ...... 37 Figure 2-8: Expenditure of Australian business and government research and development, 1992–2016 (Innovation and Science Australia, 2018, p.14) ...... 38 Figure 2-9: Government expenditure on procurement contracts from 2008 to 2016 (Innovation and Science Australia, 2018, p64) ...... 39 Figure 2-10: Government expenditure on research and development from 1992 to 2014 (Innovation and Science Australia, 2018, p15)...... 40 Figure 2-11: Health and life expectancy expenditure per person in different countries (Innovation and Science Australia, 2018, p87) ...... 41 Figure 3-1: Townhouse in Victoria, Australia (Manley, 2007) ...... 54 Figure 3-2: Road developed from plastic bags and glass bottles in Australia (Australian Government, 2019; Onkaparinganow, 2018)...... 57 Figure 3-3: Twelve case studies from different countries ...... 66 Figure 4-1: Research design philosophy (adapted from Creswell and Creswell (2018) ...... 75 Figure 4-2: Step-by-step research procedure ...... 76 Figure 4-3: Innovation Factors Model ...... 82 Figure 5-1: Key assessment factors in the bid evaluation process ...... 100 Figure 5-2: Thematic analysis process ...... 102 Figure 5-3: Interview scripts in NVivo ...... 104 Figure 5-4: Results of thematic approach...... 107 Figure 5-5: Evaluation of company’s past experience in road construction ...... 109 Figure 5-6: Evaluation of innovation in road construction ...... 110
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Figure 5-7: Evaluation of company performance in terms of road construction ..... 111 Figure 5-8: Evaluation of management skills in terms of road construction ...... 112 Figure 5-9: Evaluation of company resources in relation to road construction ...... 113 Figure 5-10: Evaluation of the company’s management system in relation to road construction ...... 115 Figure 5-11: Evaluation of project cost in relation to road construction ...... 116 Figure 5-12: Tender assessment evaluation ...... 119 Figure 6-1: Updated key assessment factors in the bid evaluation process ...... 127 Figure 6-2: Questionnaire design process ...... 131 Figure 6-3: Participants’ occupation ...... 141 Figure 6-4: Participants’ role ...... 142 Figure 6-5: Number of employees in participants’ company ...... 143 Figure 6-6: Who introduced innovation ...... 144 Figure 6-7: Key drivers of innovation ...... 146 Figure 6-8: Importance of innovation in bid evaluation ...... 147 Figure 6-9: Bid evaluation and innovation ...... 149 Figure 6-10: Model fit through SEM ...... 156 Figure 7-1: Conclusions across all study contributions ...... 162
viii Assessing Innovation in Comparative Tender Assessment in the Road Sector
List of Tables
Table 2-1: Bidding process in different countries ...... 24 Table 3-1: Innovation criteria and sub-criteria for road construction contractors ..... 51 Table 3-2: Analysis of different innovative case studies ...... 60 Table 4-1: Research Philosophy Comparison ...... 71 Table 4-2: Research plan ...... 73 Table 4-3: Number of companies to be surveyed ...... 79 Table 5-1: Demographic data ...... 98 Table 5-2: Descriptive data analysis of bid evaluation factor ...... 117 Table 5-3: Company experience loading and bid evaluation ...... 120 Table 5-4: Innovation and bid evaluation ...... 121 Table 5-5: Management skills loading and bid evaluation ...... 122 Table 5-6: Company resources factor loading and bid evaluation ...... 123 Table 5-7: Company management system factor loading and bid evaluation ...... 123 Table 5-8: Project factor loading and bid evaluation ...... 124 Table 6-1: Respondents’ city of residency ...... 139 Table 6-2: Importance of bid evaluation in Australia ...... 150 Table 6-3: Standardized covariance using SEM ...... 154 Table 6-4: Bid evaluation factor loadings ...... 158
Assessing Innovation in Comparative Tender Assessment in the Road Sector ix
List of Abbreviations
PPP Private Public Partnership
PQ Pre-qualification
LKRL Lane kilometres of road length
ABS Australian Bureau of Statistics
AIB Australian infrastructure budget
APQ Assessment of pre-qualification
DP Dynamic paint
GL Glowing lines
CPA Christ Pieces area
VCC Victorian Civil Construction
OT Open tendering
QC Quality control
OSHA Occupational Safety and Health Administration
IVC Innovation value chain
OECD Organisation for Economic Co-operation and Development SH Smart highway
NICTA The National ICT Australia
SCATS Sydney Coordinated Adaptive Traffic System
CTR Centre for Transportation Research
PPCP Precast pre-stressed concrete pavement
CAS Complex adaptive system
CBA Cost benefit analysis
x Assessing Innovation in Comparative Tender Assessment in the Road Sector
CA Cronbach’s alpha
QQP Quantile-quantile plots
CFA Confirmatory factor analysis
AIC Akaike information criterion
NFI Normed fit index
NNFI Non-normed fit index
GFI Goodness of fit index
AGIF Adjusted goodness of fit index
RMSEA Root mean square error of approximation
Assessing Innovation in Comparative Tender Assessment in the Road Sector xi
List of Publications
During my PhD candidature, articles based on the work in this thesis have been published in several refereed conference proceedings and international journals. The papers are as follows:
• Oad, P. K., Kajewski, S., Kumar, A., & Xia, B. (2021). Investigation of innovation during bid evaluation process in the road construction industry. Civil Engineering Journal, 7(3), 594-613.
• Oad, P. K., Kajewski, S., Kumar, A., & Xia, B. (2021). Bid Evaluation and Assessment of Innovation in Road Construction Industry: A Systematic Literature Review. Civil Engineering Journal, 7(01), 179-196. https://doi.org/http://dx.doi.org/10.28991/cej-2021-03091646
• Oad, P., Kajewski, S., & Kumar, A. (2020). Innovation in Road Construction Industry: An Analysis of Different Case Studies. Proceedings of the International Conference on Civil Infrastructure and Construction (CIC 2020).
• Oad, P., Kumar, A., & Kajewski, S. (2016). Innovative technologies in road sector. In Proceedings of the 8th International Conference on Maintenance and Rehabilitation of Pavements (MAIREPAV8) (pp. 765-773). Research Publishing, Singapore.
xii Assessing Innovation in Comparative Tender Assessment in the Road Sector Statement of Original Authorship
The work contained in this thesis has not been previously submitted to meet requirements for an award at this or any other higher education institution. To the best of my knowledge and belief, the thesis contains no material previously published or written by another person except where due reference is made.
Signature: QUT Verified Signature
05-July-2021 Date: ______
Assessing Innovation in Comparative Tender Assessment in the Road Sector xiii
Acknowledgements
I would like to express my deepest gratitude to my principal supervisor, Professor Stephen Kajewski, external supervisor Professor Arun Kumar and associate supervisor Associate Professor Bo Xia, for their valuable advice and enthusiastic support. Professor Kumar, you established an intimate and friendly relationship with me throughout this journey which gave me the incentive to prove to you my abilities and eagerness to improve my knowledge and skills. You always pushed me beyond my comfort zone and uncovered abilities I never knew I had. Thank you for believing in me, for your patience and support. I am truly grateful also, to my principal supervisor, Professor Stephen Kajewski, who provided me with constructive suggestions and truly valuable feedback. I really appreciate your encouragement, understanding and support. This research has been made possible through the support of Australian Government Research Training Program Scholarship. I am also grateful to my brothers (Gulshan and Dr Partab), friends, colleagues and other staff in the School of Civil Engineering and Built Environment for their continuing help, support and guidance, making my university life more enjoyable. Finally, I express my sincere gratitude to my parents for all their prayers and blessings. Dear Mom (Meeran) and Dad (Basant), this journey would not have been started without your advice and encouragement and the journey would have been very hard to continue and accomplish without your support. Thank you for everything and for giving me a family of whom to be proud. I would like to express my dearest appreciation to my wife (Pooja) for her patience, understanding, and support throughout the course of this study and research work.
xiv Assessing Innovation in Comparative Tender Assessment in the Road Sector
Chapter 1: Introduction
1.1 MOTIVATIONS
It is widely accepted that government agencies in the road construction and management industry sector aim to achieve value for their investment as they procure road construction industry services (Lee et al., 2020; Page & Tarp, 2020). When any government announces a road construction project and seeks procurement for these services, several contractors apply, and it is complex to assess innovation in these proposals on a comparative basis. This requires several factors such as: a clear project definition, what is new (innovation) and previous experience for the proposed project (Debela, 2019). Moreover, the literature indicates that some bids in the road construction industry are selected based on cost – a lower cost may win the bid but obviously the quality of the road construction project may be compromised (Dabarera et al., 2019; Huang et al., 2020).
The quality of roads also suffers badly due to global warming resulting in changes in the earth and environment (Saud et al., 2019; Wijesiri et al., 2020). Therefore, in this context, previously used methods of road construction are not suitable and cannot be applied in this rapidly changing environment. Hence, there is a need to evaluate the level of innovation during the bid evaluation process in the road construction industry (Innovation and Science Australia, 2018; Manley, 2007), which could be of great benefit to the community in terms of identifying quality contractors, finding what new materials they plan to use, how they will be time efficient etc. (Fernández, 2019; Saud et al., 2019). This could also help both developers and government bodies save time and effort in designing and developing sustainable roads, as it is particularly challenging to build durable roads in countries which are most impacted by global warming using traditional methods. This is why governments need to ensure that contractors will utilize new and sustainable materials to address the challenges in today’s environment.
The term innovation in the road industry refers to several factors: the use of sustainable materials and resources for road construction such as recycled materials
Chapter 1: Introduction 1
and foamed bitumen, and utilizing technological innovation that comprises the use of suitable technologies to incorporate effective innovation in the road sector (Caerteling et al., 2011; Cigolini et al., 2016; Innovation and Science Australia, 2018; Kaare et al., 2012).Innovative technology includes the use of automatic and computerised information systems for traffic signs, the use of solar technology in road construction to improve road quality and efficiency, including the use of best practice in engineering, more harmony between the public and private sectors, and enhanced quality control in processes by the use of different methods and techniques (Innovation and Science Australia, 2018; Oad, 2016). The literature indicates that governments spend a large portion of their budget on road construction as well as road maintenance, therefore, there using new and innovation methods and techniques in road construction would be highly beneficial. The assessment of factors related to innovation during the bid evaluation process could help in reducing the production of greenhouse gasses, decreasing contamination and ensuring the adoption of environmentally friendly methods in road construction and maintenance (Gilchrist et al., 2005; Li et al., 2010; Sexton et al., 2003).
The road construction sector requires efficient and effective methods and techniques (Debela, 2019; Lee et al., 2020; Page & Tarp, 2020). However, due to the rapid changes in the global environment, it is not easy for road developers to cope with these changes when developing roads and at the same time, it is difficult for government bodies to evaluate the innovative skills of bidders in a short period of time (Guerrieri et al., 2014; Oad, 2016; Sexton et al., 2003). Hence, the implementation of innovation in the road construction industry needs to be accelerated and stronger relationships need to be developed between the market, the product and technology. This influences the process of constructing fast, reliable, secure and low budget roads.
The focus of this research is to assess and evaluate the factors related to innovation proposed by the contactors or bidders in comparative tender assessment in the road construction sector. The research considers and builds upon the current road construction industry tendering assessment processes and includes environment sustainability as part of the research scope. The research hypothesis is as follows:
Incorporating innovation in the process of assessing tenders from road construction companies can improve the project quality and success.
2 Chapter 1: Introduction
1.2 SCOPE OF THE RESEARCH WORK
Researchers and analysts suggest that projects related to road construction should be managed in an organised manner. However, demands from competition and customers have been increasing rapidly (Debela, 2019; Page & Tarp, 2020; Puri & Tiwari, 2014). These demands directly impact the physical construction of the project, and thus a failure to appropriately manage a project can lead to delays in its completion. The selection of an appropriate road contractor can increase the chance of successful completion of a road construction project (Alhazmi et al., 2000; Saud et al., 2019; Wijesiri et al., 2020). The process of selecting a suitable contractor can also fulfill the government’s goals and objectives, improve the quality of the project, and keep the project on schedule and within budget. Therefore, it is essential to select a suitable road contractor who is able to deliver the project within the contractual requirements.
In the government sector, the selection of road contractors is conducted through tendering. Tendering gives a government a choice in granting a contract to a corporation which offers the shortest development cycles and the lowest price. The literature shows that many countries use such methods and procedures (Debela, 2019; Page & Tarp, 2020; Puri & Tiwari, 2014) with the results indicating that the lowest cost road tenderers frequently have difficulty in completing the project. This indicates that it is important to appropriately evaluate the road contactor’s skills and capabilities and to perhaps include how innovative they are?
This study focuses on three main sectors in the road construction industry:
• Road suppliers including distributors and manufacturers
• Road consultants with firms mainly related to engineering consultation
• Road contractors including lead contractors and sub-contractors
To investigate tenders and their types, in this study we only focus on road construction based on contractors and private public partnerships (PPP).
1.3 RESEARCH AIMS AND OBJECTIVES
Chapter 1: Introduction 3
Developing and maintaining suitable roads against the changes in the global environment is a challenging job. These changes in the environment make the road more slippery and damaged than usual when there is a thunderstorm and very hot weather causes the surface of the road to melt (Wijesiri and Goonetilleke, 2020; Kong,2019; Jiang, et al, 2020). This may lead to an increased number of road accidents and the loss of lives; therefore, governments spend additional amounts of money on road maintenance every year. This has raised an important question: how often roads are being rebuilt and maintained and does this cause problems for road users and governments (Kong, 2019; Jiang, et al, 2020). This is why there is a need to investigate innovative methods and techniques in road construction. This study aims to identify, assess, and evaluate the factors related to innovation when assessing contractor tenders for the road construction industry. A summary of the objectives of the research are as follows:
• To evaluate innovation factors that impact the bid evaluation process in the road industry.
• To conduct a systematic literature review in the context of bid evaluation factors with innovation in the road construction industry
• To assess the bidder’s innovative capability during the bid evaluation process in the road construction industry.
• To evaluate the existing methods and techniques to develop roads in Australia and other innovative ideas used across the world.
• To identify the importance of factors related to innovation in the context of the bid evaluation process for selecting the best and most reliable bid.
1.4 RESEARCH QUESTIONS
The assessment of innovation in any project proposal is important to ensure that the most appropriate contractor is selected for the proposed construction project. However, it is a challenging task, particularly in a situation where a large number of bidders apply for a government project requiring the evaluation of a large number of bids over
4 Chapter 1: Introduction
a short period of time. The relevant research questions concerning this aim are listed below:
• What is the key process to evaluate the innovation factors in bid evaluation?
• Do the existing bid evaluation techniques and methods used by the government and other agencies assess innovation as part of the evaluation process?
• To what extent has innovation been introduced in new projects related to road construction industry?
1.5 RESEARCH CONTRIBUTIONS
This study makes various research contributions to the area of the bid evaluation process in the context of innovation importance in the road construction industry. The key contributions of this research are as follows:
1.5.1 Critical analysis of knowledge of the bid evaluation process and innovation in the road industry
The selection of road contractors in the road construction industry are very often operated during the process of tendering or bidding process. In the process of bidding sometimes Government bodies gives a preference in granting project contract based on short project development cycle and low cost, but typically bidders are not allowed to have precise evaluation and assessment of a tender/bid due to an insufficient time. Therefore, it is important to understand and apply new methods and techniques to develop roads in the context of innovation in the road industry. To date, the bid evaluation process and innovation in the road industry has only received scant research attention.
This research examines detailed information on the process of bid evaluation and innovation in the road industry. This research will be useful for scholars and government bodies who are interested in this area. The research explores what innovation is; its application in the road industry; the factors commonly included in
Chapter 1: Introduction 5
bid and innovation evaluation; the indicators of bid and innovation evaluation in the road industry; and key methods and techniques utilized in bid evaluation.
1.5.2 Sustainable and innovative roads in Australia
The road construction industry in Australia is being examined from the perspective of using innovative and up-to-date methods to develop suitable roads. The need to develop sustainable and environmentally friendly roads for the Australian context is increasing due to global warming. In Australia, it is important to implement strategies for the development of a suitable road infrastructure because the road network is one of the main methods of consignment transportation which ensures personal and businesses mobility within the country. Hence, it is important to investigate the methods and techniques used to develop roads in Australia in terms of their level of innovation and their use of new and suitable material.
In this research, we thoroughly analyse the current methods and techniques to develop roads in Australia. Moreover, several case studies are analysed from the perspective of innovation so that recommendations can be made for the development of efficient roads. Therefore, this research is useful for government bodies to assist them to evaluate bids to identify the best and most useful bid. A number of real-world case studies on the road sector in the context of bid evaluation and innovation were examined. The findings indicate that there is an emergent need to include innovation in the evaluation of bids in the road construction industry. Hence, there is a need to further examine the research to identify the factors that contribute to the evaluation of bids. Also, the results indicate that most developed countries are aware of the need for innovation as the key to sustainable and environment-friendly, cost-effective methods of road construction and maintenance.
1.5.3 Qualitative evaluation of innovation and related factors in the bidding process
The process of bid evaluation varies from country to country and depends on many factors, such as weather condition, project cost and project duration. For example, according to Maqsoom et al. (2019), bid assessment entails the total project cost, the
6 Chapter 1: Introduction
project duration, and prior work standards. This means that a contractor’s bid will be successful if the contractor can demonstrate that they are sufficiently competent to undertake the project. Moreover, bid assessment is used to signify the strategic evaluation process of tender proposals submitted by pre-qualified contractors. The approach used for bidding evaluation should mirror an investor’s goals. Maqsoom et al. (2019) also specified that the project criteria should include strength, maintenance, safety, and security.
Some further unbiased approaches have been projected through multi-attribute methods that have merged the bid amount and contractor selection ideologies (Metham et al., 2019; Mnuni, 2019; Mushori et al., 2020). Conducting bid assessment using multi-attribute approaches may involve some challenges when contrasting various standards of other scales. Thus, many methods have been recommended for merging the criterion values into a single scale. On the contrary, Maqsoom et al. (2019) projected a time and cost technique to identify the winning bid in highway construction projects. By converting the contract period into a monetary amount, an honest comparison can be made using a single criterion. However, literature shows that a number of road contractors in the context of bidding process, Government bodies have not really got controls into the process of finding suitable bidder due to an insufficient time and evaluation of bidders skills (Mnuni, 2019; Mushori et al., 2020). Therefore, assessing innovation during the bid evaluation process in the road construction industry is important.
In this thesis, we qualitatively examined the factors related to innovation and the other important factors associated with bid evaluation in the road industry. In this study, two sub-factors related to innovation are extracted from the literature and evaluated against other bid evaluation factors, such as the evaluation of the contractor’s past experience, the contractor’s performance ranking in past construction projects, the contractor’s skills in managing company performance, the resource capability of contractors, contractor’s security and safety capabilities, and the project size. For innovation, two factors are examined: the use of new material in developing roads; and the implementation of innovative technologies in the road construction industry.
The study results indicate that the methods and techniques of road development are continuously evolving to respond to new challenges, community and stakeholder
Chapter 1: Introduction 7
expectations, results of research, etc. Australia has an excellent set of technical specifications and codes that have been developed over many years, that when applied give confidence that a good product and service will be achieved. These codes and specifications need continual updating based on current experiences. This approach requires collaboration with all parties involved in road construction to ensure experiences are well shared and that there is a common understanding of the improvements which are required. The challenge to reduce the costs associated with road construction is a driver of change. However, it is important that the quality of products should not be compromised in the process which can only occur if innovation is a significant component of the road construction process. Also, investment in research can assist to develop new products and new methodologies. It is important that the work of road researchers is promoted to the road construction industry so that designers and builders are well informed of developments and can consider incorporating new products and methodologies into their proposals.
1.5.4 Quantitative evaluation of innovation and its related factors in the bidding process
Tender or bid evaluation is a method of selecting the best contractor for a particular road development project from the applicants (Mwelu et al., 2019; Sepasgozar & Blair, 2019). However, without the implementation of new and innovative ideas, it is not possible to improve road sustainability. In this chapter, we evaluated five factors (new ideas to save development time, technology/method, use of new materials, speed of communication and communication transparency) related to innovation, as per the suggestions from the road developers and experts during the qualitative study.
The study results indicate the following: first, the private and public sectors can offer innovative products and work methodologies when given the opportunity. In this context, innovation should be encouraged, and the environment needs to be created for it to occur effectively. The results show that innovation is welcomed and sometimes strongly encouraged. However, bid processes are not always well suited to the development of innovative proposals. Bid processes are generally relatively short with little to no time to develop innovative proposals. Also, in some cases, clients place too many constraints in their requirements which can hinder innovation. Conversely, the
8 Chapter 1: Introduction
results find that if tenderers are given relatively long periods of time to develop their bids and hence increase the potential for innovative developments, the costs of tendering increases enormously. In such a scenario, it is not unusual for bidders to seek some financial reimbursement to cover some of their tender costs. When we really want innovation to be developed in the procurement process, it is important that clients make this decision and set up procurement processes which foster innovative outcomes.
Second, the results show that in regard to bid assessment, some research on how to effectively determine value for money such that assessments are fair and realistic is needed. The Treasury in Victoria and treasuries around Australia have methodologies to assess value for money, but it would be worthwhile reviewing these to ensure that they are satisfactory. An innovative approach or innovative products could be developed with very good environmental outcomes as a result but may come at a significant cost. How does the bid evaluation team weigh up the benefits of such a proposal and consider the additional cost to ascertain the value of the bid relative to other bids? Some research in this field would be beneficial.
Third, the study results show that the road contractor’s experience with new materials is important for various reasons. For example, if a road contractor tests a new material and would like to offer it for use in future works, the road contractor needs to gain the confidence of future clients with the new material. Typically, this involves demonstrations to clients backed up with research results. Alternatively, if a new material is mandated for use, road contractors need to develop the necessary skills to be able to effectively use it. It may be necessary to demonstrate new materials to road builders so that they become familiar with them and know how to handle them. New road materials continue to be developed and tested and eventually cost- effective materials find their way into use. New road materials include recycled materials.
1.6 THESIS OUTLINE
There are seven chapters in this thesis. Chapter one presents an introduction to the research, the scope of the work, the research aims and objectives, the main research
Chapter 1: Introduction 9
contributions of this thesis and the research questions. This section delivers an outline of the thesis, as shown in Figure 1.1.
Chapter 2. Literature review: In this chapter, we examine the past research in the area of bid evaluation and innovation in the context of developing sustainable roads in the rapidly changing environment. Innovation in the road industry is important these days due to global warming-related issues, which result in damage to roads. Chapter two summarizes the following: the process of conducting the literature review, the current situation of bid evaluation in the road construction industry, the indicators and methods of bid evaluation, the bid evaluation process in different countries, innovation in the road industry, indicators of innovation and recommendations for the future.
10 Chapter 1: Introduction
Chapter 1 Chapter 2 Chapter 3 • Research introduction and • Bid evaluation • Study context Justification • Methods of bid evaluation • Road sector in Australia • Scope of research • Related work • Road innovation in • Research questions and • innovation in the road Australia aims sector • Innovative technologies • Key contributions • indicators of innovation around the world • Thesis outline
Chapter 4
• Research design philosophy • Research plan • Study participants • Research methodology
Chapter 6 Chapter 5 • Quantitative research • Qualitative research • Data collection techniques • Experts interview • Questionnaire design • Thematic analysis method process • Data sampling techniques • Data screening and • Designing interview template cleaning • Data result and analysis • Data result and discussion
Chapter 7 • Summary of work • How we answer research questions • Research implications • Limitations and future work
Figure 1-1: Thesis outline
Chapter 3. The road sector in the Australian context: The road industry in Australia has applied different innovative ideas to develop sustainable roads in the country, which is why the road sector is being investigated from the perspective of innovation and the use of cutting-edge technologies. Moreover, the growing demand to develop environmentally friendly roads in Australia has forced the sector to update
Chapter 1: Introduction 11
the methods used to develop roads and to test new technology and material to develop roads. Chapter three presents the current situation in relation to the methods being used to develop roads and the current state of innovative ideas in the road construction industry in Australia, the challenges and risks associated with innovation, the criteria to assess innovation in road construction tenders and a comparison of different case studies on innovation.
Chapter 4. Research Methodology and Design: Chapter four details the research design and methodology, the research plan, the theory to test the bid processing criteria, how the study data is collected and analysed, data analysis and research hypothesis modification, the introduction of qualitative and quantitative studies, and the justification of the selected data analysis methods and techniques.
Chapter 5. Qualitative studies: Chapter five discusses the background and related work, why innovation is important in the bid evaluation process, the study participants’ interview mechanism, the data sampling technique, the design and development of the interview template, the interview process, the process of thematic analysis using Nvivo, the results of the thematic approach, and the data analysis and the results.
Chapter 6. Quantitative studies: Chapter six details the research design and methodology, the data collection in the quantitative study, the questionnaire design process, the data sampling techniques, the data analysis at a preliminary stage, data screening and cleaning and data analysis, the results and a discussion.
Chapter 7. Conclusion and future research: Chapter seven summarises the research work, how the research questions are answered, the theoretical and practical implications of the research, the research limitations and proposals for future work.
The thesis provides one appendix at the end of this document: Appendix A comprises the Queensland University of Technology Ethics Committee approval, the study interview template, the questionnaire used for the quantitative study and the Participant Information Sheet.
12 Chapter 1: Introduction
Chapter 2: Literature Review
2.1 INTRODUCTION
A bid in the road construction industry is the process of offering a prospective client a bid to develop or control the building of a suitable road structure (Fango, 2019; Maqsoom et al., 2019). It is widely accepted that government agencies in the road construction and management industry sector aim to achieve value for their investment as they procure road construction industry services (Bista & Mishra, 2019; Fango, 2019). When any government announces a road construction project and seeks procurement for services, several contractors apply, and it is complex to assess innovation in these proposals on a comparative basis. This requires several factors such as: a clear project definition, what is new (innovation), and the bidder’s previous experience relevant to the proposed project (Fango, 2019; Kiran Kumar & Vimal Raj, 2020). However, it is not easy to assess innovation on a comparative tender assessment basis.
Moreover, the literature indicates that the road construction demands of customers and the competitive nature of the tender process have increased rapidly (Alsaedi et al., 2019; Bucholc et al., 2018). Therefore, these types of challenges contribute to inconsistency in projects. As these challenges directly relate to physical work on a road construction project, a failure to accurately assess tenders can lead to complications in relation to the whole project which need to be addressed by the road construction company (Bucholc et al., 2018; Mahamid, 2018; Mnuni, 2019). The selection of a suitable construction contractor increases the likelihood of the successful completion of a road construction project (Mahamid, 2018; Mnuni, 2019; Wimalasena & Gunatilake, 2018). This may also ensure the customer’s goals are achieved, and that the project is completed on time and within the budget and is of a high quality. This is why it is very important to select a process to identify a suitable and skilled road contractor who will deliver a high-quality product upon completion of the project.
Therefore, the road construction industry is looking for greater effectiveness and efficiency in its techniques and methods (Mahamid, 2018; Mnuni, 2019). However,
Chapter 2: Literature Review 13
this rapid change in the construction industry and its environment has not been incorporated as quickly by the industry and this compromises the incorporation of innovation and impacts customer, product and industry goals (Guerrieri et al., 2014; Oad, 2016; Sexton et al., 2003), which adversely impacts the process of constructing reliable, secure and low budget roads in a timely manner. This chapter presents a systematic literature review, which includes the following study questions: How are bids evaluated in the road construction industry? What are the indicators and methods of bid evaluation? How does the bid evaluation process vary between countries? What is innovation? What are the indicators of innovation in the road construction industry?
2.2 THE PROCESS OF LITERATURE REVIEW PLANNING
To perform this systematic review in the field of bid evaluation and innovation in the road industry, we used the guidelines developed by Kitchenham (2004) for reviewing and examining the available research articles relevant to our topic. According to Kitchenham (2004), a literature should be answered in the form of research questions; therefore, the reader can easily understand the topic from different perspectives. This chapter divides the bid evaluation process and innovation into the aforementioned research questions and discusses each in the following sections.
2.3 EVALUATION OF BIDS IN THE ROAD CONSTRUCTION INDUSTRY
Evaluating a bid is the process by which submitted tenders are examined and evaluated in order to select the most appropriate bidder. Road construction bids are normally assessed first on the basis of pass and fail selection criteria before any particular single bidder is accepted (Kim et al., 2016; Nyström et al., 2016). For instance, even if the bid evaluation rank is not based on a practical assessment, a determination should be made that the solution projected by a tender bidder is practical, suitable, feasible, robust and deliverable and it is based on secure, maintainable and reliable technologies (Hamzah et al., 2016; Nyström et al., 2016). It should also include technology that meets all the minimum safety requirements set by the authorities and that the financial
14 Chapter 2: Literature Review
structure and costs are reliable in terms of providing a practical solution. It is very important to look at the anticipated road construction project administration: the bidding association should come across as a consistent entity instead of a collection of construction companies put together for the process of bidding.
There are two key issues in the choice of the assessment criteria for the process of bid evaluation (Hamzah et al., 2016; Hasnain et al., 2018; Hyari et al., 2016; Liu et al., 2017). First, it is rare that only one bidder will submit a construction tender. If it appears that the bidder response is low due to deficiencies in the tender support documentation, then this can be remedied. Second, it is possible that a contactor submitted a bid in the belief that there would be a high level of competition. In this case, the approach may be to continue with the procurement and choose the individual road bidder (if it meets criteria) and announce a winner. In this way, the authorities confirm that the tender is fully acquiescent and meets the evaluation criteria.
Another bid evaluation strategy, according to Herbsman et al. (1992), includes time, quality and cost as measured by the bid quality based on the contractor’s previous work, amount and time of criteria execution, and quality. This suggests that the winning bid is in accordance with the agreement and the bidding contractor is competent to accept the contract (Norman & Perry, 1978). The bid evaluation process is employed to designate the method for the strategic assessment and evaluation of tender bids submitted by registered and pre-qualified road contractors. A bid evaluation strategy is employed that reflects the consumer’s objectives (Norman & Perry, 1978).
Herbsman and Ellis (1992) also proposed additional construction project criteria, including maintenance, security, durability and safety. Moselhi and Martinelli (1990) proposed a more objective method of bid evaluation using multi-attribute usefulness techniques for merging the selection criteria of the contract and the bid price. Bid evaluation in the context of multi-attribute methods might tackle some difficulties and issues when matching and comparing different bids evaluation criteria measured on different scales (Moselhi & Martinelli, 1990). Henceforth, numerous methods have been recommended for merging criteria values and standards into a single scale.
On the other side of the debate, Herbsman and Ellis (1992) proposed a bid evaluation approach based on cost and time in order to determine and evaluate the winning bid for council-level streets and highway construction contracts. By
Chapter 2: Literature Review 15
converting the construction contract cost to time, a straightforward assessment can be made based on an individual criterion (Herbsman et al., 1992). Lastly, Holt et al. (1993) combined their pre-qualification and post-qualification bid assessment score into a simple index by allocating a 60% weighting for the pre-qualification assessment score and 40% to the post-qualification assessment score (Holt et al., 1993). Henceforth, it might be concluded that there is no agreement as yet on a general set of evaluation selection criteria for road contractor selection. Selection criteria might vary in strength according to the features of the project development such as cost, selection of construction contractors, Topsis and Saw-G Grey techniques, pre-qualification and evaluation of bid criteria.
However, the literature shows there are not many studies, which discuss innovation in the context of contractor bid evaluation and assessment. Thus, there is an urgent need for research in the field of innovation and bid evaluation so that this process can be fast, reliable and fair.
2.4 INDICATORS AND METHODS OF BID EVALUATION
This section discusses the factors or indicators that are often considered during the assessment of tenders in the road construction industry.
2.4.1 Road construction budget
In the road construction industry, to assess the appropriateness of contractors, various pre-qualification and tender evaluation procedures are employed in many countries which involves the evaluation of important decision criteria (Holt et al., 1993; Kang et al., 2018; Kumar & Roy, 2018). Most developed countries spend a huge amount on the development of suitable and reliable roads (Bardaka et al., 2016; Gilchrist et al., 2005; Li et al., 2010; Mehany et al., 2016). In this context, the authorities are very careful when selecting and assessing tenders. For example, in Australia, the state and the local government are responsible for the construction and maintenance of roads.
16 Chapter 2: Literature Review
According to the Australian infrastructure budget (2017-2018), the demands for the construction of quality roads is increasing on a daily basis. Figure 2.1 and Figure 2.2 show the kilometres and lane kilometres of roads in Australia. This rapid growth in road demand can result in huge expenditure for a government. For example, according to the same report from the ABS (2017), in 2014 Australia allocated $15.8 billion to road renewal and maintenance. The spending on core road maintenance by the Road Traffic Authority NSW, Australia in the year 2010/2011 was $1billion. This makes a supportable and economical innovative road development strategy important and beneficial for Australia and internationally, both in terms of ecological and economic benefits.
Figure 2-1: Kilometres of Road Length in Australia (Australian Bureau of Statistics, 2015)
According to the Australian budget 2017-2018, the Australian government spent billions of dollars on infrastructure across Australia, as shown in Figure 2.3, with the following breakdown by state: South Australia $3.1 billion, Western Australia $7.7 billion, Queensland $13.6 billion, the Northern Territory $1 billion, New South Wales $18 billion, Victoria $10.4 billion, Tasmania $1.1 billion and the Australian Capital Territory $440 million.
Chapter 2: Literature Review 17
Figure 2-2: Lane-Kilometres of Road Length (LKRL) in Australia (Australian Bureau of Statistics, 2015)
Australia has adopted a competitive contracting approach for road maintenance. This strategy has resulted in around 10-40% in cost savings. It has also stimulated the integration of innovation and improved services. Figure 2.4 shows that the government spent $15.8 billion on roads from to 2008 - 2009. The transport sector contributes to over 23% of the total carbon dioxide emissions from the combustion of fossil fuels. This sector also contributes to a total of 15% of greenhouse gas emissions (Australian Bureau of Statistics-ABS, 2013). It is predicted that these emissions will increase by almost 2/3 in the coming thirty years which makes the adoption of innovative strategies to reduce the levels of emissions by the road construction sector imperative. In this context, the Australian government is very conscious of constructing better roads and to do this, they also spend a huge amount of time and cost in assessing contractors’ bids. As a part of this process, the government makes sure that the selected contractors have the suitable knowledge, skills, experience, and resources etc.
18 Chapter 2: Literature Review
Figure 2-3: Australian infrastructure budget-AIB 2017-2018 (Australian infrastructure budget, 2017-2018)
Russell and Skibniewski (1988) explained bid assessment and evaluation as a decision-making procedure that involves the implementation and wide consideration of essential decision criteria employed to evaluate the contractors’ competence (Russell & Skibniewski, 1988). Hence, a construction manager with extensive experience and knowledge is needed to ensure suitable criteria is applied in the selection of the most appropriate contractor both theoretically and financially for the company (Nyström et al., 2016; Russell & Skibniewski, 1988).
Chapter 2: Literature Review 19
Figure 2-4: Proportion of total state and territory expenditure on roads (Australian infrastructure budget, 2017-2018)
2.4.2 The cost or price consideration
The literature describes many evaluation bid criteria, the key evaluation factor affecting the construction contractor’s selection being construction price or cost consideration (Hamzah et al., 2016; Hasnain et al., 2018; Hyari et al., 2016; Liu et al., 2017; Maghool et al., 2017). While the lowermost bidder mechanism or system protects the community from improper practices, it has certain disadvantages (Kim et al., 2016). These include arbitrary low-cost bids from road construction contractors either intentionally or unintentionally or the selection of an unqualified road construction contractor which causes widespread delay in construction, quality issues, cost running over budget and disputes. Over the past several decades, some modifications have been made to the lowermost bidder mechanism, for example, community interest, reasonable bidder and pre-qualification of contractors could
20 Chapter 2: Literature Review
welcome many other doors for the evaluation of exiting bid evaluation methods and techniques.
2.4.3 Road construction contractor selection
Many researchers point out that it is very difficult to select a suitable and reliable contractor (Kumar & Roy, 2018; Smith, 2017). In the context of road construction, ID evaluation is one of the key challenges facing proprietors and advisors in the private and public sectors (Garbarino et al., 2016; Hasnain et al., 2018; Hyari & Technology, 2017; Nyström et al., 2016; Shrestha et al., 2016). On the other hand, there are objective means to measure the ability and strength of a road construction contractor to appropriately manage the business characteristics of the road construction project (Kim et al., 2016). The literature also shows that numerous frameworks and models have been developed to assess contractors’ bids to select the most appropriate and suitable contractor.
2.4.4 Information about contractors
It is compulsory for the government to investigate, collect and assess information to objectively evaluate the bidders against the criteria in relation to the bid evaluation (Smith, 2017; Yarmukhamedov et al., 2020). As there is a large volume of information in the existing literature on this issue, this thesis only discusses the most commonly used information as follows (Bardaka et al., 2016; Mehany et al., 2016; Santoso & Soeng, 2016): first, the competency of a firm’s equipment and plant to do the work appropriately and expeditiously; second, the construction contractor’s permanent place or location of business; third, the present position of the construction contractor to complete the agreement well; fourth, the firm’s financial competence and fitness to meet the requirements of the government; fifth, the suitability of the firm’s technical experience and ability; and sixth, the firm’s past satisfactory experience in similar construction projects in the context of their size and type. In total, the information employed for the evaluation of criteria for bid and pre-qualification assessment falls into five sections: the general information which is employed mostly for managerial
Chapter 2: Literature Review 21
purposes, the firm’s technical information, the firm’s financial information, the firm’s administrative information, and the firm’s safety information (Shrestha et al., 2016).
2.4.5 Contractor performance
Selecting a potential contractor for a specified project is a critical component in the project management’s selection and evaluation processes. Careful consideration needs to be made to establish which contractor has the demonstrated previous performance to establish a framework that can be used to help decision-makers in selecting the most appropriate contractor for a project (Lenderink et al., 2020; Sokolowski & Hoegsted, 2019). Overall contractor performance has been defined as follows: “Overall contractor performance is defined to embrace construction cost, construction time, construction quality and sustainable development, the philosophy being that the achievement of one aspect of performance should not be at the expense of another” (Park & Kwak, 2017)
Regarding the contractor selection process, the literature identifies several methods and techniques that can be used in such a process; the most common procedure is based on prequalification, negotiation and open tender (Çelik et al., 2017).
2.4.6 Pre-qualification and bids Assessment
The information regarding the assessment of pre-qualification and bids can be measured in numerous ways (Sokolowski & Hoegsted, 2019; Wipulanusat et al., 2019). This may be completed by assigning the highest value to every used criterion of bid and pre-qualification (Guerrieri et al., 2014; Russell & Skibniewski, 1988). These values are then ranked in terms of their importance in relation to the strategy that is related to the completion of the project. The criterion of pre-qualification and bids is made up of further sub criteria, the actual scores of the sub criteria are comprised to compute the whole value for the group. In order to avoid bias, it is suggested that at least three assessors are mandatory for every scoring action. Holt et al. (1993) studied an improved quantitative method for choosing construction
22 Chapter 2: Literature Review
contractors which encompasses a three-level process: requiring the calculation of pre- qualification contractor’s skills, assessment of contractors in the light of particular bidders and a comparison of the bid cost amongst the bidders (Holt et al., 1993; Holt, 2010).
2.4.7 Management of construction risk
The idea of construction risk management was introduced in the 1980s and was used to shape the designer reliability and constructability of designs and to minimize schedule time by overlapping the method design (Alhazmi et al., 2000; Bardaka et al., 2016; Mehany et al., 2016; Shrestha et al., 2016). According to Holt et al. (1993), the contractor typically PROVIDES important input in the design process. In general, construction risk management generates a cooperative environment that uses the perceptions, experience, and designers skills (Holt et al., 1993; Holt, 2010). The management of construction risk is gaining acceptance, particularly in relation to large construction projects, for example, the construction of government schools, airports and sports stadiums. The management of construction risk aims to decrease the risk of budget overrun and timetable creep and to accelerate the road construction process without compromising on quality. In this case, the road construction administrator works with the road designer as a team member throughout the design phase of the project.
2.4.8 Methods of bid evaluation
There are different methods that can be used to choose which road contractor should be awarded a road tender, however the research indicates that governments and private companies most commonly use the following methods:
Bespoke approaches: these approaches are used widely in industry and as the selection procedures are developed by individual business organizations, there are numerous differences between the approaches, most of which rely only on true/false or yes/no response and the judgement of the decision maker. The process is
Chapter 2: Literature Review 23
vulnerable to the bias of the business decision maker (Holt, 1998; Holt, 2010; Sönmez et al., 2002).
Multi-criteria selection methods: these methods are used to weight price factors and non-price factors in a single stage or in two different stages. The approach is useful to minimize the influence of the biases of the business decision maker by defining the weighting of every criterion before inspecting any suggestions or submissions. In this study, we used the multi-criteria selection method, which is a mixed method approach (Holt, 1998; Holt, 2010; Sönmez et al., 2002).
Table 2-1: Bidding process in different countries
Bidding Bidding process in different countries process U.S. France Germany Australia Middle factors/criteria East Bid Price ✓ ✓ ✓ ✓ ✓
Bidder details ✓ ✓ ✓ ✓ ✓
Scope of work ✓ ✓ ✓ ✓ ✓
Bidder ✓ ✓ ✓ ✓ ✓ experience Technical ✓ ✓ ✓ ✓ ✓ resources Reference or ✓ ✓ ✓ ✓ ✓ related work quality Health and ✓ ✓ ✓ ✓ ✓ safety Taxation ✓ ✓ ✓ ✓ × details Financial ✓ ✓ ✓ ✓ ✓ information Infrastructure ✓ ✓ ✓ ✓ ×
Team skills ✓ ✓ ✓ ✓ ×
Plant and tools ✓ ✓ ✓ ✓
Innovation ✓ × ✓ × ×
24 Chapter 2: Literature Review
2.5 BID EVALUATION PROCESS IN DIFFERENT COUNTRIES
One of the key challenges in evaluating bids in the road construction industry is how to identify the best method of evaluating bids. To do this, we identified different countries that published how they evaluate contractor bids.
2.5.1 Bidding process in the U.S.
In the United States, the selection of bids in the road construction industry is based on bidder price. The bidder who proposes the lowermost bid price is awarded the contract under the sealed bidding system. This process at the government level is fair, highly transparent and appropriate for the standard of competition. Under this biding system, though, the bid price is the only factor in the award of a construction contract which has led to the failure of large and medium-sized road construction projects. This is because the bidder who won the contract proposed a very low bid price with the intent of increasing the cost after they had finalised the agreement (Hasnain et al., 2018; Hatush et al., 1997; Queiroz & Engineer, 1999). In these circumstances, the U.S government came to understand the existing tendering system had a negative impact on project success, quality and the government budget, therefore, they suggested a new tendering system where they consider number of factors, as shown in Table 2.1.
2.5.2 Bidding process in France
France discontinued its old-style tendering system for large or public projects, replacing it with one which is based on the economically advantageous price given by the bidders. However, in the road construction industry, the government usually has experts in the area to choose the most suitable bid. In recent years, these reforms to the bidding process have been evaluated as improving the quality of road construction and durability of the road (Hasnain et al., 2018; Hatush et al., 1997;
Chapter 2: Literature Review 25
Queiroz & Engineer, 1999). Therefore, the government suggested the inclusion of several other factors in the bidding process, which are shown in Table 2.3.
2.5.3 Bidding process in Germany
In Germany, bids are evaluated and bidders are awarded a contract based on its economic advantage to the government. However, in Germany, the bidders are mainly small- and medium-sized organizations, so they are not capable of developing high quality roads which meet the EU rules and regulations. Therefore, the German government announced that any company in the EU was permitted to participate in a bid so that road quality could be improved by having highly skilled and large infrastructure organizations on board (Hasnain et al., 2018; Queiroz & Engineer, 1999). The government’s new bidding system is based on many factors, which are shown in Table 2. 1.
2.5.4 Innovation in the construction industry in the Netherlands
Road construction in the Netherlands has recently undergone additional innovation. with the construction of a futuristic Tron-like freeway with glow-in-the-dark technology to help drivers see at night. This could be the first freeway in the world that is so technologically advanced. The implementation and testing of this Netherlands project has now begun. A total of 500 meters of the N329 Oss freeway has been prepared with this innovative and technology. This road has the capability to glow in the dark due to the use of paint which absorbs daylight and can provide a green glow for up to eight hours at night and it can also provide information related to the weather. The idea behind this advanced project is the construction of freeways that are sustainable and interactive.
This invention is a very efficient and smart initiative from the Netherlands to preserve and save electric energy, so soon Netherlands government will replace the streetlights and new method has takeover. This innovation will lead to the construction of safe and sustainable streets and roads. Heijman claims in his research that this
26 Chapter 2: Literature Review
advanced technology means that light poles that are placed on the edges of streets and freeways could be a thing of the past. Likewise, this advanced technology can be utilized in areas where electricity and lighting are not available, as shown in Figure 2.5 (Dubé, 2014).
In the Netherlands, a study copnducted on the use of glow paint indicated that the safety of those roadways would be improved when applied to dark sealant because drivers can easily see the road edges, road signs, all critical features and road itself. The Netherlands construction companies tested this new and innovative technology and anticipated that in the dark or at night time such applications glow up to seven hours, however, during rain session, it was unable glow and drivers often turn off their vehicle headlights to see glow, which alternatively increase risk of road accidents (Dubé, 2014).
Figure 2-5: Dynamic paint and Glowing lines-(Dubé, 2014)
Researchers in the road construction industry suggested that before this project gains acceptance from other countries around the world, there are several problems that need to be discussed. These problems are as follows: first, what is the perceptibility range of these lights and paints when developing roads, as lights and paints make the patterns of the road noticeable at distances that are fast and safe for drivers. Second, it is important to investigate the effect of the light and paint in
Chapter 2: Literature Review 27
different weather conditions, but condition in winter with very low sunlight, rainfall etc. The United Kingdom landscaping corporation Pro-Teq launched a similar road construction project in which the roads and paths were illumined with the help of sprays to replace street lights. This advanced technology is functional in the Christ Pieces area in central Cambridge. However, there are certain problems with this advanced technology, such as the cost to implement is quite high and the uncertain durability of these methods can lead to other issues, for example, future road maintenance costs could be unaffordable (Dubé, 2014). Success in this research will help the building of intelligent roads and the execution of advanced and innovation methods for the construction of suitable roads and improving the driving experience.
2.5.5 Bid evaluation process in Australia
In Australia, Austroads is a key organization in the road sector that designed and developed NPS (National Prequalification System) to form a harmonised framework for contracts related to the construction of bridgeworks and roadworks. Road builders who wish to participate and submit road tenders to Australian Road Agencies must be prequalified under the NPS (Casey and Kelley, 2010 and Austroads, 2019).
Austroads’ aim is to deliver a better-quality Australian road transportation network. In this context, Austroads coordinates leading-edge bridge and road construction and transportation research which supports state road authorities input to strategic development and provide guidelines on road and pavement design, road and bridge construction and management, and related infrastructure. Austroads delivers a cooperative method that distributes value for money, inspires knowledge share and drives reliability for road workers and users. Austroads is governed by the Board which consist of senior level executives from each of its 11 member organisations (Casey and Kelley, 2010 and Austroads, 2019), including:
1. Queensland department of transport and road development
2. South Australia department of planning, transport and infrastructure
3. New South Wales for Transport
4. Victoria roads corporation
5. Western Australia main roads
28 Chapter 2: Literature Review
6. Northern Territory Logistics
7. Australian Government Regional Development and Cities and Department of Infrastructure
8. Transport Agency of New Zealand
9. Tasmania Department of State Growth
10. Local Government Association for Australian
11. Canberra and City Services and Australian Capital Territory
A number of agencies from different states participate in the NPS (Casey and Kelley, 2010 and Austroads, 2019). For example, in New South Wales, the following agencies participate in the NPS: New South Wales (RMS) and Roads and Maritime Services. In Victoria, the following agencies participate: Victoria (VicRoads) and Roads Corporation. In Queensland, the following agencies participate: Queensland (TMR), Main Roads and Department of Transport. In Western Australia, the following agencies participate: Main Roads Western Australia (MRWA). In South Australia, the following agencies participate: South Australia (DPTI), Transport and Infrastructure and Department for Planning. In Tasmania, the following agencies participate: Tasmania, Department of State Growth. In Australian Capital Territory, the following agencies participate: Australian Capital Territory, Treasury & Economic Development Directorate and Procurement & Capital Works, Chief Minister
In Australia, the road construction and maintenance industry have an important influence on the state budget, the development of important commercial and infrastructure and the provision of jobs. The civil construction and maintenance industry in Victoria is dedicated to excellence in building roads and the maintenance of other Victorian infrastructure, with consideration of the environment and people’s social needs. An important part of meeting this obligation is the advancement of best practice in managing road construction related to contracts and tendering.
The Austroads has set minimum standards for accepting tenders for public road maintenance and construction (Casey and Kelley, 2010; Austroads, 2019, Victorian Civil Construction Industry Alliance, 2008). Austroads follows various tendering procedures, with the most commonly used being open tenders, selected tenders and
Chapter 2: Literature Review 29
preregistered (selective) tenders. Open tendering involves inviting submissions from the open market by issuing an invitation to tender by public advertisement with no restrictions as to who can submit a bid. The invitation to tender includes the relevant project information and the tender closing date. Selected tendering follows the same rules and regulations as open tendering, however only contactors who can demonstrate prior competence in a similar project can apply. Pre-registered (selective) tendering is a two-stage process involving an advertised invitation to respond to an expression of interest from interested tenderers in lieu of an invite to tender (Casey and Kelley, 2010; Austroads, 2019, Victorian Civil Construction Industry Alliance, 2008).
Victoria follows various tendering procedures, the most used being open tenders, selected tenders and preregistered (selective) tenders. Open tendering involves inviting submissions from the open market by issuing an invitation to tender by public advertisement with no restrictions as to who can submit a bid. The invitation to tender includes the relevant project information and the tender closing date. Selected tendering follows the same rules and regulations as open tendering, however only contactors who can demonstrate prior competence in a similar project can apply. Pre- registered (selective) tendering is a two-stage process involving an advertised invitation to respond to an expression of interest from interested tenderers in lieu of an invite to tender (Victorian Civil Construction Industry Alliance, 2008).
• The Victorian Government applies the following principles for the three tendering processes: • Value for money – the government accepts services and goods at an optimal cost and focuses on performance standards. • Open and fair competition – maximising the chance for companies and individual contractors to participate in the bid. • Accountability – assigning accountability for compliance with polices and acceptance of best practice. • Risk Management – accepting management policies to reduce risk in contract management and tendering. • Probity and transparency – guaranteeing fairness, independence, reliability and transparency in all levels of the tendering process.
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• Local industry participation – using local suppliers provided they offer the best price. • Minimisation of tendering costs – guaranteeing that the lowest cost tenders will also be given consideration as long as they ensure quality services.
Moreover, the Victorian Government adheres to the following principles in evaluating tenders from contractors (Victorian Civil Construction Industry Alliance, 2008).
• Project total cost • Contractor’s ability to meet government requirements • Project delivery time offered in the tender • How contractors ensure project quality • Contractor’s previous performance on similar projects • Contractor’s experience overall • Contactor’s capabilities • Contractor’s health and safety measures • Contractor’s workplace and industrial relationship management practices and performance • Contractor’s environmental supervision practices and performance • Contractor’s public relations practices and performance • Contractor’s budget • Contractor’s skills
2.5.6 Bid evaluation process in the Middle East
The Saudi Arabian development authority has been extended recently. this has been driven by the administration's system to re-construct roads and update framework of developing roads in the Kingdom's. These development ventures include the building of new roads, private lodgings and government workplaces. Most of these projects are financed by the administration. However, the private sector is also heavily involved in infrastructure development which is being driven by changes in the lifestyle of Saudis, who are tending to move from country areas to urban regions,
Chapter 2: Literature Review 31
increases in the availability of work opportunities, and increases in annual salaries (Larrea-Gallegos et al., 2017; Rowlinson, 2017; Walker, 2016).
The administration's procedure and changes in the socio-financial matters of Saudi society have made countless effort in the Kingdom. This huge number of open activities have pulled in a similarly expansive number of national, provincial and worldwide temporary workers to reach the Saudi development authority. A key challenge is, Saudi open task proprietors is the temporary worker choice process because of the effect of the undertakings' prosperity on open enthusiasm, and also with fulfilling the expert(Park & Kwak, 2017).
The contractual worker pre-determination process in Saudi principally relies upon a blind list of criteria devised by the administration and which is filled in by the temporary workers themselves. This method neglects to satisfy the necessities of the undertaking's customers and has ended up being in powerful the same number of temporary workers have neglected to meet the venture's prerequisites and have neglected to meet their execution guarantees. The in Saudi Arabia preselection process is that in which the temporary worker fills in the appraisal shape yet understanding of the Saudi development authority has. This shown that the contractual workers are untrustworthy as far as surveying their own execution, the quantity of undertakings they have finished, or their own money related execution as an association. There is an absence of certainty with respect to the temporary workers' assessment of their own execution (Çelik et al., 2017).
Specialized Capability of the Contractor
• Previous experience in a comparable type and size of undertaking • Appropriate capabilities and experience of specialized staff • Plant and equipment: accessibility, condition and appropriateness of the hardware • Quality control • Specialized information of the predefined venture
Money-related Capability of the Contractor
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Financial soundness • Positive FICO assessment • Banking course of action • Working capital • Current and settled resources
Wellbeing and Safety Record
• Occupational Safety and Health Administration -OSHA rate • Management wellbeing responsibility • Experience in dealing with hazardous substances • Experience in clamour control • Safety record • Company security approach Notoriety • Past venture disappointment • Length of time in business • Past customer connections • Other connections • Number of comparative finished undertakings • Reputation of the sub-temporary workers to be utilized for the undertaking • Percentage of past works finished on plan • Relationship with providers • Claims and legally binding debate
Administration Ability
• Past administration execution • Qualification and experience level of venture administrator • Qualification and experience of administration staff • Present workload and capacity to help the new venture • Number of direct laborers accessible for the undertaking
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Association's Culture
• Familiarity with nearby working society • Contractor nature with nearby providers • Familiarity with controlling specialist • Experience in the area • Relationship with sub-contractual workers • Contractor's nature with climate conditions.
2.6 INNOVATION IN THE ROAD CONSTRUCTION INDUSTRY
In the early days, road construction and bid evaluation was done without detailed planning. Roads were constructed according to cumulative needs, following the tracks that were made by bullock carts. The first road in the colony was a cleared track from Dawes Battery to Governor Phillip’s residence, almost two kilometres. After the settlement of the Parramatta region, a road was built to it from Sydney. In 1792, roads were built linking the settlement of Windsor with both Sydney and Parramatta. The road network rapidly expanded, but there was no town plan in the early settlement days of the colony (Australian Bureau of Statistics, 2015).
According to Caerteling et al. (2011), the road construction industry in Australia is being researched from the viewpoint of innovation and the use of progressive technology (Caerteling et al., 2011). There is a growing requirement for the road building industry to receive increased attention in order to improve and incorporate innovation because the road building sector in Australia is a key contributor of engagement across the nation. According to Kaare et al. (2012), the road infrastructure is very significant, as it is the foundation of consignment transport and ensures business and individual travel mobility (Kaare et al., 2012). The assets required for road building are much greater compared to small construction projects, so with a substantial amount of money at stake, it is essential to ensure there is thorough planning and investigation so that innovation can be properly endorsed. There is an increasing requirement to adopt innovation in the construction industry as it can help to set a good example in the market.
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Figure 2-6: Innovation Value Chain(Kandybin et al., 2004)
According to Liu et al. (2017), there was a rapid deterioration in road conditions across the world in the 18th century. Over time, the method of road construction improved across the developed world, and innovative tools and technologies began to be used. For instance, in the United Kingdom, there was a shortage of trained engineers and inspectors. The landscape of the United Kingdom was not very supportive of construction roads effortlessly, but the Romans appeared to have few difficulties in the construction very early roads. In 1890, asphalt was used for the first time in the construction of roads which was an important innovation in road construction (Liu et al., 2017).
The term innovation can be defined as a way of implementing new or significantly improved products, service or processes. There are two types of innovation: product innovation which involves the creation of improved services and products; and process innovation which involves the implementation of new processes for the production of products or the delivery of services. Innovation can also include the improvement or adoption of a new way of interaction between the company and the dealers in relation to the distribution of services and products. There is also an incremental innovation that comprises minor changes to current services and products. There can also be fundamental innovations which comprise a key change in company processes and the working of products. All these types of innovation can be applied to the construction industry.
Selecting and prioritizing potential road construction bids is one of the key challenges in the construction industry, which is one of the important axes of administration models of private and public business organizations included in
Chapter 2: Literature Review 35
development, innovation and research activities (Moselhi & Martinelli, 1990). For this reason, a large volume of literature is devoted to the bid selection problem. Graves and Ringuest (2012) suggested a mathematical programming model to evaluate projects in the field of information technology (Graves & Ringuest, 2012). Pinto (2013) studied many quantitative and qualitative project and bid selection and evaluation models. Sokmen (2014) planned a list of the numerous criteria and methods employed until 2013 (Sokmen, 2014).
Innovation in developing countries like India, could be promoted in different ways, such having a program of subsidy or prise system when contactors bring innovation in the sector, also, it can be promoted through road contractors’ training at Government level. In the context of innovation and bid evaluation in the road construction industry, the literature shows that there is a common belief that investigative research and development spending translates into advanced economic situation and many studies demonstrate that there is no association between research and development expenditure and company success (Gilchrist et al., 2005; Hasnain et al., 2018; Liu et al., 2017). According to Kandybin et al. (2004), for corporations to maximize their investment of return on innovation in evaluating bids, an efficient innovation value chain is essential, as shown in Figure 2.6. The innovation value chain consists of four critical types of capabilities namely: commercialization, ideation, development and project selection (Kandybin et al., 2004).
2.7 INDICATORS OF INNOVATION
According to Innovation and Science Australia, Australians live much longer and are healthier today, as Australia is a country with one of the highest life expectancies in the world, thanks to new technological innovations. Innovation has transformed the quality of life of the community. This is the reason innovation continues to be important for the future of the Australian people, and to inspire other countries to focus on the following indicators of innovation: education, industry, government, research and development and culture and ambition.
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2.7.1 Education
In order to respond to the changing nature of workplaces, all people in Australia must be educated and trained by 2030. Therefore, it is important to teach people the necessary skills, such as skills in science, engineering, technology and mathematics. Also, the government makes sure that the vocational education and training system should be available to the bidders (Innovation and Science Australia, 2018). Figure 2.6 shows how much the government spent on schools and their outcomes. After the data analysis, following recommendations have been recommend:
• Provide training for pre- service teachers and reinforce training for school teachers.
• Prepare students for post-school technology, engineering, science, and mathematics professions.
• Increase student determination and achievement in learning and proficiency.
• Examine the training and vocational education system.
• Continue and reinforce reforms to the training and vocational education system.
Figure 2-7: School education funding and outcomes, 2004-05 to 2015-16 (Innovation and Science Australia, 2018, p28)
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2.7.2 Industry
For the Australian context, the government should ensure Australia’s continuing success by motivating high-performance organizations and improving production. According to the annual report (2018), Australia’s innovation investment and talent can be supported by cultivating access to worldwide talent pools and encouraging increased diversity (Innovation and Science Australia, 2018). Figure 2.8 shows the expenditure of Australian business and government on research and development between the years of 1992–2016. After the data analysis, the recommendation from Innovation and Science Australia is as follows:
• By improving government support, business expenditure can be reversed.
• To promote innovation, the government should enhance its efforts to support small and new businesses.
• The first thing Australia business can do is to prioritise spending on machine learning and artificial intelligence.
• Guarantee strong competition in knowledge rigorous commerce sectors.
Figure 2-8: Expenditure of Australian business and government research and development, 1992–2016 (Innovation and Science Australia, 2018, p.14)
2.7.3 Government
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The government and its related agencies should be motivated to embrace innovation and be recognized as a worldwide leader in advanced service distribution. Therefore, a flexible supervisory atmosphere that supports advancement and innovation may be attained through partnership between the Australian government and customers (Innovation and Science Australia, 2018). The Figure 2.9 presents the government expenditure on procurement contracts from 2008 to 2016. After the data analysis, the recommendation from Innovation and Science Australia is as follows:
• Form a more flexible monitoring atmosphere that adopts innovation
• Reassure social innovation all over Australia
• Expand delivery and the use of open administration information
• Upsurge the employment of innovative procurement plans
Figure 2-9: Government expenditure on procurement contracts from 2008 to 2016 (Innovation and Science Australia, 2018, p64)
2.7.4 Research and development
Another way to encourage innovation in the country is to improve the efficiency of research and development by increasing the transformation and commercialization of
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investigation. The strategy for the implement of innovation in Australia’s based on quality research, which continually improve the investment in national research structure, commencing with the country’s high performance information systems and computing facilities (Innovation and Science Australia, 2018). Figure 2.10 presents the government expenditure on research and development from 1992 to 2014. After the data analysis, the recommendation of Innovation and Science Australia is as follows:
• Familiarize a partnership premium on tax balance to incentivize teamwork.
• Appraise scaling-up business higher grade by investigation placement plans.
• Appraise the influence of current changes to incentivized partnership in 2022.
Figure 2-10: Government expenditure on research and development from 1992 to 2014 (Innovation and Science Australia, 2018, p15)
2.7.5 Culture and ambition
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Another innovation indicator is culture and ambition where the government should improve the nationwide culture of innovation by initiating ambitious national agendas. The strategy is that the government should ensure national missions are suitable and can be attained through the implementation of a robust method to implement and identify missions (Innovation and Science Australia, 2018). Figure2.11 presents the health and life expectancy expenditure per person in different countries. This indicates that innovation in relation to health can improve the people lifestyle in the workplace. After the data analysis, the recommendation from Innovation and Science Australia is as follows:
• Understanding of system mission, delivery and innovation assistances for all Australians
• Guaranteeing Australia’s National Missions are active might be attained through the implementation of a robust method and identification of company missions.
Figure 2-11: Health and life expectancy expenditure per person in different countries (Innovation and Science Australia, 2018, p87)
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2.8 RECOMMENDATIONS FOR TENDERING EVALUATION
The selection of road contractors is usually conducted at the tendering stage. Tendering at an early stage gives the customer an option to accept a contract from a contractor which offers a short construction completion date and a low cost. Moreover, the literature indicates that low-priced tenderers frequently have difficulty in accomplishing the project. Selecting a tender which offers the cheapest price is the main reason attributing to the challenges in project completion, as most of the time, a low price means a lowering of the project quality. Therefore, this situation makes it particularly significant to appropriately assess the road contactor’s competence.
The literature discusses several methods to compare tenders using the following factors: proposed cost, bidder management system, resources, their performance in the market, and their related work experience. However, the literature shows that many projects related to road and bridge construction failed due to an insufficient awareness of innovation when assessing tenders. Innovation is a key factor, as this allows the government to assess the bidder’s capacity to use new technology and ideas, as due to global warming, it is necessary to implement new ideas in road construction. The aim of this chapter is to present a systematic review of the bid evaluation process and to assess innovation in the road construction industry.
During this research, a number of real-world case studies on the road sectors in the context of bid evaluation were examined. The findings indicate that there is an emergent need for innovation in bid evaluation in the road construction industry. This led to a further examination of the research to identify the factors that contribute to the evaluation of bids. Also, the results indicate that most developed countries are aware of the need for innovation as the key to sustainable and environment-friendly, cost- effective methods of road construction as well as maintenance. However, many developing and developed countries continue to ignore innovation the road industry, which could lead to a negative impact on our environment.
2.9 SUMMARY
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The literature indicates that projects related to road construction must be accomplished in an organized manner. The literature indicates that road construction demands from customers and the competitive nature of tenders is increasing rapidly. Therefore, these types of challenges contribute to the inconsistency in the projects. As these challenges demands physical work on a road construction project, a failure to accurately assess tenders can lead to complications for the whole project and the road construction company. The selection of a suitable construction contractor increases the likelihood of the successful achievement of a road construction project. This may also ensure that the customer’s goals are achieved and the project is completed on time and within budget, and to a high quality. This is why it is very important to select a suitable and skilled contractor to ensure the project is completed to a high quality.
This chapter reviewed the bid evaluation process, the evaluation of bids in the road construction industry, the indicators and techniques of bid evaluation, the process of bid evaluation in various countries, innovation in the road industry, and the indicators of innovation in the context of the road construction industry. The aim of this chapter is to present a thorough understanding of the bid evaluation process and the assessment of innovation in the road construction industry.
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Chapter 3: The road sector in the Australian context of this research
3.1 INTRODUCTION
It is widely accepted that innovation is necessary in the road construction industry to ensure a competitive benefit. However, there is a perception amongst specialists that innovation in the construction industry is uncommon and that the construction industry is slow to change. This perception occasionally arises due to comparisons between the road construction industry with the medical, education, electronics and other business industries in which the implementation and adoption of new theories, products and technologies has been widespread over the past numerous decades (Drejer, 2002).
Despite this opinion, the idea of innovation in the road construction industry does occur and the idea has been documented by many developers and researchers (Slaughter, 1998), there is continue requirement of attention in shaping how to improve innovation in the industry. Panuwatwanich et al. (2009) suggested that the implementation of innovation in the road construction industry is necessary as a foundation of competitive benefit for similar organizations. Peace et al. (2010) stressed that the competitiveness of an organization is unavoidably based on regional and national arrangements of innovation in the construction industry, which alternately depends on government procedures and policies. Consequently, given the continuous and rapid changes and enthusiasm of the commercial environment, protecting competitiveness is an important agenda of most organizations in the construction industry.
Many researchers have identified that an increase in the technical knowledge relating to innovation in the road construction industry in terms of road material and road construction and the growing exchange of information between developing and developed countries across the globe offers new options and possibilities for the asphalt roadway, societies support the wider realization of innovative service and also products used in all designated nations to achieve a practical and cost-effective
Chapter 3: The road sector in the Australian context of this research 45
optimization of road supervision and administration(Caerteling et al., 2011; Hausman, 2005; Lundberg et al., 2019; Wolfe, 1994).
This chapter examines the current situation in relation to innovation in Australian road development by analyzing several cases studies on innovation which include the use of recycled material in the road construction industry, the development of eco- friendly roads, solar roads, glow-in-the-dark roads, the use of technology in traffic control, precast pre-stressed concrete pavements, toner recycling for roads, extracting energy from roads, foamed bitumen stabilised pavements and the use of plastic in road construction. The case studies have been analysed in the following context: location of the case study, which helps to identify the suitability of road construction material for the weather conditions; driving factors, which indicates how and what the selected case studies contribute to the field of innovation; economy and environment feasibility; and barriers identified in the case studies, which indicates the hurdles facing the evaluation of selected case studies. The study findings indicate that in order to maintain its competitiveness, the construction industry needs to continuously focus on the improvement of their construction processes and innovative materials. The findings indicate that in both case studies, economic and environmental benefits were realised.
3.2 ROAD CONSTRUCTION INDUSTRY IN AUSTRALIA AND INNOVATION
The literature indicates that the road sector in Australia is being investigated from the viewpoint of the use of cutting-edge technology and innovation (Lee et al., 2020). Therefore, the growing demand for the road construction industry is to develop suitable and environmentally friendly roads through the use of new technology and innovation. Moreover, in Australia, a large amount of employment and even the nation’s GPD is based on the performance of the road construction industry (Caerteling et al., 2011). Therefore, strategies to develop roads and infrastructure is vital as the road network is the key method of consignment transportation and guarantees personal and business travel mobility (Kaare et al., 2012). This leads to high investment in road construction compared to other small- and medium-sized bridge and building projects,
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and as a consequence, it carries a heavy risk. Hence, there is a requirement to incorporate research and planning in this sector in order to encourage innovation and new technology in a proper way (Kaare et al., 2012). Furthermore, there is an emergent requirement to implement innovation and innovative technologies in the road construction industry in Australia. This is because the road building industry in Australia is focusing more on development and research projects than construction- related projects (Australian Bureau of Statistics, 2015). Even though there is a stable percentage of study result concerning project innovation in road construction in Australia, the degree to which new technology and innovation has been implemented in the road sector in real practice is very low (Kaare et al., 2012).
Road structure projects and related agencies account for this large investment from the national budget. The role of road builders and strategy makers is only to provide services which are suitability to the public, thus there is a need to measure upcoming developments in the sector as well as transportation services. To cover wider area of the country and to improve people’s mobility, there is a need to implement innovation and new technology that would result in better road building (Kaare et al., 2012).
Currently, due to the growth in globalisation and the growing population, there has been a large increment in traffic as well as extra loads on bridges and roads, leading to exasperating problems such as congestion, damage to vehicles, and air and noise pollution. These are problems that are increasing at a rapid rate, causing concern for the safety of the ecosystem. Therefore, there is a requirement to initiate as well as implement change, to build roads that are able to cope with the growing volume of traffic and to make sure that road users are more comfortable and safer. The implementation of new technology and innovation by the use of advanced processes and material in the building of roads could improve road effectiveness and efficiency. Moreover, there is also an urgent requirement for the implementation of a sustainable transport system??. Sustainable transport is any form of transport that does not depend on finite natural resources, rather, it is powered by renewable or regenerated energy, thereby having a low or a negative impact on the environment (Stantchev & Whiteing, 2010).
There is increased pressure on road construction contractors to design roads that will result in decreased emissions to meet the emission targets set by governments. For
Chapter 3: The road sector in the Australian context of this research 47
example, in the year 2011, the atomic disaster in Japan raised a flag for many countries to adopt new and innovative policies and plans to minimise the use of atomic power, which is what France, Italy and Germany are doing at the movement. As one country alone cannot achieve the targeted decrease in emissions, there is an increasing requirement for the infrastructure builders to assist in decreasing emissions.
3.3 INNOVATION IN THE ROAD CONSTRUCTION INDUSTRY
It is broadly acknowledged in business sector and scholarly circles that innovation in road construction is the principle of having strong enterprises brand. The involvement of the Organisation for Economic Co-operation and Development (OECD) nations additionally demonstrates that innovation in road construction positively affects organization future. Further, advancement in road industry is the principle for supporting development of road in changer weather condition(Cardoso & Abiko, 2016; Rowlinson, 2017; Wang, 2017).
Innovation in road construction may emerge from imagining profoundly novel, unique and beforehand inconspicuous mechanical items/administrations or administrative practices(Rowlinson, 2017). In two part of this study a state frameworks have been implemented to encourage innovation in the road building industry (Sokmen, 2014). These are: the specialized guidance framework called the "Avis Technique" in France and the innovation execution framework "Highway Authorities Product Approval Scheme" (HAPAS) in the U.K.
Significant purposes of interest for these frameworks, which are to be the imperative for the evaluation of innovation in the exchange of framework are (Cardoso & Abiko, 2016; Rowlinson, 2017; Wang, 2017) :
• The business must improve their innovation skills. Moreover, the road specialist may portray their desires as far as execution (Charte D'Innovation) or may acknowledge novel items which the maker has demonstrated to have square with execution quality contrasted with regular items (HAPAS and Avis Technique).
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• For the confirmation of the execution quality depends on known innovation: useful test techniques, acknowledged development configuration models and so on.
• The check of the execution quality is completed by autonomous bodies. These bodies are shaped through shared participation between experts in road construction and industry.
• At the point when innovation in any item is acknowledged, the field of utilization, the execution attributes and reasonable encounters are distributed considerably.
3.3.1 Challenges and risks associated with innovation
Researchers in the field of road construction and bid evaluation point out the many benefits of innovation, however, there some challenges and risks associated with implementing innovations (Hatush et al., 1997; Queiroz & Engineer, 1999; Sönmez et al., 2002). These challenges and risks are as follows:
• Innovations are adopted by associations between industry, government and academia. Therefore, in order to implement innovation, strong relationships are required, which is challenging.
• Researchers point out that construction companies believe that investing money in the research and development to explore new and innovative ideas can result in significant and viable benefits. However, this is sometimes risky.
• Clients are normally not involved in the innovation process. The involvement of clients in the initial stages of the development of innovation could improve outcomes.
• Establishing trust and good-will is hard in the development of innovation, but according to the research, it is an essential for cooperative innovation.
• The successful implementation of innovation requires promise, persistence and a willingness to understand short-term improvement. However, this is a
Chapter 3: The road sector in the Australian context of this research 49
difficult process due to involvement of different stakeholders in the road construction industry.
3.3.2 Innovation criteria for the assessment of road construction tenders
To guarantee the quality of road construction, the tender assessment can be completed earlier using the pre-qualification method (Hasnain et al., 2018; Hyari & Technology, 2017; Shrestha et al., 2016). This also enables the bid assessment team to focus only on the specific elements of the project, without being distracted by other business considerations or competitors (Garbarino et al., 2016; Nyström et al., 2016). In simple terms, pre-qualification occurs before the tendering process so that the most suitable applicants can be selected from those who wish to submit a bid in the tendering process.
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Table 3-1: Innovation criteria and sub-criteria for road construction contractors (Hasnain et al., 2018; Hyari & Technology, 2017; Shrestha et al., 2016) Key evaluation Sub-criteria of evaluation criteria
Firm Reputation • Firm past success and failures
• Number of years’ experience in construction business
• Past association with the government
• Other associations or relationships
Firm management • Firm past quality of project and performance capability • Firm capability to manage construction projects
• Firm management technical experience
• How firm management their knowledge about innovation
Firm financial • Firm financial solidity soundness • Firm credit score
• Firm bonding and banking measures
• Firm current financial status
Firm technical ability • Past technical experience
• Firm equipment and plant
• Firm technical personnel
• Firm technical ability
Firm health and safety • How firm deals with safety requirements
• Firm experience modification score
• Firm OSHA incident frequency
• Firm management safety responsibility
Chapter 3: The road sector in the Australian context of this research 51
Pre-qualification, as defined by Moore (1985), is a process which occurs prior to the tendering process and allows the client to choose the most appropriately qualified and experienced contractors from those who wish to submit a bid using a list of standards considered to be mandatory for successful project completion. Clough et al. (2015) suggested that pre-qualification is procedure to ensure that any contractor who wishes to participate in the tendering process is competent before making an official bid.
Moreover, in Australia, the process of tendering involves awarding contracts and to agree on the project price, where large and medium size organizations often participate. However, developed countries often motivates small contractors to participate in the bid by advertising projects on to different social medias. Bid evaluation procedures in the field of road construction and pre-qualification involves different kinds of evaluation criterion assess the competence and reliability of contractors. In this context Government offered training to small contractors for preparing contract. For example, training could be financial, managerial, technical and general; administrative strength, financial solidity, managerial competence; technical knowhow and skill of comparable construction work (Merna & Smith, 1990); significance of experience, company size, and past safety record (Merna & Smith, 1990; Norman & Perry, 1978). Hatush et al. (1997) recognized five key evaluation criteria for road construction contractors in the context of bid evaluation and pre- qualification, which are suitable for small contractor when they apply for a bid (Hatush et al., 1997) as shown in Table 3.1.
The literature indicates that several researchers have defined innovation and recognized the number of organizations that have facilitated or introduced the outline of any new idea or product for use in the road building sector. The survey defined an innovative product as a new product ‘that differs significantly compared with previous products in the industry, in its intended use, performance characteristics, attributes, design properties or use of materials and components’ (Hatush et al., 1997).
During the literature review, we explored five problems associated with product innovation. In the quantitative study, we asked the participants to rate the importance of each problem. The objective was to rank the challenges or obstacles and to classify the most significant to be addressed by the road industry experts to improve the bid evaluation process. The five most important problems or obstacles were:
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• Preventive tender assessments concentrating on price criteria, making it difficult for the contractor to trial new and innovative ideas.
• Differences between industry participants over who bears the risk of implementing a new idea in the event of road construction failure, emanating from the risk repugnance of both the client company and the contractor who proposed the new and innovative idea, should the idea fail.
• Confrontational contract associations that constrain the acceptance of new and innovative ideas for building roads negatively influence how new ideas and materials are assessed and permitted under the road project affiliation.
• Road contractor time burden constraining their capability to consider new road construction ideas from the road consultants, sub-contractors and road material suppliers, mostly during the tender offer stage, leading to traditional bid selection, predominantly when risks are not simply computable.
• Client company time pressure constraining their capability to efficiently measure and approve new ideas for building roads for use, resulting in an additional risk-opposed stance when road performance cannot be simply quantified within the time limitations.
The current practices show that governments still struggle with contractors and bid evaluation, such as assessing firm reputation, contactors’ management capability, contractors’ financial soundness, contractors’ technical ability and contractors’ health and safety. Therefore, there is an urgent need for innovation in the field of bid evaluation and assessment in the construction industry. Moreover, it is the responsibility of each related organization to continuously plan new and innovative ideas in developing suitable roads so that they might be in a better position to win the bid.
3.4 INNOVATION IN THE ROAD SECTOR: ANALYSIS OF DIFFERENT CASE STUDIES
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This section discusses different case studies relating to innovation in the construction industry to show that innovation is important to consider when assessing tenders. As an example of innovation, in 2006, four two-storey townhouses were built on a very small spot in a largely built-out zone in Warrnambool, Victoria. Due to very constricted time scheduling and the insufficient of a budget required to limit OH&S risks, the contractor was directed to plan an innovative partial prefabrication method. A budget of $1.8 million was allocated to this project. The change in budget was the restriction on the site space and other buildings in the neighbour were very close. This meant that it was difficult to identify a suitable place to construct the scaffolding to build the roofing and the second storey of the townhouses (Manley, 2007).
The builders responded innovatively. They modified the structural designs and building measures to permit the second-storey of the townhouse to be constructed on the ground. Extra energizing panels were included for firmness. The prefabrication was completed under the very careful supervision of the site administration. The completed second-storey unit, including timber and steel floor framing, trussed roof and roof sheeting, and braced wall frames was craned into the site, removing the requirement for the trades people to work on the second-storey rooves. The first storeys of the town houses were built on site on the garage floor and were then lifted into place. The lower storey was built using a traditional brick facing, however the top storey walls were lightweight, which did not require heavy full-height support. This shows that the team of contractors were properly skilled and they used innovative ideas to build this town house, as shown in Figure 3.1.
Figure 3-1: Townhouse in Victoria, Australia (Manley, 2007)
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The aim of this section is to examine different road situations where innovation has been implemented. The case studies are presented below. Twelve different case studied from different countries are presented.
3.4.1 Use of recycling material in the road industry
In Hamburg, Germany, new policies and procedures have been implemented stating that roads in Hamburg must be built from recycled materials only. Similarly, there has been a noticeable growth in the cost of road materials which were used for the building of bridges and roads, including aggregates and bitumen. Therefore, the management of Hamburg city requested road construction corporations to carry out research and development to deliver a justifiable solution to meet the requirements of the new policy, as well as to manage the problems related to the price increment of materials used in road and bridge construction. As a result, an explanation was provided to construct a 100 % recycled asphalt pavement (RAP). This solution not only helped to consume less energy, it also minimised the harmful gas emissions, for example carbon dioxide gas emissions. In this context, bitumen is one of the most expensive road materials which is used for the development of roads and bridges. Even though a meagre 5% of the material used in road construction is bitumen, this could go towards 60% of the development costs of roads and bridges. Likewise, bitumen is an oil-based product that cannot be locally obtained which adds to the price instability of this road material (Schroeder, 2015).
The Bay Bridge of San Francisco was damaged in the earthquake of 1989 and its reconstruction started in 2002, using all recycled materials. The reconstruction took advantage of the unique properties of fly ash as well as the granulated ash from the blast furnaces in order to enhance the strength as well as the durability of the concrete that is used. This project used the chemical properties of fly ash concrete in order to cover up the negative effects of the sea water and salt fog that has corrosive action, as the structural requirement of the earthquake zone.
The zone of the bridge that has a high content of salt is made using a mixture of concrete that contains 50% fly ash which helps to prevent cracking after the hardening of the cement. This is a very common occurrence in the areas where the water is salty.
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The use of the round fly ash particles improves the workability of the mixture; the use of fly ash makes the mixture denser as well as stronger than the traditional concrete that is being used, making it better equipped to carry heavy loads. Over 30 mixes of concrete designs were used in the construction of the new bridge; some comprising more than 50% fly ash. The bridge construction process also used slag that was ground granulated from the blast furnace. This slag was used in the pier column and resulted in the improvement of the durability as well as workability of the bridge. Many developed countries recommend and appreciate when road developers used recycling material. Moreover, such countries also offer different subsidy programs and prized for developers (Schroeder, 2015).
3.4.2 First road developed from plastic bags and glass bottles in Australia
In Australia, the city council of Downer, In Australia, Downer and the Hume City Council Melbourne Victoria are working with the RED group to undertake research on building sustainable roads made of plastic bags and glass (Australian Government, 2019; Onkaparinganow, 2018).
Through associations with road builders and clients, the larger industry and other suppliers, Downer is including better recycled materials in road construction, while reducing the greenhouse gas footprint. This research will not only help the country to control waste, it also helps to develop roads which are suitable for the environment. In partnership with Downer, the City of Onkaparinga in Happy Valley in South Australian build the first road from plastic bags and glass. Approximately 139,000 plastic bags and 39,750 glass bottles equivalents were diverted from landfill, as shown in Figure 3.2 (Australian Government, 2019; Onkaparinganow, 2018). The material used in the road is ethylene-vinyl acetate (PEVA) and glass bottles, where soft plastics from approximately 200,000 plastic bags and packaging, 63,000 glass bottle equivalents, toner from 4,500 used printer cartridges and 50 tonnes of recycled asphalt were used to build the road in Craigieburn, located in Melbourne’s north.
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Figure 3-2: Road developed from plastic bags and glass bottles in Australia (Australian Government, 2019; Onkaparinganow, 2018)
3.4.3 An innovative eco-friendly road solution
The construction of the roads in Haifa and Ra’anana in Israel are two examples of the extemporary use of innovation in road construction to harvest waste kinetic energy and use it to generate electricity. A privately owned Israeli firm has developed customised piezotech generators which can use the waste kinetic energy from the roads and transform it into electricity. This technology is being used in road construction because the kinetic energy that is converted into electrical energy is harvested and used for road signaling systems and lighting. It is also used for lighting the diodes which emit light ( Probst et al., 2013).
This form of innovation has given numerous benefits to the road building system. This has led to the sole reliance of road development on parasitic power, as the movement of road traffic on highways generates kinetic energy, that is harvested in the form of electrical energy. They give a continuous supply of electrical energy to the bridges and roads regardless of the weather conditions. This method of producing electrical energy is proven to be robust against damage or theft. This method has led to the construction of smart roads in the region, leading to the self-sufficiency of bridges and roads, as they do not depend on the electricity supply of the area for lighting, thus conserving energy ( Probst et al., 2013).
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3.4.4 Solar roads
Many countries around the globe are using solar panels which are arranged serially and are engineered structurally to enable vehicles to drive on them. These are innovative and revolutionary alternatives to roads that are made of asphalt and petroleum bi-products. Also, this is a green alternative to the use of fossil fuel in the generation of electricity. The innovation underpinning solar roads is that the maximum amount of energy can be stored which can then be transformed to electric energy. The energy generated can be used to light the roads as well as generate electricity for commercial areas and local homes. The key breakthrough of this development is the solar panel which stores power.
The Netherlands is the first country in the world to open a 70-metre solar bike lane which connects Amsterdam with the suburban areas of Wormerveer and Krommenie. This is the first solar bike path which harvests energy and is paved. After a six-month trial period, the solar road achieved a level of success beyond that which was anticipated in terms of operational cost and usability. The road is able to gather around 3,000 kWh of electric energy, which is sufficient to illuminate a small house for more than a year. Sten de Wit, the spokesman for the road, says that if the annual yield of the SolaRoad is translated, it is expected to generate greater than 70 kWh meter of energy on an annual basis. The idea of constructing solar roads became very popular and there was a suggestion emanating from the United States of America that all roads would be lit by solar panels but the Netherlands was the first country to actually construct the solar road and is a pioneer in the innovation of solar roads (Macdonald, 2015).
The solar road produces energy which costs $20 per kilowatt-hour, which is around 13 times higher than the traditional method which costs only $1.53.
3.4.5 Use of technology in traffic control
The Sydney Coordinated Adaptive Traffic System (SCATS) is a traffic control system designed to optimise traffic flow. It has become globally acknowledged and is being applied in more than 141 cities in different countries around the globe and has been
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installed at 42,000 intersections in over 1800 cities in 40 countries. Established in 2004, NICTA (previously known as National ICT Australia Ltd) was Australia's Information and Communications Technology (ICT) Research Centre of Excellence. It is actively involved in finding innovative methods of road traffic control aided by research and development (Kilby & Johnson, 2010). Precast Pre-Stressed Concrete Pavement
3.4.6 Precast Pre-Stressed Concrete Pavement
Over the last several years, the United States State Transportation has been working on how to adopt innovative approaches and using various road construction techniques without disturbing the normal flow of traffic. A pavement construction method called Precast Pre-Stressed Concrete Pavement (PPCP) was an innovative solution for the rapid construction of roads that were durable and could be built in a time efficient manner, thereby not disrupting the traffic flow. In a feasibility study conducted by the Centre for Transportation Research (CTR) at the Texas University, Austin, PPCP was used following the implementation of the technology by the Federal Highway Administration. After the study, there was a construction of 0.7 Km of the PPCP pilot project. This pilot project was conducted near Georgetown, Texas (Merritt & Tayabji, 2009; Shiraz Tayabji, 2019).
The technology of using precast concrete pavement involves the use of innovative methods for road construction in order to be able to repair and construct roads at a rapid speed. The components that are used in the precast pavements are assembled and fabricated somewhere else and then transported to the site of the project. They are then installed on an existing pavement. This system is highly effective as it requires less time for field curing, which gives strength to the road before the road is put to use for the traffic. This technology can be used effectively for the purpose of quick road repair and reconstruction. The technology can lead to the reconstruction of roads that have high traffic influx. Presently, the technology is used for continuous rehabilitation and intermittent repairs (Shiraz Tayabji, 2019).
Another project was undertaken at the Caltrans Centre with the aid of the PPCP system to widen the heavy traffic lanes and also to reduce the congestion of traffic.
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This project resulted in the addition of a 27ft lane and 10ft to the lanes that existed in the eastbound direction. The key advantage of the pavements in this research project is to improve road quality and minimise road development time (Merritt & Tayabji, 2009; Shiraz Tayabji, 2019). Table 3.2 shows the analysis of different case studies in the field of innovation in the road construction industry.
Table 3-2: Analysis of different innovative case studies Innovative Case Studies Case study: Use of 100% recycled asphalt Using recycled industrial materials in Roadways Location: Hamburg Germany Driving factors: Cost efficiency as the price of the road surface materials such as bitumen has increased significantly Economic Benefits: The use of this method could save 30% of costs than compared to the conventional costs Environmental / Sustainable / other Benefits: • Effective method to reduce the environmental overload as well as pollution and also leads to the effective use of non-renewable resources • Energy conservation and decreasing the amount of emissions of Carbon Dioxide as well as other harmful gases less energy usage This led to saving of costs and complying with the policy of using recyclable materials for road construction Barriers: The barriers to the project: There is a need to understand and adhere to the waste management techniques and regulations in order to implement this project. Case study: The innovative eco-friendly road solution by Innowattech Location: Israel Driving factors: Harvesting the waste kinetic energy and using it to generate electricity. The method is very easy to use and not very costly Economic Benefits: • The cost of installation of these systems is lower than the installation cost of either wind or solar systems. • This method can reduce the usage of the non-renewable sources of energy for the generation of kinetic energy leading to a tremendous amount of cost saving. It can save up to 80% of energy generation costs and provide employment opportunity further increasing the economic benefits (L Probst et al., 2013) Environmental / Sustainable / other Benefits: • They give a constant supply of electric energy to the roads irrespective of the condition of the weather. • This is a system of electric energy to the roads that is both foolproof against theft and damage Barriers: However, there is need of electric energy system to the roads that is both foolproof of any theft and damage Case study: Solar roads Location: Netherlands France (Wang, 2016) USA Driving factors: The driving factor for the technology of solar roads is the need to build a road that conserves energy and is self- sufficient. Also, the construction of roads which not only sustain their own energy requirements but provides energy to nearby households
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Economic Benefits: • The creation of many new jobs • One mile of solar road can produce enough energy to provide power to about 500 houses (Solar Roadways, 2016) Environmental / Sustainable / other Benefits: • Reduction in pollution decreases dependence on conventional energy sources such as fuel and coal • These initiatives will enhance the economy • Reduce the shortage of power and the dependency on foreign oil • These roads would not emit any greenhouse gases (Green Energy, 2015). • These road projects can be customised in accordance with the geographic location • Solar roadway with a heating system to automatically prevent the snow layering in the roads. With the use of LEDs in the roads there can be lighting achieved in the roads (Green Energy, 2015) Barriers: • These roads are very costly as one solar panel costs as much as about $7000 and billions of panels are needed for the construction of the entire road • There is a need to spend lots of time as well as money for the installation of these roads • The construction of these roads requires the training of the members of the crew • The time required to generate electricity from these roads to cover their cost of construction is quite high (George, 2015) Case study: Futuristic highways in the Netherlands glow in the dark Location: Netherland Driving factors: The creation of highways that are interactive and sustainable. Economic Benefits: The economic benefits of these roads are associated with the amount of energy that can be saved by permanently shutting of the streetlights by the use of the glow in dark roads. In the year 2011 when the streetlights in England were shut off for a night to reduce carbon emissions, there was a net saving of $668,000. So the use of these roadways can result in $1,337,000 in annual savings if only one- third of UK’s street light are shut down for a certain time duration or if they are dimmed (Macdonald, 2015). Environmental / Sustainable / other Benefits: • The roads are more efficient and less accident prone • Lead to the development of an internal system of navigations Barriers: Conserving energy as these roads can replace street lights, as this is still a test project there is a need to address certain issues pertaining to these roads such as the high costs of the paint and also the durability of these products and their environmental implications Case study: SCATS (Sydney Coordinated Adaptive Traffic System) Information and Communications Technology (ICT) . The moveable barrier system and the Continuous Flight Augur (CFA) piling Location: Sydney, Australia Driving factors: The traffic has increased to a level where vehicles are required to stop at many places before a congested link is cleared Economic Benefits: • The average cost of purchasing a transport and a transfer machine is around $ 650,000. The cost of the barrier is around $500 for every metre block. The total cost of the barrier for one mile comes to $800,000. There have been surveys conducted in which the respondents have calculated the benefit to cost ratios - it was 2.2:1 in Boston and 6.5:1 in Dallas (Bain, 2001).
Environmental / Sustainable / other Benefits: The system uses a method that enables the estimation of the queue length on the basis of information via upstream loop detectors. This system enables the detection of traffic delays especially at the time of greatest traffic congestion. Barriers:
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The project is costly making its implementation difficult for low-budget construction programs which is one of the prime barriers of the project. Case study: Precast Pre-stressed Concrete Pavement (PPCP) Location: U.S.A Driving factors: The method provides an efficient solution for the rapid construction of roads that are durable and does not disrupt the normal flow of traffic for long. Economic Benefits: • Reduces the time of construction and improves road durability which in turn leads to a reduction in costs • According to a study in America around $41 billion is spent per year on repairing vehicles owing to the bad conditions of the roads. The PPCP being more durable and smooth and significantly lowers the costs of vehicle repair. • The system provides quick rehabilitation and reconstruction that is durable. Also, the higher costs of the system are a negligible offset considering the quick installation that reduces the closure of the lanes for longer time period. • Highly consistent having a superior uniform quality (Merritt & Tyson, 2006) Environmental / Sustainable / other Benefits: It has the futuristic prospect of increasing the season of construction of paving the roads. The casting and curing of the precast prestressed pavements is done in an environment that is controlled leading to the continuation of the construction of the pavements even in adverse weather conditions whereas normal pavement construction is severely impacted in adverse weather. Barriers: Innovative methods and using techniques of road construction at a rapid speed without disturbing the normal flow of traffic.
Case study: Toner recycling for roads
Location: Australia 2015 Driving factors: The roads are being built using old computer toner cartridges as an adhesive material which is a very effective concept as using green asphalt leads to a reduction in emissions Economic Benefits: • Reduction in carbon emissions outweighs the high costs of the materials (Merritt & Tyson, 2006) Environmental / Sustainable / other Benefits: • Sydney to reduce its greenhouse emissions by 70% by the year 2030. • Energy saving - this technique is energy saving as the printer toner mixture is heated to a temperature of fewer than 20-50 degrees than the regular asphalt that is used. This reduces the energy emission by a significant level. • Reduction of landfill - by using used printer cartridges, there are fewer cartridges becoming part of landfill. Around 20,000 tons of waste cartridges have been recycled so far since the beginning of this initiative in the year 2012 which is a very significant amount of reduction in landfill. Reduction of crude oil in roads - by using printer toner in the asphalt mix also there is a reduction in the amount of bitumen which is derived from crude oil. Barriers: This technology needs to be broadcast widely to the community as many citizens are unaware that their toner waste can be used in road construction. Case study: The Jet Stream Super-Highway Location: Industrial designer David Huang Driving factors: The method enables the integration of environment with the transportation. This is an energy efficient method that leads to the construction of self -sufficient roads that are not dependent on non-renewable sources of energy. Economic Benefits: • Still unknown as it is still a pilot project (Lemus, 2015) Environmental / Sustainable / other Benefits:
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This is an energy efficient method that leads to the construction of self -sufficient roads that are not dependent on non-renewable sources of energy. Barriers: This method is only used in the transport vehicle for the first time that is powered by the wind. Case study: EME2 Technology Location: France, Has been adopted by S.A, UK and Australia (Brisbane in 2014) Driving factors: The method can decrease pavement thickness without changing the quality of the roads much Economic Benefits: • Decrease pavement thickness • High resistance to deformation on a permanent basis (Merritt et al., 2004) • Freight cost reduced • Less excavation for new pavements Environmental / Sustainable / other Benefits: • Stiff • Last longer, reduced thickness • Use less bitumen, aggregates, energy in production and freight • Less disruption • Able to carry heavier loads which decrease GHG emissions per tonne/km of freight Barriers: There is a need for high-performance asphalt materials in order to cope up with changing scenarios Case study: Improvement in Technology, Foamed bitumen stabilized pavements (FBSP) Location: Australia (Austroads, 2014) Driving factors: It is essential that while determining the moisture content, care must be taken because a slight variation can affect the result of the entire assessment and also the stabilisation of the foamed bitumen thereby changing the entire results of the experiment. Economic Benefits: • Procedure improvement Moisture content detection Environmental / Sustainable / other Benefits: The use of such pavements can enable the identification of the distress modes of bitumen and bring about improvement in the design of the national mix for the stabilised materials. Barriers: Improvement of the procedures for roads for the design of materials that are new, and the pavement of structural rehabilitation and treatment of the roads Case study: Plastic Roads (Pilot study Location: Netherland (Koudstaal, 2015) Driving factors: Improvement of the procedures for the Austroads for the design of the materials that are new and the pavement of structural rehabilitation and treatment of the roads Economic Benefits: • Faster construction • Less maintenance Environmental / Sustainable / other Benefits: • Longer lifespan • The innovation is green as the material is used in this is completely recycled. • Hallow design it gives easy space excess for pipe line and cables. • Lightweight Barriers: The moisture content is an essential factor that affects the density of the specimen road and it thereby also influences the modulus.
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3.4.7 The Jet Stream Super-Highway
The innovative concept of super highways is based on vehicles which extract energy from the infrastructure of bridges or roads and take energy from the environment (Huang, 2015). These highways have an open return design for the wind tunnels that leads to the production of a stream of air flow on a continuous basis. The shape of this roadway is like a half-pipe seen in a cross-sectional view.. These highways are made up of a series of turbines that are powered by solar energy and they hover in order to push the air in the pathway of the road. There is a cycle effect formed by the drawing vents over the flanks as a result of air being drawn continuously. Owing to the lining of the solar panels at the upper road surface, this is a very environmentally friendly green design. There are sensors that enable communication with the vehicles that are driven on the road, in order to get accurate adjustments. This highway is based on the concept that the future of the transportation in urban areas is based on implementing green techniques of energy usage as well as conservation (Huang, 2015).
3.4.8 EME2 technology and high modulus Asphalt EME2 Pavement Design
The road construction industry is facing challenges in the design and delivery of high- performance asphaltic concrete in order to carry high traffic loads including axle load of a wheeled vehicle. With the increase in traffic in Australia, there has arisen a need for high performance asphalt materials in order to cope with the changing weather conditions. The term EME has been taken from the French language ‘enrobes à module élevé’ which means high modulus asphalt. This technology is being used extensively in France, where it originated. EME is divided into two grades, namely: EME Class 1 and EME Class 2. The difference between the two is that EME Class 1 has a higher binder content in terms of the richness modulus; on the other hand EME2 mixtures are based on the richness modulus as well as the requirements for factors like water sensitivity, wheel tracking, stiffness and fatigue, and the requirements for air void. The EME class 2 is generally used on heavy traffic roads.
The major characteristics of EME are that it is more durable as well as stiff. It can also decrease the pavement thickness without any major changes in road strength
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(Petho et al., 2014; Petho & Bryant, 2015). Moreover, central laboratory in Paris and the Colas Group in Paris evaluated the mix designs using Strain Alleviating Membrane Interlayer (SAMI) bitumen and local aggregates to guarantee that the proposed mix design meets French requirements. Asphalt in the road construction industry has been the option of several paving road development contractors for several different benefits as it has over other material used in road development. To assess innovation related factors used in the asphalt pavements, a detail literature review has been conducted. During the literature view process all, possible factors have been extracted, which later factors have been tested qualitative and quantitative.
3.4.9 Foamed bitumen stabilised roadways
In 2012, Austroads (Australia) commissioned a research project to test the foamed bitumen stabilised materials (Rose & Manley, 2012). The objectives were: 1) to develop measures for Austroads in regards to the design of new materials for roads and to conduct structural rehabilitation treatments; 2) to identify the distress modes of FBS roadways; 3) to develop and coordinate the design of the national mix for FBS materials.
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Case Study 2 from Germany Case Study Case Study 1 from 2 from Israel France
Countries: 9 case studies
Case Study Case Study 2 from 2 from USA Netherland Case Study 3 from Australia
Figure 3-3: Twelve case studies from different countries
3.4.10 Plastic roads
A pilot study is being conducted in the Netherlands on the construction of new types of road using recycled plastic (Koudstaal & Jorritsma, 2015). These roads are easy to construct and are reliable, and they will tolerate a high variation in temperature and require less maintenance. The data that has been collected from numerous real-world case studies from different countries is shown in Figure 3.3. Moreover, these case studies have been analyzed in the context of demonstrated drivers, economic benefits, environmental/sustainability benefits and barriers to innovation for each case.
3.5 SUMMARY
Today, government agencies in the road construction and management industry sector aim to achieve value for their investment as they procure road construction industry services. When any government announces a road construction project and seeks procurement for services, several contractors apply, and it is complex to assess innovation in these proposals on a comparative basis. This requires several factors such
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as: clear project definition, what is new (innovation), and the contractor’s previous experience related to the proposed project. However, it is not easy to assess innovation on a comparative tender assessment basis. This chapter analyzes the Australian road sector by examining different case studies in the context of innovation in the road construction industry in Australia.
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Chapter 4: Research Design and methodology
4.1 INTRODUCTION
It is important to complete research within the allocated resources and time, therefore, it is necessary to examine particular techniques or study procedures to discover, select, operate, and evaluate knowledge about a planned research theme (Johnson & Walsh, 2019; Strijker et al., 2020). This chapter examines the proposed research design in order to answer the study’s research questions and to achieve the planned study objectives. Moreover, the chapter discusses the following research topics: research philosophy, study design, approach to conduct this research, and research methods to complete this study.
Furthermore, the chapter reviews the techniques for the study data collection to validate the qualitative and quantitative examinations. This chapter focuses only on the what the technique or method is? why the technique or method is needed? How these techniques and methods are applied in this proposed research is discussed in chapter 5 and chapter 6.
4.2 RESEARCH PHILOSOPHY
The literature indicates that research philosophy is a principle as to how the data for the planned study can be collected from the participants. Also, it involves data analysis and reporting the study results (Al-Ababneh, 2020; Moon et al., 2019; Wilson, 2014). According to Wilson (2014), research philosophy essential to clarify how to tackle the research objectives and how to effectively conduct research in the context of saving time. Saunders et al. (2009) describe research philosophy as how related information can be gathered, how an understanding can be developed and the important nature of the research topic. Moreover, research philosophy requires substantial assumptions as
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to how to observe the world of investigation and how to endorse the planned study aims, research questions and research methods/methodologies.
According to Saunders et al. (2009), there are four kinds of study or research philosophies, namely: pragmatism, interpretivism, positivism and realism. These four types of research philosophies can be observed through the senses of axiology, ontology and techniques for data collection as shown in Table 4.1. Mingers and Brocklesby (2004) claim that the scientists look at the truth about nature and the role of ideals in investigation vary depend on the ideas they pursue in an area of research to cultivate and design a new understanding. This section concentrates on the philosophy selected for this proposed research, which is pragmatism, therefore, the other three research philosophies are not discussed in detail. Table 4.1 briefly contrasts the four study philosophies with regard to data collection techniques, axiology, epistemology and ontology.
The research philosophy pragmatism is more related to this research on the analysis of innovation factors in the context of the bidding process in the road construction industry, as this philosophy focuses on how to achieve the research objectives and how to answer the planned research questions on time (Saunders, et al., 2009). The philosophy can be integrated into a variety of viewpoints in order to support the data collection and analysis. Therefore, the pragmatism philosophy directs the in-depth analysis of various trends that cannot be completely identified by utilizing only a quantitative or a qualitative technique (Saunders, et al., 2009; Moon, et al., 2019). The quantitative research method mainly depends on interpretation whereas the qualitative research method is based on initiation. However, the pragmatism philosophy depends on abduction logic which pushes back and forth between induction and deduction. This study philosophy supports the use of both qualitative and quantitative research techniques at the same time, which is referred to as the mixed method approach (Johnson & Walsh, 2019; Molina-Azorin & Fetters, 2019; Strijker et al., 2020).
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Table 4-1: Research Philosophy Comparison Research Positivism Realism Philosophy Interpretivism Pragmatism elements Philosophy Philosophy Philosophy Ontology- the Company aims and To check whether The philosophy is Useful to answer scientist's point of objectives and the aims and useful for research view on analysis of objectives exist understanding questions understanding independence of separately of human objectives, socially real work social players feelings and beliefs constructed, scenarios or understanding of individual their presence (realist), but is construed through social habituation
Epistemology- the Only visible Visible trends societal trends and societal trends student's point of phenomena can provide credible subjective meaning and subjective view about what deliver reliable facts, data. and. Emphasis upon meaning could constitutes facts, data and Inadequate study the particulars of provide appropriate related other data means errors in condition, a realism appropriate understanding information. Focus senses. Otherwise, behind these knowledge of this philosophy sensations create particulars, conditional upon on connectedness phenomena which subjective meaning the study issues. and law-like are open to inspiring behaviors Emphasis on simplifications, misunderstanding. sensible applied reducing trends to Emphasis on study, easiest elements describing within a incorporating context of the various research perspectives to help understand data
Axiology- the Study is Study is value Study is value Research values scientist's point of commenced in a overloaded; the required, the play a key role in view of the role of value-free manner, scientist is scientist is element understanding values in the scientist is influenced by world of what is being study results, the investigation independent of the opinions, intellectual studied, cannot be scientist adopting study data and experience and removed and both subjective supports an aim upbringing. These therefore will be and objective posture will effect on the subjective viewpoints study investigation
Often used for For highly Techniques selected Useful for detailed Useful for data gathering organized study, must align with the analysis in research like large study data study subject matter, qualitative studies mixed methods samples, accurate qualitative and and also useful for (qualitative and measurement, quantitative small data quantitative) and quantitative, also useful for however, can also multiple research be used during method designs qualitative research
This proposed research uses a technique called abduction reasoning, where there are two phases of the research: in inductive reasoning, qualitative research is conducted and in deductive reasoning, quantitative research is conducted. There are three main reasons for conducting research in three phases.
• The proposed factors of innovation in the bidding process haven’t been derived from the literature review and some factors have been recorded
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during the qualitative study. Therefore, in order to strengthen the proposed research factors of innovation in the bidding process, there is a need for further evaluation of the experts in the road construction industry.
• The research data analysis during the qualitative examination suggested further investigation in regard to improve the effectiveness of the selected factors and related sub-factors. Therefore, it is critical to prioritize the selected key factors of innovation and their related sub-factors in regard to the collection of data from a bigger audience. Hence, for this planned research, during the quantitative research, data has been collected from a wider audience of government and private bodies in the road construction industry.
• Prioritization of selected innovation factors and selected factors help to execute the innovation factor analysis in qualitative and quantitative studies.
The qualitative study process requires developing principles, processes and study data which is typically accumulated in the study applicant's setting. It requires the inductive analysis of study data to build and design a theory from details and the scientist formulates explanations of the gathered study data (Creswell & Creswell, 2018; Johnson & Walsh, 2019; Teddlie & Tashakkori, 2003). Consequently, a qualitative study mostly correlates to inductive reasoning. The quantitative study confirms theories by examining the interactions between variables and the different mechanisms that can be used to quantify the study variables or factors (Maxcy, 2003; Creswell, 2009). Usually, the study data can be evaluated using numerical techniques and methods. This kind of research typically correlates to deductive reasoning. An applied philosophy of examination could be introduced using the rationalist method and the use of the mixed methods is best supported through the concept of realism (Molina-Azorin and Fetters, 2019; Tashakkori and Teddlie, 2008). According to Maxcy (2003), the mixed method approach is suitable to collect data from a larger audience and has pragmatist roots for a deeper understanding of the topic. Therefore, this study assumes both the qualitative and quantitative philosophy as the mixed method philosophy is suitable for conducting research in the road construction industry.
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Table 4-2: Research plan Step 1: Literature review • A literature review on the proposed topic will be Following resources are used to conducted to confirm the knowledge in the area and complete this step: to direct related questions for this research. • Journal publications • The literature review will include the analysis of • Books current studies on the evaluation of innovation in • Government publications contracts. • Private company publications • Identify research gap and formulate research gap and • Conference publications why innovation is important • Other research • What are the existing methods and approaches in the field of bid evaluation Step 2: Preliminary research model • Identify the factors that affect the bidding process The following resources are used to • Develop a research model based on the literature complete this step: review findings • Literature review • MS Visio to draw the research model Step 3: Qualitative study (How I will do in the Australian Context) • For this step, 8 Government departments (5 from the To analyse this step, the following tools tender assessment and 3 from the sustainability will be used. department) will be approached to participate in the • Interview questions will be study. discussed with supervisors and other • Based on the previous findings, a list of questions experts in the area. will be emailed to the interviewee prior to • NVivo software tool will be used to conducting the interview analyse the data • Questions will based on the semi-structured format • During the interview, the interviewee will be requested to share any other documentation that might help to achieve this research result. Step 4: Quantitative study (How I will do in the Australian Context) • Develop questionnaires based on the literature To analyse this step, the following tools review and to address the research questions will be used. • Test questionnaires (close-ended questions) for • Initial hypothesis testing quality and suitability using CAS framework • NVivo software tool used to analyse • Target at least 28 Australian organizations in the data field of tender evaluation and road construction. The outcome of this step will be used to • Upload survey on survey-Monkey update the research model and to • Approach participants via face to face and online and conduct the next step which is the request them to participate in the study. qualitative study. • Email will include the survey link and the consent form • Step 5: Research findings Based on the research findings in steps 3 and 4, the proposed research model will be refined. The refined research model will also be send to the companies who participate in the study.
4.3 RESEARCH PLAN
The research plan is the starting part of this research which is based on mixed methods. This research plan is designed based on the research steps detailed by many researchers
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(Chun Tie et al., 2019; He et al., 2019; Kogan et al., 2019). This section discusses the steps involved in designing this research plan, as shown in Table 4.2.
Step 1 in the above plan indicates how to find the bias of this research by conducting a detailed literature review. Based on the literature, the factors related to innovation in the bidding process are extracted in stage 2. In stage 3, the selected innovation factors are evaluated by the experts in the road construction industry by interviewing them. In stage 4, in order to strengthen the importance of the selected factors of innovation, the factors have been evaluated further by a bigger audience in the quantitative study. Finally, in stage 5, the findings of the study are discussed.
4.4 RESEARCH DESIGN
A detailed literature review on the field of bid evaluation in the context of innovation and the road construction industry was undertaken (Chun Tie et al., 2019; He et al., 2019; Kogan et al., 2019). A conceptual model was developed based on the literature findings and investigations. Figure 4.3 presents the proposed conceptual model. Researchers also point out that proposing a research model based on the literature and then investigating the model is a key factor in starting research. For example, Bansal and Roth (2000) claim that proposing a research model based on the literature review findings is an important initial point, however, this method has some limitations, which are as follows: first, the information that grounds such type of research models could be insufficient; and second, literature review-based models are not fully specified- “the concepts and their fundamental associations require better accuracy in regard to be predictive”. Bansal and Roth (2000) used analytic instruction in which the empirical data was used to challenge their evolving research theory and hypotheses, so their overall research was empirically grounded.
Moreover, Ravenswood (2011) proposed a research method that was based on the process of theory building. Using this method, the authors emphasized the importance of connecting the study process with the proposed research question using a combination of qualitative and quantitative evidence. Creswell and Creswell (2018) in this context provided a research framework in which they recommended three key steps in order to design any research. These three steps are presented in Figure 4.1.
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The authors also pinpoint that the knowledge claim might guide and control the research method, after this it may inform the thorough study plan and approaches employed in the research. Creswell further in this study recommended that one of four substitute knowledge claims (constructivism, post-positivism, pragmatism and participatory) must be implemented by the investigator to guide and control the inquiry. By uttering knowledge claims, the investigator recognizes the expectations and viewpoints they carry to the proposed research based on the investigator’s experience in the area and based on their background.
Step 2 (What methods or strategies inform procedures )
Step 1 Steps 3 Literature (What researchers (What methods used to collect and knowledge claim) analyse data)
Figure 4-1: Research design philosophy (adapted from Creswell and Creswell (2018)
For this research, a problem-oriented approach has been proposed, as determined by Creswell. The idea is based on a real-world scenario and in Australia, many infrastructure practitioners are practicing it. The research method employed in the research refers to Kogan et al.’s (2019) and Chun et al.’s (2019) method which is based on the following key points: research strategy, research action plan, research design and process. In defining the research method, Creswell suggested the mixed method approach, which includes qualitative and quantitative research methods. The mixed method approach may support the logical approach. According to Mackenzie and Knipe (2006), the mixed method research approach is suitable in order to study and investigate the pragmatic paradigm, because these approaches are based on real-world
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practices and cater to the problem. A mixed methods-based approach will support and enhance the development and implementation of innovation in the evaluation of bids in the road construction industry. Therefore, this research method is adopted to expand the research findings from one procedure to another. The research plan for this proposed research has been developed based on the mixed methods and pragmatic approach. Figure 4.2 shows the step-by-step procedure which is used to conduct this research. The research plan is summarized in the following sections.
•Review exiting methods and techniques Literature •Identify research gap (why is innovation important?) review •Formulate research questions (Identify five research questions)
Develop from literature review Prelimina ry Model
•Statistical analysis Data •Initial hypothesis testing analysis •NVivo software tool used to analyse data and results •How am I do in the Australian Context? •Case studies using semi-structured interviews Qualitativ •Approach 8 Government organizations (5 Tender assessment, 3 road development and e Study sustainability)
•How am I do in the Australian Context? •Develop questionnaires based on the literature review and to address research questions Quantitati •Structured survey ve Study •Tender evaluation and road development industries (28 Austrlian organizations will be approached)
Data •Qualitative analysis analysis •Comparison of quantitative study result with qualitative study results and results
•Develop framework on how to analyse tenders for Innovation Final •Refine the research model if required research model
Figure 4-2: Step-by-step research procedure
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4.5 RESEARCH METHODS
This section summarizes the methods selected for use in this proposed research, which include the theory of testing, the qualitative method and the quantitative method.
4.6 THEORY TESTING CRITERIA
The complex adaptive system (CAS) framework will be used to guide the research questions for this mixed methods-based research, as this research comprises interviews and surveys questions. Moreover, there are three key characteristics of a complex adaptive system. First, the system comprises of several number of diverse and different variety of agents, and where decision has been made by each of those agents. Second, the system allows agents to contact with each other. characteristic is that the agents interact with one another. Third, the system allows all stakeholders to work together by focusing on the real world problems.
At the same time, the literature review in this type of research is based on the “processes”, for example, cost benefit analysis (CBA) and multi-criteria analysis (MCA). However, the CAS framework enables researchers to investigate in detail the process of bid evaluation in the context of innovation and allows practitioners to evaluate bids in a wider system. Theory testing will be established to consider the wider system of the bid evaluation process, which is based on the following elements:
Factors related to the environment
Factors related to innovation in bid evaluation
Road constructors or agent
Government body
Processes and procedures
Rules and regulations related to the environment
Boundaries of the system
Results
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4.7 QUANTITATIVE STUDY
The quantitative study in this proposed research involves surveys including longitudinal and cross-sectional using structural interviews to collect data from the selected participants. Ravenswood (2011) stated that a qualitative case study is important to study between 4 and 10 cases, with each case creating a part of an iterative study procedure that shapes knowledge, and might also deliver inventive vision that often ascends from the association of inconsistent or contradictory evidence. For this proposed research, we use eight case studies, five from public organizations and three from private organizations. This stage of the research will focus on the analysis of the experts’ point of view, for example, experts who examine or evaluate bids, or people from private organizations who participate in any bid and innovation related to road construction.
The survey questionnaire will be distributed primarily by email. This is because in a quantitative study, the participants prefer this method and it also guarantees that all respondents receive and are able to reply via this method.
4.7.1 Data collection and analysis (Quantitative study)
The first step in this research is to focus on the quantitative research that assesses and validates the literature review findings in the context of bid evaluation related to roads in Australia. A cross-sectional survey approach will be used to understand the general practice in Australia for innovation in bid evaluation, for example, what Government and local agencies are doing to assess and evaluate bids. This will answer the first, second and third research questions, which are:
What is a key procedure to evaluate innovation factors in the bid evaluation process?
Do the existing bid evaluation techniques and methods used by government and other agencies assess innovation as part of the evaluation process?
What is the level and extent of introducing innovation in new projects related to the road construction industry?
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For this research, public and private organizations will be surveyed. Public and private firms have been chosen on the basis of the data available and the researcher’s knowledge in the area and experience in working with public and private firms related to road construction. Table 4.3 shows the 28 key public and private companies operating in different states in Australia.
Table 4-3: Number of companies to be surveyed
Australia State Number of firms Public firm Private firm
New South Wales 4 5
Queensland 4 3 South Australia 2 1 Tasmania 1 0 Victoria 1 5 Western Australia 1 2
For data analysis in quantitative research, Osbourne and Clarke (2008) pointed out a number of data sampling approaches such as snowball, random, purposive and convenience. For this research, the sampling technique will be used to collect data from experts in both public and private firms. Moreover, the Survey-Monkey tool will be used to design and distribute surveys to the participants. The first task is to identify relevant staff members in both public and private firms, obtain their contact details (email, address, and phone) and send them a request to participate in the survey. Onwuegbuzie and Leech (2006) stated that quantitative-based research questions tended to be very simple, to the point, specific to the selected area and should be based on one of the following types: comparative, relationship and descriptive.
4.7.2 Data analysis and research hypothesis modification
To store, analyse and develop reports from the data, the Key Survey will be used. In the Key Survey, there are analytical features that will be used to measure the level of
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inconsistency in practice for both the public and private firms. However, the focus of this research stage is the investigation of descriptive data that consider minimum, maximum response rate, distribution, average and correlation. The results from this stage will allow the further analysis of the issues or problems identified in the literature review. Moreover, reliability testing and structure equation modelling is used using AMOS.
4.8 PILOT INTERVIEWS (QUALITATIVE STUDY)
To ensure the accuracy of the study result, it is important to refine the research questions prior to conducting the interviews with experts. According to Yin (2003), a pilot interview should be conducted to improve the quality of the interview questions and procedures in a qualitative process. For this research, a pilot may be followed to guarantee the comparable testing of the research questions and to recover the study results. This requirement to test the interview questions and procedures can be achieved through an iterative process adopting initial interviews with experts, which will ensure reliability.
During the interview, the interviewees will be asked about their role in the organization, their experience in the field, their awareness of innovation in road construction, and they will be asked to discuss successful methods for bid evaluation and recommendations for the better evaluation of bids. Interview scripts will be compiled for examination. To control the overall interview process, we will use the template shown in Figure 4.2.
Once the interview questions are ready, we then send them to the road construction agencies in the government sector. The survey questions will be sent by post rather than email, as people in the private sector are very busy and may ignore unimportant email. This approach perhaps resulted in a higher examination response rate than if the study researchers had received the survey via email.
4.8.1 Coding and data analysis (qualitative and quantitative)
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Once the interview is finalized, the data is statistically analyzed. The first data analysis stage is to identify any variances in the averages by conducting independent t-tests and ANOVA. To analyse the qualitative data, the grounded theory techniques will be used to reduce the data through coding it into clustered themes analogous to precise interview questions (Creswell & Creswell, 2018). For this research, the NVivo software tool will be used. This software is very useful for mixed methods and qualitative research, specifically it is used for structured and unstructured data of different types such as text, image, audio and video.
In this research, the data analysis tool NVivo will be used to organize data and to code data and analytical initiation will classify and organize important data and their associations on the basis of patterns that might develop from the ostensible and hidden content of the data sample. The groups and categories will then form the foundation of analytical minute writing inside the NVivo tool functionality that permits connections with other applicable certification on organizations and qualitative case studies under investigation. The tool also helps to identify new vision and ideas. According to Owen (2014), the coding functionality in NVivo is very effective to analyse large-sized data, where data is derived from the interviews. Moreover, reliability testing and structure equation modelling is used using AMOS.
For quantitative data, we are looking for the ranking of each factor involved in the bid evaluation so that the proposed bid evaluation framework can be validated. The bid evaluation factors including innovation will be ranked based on the average of the responses given to each factor. These average values of the factors will be used to find how significant each identified factor is compared with the others.
4.9 EXPECTED RESEARCH OUTCOME
Based on the data analysis result, an explanatory model for the evaluation of innovation in the tendering process is developed. Originally, the model is built from the literature review. Based on the outcomes of the quantitative surveys in the road and bid evaluation sectors, the research gap in the current practices and key problems in the field will be confirmed and further investigated. The qualitative study which is
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based on interviews will be used to identify and develop solutions to the problems identified during the surveys.
Finally, the proposed research model to evaluate innovation in the tendering process will be refined and further detailed guidelines will be developed that might form the foundation of improved bid/tendering evaluations. The outcomes of this research will help the government and other related agencies to evaluate innovation in the bidding process.
Previous project outcome Company Experience Related experience
Technology/Method Innovation Use of New Material
Quality standards Performance Ranking Tender process
Management tools Management Skills
Technical expertise Assessment of innovation in Facilities tendering Resources Specialist equipment
System quality Management System Environmental awareness
Maintenance/operation cost Project Cost Fixed capital
Figure 4-3: Innovation Factors Model
According to Herbsman et al. (1992), evaluating and assessing road construction tenders, involves the key principles of project quality, time and cost as measured by the bid expense, execution time, and past work related to construction quality
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respectively. This suggests that the winning tender is completely approachable to the contract in context with the bidder being appropriately well skilled to undertake the construction project. In this PhD research, I will study the seven most important factors in assessing tenders in the road construction industry as shown in Figure 4.3: Related Experience, What is new (innovation), Performance ranking, Innovation and management skills, Resources, Management system and Cost/Price. All these factors are related to innovation in the road industry.
Two important methods were considered for this research, namely the Delphi method and the mixed method approach. However, we have selected the mixed method, as it more suitable to the current research. In the Delphi method, interviews are held with the experts in three to four rounds to gather the data, but in our case, it is not possible to approach tender assessors, therefore, the mixed method allows us to use a survey with open and closed ended questions.
Therefore, the data will be collected using qualitative and quantitative methods. In this stage, an empirically examination of the factors of pre-qualification and bid evaluation in the road industry and its contribution to the road sector in Australia is conducted. Wilson (2014) also studied this area empirically and found that the reliance on road infrastructure is a great cost and a great imbalance to the equilibrium of the earth. There is an increasing emphasis on making roads greener and more environmentally friendly. One such sustainable road construction method is solar roadways.
In order to achieve the research aim, this research will encompass seven research stages. Figure 4.2 presents the overall research design and Table 4.3 presents the research plan. However, to model and analyze both the qualitative and quantitative data which be collected from the questionnaires and interviews, the researcher will use SPSS software. Moreover, this study will approach the small and medium-sized tenderers in the road construction industry of Australia, as they are easily assessable.
4.10 RESEARCH ETHICS
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It was necessary to obtain permission from the Queensland University of Technology to gather the data from the experts in the construction industry and from public and private road contractors. Thus, ethical approval for this proposed research was received from the Office of Research Ethics and Integrity, Division of Research and Innovation, Queensland University of Technology before gathering the study data. The ethics approval details are as follows:
UHREC Reference number: 1800001175
Dates of approval: 16/01/2019 to 16/01/2021
Project title: Assessing innovation in comparative tender assessment in the road sector
The approval we received from the Queensland University of Technology is shown in Appendix A. The ethical standards and guidelines recommended by Israel and Hay (2006) were pursued to guarantee the study applicants’ anonymity, privacy and confidentiality were assured and every applicant was asked to sign a consent form to suggest they were contributing voluntarily in the proposed research. The study participants were asked to describe a real scenario in order to support the trustworthiness of their information in both studies (qualitative and quantitative)
4.11 SUMMARY
This chapter examines the formulation of the proposed study methodology in order to accomplish the purpose and aims of the study and to answer the proposed study questions. The chapter encapsulates the research philosophy, research plan, research methods and design. The chapter examines the study design in the context of the mixed methods methodology for the qualitative and quantitative studies, data collection for both the qualitative and quantitative studies and the data analysis. However, this chapter does not provide detailed information on the qualitative and quantitative studies, as this is discussed in Chapters 5 and Chapter 6.
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Chapter 5: Qualitative studies
5.1 INTRODUCTION
It is widely accepted that projects related to road construction should be managed effectively. The literature indicates that demands from customers in terms of value for expenditure have been increasing rapidly (Maqsoom et al., 2019; Metham et al., 2019). Therefore, a rigorous evaluation of tenders to ensure an effective return on investment is essential. A failure to accurately assess tenders can lead to complications for the whole project and the road construction company. The selection of a suitable construction contractor increases the likelihood of the successful completion of a road construction project (Festus, 2019; Maqsoom et al., 2019). This may also ensure the customer/ owner goals are achieved and the project is completed on time, within budget and delivers high quality project outputs. As innovation has a place in road construction, it will be useful to include innovation as one of the indicators in the evaluation of tenders as part of competitive tendering.
Generally, a decision on the selection of a road tender is based on cost. However the literature indicates that low-priced tenderers often have difficulties completing the project on time and within the budget constraints. Therefore, it is desirable that the contractors are assessed on several indicators that are of importance to the completion of the project (Festus, 2019; Hasnain et al., 2018; Nyström, 2019).
The literature presents several methods to assess the comparative tender assessment using factors that include proposed cost, bidder management system, resources, their performance in the market, and their related work experience. However, the literature shows that many projects related to road and bridge construction fail due to a lack of awareness of innovation when assessing the tenders (Brege et al., 2014; Hasnain et al., 2018; Maqsoom et al., 2019). Innovation is an important factor, as this allows the owner to assess the bidder’s capacity to use new technology and ideas. The aim of this chapter is to evaluate the proposed factors of innovation in the bidding process for the assessment of innovation in comparative tender assessment qualitatively.
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5.2 BACKGROUND AND RELATED WORK
In the road construction industry, awarding road construction projects to the most suitable and affordable bidder with the lowest cost tender is the common standard over the world. However, the widespread acceptance of bids based on a low cost is why many road constructions companies and other individual participants in this field are unsatisfied with the present system (Hasnain et al., 2018; Metham et al., 2019). Company CEOs and road construction managers frequently find that assigning and awarding a road project to the lowest bidder might not guarantee that the project aims, and objectives are achieved in terms of road quality, completion timeliness and the total cost of the project. Numerous road contractors are also dissatisfied with how road projects are awarded, where low cost is the sole criteria for awarding a project (Metham et al., 2019). The obligation to ensure high quality in road construction projects might preclude the lowest bidder from being awarded the project.
The competitive bidding process occurs all over the world since its early stages. For instance, in United States of America, competitive bidding verdicts are cited back to the laws known as “Canal Law”, which was passed in in 1847. In fact, the modern and competitive bidding idea in road construction appears to have originated in America, Australia and United Kingdom due to their belief in a free innovativeness structure (Lou, 2016; Metham et al., 2019). The first purpose was to guard against dishonesty in construction development and negligence by community administrators. The aim of bidding on road construction projects was theoretically to deliver the taxpayer a developed road for the minimum cost possible over the competition. Today, the strategy of accepting the lowest bid remains fundamentally untouched. Guarding against dishonesty and conspiracy are still valid purposes.
This is why, in Australia, the present process of selecting a low-cost bid is not a viable strategy. First and foremost, accepting a bid based on the lowest cost could result in quality control issues. Requiring a high-quality road for the lowest cost are contradictory terms. Accepting a tender based on the lowest cost also usually means timeliness difficulties. Lastly, accepting the lowest cost tender could lead to prerogative circumstances that, somewhat are actually produced through an original bid evaluation. A bid which is based on the lowest cost has quality concerns and may
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not be completed on time. In the road construction industry, low bidders are oftn not able to produce the necessary mix of road contract duration, road quality and road cost (Lou, 2016; Metham et al., 2019; Mthembu et al., 2019). Preferably, award principles must comprise an evaluation of the bidder’s ability, commitment, background, skills, past experience, cost and how innovative they are in terms of road development. It is clear that numerous problems arise when adjusting award criteria to comprises aspects of road quality other than the lowest bidding cost. The choice of sustainable standards and equality are key problems.
In the context of project duration, the task of determining a suitable project bid duration is significant for evaluating bids. Precise approximations of the required building time are important. Impractical project bid times could result in a higher project price and an increase in the likelihood of arguments between the contracting authorities and road contractors. Likewise, many researchers have highlighted the status of sensible time approximations with respect to entitlements supervision (Maqsoom et al., 2019; Nyström, 2019; Shirsavkar & Koranne, 2010). However, in relation to identifying suitable project time, cost and calculating the exact actual time could be difficult for the road development authority. The time needed for road construction varies greatly from one construction company to another. As the literature shows, only a few companies or individual road contractors know which resources are required to develop a road on time and within budget. During the pre-bid determination of project completion time, the road contractor can only make an overall estimate regarding completion time, based on which the specialist awards the contract, however the contractor’s expectations could be valid or invalid.
Another point which needs to be examined in relation to contact duration is the direct impact on the overall cost of the project. The bidder’s bid cost is only a part of the project cost in general. In this context, two other project price-related categories contribute meaningfully to the final cost of the road construction project (Maqsoom et al., 2019; Mthembu et al., 2019). First, the road construction company managing the contract and the administration cost, and second, the road user cost must also be taken into account. The road user cost is incurred by the community as a result of the road construction. The road user cost characteristically comprises project administration cost, delay cost, additional gasoline cost and other indirect project costs, as a final road
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development cost. Both the road user cost and administrative cost from the road development company depend on the project duration period.
5.3 INNOVATION
The term innovation is one of the key concerns in the bidding process for the road construction industry and the topic has been listed as a hot concern in recent years. The issue was first discussed indirectly in public firms and commercial firms. However, many firms especially those in road construction in the context of the bidding process have not come to grips with this. Therefore, assessing innovation during the bid evaluation process in the road construction industry is important.
Many companies and individual contractors in the road construction industry, both private and public firms, have long called for increased innovative ideas and productivity (Smiley et al., 2014; Winch, 1998), however, there are key difficulties associated with this. When a road construction contractor signs a contract with the government, the contract is based on a particular project and the innovations to be used are incremental, depending on the company’s experience and knowledge in the road industry field and occur within exact road development projects (Drucker, 2001; Taylor et al., 2011; Winch, 1998). Also, some researchers point out that only a short- term economic viewpoint is usually espoused, though innovation-based economic strategies are long-term (Porter, 1998; Taylor et al., 2011). A road consultant is often regionalized in impermanent project administrations (Dubois & Gadde, 2002; Eriksson, 2013; Jansson et al., 2014), and innovations produced from imaginative or inspired problem-solving at the site location do not typically move to other construction-related projects, which could hamper their dissemination. Dissemination of innovations among projects related to road and builders is likewise vulnerable (Robinson et al., 2016; Seymour & Rooke, 1995).
Nonetheless, innovation has been proposed and implemented in many fields such as lean construction and building information modelling (Jansson et al., 2014; Thuesen & Hvam, 2011). Road contractors have also documented the underlying of industrialized house-building which is based on the platform used to progress efficiency by reducing difficulty and cumulative standardization (Bonev et al., 2015; Gadde & Dubois, 2010; Gibb, 2001). In this context, building type like modular building (Hedgren, 2013; Lessing et al., 2015), is a costly offsite road construction
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approach (Jansson et al., 2015; Lessing et al., 2015) and current frames-of-reference have been challenged through the use of building systems (Lessing et al., 2015; Robinson et al., 2016). Tactically concentrating beyond single construction projects and the integration of knowledge in different organizations also fundamentally varies from building in separate projects (Brege et al., 2014; Lessing et al., 2015). However, in order to realise the possible advantages offered through those platforms is itself is a big challenge, partially due to problems in merging a standardized in the industry providing with non-standardized demands of consumers (Brege et al., 2014; Jonsson & Rudberg, 2014; Lessing et al., 2015). Further, no benefits are gained through innovations until they are broadly designed, implemented and deployed (Widén & Hansson, 2007; Winch, 1998), which is not up-front. This is because road construction includes a compound societal system (Bresnen et al., 2005; Lindgren & Emmitt, 2017), in which characteristics that can quicken innovation, for example pressures among changing construction project tasks and comparatively stable, homogeneous company processes, might also smother the dispersal of practices and new technologies (Lindgren & Widén, 2019; Morgan, 2019).
Therefore, implementing and deploying innovations in medium- and large-sized road construction companies is extremely complex for evaluation (Akmam Syed Zakaria et al., 2018; Manseau, 2019; Shibeika & Harty, 2015), which is strongly influenced through ingrained contextual fundamentals stanching from numerous complicated systems which do not examine the association among these types of systems (Nyström, 2019; Shirsavkar & Koranne, 2010). Henceforth, the sub-systems related to social groups showed an impact on the dissemination of innovation in predominant social systems which involves considerable additional consideration. Likewise, Akmam Syed Zakaria et al. (2018) suggested in their review that different influences affect industrial building projects and they documented the structural, circumstantial and behavioural aspects that affect industrial building projects decisions. Shibeika and Harty (2015) suggested that the contextualist approach in the context of innovation in engineering projects has several phases: innovation over time, iterative process of innovation and complex, and altering situations in an examination of the dissemination of innovation called digital an engineering organization. Finally, innovation in the bidding process in the road industry is still at a very early stage and a lot of work is required from both public and private firms.
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5.4 PARTICIPANT INTERVIEW MECHANISM
The literature indicates that many different types of interview templates for qualitative research have been used in different areas such as engineering, education, science etc. (Robson, 2002). For this research, we used an interview technique called the semi- structured interview to collect data from the study participants and the techniques are more effective compared to the other data collection techniques. The semi-structured interview was discussed in the methodology chapter in detail. Therefore, for this study, face to face and online interviews with road building consultants and road builders from different building companies in Australia and interview cards were used to conduct the interviews. An interview card denotes to the speedy interview which comprise a brief level of information about the research topic being explained during interview and other related information that helps to advise interviewee in an efficient and effective way (Saunders et al., 2009). During the interviews with the road building consultants and the road builders, these interview cards were used to train interviewee and for the importance of the interview in order to measure the factors in practice. The interview cards also encompass the list of the bidding process included factors such as cost, contract time, contractor background, skills, innovation etc.
There were four different interview cards explaining the complete interview process: card one welcomes the study participants, card two is used to collect the study participants’ background experience and education, card three is used to gather the study participants’ knowledge of the process of bidding evaluation in the context of road construction in Australia, card four is used to conduct interview in the road development sector. Thus, qualitative data might be examined with the purpose of exposing hidden and new factors in the bidding process in the road construction industry (Sedera & Gable, 2010).
Furthermore, Cassell and Symon (2004) suggested in their research that qualitative data researchers should follow the method of semi-structured interviews, which begins with a welcome message to the study participants and short information on the study questions. The interview starts with general questions about the study. Semi-structured interviews allow researchers to plan the interview process and start the interview with open-ended study questions about the proposed research theme.
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Consequently, the technique of semi-structured for qualitative data is appropriate to gather data for this study. The researcher adopts preparatory reasoning to understand the point of view of the study participants about the planned research. The technique is appropriate to explore and distinguish how, when, why, what and with what in relation to the bidding process in road development in the context of the evaluation of innovation in the road development process.
5.5 DATA SAMPLING TECHNIQUE FOR QUALITATIVE STUDY
Data sampling is a statistical analysis technique which can be categorised into two groups: first, the data sampling techniques which are employed to answer and understand numerous styles of study questions, including probability sampling and the judgemental sampling technique. Second, both the non-random data sampling technique and non-probability technique of data samples are used to pinpoint the data sample which is based on the study aims (Saunders et al., 2009; Sedera & Gable, 2010). In this research, for the quantitative study, the data was collected using a random sampling technique, however, for the qualitative phase of this study, the sampling data collection technique is able to select the exact data from the study participants that might help to obtain detailed information to answer the research questions. According to Oates (2005), the aim for the qualitative study is to explore issues related to this research in detail, therefore, in the qualitative study phase, we find that a random data sampling technique is not suitable.
A data sampling technique called non-probability is possible in practice and is more appropriate to examine the detail information about the proposed study. The data sampling techniques are founded on the following important information: the study objectives and aims, the research questions and based on the relevant research strategy, the data sample may provide researchers with detailed information on the planned study which might allow the investigators to explore the research questions for the study and obtain theoretical perceptions (Saunders et al., 2009).
Moreover, in the context of the study questions in the data sampling technique known as non-probability, the main issue is that the size of the study data is not clear, because in this technique, there are no proper rules for data collection. Somewhat, the
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connection between the objectives of the research, study purposes and technique of sample for data collection is imperative. Henceforth, the sample size of the data depends on the aims and objectives of the research and the questions belonging to the study, such as why the proposed research is important, is the proposed research reliable, is the proposed research methodology suitable for the planned study, what can be achieved from the research, what are the study findings and what is the size of the data sample (Oates, 2005).
In this planned study, we spent around 4 months locating and approaching suitable study participants to interview. A total of 21 road construction experts and consultants from different building companies in Australia were approached and 9 agreed to participate in this proposed study, with six participants being interviewed face to face and three being interviewed online, each interview taking approximately 1 hour to complete.
5.5.1 Purposive data sampling technique
In this study, a purposive data sampling technique was identified as being more suitable than the other non- probability techniques. As purposive data sampling is valuable when the researcher selects the data sample or different data sample cases that are typically useful and it is also useful when researchers are required to make decisions on selecting suitable data samples which will help to achieve the study aims and objectives and address the study questions (Flick, 2018; Sedera & Gable, 2010). Consequently, the research investigator advertises the requirements for the data sample over suitable channels or requests the study participants to take part and the data collection process begins. The study can be advertised through several venues, such as in journals or at conferences, in magazines or newspapers , on related websites or discussion forums or sending letters or emails to the study participants. According to Patton (2014), some factors such as snowball, convenience, self-selection, purposive and quota affect the selection of a technique like non-probability sampling.
Furthermore, the purpose of data sampling technique founded in the feasibility and receptiveness of elicitation of research data to reply study objectives and aims and
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to response research questions. Also, the referrers ability to develop access to specific researchers and commercial organisations (Saunders et al., 2009). By considering this situation, research examiners required to analyse and understand research aims and objectives, for instance what is essentially likely founded on the study nature and type of research. According to Saunders et al., (2009), the technique of purposive data sampling might be useful in order to study different data samples, in which all sample members in one data group match with one another for instance, the sub-factors of innovation in the bidding process in the road industry belong to the main factor of innovation and factors in the bidding process.
This technique lets us inspect the data group in detail during this research. The purposive data sampling technique is suitable for locating and interviewing the research participants via different social medias, for example, Twitter, LinkedIn, Facebook and through different business contacts. In relation to this study, we approached the study participants over the phone to obtain their initial agreement to participate in the research, after which they were sent an email explaining the research aims and purpose, and a consent form and the study questions. We approached 21 experts in the road construction industry and 9 agreed to participate, thirteen interviews have been conducted with six participants being interviewed face to face and three being interviewed online.
Design and development of the interview template: Prior to the design and development of the open-ended question template for the qualitative study, a detailed literature review on the process of bid evaluation in the road industry was conducted and the research questions were extracted from the literature. As literature review on the road industry and bid evaluation process helped in designing and developing interview template through investigating numerous perspectives of the planned factors of innovation. Consequently, the detailed information obtained from the literature review is used to develop the semi-structured interviews by obtaining information from the opinions of the experts expressed in the preliminary discussion from the road industry and compares the factors derived from the literature review (Flick, 2018).
For the qualitative phase of this research, an interview template is developed to answer the first three research questions of this study. There are two key sections in the template, section one comprises 20 questions and section two obtains feedback from the study participants. Question 1 asks the participants about their business
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organization activity. Question 2 asks the participants what they know about the bid evaluation process in the road construction industry. Question 3 asks the participants approximately how much it costs to prepare a tender. Question 4 asks the participants about the management of the tender process in their organization. Question 5 asks the participants about what information the participant’s organization needs to gather when preparing a tender. Question 6 asks the participants about who typically introduces innovation in process/product/management in the road industry and who assesses new ideas in their organization. Question 7 asks the participants whether they think Australia should update their old methods of developing roads as old methods are not suitable these days. Question 8 asks the participants if they think the road builder’s experience in testing new material could impact the performance of a newly developed road project.
Question 9 asks the participants if they think the assessment of innovation is an important factor during the bid evaluation process in the road industry. Question 10 asks the participants what type of innovation factors they would like to see in the bid evaluation process. Question 11 asks the participants which area they think requires continued research in the bids assessment process in the road construction industry. Question 12 asks the participants who (manufacturer, contractors, subcontractors, distributors, client or head distributor) generally introduces innovative ideas to road construction projects?
Question 13 asks participants what (cost effectiveness, sustainability, client demands, time constraints, technology) are the main drivers of innovation in the road construction industry. Question 14 asks the participants where in Australia they believe most innovation is taking place. Question 15 asks participants what they think are the main drivers (awards, grants, government scheme, access to new technologies) of innovation in the road construction industry.
Question 16 asks the participants if their organisation encourages creative problem solving to improve innovation. Question 17 asks the participants what attracted their organisation (project costs, project location, project time, or scope of the project) to participate in the bid? Question 18 asks the participants if the government investigated their organisation’s financial capacity, performance, resources, related experience and project management skills when they evaluate the bidders’ bid. Question 19 asks the participants if the Government investigated the
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organisation’s environmental policy and occupational health and safety procedures when they evaluated the bidders’ bid. Question 20 asks the participants if the government investigated the innovation offered by the organization when they evaluated the bidders’ bid?
Three academics and two experts from the bidding process in the road industry and innovation in the construction sector were contacted to review the interview template, the cards used to conduct the interview and the research questions. Later, the research questions and interview cards were sent to three experts in the road industry for the purpose of pilot testing. The pilot testing result suggested that two study questions required further improvement in terms of simplicity and efficiency. Moreover, after early feedback from the university academics, the study question template format changed slightly and only seven study questions were reshaped with the aim of improving the readability and understanding of the interview cards.
5.5.2 Interview process
Before conducting the interviews, the Human Research Ethics Advisory Team at Queensland University of Technology was approached to obtain ethical approval. The ethics approval reference number is (87461_Oad_Kajewski_Assessing innovation in comparative tender assessment in the road sector). The ethical standards and principles in relation to research anonymity, privacy and confidentiality, consent forms, and question template developed by Landsheer and Boeije (2010) were followed. The qualitative stage (the interview process) took around one year from January, 2019 to January, 2020. Prior to conducting the interviews or asking the participants any questions, the study aims and objectives were explained and discussed with the participants and they were asked to sign the consent form. All the interviews were recorded to ensure any bias was reduced by obtaining confirmation from the participant which increased the reliability, readability and validity of the study.
The privacy and confidentiality of the participants were guaranteed. The researchers approached the participants via email and over the phone and during the conversation the researcher explained the research to the participants and obtained their consent. To ensure the time of the interview was suitable, the researcher allowed
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the participants to select the time and to choose their preferred interview method, either face to face, Zoom or online. On average, each interview took one hour to complete however, however, the participants were welcome to continue their discussions until they had shared all their information. At the end of every interview, the researcher asked every participant if they wanted to participate in the study in the future and if they wanted to be informed of the study findings. Finally, the researcher thanked the participant for their contribution and their time.
Table 5-1: Demographic data Participant role Years of experience Industry sector Date interview conducted Discipline technical 16 Public and private 2nd February, 2019 director and lead sector transport modeller Road supervisor 15 Private firm 23rd January, 2019 Project planner and 25 Local Government and 26th March 2019 manager private industry Executive director for 10 Private firm 30th May, 2019 major projects Senior executive 24 Local Government and 9th July, 2019 private industry Project leader 12 Local Government, 12th October, 2019 international and private industry Roads advisor 14 State and private firms 14th December, 2019 Project manager 13 Local Government, 13th January, 2020 international and private industry Supervisor 11 Private company 10th November, 2019
In this research, to collect data from the experts in the area of innovation, bidding and the road construction industry in Australia, a purposeful sampling technique was used. We first approached experts in the area of innovation, the bidding process and the road construction industry in Australia and invited them to participate in the study. Upon their agreement, the researcher forwarded to them information on the research, the consent form and the interview questions. To collect data from the road construction experts, a qualitative study was conducted. A total of 21 experts in road innovation, the bidding process and road construction in Australia were contacted and nine agreed to participate. The interview questionnaire was divided into two sections. In section one, the participants were asked 20 questions about the factors which impact the road construction industry, innovation in road construction and the bidding process in the road construction industry. In section 2, the participants were asked to give
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feedback on the study or if they felt there were any missing factors. Information on the study participants’ role in the construction industry, their work experience, the date the interview was conducted, and the type of industry in which they work is summarised in Table 5.1
5.6 THEMATIC ANALYSIS METHOD AND QUALITATIVE DATA ANALYSIS
This chapter qualitatively examines tender assessment-related factors and their influence on the tender evaluation and bidding process in the road construction industry in Australia. The qualitative method of data collection and analysis is considered to be a suitable research method for the following reasons: first, the qualitative research method enables researchers to evaluate and test research for further development; second, the research method helps the researcher understand the viewpoint of experts in the area of innovation in the road construction industry and the tender assessment process; third, the method helps researchers to discover missing factors in relation to tender assessment.
This chapter details how the interviews were conducted and discusses the usefulness of the sampling technique for this research. The chapter also discusses the research method adopted for this research. The research method used in this research investigates the key factors relating to tender assessment, namely: company experience, innovation, performance ranking, management skills, resources, management system and project cost. Every key factors relating to tender assessment is further categorized into numerous sub-factors, as shown in Figure 5. 1. The fit model is used to identify how the selected factors are linked to each other and their loading on the research hypothesis.
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Previous project outcome
Company Experience
Related experience
Technology/Method
Innovation
Use of New Material
Quality standards
Performance Ranking Tender process
Management tools
Management Skills Tender Assessment Technical expertise
Facilities
Resources Specialist equipment
System quality
Management System Environmental awareness
Maintenance/operation cost
Project Cost Fixed capital
Figure 5-1: Key assessment factors in the bid evaluation process
For the data analysis, an early literature review in the context of bid evaluation and innovation in the road construction industry was completed so that the research scope can be examined, understood and distributed (Daly et al., 1997). For this, a thematic analysis technique was selected to identify the factors that impact bid assessment and the evaluation process in the context of the road construction industry in Australia. The thematic analysis technique also helps to link the factors loaded with the study questions. As the thematic analysis technique is a theoretically flexible method to research like qualitative or study that aims to categorize and designate factors of bid evaluation in the road industry (Braun & Clarke, 2006; Daly et al., 1997).
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Moreover, numerous factors have been identified under each key factor of bid evaluation using the thematic analysis technique. For example, the factors “previous project outcome” and “related experience” are identified under the key factor of “company experience”, the factors “technology/method” and “use of new material” are identified under key factor of “innovation”, the factors “quality standards” and “tender process” are identified under the key factor of “performance ranking”, the factors “management of tools” and “technical expertise” are identified under the key factor of “management skills”, the factors “facilities” and “specialist equipment” are identified under the key factor of “resources”, the factors “system quality” and “environmental awareness” are identified under the key factor of “management of system” and the factors “maintenance/operation cost” and “fixed capital” are identified under the key factor of “project cost”.
As shown in Figure 5. 1, each sub-factor is grouped with the key factor of bid assessment and evaluation. For each factor of bid assessment and evaluation, a statistical formula of Cronbach’s alpha is applied to measure and understand the factors’ consistency and the internal reliability between the sub-factors and their parents’ factors. A reliability coefficient of 0.70 or higher is considered to indicate a suitable relationship in the field of scientific research and the construction industry (Bland & Altman, 1997). The Cronbach’s alpha in the field of statistics is defined as follows:
where N signifies the number of sub-factors in bid evaluation, c-bar signifies the mean of the inter-factor covariance among the selected parent factors’ bid evaluation and v-bar signifies the total of the mean variance. We considered Cronbach’s alpha values as, if the sub-factors’ loading increases, the Cronbach’s alpha values also increase and if the Cronbach’s alpha values decrease, the number of sub- factors also decrease.
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5.7 THEMATIC ANALYSIS USING NVIVO SOFTWARE
Thematic analysis is an approach to design and analyse qualitative data, which was obtained through interviews with study participants. The data was then closely analysed to detect common themes of the study, new ideas in the topic and study data pattern. In order to analyse the study data, the thematic technique using the NVivo software application was used. The NVivo application has been developed to analyse the qualitative study data and the data collected through mixed methods. In particular, the NVivo application is used for the inspection of dissimilar study data types, such as data in the form of text, audio, video, and images. The application is valuable for this research for the following reasons: first, it enables un-normalized qualitative study data to be examined and analysed; and second, it enables data of different types to be uploaded as audio files so the researcher can analyse these using the thematic analysis technique.
Initial data reading (phase 1) Identify bid evaluation factor (phase 2: coding)
Grouping bid evaluation factor (phase 3)
Bid evaluation factors ranking (phase 4)
Data analysis(phase 5)
7 group of 14 sub-factors parent factors of bid of bid assessment and assessment and 11 interview evaluation evaluation 5 Likert scale for scripts collected ranking from road industry experts Reliability test
Figure 5-2: Thematic analysis process
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The thematic analysis technique is used to classify the study themes by examining the study data and re-reading of study data (Rice & Ezzy, 1999). According to Braun and Clarke (2006), the thematic analysis technique is very useful to capture the key thoughts of the study and to link the study theme with the research questions. Thematic analysis is especially useful for this proposed research for the following reasons:
• Helping rank and order interview questions
• Helping read interview data based on the research theme
• To get to know about the study data and pinpoint the factors related to research theme based on the script reading in NVivo
• Data coding, which allows the researchers to highlight the required text in the script
• Generating study themes, based on the identifications of patterns in the selected data
• Removing themes, which helps to clean the qualitative data and improve the data accuracy and usefulness
• Defining and naming study theme, which allows to finalized study factors based on the theme of the research
• Writing up; finally, the thematic approach allows to write up about the final data
According to Patton (2014), the logical process of the thematic analysis technique supports the study theme based on the data result. Also, the technique covers the study implications and explains the study factors and suggestions. In the qualitative study in this research, data is collected through semi-structured interviews, therefore, the collected data requires additional cleaning and analysis. Therefore a suitable approach for data analysis is required. In this study, the research is divided into five phases using the thematic analysis technique, as shown in Figure 5. 2. Phase 1 is the initial cleaning and data reading phase: once the study data has been received in the form of script and audio files, we then carefully read the interview transcript and listen to the interview audio. Phase 2 Coding: in this phase, the bid evaluation sub-factors are placed under their parent factors. Phase 3 Group Key/parent factors: once we identified the sub-
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factors of each parent factor of bid evaluation, we grouped the sub-factors with their parent factor of bid evaluation in the road construction industry. Phase 4 bid evaluation factor ranking: once the sub-factors are identified and placed with their parent factors, we ranked every sub-factor of bid evaluation on a five-point Likert scale. Phase 5 analysis of the study data and result discussion: this phase identifies the relationship between every factor of bid evaluation using a reliability test.
Figure 5-3: Interview scripts in NVivo
The audio file of each interview was listened to carefully and imported into the NVivo application so that the data can be coded and analysed. Figure 5. 3 shows how we imported the data into the NVivo application. After this, the interview scripts that were in the form of word documents were imported in the NVivo application and the data was read thoroughly. Figure 5. 2 shows the method we used for the qualitative study and the technique we applied for the data analysis (Dawson, 2002; King et al., 2018). The study data analysis used thematic analysis that allow bid evaluation and identification of innovation factors in the road industry in Australia so that the coding of study data can be started on the study data sample and to authorize current themes obtained from the study scripts.
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The coding phase in this study is divided into three steps, as shown in Figure 5. 2:.Step 1: identifying and setting the proposed research themes, for instance What is research and what is the purpose of this research? What is the research aims and objectives? and why are the research themes important in the designated topic. Step 2: identifying the association between the sub-factors of bid evaluation and the parent factors of bid evaluation and innovation in the road construction industry in Australia. Step 3: obtaining bid evaluation and innovation factors for every parent factor. This process is based on the analysis of all nine interview scripts and the frequency rate of bid evaluation terminologies. Furthermore, to ensure coding reliability, the data at the phase of coding has been discussed in thematic analysis and qualitative research techniques.
After the coding phase has been completed, the research themes and their associated sub-factors are removed from the study interview scripts. Figure 5. 4 shows how the remaining phases of the thematic analysis are performed. In the first phase of Figure 5. 4, the sub-factors of bid evaluation and assessment in the road construction industry are removed for the nominated parent factor of bid evaluation and assessment. Also, every sub-factor of bid evaluation is ranked, based on the result of the data coding; phase 3 presents the loading of the sub-factors of bid evaluation and assessment in the road construction industry with their respective parent factors.
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Clean data Derivation of subfactors through coding Bid evaluation process and road quality • The company’s past experience in the field of road development plays an important role in order to • previous project evaluate bids in the road construction industry outcome Company • The following factors (previous project outcome, related experience) could play a positive role in the • related experience experience process of bidding.
• latest technology • Innovation in the context of new material, and new and innovative methods of developing roads are • use of new material in innovation and evaluation Bid very important for evaluating bids in the industry Innovation the road industry • The following factors (latest technology, use of new materials in the road industry) could play a positive role in the process of bidding.
• quality standards • To evaluate company performance in the context of the process of bidding in the road construction • tender process Performanc industry. Therefore, considering the ranking of the company in the market is important. e ranking • The following factors (quality standards, tender process) could play a positive role in the process of bidding. • management of construction tool • It is important for the government to evaluate the company’s road construction skills • company technical Management • The following factors (management of tool, company technical experience) could play a positive role experience skill in the process of bidding.
• facilities for the road the industry in • The quality and total number of resources must be considered in order to evaluate bids in the road company staff member construction industry. • specialist equipment
The following factors (facilities for the company staff member, specialist equipment) could play a Resources positive role in the process of bidding. • system quality
• environmental • It is very important to know how the construction company manages its staff’s skills and training in awareness relation to changes in the environment. Managemen • The following factors (system quality, environmental awareness) could play a positive role in the • cost of maintenance t system • fixed capital process of bidding.
• The evaluation of the total company budget is important for the evaluation of bids in large projects. Project cost • The following factors (cost of maintenance, fixed capital) could play a positive role in the process of bidding.
Figure 5-4: Results of thematic approach.
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5.8 MEASUREMENT
The foremost challenge in the execution of a construction project is to select an appropriate contractor. Selecting a contractor entails bid evaluations, which is a critical task performed in the public and private sectors by the client company and consultants. To do this, several objectives have been set to assess the ability of the contractors to help in the efficient management of the commercial aspects of construction projects. However, some models and agendas have also been developed to evaluate every contractor’s bid and to decide on the best proposal (Drucker, 2001; Jonsson & Rudberg, 2014).
The measures of the seven key factors for bid evaluation and innovation in the road construction industry were taken from the bidding and road construction industry literature (Bresnen et al., 2005; Hedgren, 2013; Lindgren & Emmitt, 2017). The idea of fit is employed to classify the associations among the factors comprised in every parent factor of bid evaluation and the loading of every factor of bid evaluation for the effective assessment of each bid. This investigation refers to the correlation among the following seven factors of bid evaluation: company experience, innovation, performance in ranking, management skills, resources, management system and project cost.
5.8.1 Company experience and the bid evaluation process
A company’s previous experience of tender requirements needs to be evaluated and assessed to determine whether the company has the right expertise to achieve the outcomes of the construction project. Current and past experience is more valuable than significant company experience. The construction company’s prior experience in practical areas is analogous to the tendered construction project, the measure of the company’s past project experience and the role it played in these road construction projects must be considered. To assess the company’s past experience in the road construction industry, it is important to evaluate the following two factors: previous project outcomes and related experience.
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Figure 5-5: Evaluation of company’s past experience in road construction
Figure 5. 5 shows the thematic analysis results of previous project outcomes and related experience in the context of company experience evaluation in relation to the bid evaluation. The study data results indicate that two sub-factors (previous project outcomes and related experience) loaded on the company’s past experience factor, which qualitatively validates the proposed factors of innovation in the bidding process. All the selected sub-factors of bid evaluation are equally vital for understanding and evaluating a company’s past experience in the context of bid evaluation and innovation in the road industry.
5.8.2 Innovation and bid evaluation process
The process of improvement and innovation in the field of road construction and bid evaluation offers vital industrial and community advantages by making a significant contribution to financial growth and improving the quality of roads. However, implementing better innovative standard practices in order to advance the existing processes of construction and to increase
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attractiveness of product, have progressively become a challenge for bid evaluation and the road construction industry. The use of innovation in the field of the bid evaluation process refers to the use of latest technology, such as solar roads and the use of new materials such as recycled material. To assess innovation in the road construction industry, it is important to evaluate the following two factors: the latest technology and the use of new material in the road construction industry.
Figure 5-6: Evaluation of innovation in road construction
Figure 5. 6 shows the thematic analysis results for how innovative the company is in the context of developing suitable and sustainable roads in relation to bid evaluation. The study data results indicate that two sub-factors (latest technology and use of new material in road construction) are loaded on the company innovation factor, which qualitatively validates the proposed factor of innovation in the bidding process. All the selected sub-factors of bid evaluation are equally important to understand and evaluate innovation in the company in the context of bid evaluation and innovation in the road construction industry.
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5.8.3 Performance ranking and bid evaluation process
The tenderer’s performance in road construction industry varies of based on different factors. The past performance of the tenderer in relation to related road construction projects should be evaluated in terms of budget, time performance, quality standards, product value and project management. The company’s performance capability depends on the project completion date.
To assess the past performance of the company in relation to road construction projects, it is important to evaluate the following two factors: quality standards and the tender process.
Figure 5-7: Evaluation of company performance in terms of road construction
Figure 5. 7 shows the thematic analysis results for how the company performed in past related projects in the context of developing suitable and sustainable roads in relation to bid evaluation. The study data results indicate that two sub-factors (quality standards and tender process) loaded on the company performance ranking factor, qualitatively validates the proposed factor of innovation in the bidding process. All the selected sub-factors of bid evaluation are
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equally important to understand and evaluate company performance in past projects in the context of bid evaluation and innovation in the road construction industry.
5.8.4 Management skills and bid evaluation process
It is important to evaluate the bidder’s capabilities to manage staff skills to assess the quality of the bid for the road construction project, the staff training program, and the procedures and policies for safety and wellbeing. To assess the management skills of the company in relation to past and current projects in road construction, it is important to evaluate the following two factors: the management of tools and the company’s technical experience.
Figure 5-8: Evaluation of management skills in terms of road construction
Figure 5. 8 shows the thematic analysis results for the company’s performance in current and past related projects and the management of staff skills in the context of developing suitable and sustainable roads in relation to bid evaluation. The study data results indicate that two sub-
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factors (management of construction tools and company technical experience) loaded on the company performance ranking factor qualitatively validates the proposed factors of innovation in the bidding process. All the selected sub-factors of bid evaluation are equally important to understand and evaluate the company’s management skills in relation to past and current projects in the context of bid evaluation and innovation in the road construction industry.
5.8.5 Resources and bid evaluation process
It is important to evaluate the bidder’s capabilities in relation to the equipment, and intellectual property that the bidders use in the construction of roads. This information is also important to assess in the context of the bid evaluation process. To assess the resources of a company in construction projects, it is important to evaluate the following two factors: facilities for the company’s staff member and specialist equipment.
Figure 5-9: Evaluation of company resources in relation to road construction
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Figure 5. 9 shows the thematic analysis results for the company’s capability in the utilization of resources in the context of developing suitable and sustainable roads in relation to the bid evaluation. The study data results indicate that two sub-factors (facilities for the company’s staff member and specialist equipment) are loaded on company capability in resources factor, which qualitatively validates the factor of innovation in the bidding process. All the selected sub-factors of bid evaluation are equally important to understand and evaluate the company’s resources in the context of bid evaluation and innovation in the road construction industry.
5.8.6 Management system and bid evaluation process
It is important to evaluate the bidder’s system quality when assessing the quality of the bid in the context of road construction, the tools the company uses to manage the project, the environmental management system and program software. To assess the company’s management system in the context of a road construction project, it is important to evaluate the following two factors: system quality and environmental awareness.
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Figure 5-10: Evaluation of the company’s management system in relation to road construction
Figure 5. 10 shows the thematic analysis results for the company’s capability in the management of the company’s systems in the context of developing suitable and sustainable roads in relation to the bid evaluation. The study data results indicate that two sub-factors (system quality and environmental awareness) loaded on company capability in the management system factor qualitatively validates the factor of innovation in the bidding process. All the selected sub- factors of bid evaluation are equally important to understand and evaluate the company’s system in the context of bid evaluation and innovation in the road construction industry.
5.8.7 Project cost and bid evaluation process
It is widely accepted that in the majority of cases, a bid is successful based on cost and time to deliver. A bid with a low cost has a very good chance of being the winning bid. To assess the project cost in developing suitable roads, it is important to evaluate the following two factors: cost of maintenance and fixed capital.
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Figure 5-11: Evaluation of project cost in relation to road construction
Figure 5. 11 shows the thematic analysis results of project cost in the context of developing suitable and sustainable roads in relation to the bid evaluation. The study data results indicate that two sub-factors (cost of maintenance and fixed capital) loaded on the project cost factor qualitatively validate the factor of innovation in the bidding process. All the selected sub-factors of bid evaluation are equally important to understand and evaluate the project cost in the context of bid evaluation and innovation in the road construction industry.
5.9 BID EVALUATION FACTOR FIT
When evaluating contractors’ bids, the main factor to consider is the cost of the project. This factor significantly impacts the choice of a suitable contractor for a construction project. Even though the lowermost bidder system protects the public from certain traditional practices, it could result in unforeseen complications. Unreasonably low bids are usually put forward by
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incompetent or unqualified contractors and may involve extensive delays, cost swarming, quality issues, and major disagreements. In past years, several key changes have been made to the lowest bidder system which includes reasonable auction-goer, public interest, and a pre-qualification list. These changes have opened avenues to new evaluation methods that can be implemented to replace the single criterion lowest bidder system.
Table 5-2: Descriptive data analysis of bid evaluation factor Bid evaluation factor Minimum Maximum Mean Std. Deviation
company experience
previous project outcome 4 5 4.15 .571
related experience 4 5 4.50 .570
innovation
latest technology 3 5 4.60 .698
use of new material in the road industry 4 5 4.75 .586
performance in ranking
quality standards 3 5 4.90 .570
tender process 3 5 4.55 .544
management skills
management of construction tool 4 5 4.35 .610
company technical experience 3 5 4.40 .581
resources
facilities for the company staff member 3 5 4.60 .603
specialist equipment 3 5 4.65 .505
management system
system quality 3 5 4.70 .416
environmental awareness 3 5 4.60 .698
project cost
cost of maintenance 2 5 4.60 .825
fixed capital 2 5 4.35 .775
In order to identify and examine the relations between all these sub-factors and their related parent factors and their impact on the bid evaluation process, it is important that every selected factor must fit together. The literature defines numerous types of methods as a fit such as gestalts;
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mediation; moderation; co-variation; reliability and matching as a fit (Anderson & Gerbing, 1984; Marsh et al., 1988; Raup-Kounovsky et al., 2010). For this research, reliability as a fit has been designated to examine the reliability scale and classify the relations among nominated factors in the scale. Moreover, people who perform different roles in the construction industry were asked to indicate using a five-point Likert scale how they felt their organization performed against every selected factor of bid evaluation. Table 5.2 shows the importance of every chosen factor of bid evaluation and how the results of these bid evaluation factor vary from one another. The Likert Scale in this table obtained from the NVivo program, all interviews scripts have been inserted into the NVivo program and program has been coded to understand the factors ranking related to this study theme.
5.9.1 Loading of sub-factors on their parent factor in bid evaluation
Once all the factors of bid evaluation have been extracted from the interview scripts, we then ranked each factor based on the number of times it occurred in the manuscripts. The five-point Likert scale was used to rank the factors, where 1 represents “very unsatisfied”, 2 means “unsatisfied”, 3 means “neutral”, 4 means “satisfied”, and 5 means “very satisfied”. The data results indicate that construction companies with an advanced relationship capacity are more likely to ‘introduce’ or ‘facilitate the launch’ of new products than others. Correspondingly, the visionaries, whether ‘originators’ or ‘implementers’, were more likely to have a relationship contract experience.
Only 1% of the total factors with no relationship capacity had either introduced or facilitated the launch of new products, while 56% had an understanding that relationship-based contracts had done so. This percentage increased to 80% and 73% respectively for highly experienced individuals in road industry. Hence, the possibility of introducing or facilitating the launch of a new product increases when the respondent’s relationship capacity is enhanced. Thus, there is an evident difference in the revolutionary activity between the ones with and without relationship contract expertise. Almost 85% of the survey participants with relationship contract expertise had either introduced or facilitated the launch of new products. Hence, the study data results demonstrate a positive relationship between innovation and relationship capacity.
The study findings also recommend that individuals with greater experience of collaborative project relationships are more mindful of the impediments that emerge when
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introducing or facilitating the launch of new products. Each construction product system type entails some major challenges which are associated with the implementation of pioneering technologies and can be addressed by developing strong industry relations (Blayse & Manley, 2004). The construction management literature advises that repetitive interactions between the project team members within a complementary relation-focused contractual method enhance the worth of examining shared goals, encourages learning from affiliation, promotes trust, and augments the teams’ capacity to distinguish and address impediments that may appear when achieving shared goals (Pryke & Smyth, 2006, 2012).
Figure 5-12: Tender assessment evaluation
A notable difference was observed between organizations that possess relationship capacity expertise and those that have no expertise in the road development and uses of new material. The descriptive statistics generated consistent results, illustrating that 84% of non-
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experienced construction companies found novelty ‘very difficult’, ‘difficult’, or ‘somewhat difficult’, while only 73% of experienced construction companies had the same scale. So, these results point to a probable relationship between innovation difficulty and relationship capacity. The presence of ‘facilitators’ as pacesetters (only pacesetters responded to the difficulty question) had a minute impact on the probable relationship. Relationship capacity is needed by organizations that introduce new products, and those that envision themselves as facilitating the launch of new products.
5.9.2 Loading of company experience and bid evaluation The reliability test for this factor of bid evaluation indicates the alpha coefficient for two factors is 0.75 and .85, suggesting that the company’s past experience in the road construction industry is highly relevant, as shown in Table 5.3. The alpha coefficient for this factor is 0.65, as shown in Figure 5. 12, which indicates this factor is highly relevant to the bid evaluation process according to the experts in the construction industry. These means that evaluating company experience is an important element in the bid evaluation process in the road industry.
Table 5-3: Company experience loading and bid evaluation
Total Statistics
company experience Scale Scale Corrected Squared Cronbach’s factors Mean if Variance if item-Total Multiple Alpha if item item item Correlation Correlation Deleted Deleted Deleted
previous project outcome 17.5 2.0058 .850 .784 .75
related experience 18.5 2.5888 .756 .820 .85
This is why most experts in the road construction industry state that bid evaluation is the method of facilitating a possible consumer with a proposal to organise or develop the structure of the building moreover it is a technique in which sub-contractors in road developments pitch their services to the key contractors in the sector. The allocation of construction projects to the road contractors is very often managed and conducted during tendering. Tendering in road
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construction provides a client a choice in awarding a contract to the company which proposes the lowest price and the short construction cycles, but usually they do not allow to evaluate a tender. At the same time, there are an increasing number of procedures in which the decision criterion of choosing a winning tender is the price. The bid evaluation process in Australia involves the following: register your interest, attend tender information sessions, develop your tender response strategy, review recently awarded contracts, write a compelling bid, understand the payment terms, find referees, check and submit your bid, present your bid, request a debriefing, address concerns and complaints.
5.9.3 Loading of innovation and bid evaluation
The reliability test for this factor of bid evaluation indicates the alpha coefficient for two factors is 0.60 and .70, suggesting that the innovation factor in the road construction industry has high relevancy, as shown in Table 5.4. The alpha coefficient for this factor is 0.95, as shown in Figure 5. 12, which indicates the innovation factor is highly relevant to the bid evaluation process according to the experts in the road construction industry.
Table 5-4: Innovation and bid evaluation
Total Statistics
innovation Scale Scale Corrected Squared Cronbach’s Mean if Variance if item-Total Multiple Alpha if item item item Correlation Correlation Deleted Deleted Deleted
latest technology 16.5 2.528 .950 .584 .60
use of new material in 19.9 2.1888 .656 .920 .70 the road industry
This is why most experts in the road construction industry recommend that innovation is comes back to the industry because of its needs and demand. Construction companies are at the forefront. They need to provide innovation to governments and they need to come up with new or better ways to do things.
Moreover, according to the experts’ point of view, innovation isn't about polishing existing material. Innovation also is not about reducing standards. Innovation is about producing and use
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new material, innovation is about Improving the of the product and in terms of our road infrastructure it's about improving life of roads.
The reliability test for this factor of bid evaluation indicates the alpha coefficient for two factors (management of construction tool and company technical experience) is 0.66 and 0.75, suggesting that the company experience factor in the road construction industry has a high relevancy, as shown in Table 5.6. The alpha coefficient for this factor is 0.77, as shown in Figure 5. 12, which indicates company management of staff skill is highly relevant to the bid evaluation process according to the experts in the road construction industry.
Table 5-5: Management skills loading and bid evaluation
Total Statistics
management skills Scale Scale Corrected Squared Cronbach’s Mean if Variance if item-Total Multiple Alpha if item item item Correlation Correlation Deleted Deleted Deleted
management of 15.5 2.418 .850 .784 .66 construction tool
company technical 15.3 2.588 .856 .720 .75 experience
5.9.4 Loading of company resources factor and bid evaluation
The reliability test for this factor of bid evaluation indicates the alpha coefficient for two factors (facilities for the company staff members and specialist equipment) is 0.82 and 0.71, suggesting that the company experience in the road construction industry factor has high relevancy, as shown in Table 5.6. The alpha coefficient for this factor is 0.88, as shown in Figure 5. 12, which indicates the company resources factor is highly relevant to the bid evaluation process according to the experts in the road construction industry.
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Table 5-6: Company resources factor loading and bid evaluation
Total Statistics
resources Scale Scale Corrected Squared Cronbach’s Mean if Variance if item-Total Multiple Alpha if item item item Correlation Correlation Deleted Deleted Deleted
facilities for the company 17.7 2.717 .950 .884 .82 staff members
specialist equipment 17.3 2.788 .956 .820 .71
5.9.5 Loading of company management system factor and bid evaluation
The reliability test for this factor of bid evaluation indicates the alpha coefficient for two factors (system quality and environmental awareness) is 0.72 and 0.73, suggesting that the company experience in the road construction industry factor has high relevancy, as shown in Table 5.7. The alpha coefficient for this factor is 0.67, as shown in Figure 5. 12, which indicates the management system factor is highly relevant to the bid evaluation process according to the experts in the road construction industry.
Table 5-7: Company management system factor loading and bid evaluation
Total Statistics
management system Scale Scale Corrected Squared Cronbach’s Mean if Variance if item-Total Multiple Alpha if item item item Correlation Correlation Deleted Deleted Deleted
system quality 19.7 2.817 .750 .984 .72
environmental awareness 18.8 2.888 .856 .930 .73
5.9.6 Loading of project cost factor and bid evaluation
The reliability test for this factor of bid evaluation indicates the alpha coefficient for two factors (cost of maintenance and fixed capital) is 0.78 and 0.79, suggesting that company experience in
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the road construction industry factor has high relevancy, as shown in Table 5.8. The alpha coefficient for this factor is 0.75, as shown in Figure 5. 12, which indicates the project cost factor is highly relevant to the bid evaluation process according to the experts in the road construction industry.
Table 5-8: Project factor loading and bid evaluation
Total Statistics
project cost Scale Scale Corrected Squared Cronbach’s Mean if Variance if item-Total Multiple Alpha if item item item Correlation Correlation Deleted Deleted Deleted
cost of maintenance 16.7 2.815 .756 .988 .78
fixed capital 19.8 2.889 .857 .938 .79
5.10 SUMMARY
This chapter qualitatively examined the proposed factors of innovation in the bidding process. The results indicate that construction product modernization can have a positive impact over the project and industry performance; however, effectual construction modernization requires close partnership across an intricate cluster of project organizations. The study outcomes illustrated in this report suggest that the implementation of product innovation in road construction remains a challenge. Though the majority of study factors either introduced or facilitated the launch of new products, the scope of this activity was particularly hampered by many limitations.
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Chapter 6: Quantitative data collection, analysis and findings
6.1 INTRODUCTION
In the qualitative chapter of this thesis, the proposed factors of innovation for the tender evaluation process in the context of innovation in the road construction industry have been evaluated qualitatively. The qualitative data analysis identified several new and important factors to be considered in bid evaluation and innovation in road construction (Cooper & Schindler, 2014; McDaniel et al., 2013; Ullah et al., 2016). One of the limitations of a qualitative study is the evaluation of the proposed factors of innovation in the bidding process among limit number of road construction industry experts (Hasnain et al., 2018; Padhi & Mohapatra, 2010). Therefore, to strengthen the proposed factors of innovation in the bidding process it is important to draw on a larger audience and to quantitative test new factors of bid evaluation.
This quantitative study evaluates the proposed factors of innovation for tender evaluation quantitatively among road construction industry experts in Australia. A quantitative study is beneficial to measure the actual problem by producing survey data that can be converted into arithmetical information or valuable facts (Hasnain et al., 2018; Padhi & Mohapatra, 2010; Puri & Tiwari, 2014). This type of research is useful for a study with a big size sample and to measure the study participants’ thoughts, attitudes, behaviours, and other study variables related to the research. Therefore, a quantitative study enables researchers to assess the proposed bid evaluation factors of innovation in the bidding process.
This quantitative study chapter also discusses the continuation of the data collection and assesses the factors of innovation in the bidding process in the context of its strength, validity and reliability (Hasnain et al., 2018; Hatush & Skitmore, 1998; Kumaraswamy, 1996). Furthermore, a quantitative study data analysis is significant to assess the proposed factors of innovation in the bidding process including factors that encourage an individual’s reception of tender evaluation in road construction industry and, within the context of Australia. This answer following to research questions: what is missing in the current tender evaluation process and why the current processes of road development not able to cope with the environmental factors.
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Based on the previous qualitative study, a questionnaire has been designed and developed for the quantitative study. The aim of this study questionnaire is to classify the factors of the bid evaluation process in the road construction industry and to verify the proposed tender evaluation factors of innovation in the bidding process between road contractors and experts. In order to rate each factor of the process, the nominal scale in SPSS software is used in questions interrelated to the descriptive study data, for example the personal data of the study participants and their background. Section 2 and section 3 of this chapter present the updated proposed factors of innovation in the bidding process, the study questionnaire design, evaluation, data collection, data analysis and results.
6.2 METHODOLOGY
Tender evaluation is the procedure of choosing the best contractor for a particular project from many applicants. Although rational and logical methods can be used for bidding strategies, bid evaluation remains a skill for which an engineer’s verdict is crucial. Contractors commonly witness that tender selection is not an easy job, and the lowest bid does not necessarily win the contract (San Cristóbal, 2012; Shrestha & Shrestha, 2014). The tender decision mainly depends on quantifiable measures such as financial costs and paybacks, and qualitative or invisible factors like administrative security accountability, aptitude, and the proficiency of the contractors.
In several cases, more than one interest group is engaged in a particular project. The tender decision encompasses the viewpoints and socio-political demands of all decision-making bodies (Maqsoom et al., 2019; Metham et al., 2019). In addition, contract selection is also impacted by the economic and ecological boundaries which may exist at the time of planning construction projects (Khaderi et al., 2019; Urquhart & Whyte, 2020). Bid evaluation is a decision-making procedure that incorporates an extensive criteria range for which the information is not accordingly. Hence, ambiguity linked to such information is not appropriate for this study.
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Previous project outcome Company Experience Related experience
Builder profits
Time saving
Technology/Method Innovation
Use of New Material
Speed of communication
Communication transparency
Staff requirements
Performance Ranking Quality standards
Tender process Tender Assessment
Management tools
Technical expertise Management Skills
Project quality
Fixed budget Resources
Facilities
Staff expertise
Management System System quality
Environmental awareness cost
Staff training
Maintenance/operation cost Project Cost
Fixed capital
Figure 6-1: Updated key assessment factors in the bid evaluation process
Earlier research based on firm-level drivers of construction modernization emphasized the importance of the workers’ educational level on swift technology implementation (Bista & Mishra, 2019; Irfan et al., 2020; Mushori, 2020). These studies also highlighted the value of experience-based learning exercises. A figure 6.1 shows the up-to-date factors of innovation for bid evaluation, where new factors have been included.
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The bid evaluation and road construction industry experts during qualitative study made the following recommendations:
Bidders’ profits: A key factor in the bidding system is the enhancement of contractors’ profit margins. The extensive use of bidding systems can streamline the process, improve the swiftness of the procurement procedure, and ultimately enhance the organization’s profits (Akbiyikli et al., 2019; Done & Lawther, 2019; Simon et al., 2020). These benefits occur due to the reduction in the outlays of the bidding procedure. Profit enhancement is one of the key drivers in an organization which results after the implementation of a bidding system.
Time saving: Another factor of the bidding system is time savings. Adequate time must be granted to the contractors to thoroughly review the tender documentation and formulate precise quotes. Since bidding systems allow the online submission of tender documents, there is no longer a requirement for the contractor to travel. Apart from eliminating the need for these expensive and long journeys(Akbiyikli et al., 2019; Danku et al., 2020; Done & Lawther, 2019; Mthembu et al., 2019; Simon et al., 2020). Therefore, a large amount of time can be reallocated and used for more productive activities. Former research revealed the positive effects of the bidding system in terms of time saving. A study by Eadie et al. (2007) verified that the implementation of a bidding system simplified the procedure while decreasing the time required for bid assessment. Another study by Perdomo (ADD THE YEAR) specified that the use of the bidding system helped diminish the extra time required for dual entry of the data in a computerized database.
Resource utilization: This factor examines a more effective use of resources and decreased demand for physical storage space for bidding documents as a result of the bidding system whereas in the traditional bidding system, substantial paperwork management and archiving are done manually (Obbayi, 2019; Yap et al., 2020). This not only involves extra time and effort on the part of company staff, it also requires huge storage space which is challenging to manage. Hence, these conventional methods should be replaced with bidding systems which reduce reliance on paperwork and helps accelerate data distribution, resulting in reduced overheads.
Staff requirements: This factor is associated with the requirement for fewer workers when the bidding system is implemented. In a construction company, staff are one of its major resources. Construction companies employ specialist staff to carry out the bidding procedures (Yap et al., 2019; Young et al., 2019). While fewer staff save company costs, it also helps organizations attain a competitive edge. Speed of communication: This factor embraces two drivers associated with enhanced communication and transparency levels due to the
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implementation of the bidding system. Shareholder communication: This factor pertains to the optimization of communication speed between shareholders as a result of the adoption of the bidding system. As the Internet is a significant prerequisite for the integration of a bidding system, users must be aware of this and the Internet to support communication. This approach deviates from the traditional bidding method where candidates must make use of conventional communication approaches (Khaderi et al., 2019; Thorpe et al., 2009; Yarmukhamedov et al., 2020). Hence, a bidding system supports cutting-edge communication methods and helps save the time and effort of the users.
Communication transparency: This factor is associated with the improved transparency of the communication process among the shareholders through a bidding system. Communication transparency is a major benefit of the bidding system in the construction industry, achieved through systematizing procedures. In addition, accepting bidding documents in electronic form acts as evidence in a dispute situation, thus enhancing transparency in contracts (Done & Lawther, 2019; Kiran Kumar & Vimal Raj, 2020; Tatum, 1986). Therefore, the possibility of interfering with the evidence in the bidding documents is condensed. Project quality: This category also incorporates two drivers related to the improved quality of the construction projects due to the implementation of the bidding system. Improved quality is ensured through a high- level of competition among bidders (Thorpe et al., 2009; Wilkinson, 2015).
6.3 DATA COLLECTION IN THE QUANTITATIVE STUDY
For this quantitative study, a questionnaire was posted via the Survey Monkey website and potential study participants were approached via different channels. The questionnaire URL was sent to the company manager with a request for him/her to collect data from their company, read participants public profile via Twitter and some participants were approached through personal contacts of the researcher. The process of data collection took 4 months and 10 days.
To collect the data, a total of 310 road contractors, government road agencies, private contractors and community road contractors were approached. Study participants who participated in the process of road tendering in any means, such as be a part of developing and applying tender, supervisor of tendering team and manager of tendering team. A total of 263 respondents (72%) agreed to participate in this research. The data from 47 study participants were rejected for the following reasons: the collected data were inconsistent or incomplete, or
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the replies were from respondents who lacked knowledge of the tendering process in the road construction industry. The data from 216 participants are considered for this study.
6.3.1 Design of the questionnaire
For this research, a survey method was used to gather quantitative data which could help to rank the key factors of the tendering process and the associated sub-factors. This section discusses the design of the study questionnaire and presents the pilot test information, the strategy for data sampling and the study participant information. The design of this study questionnaire delivers a quantitative or numeric investigation clarification of thoughts of a tendering process participant, their behaviour, weakness, strength and attitudes (Creswell and Clark, 2007). Furthermore, the questionnaire method used in this research is suitable to analyse the behaviour and attitudes of the research participants and to investigate other research issues raised by the study respondents.
Therefore, questionnaire method has been supposed for the study participants, as it is easy to gather study data from bigger papulation and with very low cost, because it is a online process. This has reasonably high extents validity and reliability for an authenticated and well-organized research questionnaire (Teddlie & Tashakkori, 2003). For example, Saunders et al. (2009) found that a study questionnaire approach in the research of qualitative could help to collect data by requesting participants to response to study, data collected in this context might be examined through information technology software applications. However, in order to develop and design a research questionnaire, researchers must be electrifying about the collect data, this will permits researchers to achieve detailed about study data.
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One. Define questionnaire objectives
Eight. Two. define Distribution of responses study format questionnaire
Three. Data Seven. collection Questionnaire methods final copy identification
Four. Six. Questions Checking pilot testing questions wordings Five. Checking questionnaire arrangement and flow
Figure 6-2: Questionnaire design process
Additionally, according to McDaniel et al. (2013) designing a research questionnaire comprises numerous phases that might vary slightly from study theme to study theme reliant on the planned research landscape. Figure 6.2 demonstrates the sequence of phases needed to plan and implement a study questionnaire for this research. The following eight sub-sections provide additional information about the questionnaire design and development process.
Phase 1 Define the questionnaire objectives - This is to prioritise all the key factors of the tendering process (company experience, innovation, performance in ranking, management skills, resources, management system and project cost) and the associated sub-factors so that the tendering process can be examined and measured. The quantitative method was used to gather the study data and the proposed factors of innovation in the bidding process were ranked and ordered, dependent on the scientific pattern matrix and mean value. Phase 2 Define Responses Format - in this phase a nominal scale has been applied using software called SPSS, for example, study participants’ company information, their experience, and background of the company.
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Moreover, in this phase, questions format and contributors’ replies have been examined for any further problem in the context of study questions format and clarity.
Phase 3 Data Collection Methods Identification -the main aim of the data collection process is to obtain the thoughts and views of the study respondents regarding the research questions (Cooper & Schindler, 2014). Likewise, it is also important to select the most appropriate technique of data collection to find and approach suitable research participants and obtain an adequate amount of information to answer the research questions (Saunders et al., 2009). In the case of this research, most of the participants are busy in their workplaces so collecting data using online resources such as Survey Monkey is most appropriate for this research.
Phase 4, Checking the wording of the questions – Every study question was examined carefully to ensure the participants responses were valid and to ensure that the question investigated what was intended (Saunders et al., 2009). It is important that the questionnaire is not out-of-date therefore, the wording of every question needs to be checked to ensure the questions are simple and brief to avoid ambiguity. To ensure the research questions are appropriate, all the innovation factors included in the bidding process which were extracted from the literature review on tendering process in the road construction industry and all the factors and research questions were discussed with the road construction and tendering process experts.
Phase 5 Checking the flow and organisation of the questionnaire - The organisation and layout of the questionnaire is depend on online data collection standards and have been evaluated in many manufacturing parts for a number of months (Saaty & Vargas, 2013). For this research, we ensured the instructions were clear so that the participants were able to complete the questionnaire easily and without confusion and that all the questions were organized systematically. Phase 6 Questionnaire pilot test - Once the research questionnaire has been examined thoroughly, a pilot test is undertaken prior to the distribution of the questionnaire to eradicate any ambiguity and to make sure the questions are applicable and are organised systematically. The pilot testing phase was conducted online via the Survey-Monkey website and the questionnaires were sent to 30 experts in tendering in the road constitution industry, 10 experts being researchers in this area, 5 experts having conducted research in this area and 15 being from the road construction industry.
Phase 7 Questionnaire final copy - Once the results of the pilot study were received, the questionnaire was revised based on the following key points: instructions to complete the questionnaire were updated, seven research questions were rephrased, and three questions were removed based on the pilot study results. This phase helps the development of the most
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appropriate questionnaire. Furthermore, an appropriate amount of time to answer the questionnaire was identified, this being between 25 and 35 minutes. Phase 8 Distribution of the study questionnaire - The questionnaire was published on Survey-Monkey and potential research participants were approached through different social media channels, for example Twitter, LinkedIn and Facebook. The data collection process took four months and ten days from 1st January, 2020 to 10th May, 2020.
6.3.2 Data sampling techniques
According to Saunders et al. (2009), the data sampling techniques in quantitative research offer a wide variety of study methods that allows investigators to reduce data errors during the process of data collection. Moreover, the research method permits the research to collect data only from the desired group of participants rather than collecting data from all available cases. For this research, the researchers aimed to gather data from road construction industry experts in Australia.
As there is no dependable and formal information/data on the proposed research topic “the tendering process in the road construction industry”, a non-random data sample were selected, using a non-probability technique for data sampling. It is not possible to collect data from the whole country’s population or from all possible participants due to a lack of time and budget for this study, limited participant availability and restrictions imposed by the ethics approval committee. The self-selection data sampling method enables participants to choose to contribute to the research (Sekaran & Bougie, 2016). The snowball data sampling method is a recruitment technique where research participants assist the researcher by identifying other potential participants using available information on social channels like Facebook, Twitter, and LinkedIn (Oates, 2006).
6.3.3 The preliminary stage of data analysis
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The preliminary stage of data analysis persuades to selecting the utmost and appropriate strategy for analysing data with the goal that information can be spotless and for pre-coding research reactions (Creswell & Creswell, 2018). With regards to the examination of pre-coding, after which the statistical analysis software SPSS version 25 was utilized on the information that was downloaded from Survey-Monkey in Microsoft Excel format. Then, the information was moved into SPSS for additional examination.
6.3.4 Data screening and cleaning
Data screening and cleaning are important stages in this examination as the investigative procedure may have been affected, for instance, if there are missing qualities or information irregularities which were not checked. For this research, it was important to change the text responses to research question five “Please rate the level of importance of “research and development” in the area of bid evaluation in the road construction industry” to numeric values. This question asks about the importance of research and development in the field of innovative road development and to understand the missing values in the data and each study factor was uncovered to understand the depth of the selected factor.
This resulted in replies from 14 participants which had missing data values, thus, these 14 responses were not included in the research and 202 responses were filtered further in order to classify respondents who had less knowledge in the field of tender assessment and tender development in the road construction industry. Replies from those participants who had never been part of a road development project in Australia were also removed. According to Malhotra and Dash (2016), the procedure of eliminating missing values in the data is a method of removing unnecessary value from the data. Thus, a final total of 202 replies were further examined in this research, which is a satisfactory number of replies for this quantitative study.
6.3.4.1 Data outliers
Data anomalies or outliers can be characterized as reactions which are fundamentally unique in some way(Krishnaiah et al., 1980; Oster, 1999). If there should be an occurrence of information ordinariness among study data, the research information may have been affected through anomalies while accepting basic desires from the adjustment of a measurable relapse the study evaluation techniques. In this way, the research information was cleaned and screened by
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utilizing a strategy called Z scores, a histogram chart with a case plot diagram to uncover deviations due to anomalies (Krishnaiah et al., 1980; Oster, 1999).
Furthermore, two segments in our study questionnaire are based on flow of the components, inability to distinguish missing information and wrong information entered (Flora & Curran, 2004; Hair et al., 2006a). It is possible to address the exception or outlier problem by modifying the score, adjusting the information or removing the cases, and for this proposed research, box plot charts and a histogram graph were utilized to plan the research information, with the goal that anomalies may be identified more easily. Similar to Field (2013), a widely used measurements procedure was accepted for this research which incorporates estimating the factual standard deviation from the factual mean worth.
The outliers or data anomalies identified in this study were done through altering the research data, thus the acceptance of factors in the road construction and innovation were resolved and all selected factors were noted. Consequently, the statistical mean value in SPSS involved the mean value of higher loaded sub-factors of any specific key factor of the process. Even with data alteration, outliers might be expected in this research, as it is endeavouring to measure the attitudes of Australian road construction experts regarding bid evaluation and the development of road tenders.
6.3.4.2 Data normality
Field (2013) characterizes a balanced curve as a distribution of information around the essential issue, all things considered. Ahead of schedule to directing any insights test like multivariance investigation, ordinary dissemination, or statistical test call regression, examination for information typical distribution wants to be evaluated, as this is basically noteworthy. The quantile-quantile (QQ) plots and histogram diagram show that research data should have an ordinary distribution on the two sides of the curved line in QQ plots and the histogram diagram. For instance, as indicated by Hair et al. (2006), the consequence of QQ plots and histogram diagram underpins the speculation that information is available for the analysis. To additionally recognise the presentation of a typical information distribution, a few analysts recommend that it could be liable to predisposition and the judgment of scientist and specialist. The chart itself cannot give clear proof of the exploration results (Hair et al., 2006b).
Thus, for every factor of the proposed factors of innovation for tender evaluation in the road construction industry, values were generated from two statistical tests, skewness test and
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kurtosis and data from these tests were measured to deliver study data result (Hair et al., 2006b). Furthermore, in the skewness and kurtosis test, data regularity could have a left-skewed distribution skewed that directing towards the tail and right side of the peak value, which is positive and indicates that the data is greater than the median. If the data has a right-skewed distribution that directing towards the tail and left side peak value, this is considered to be a negative skew which indicates the data is less than the median. In contrast, peakedness identifies and measures the median around the central value. A standard measure of peakedness is kurtosis, that is the amount of peakedness of a data distribution on a likelihood scale. Therefore, if skewness and kurtosis are both zero, this is considered to be a normal distribution of study data.
However, normality reductions are based on the skewness and kurtosis test results, which could be positive or negative (Hair et al., 2006b). In this study, we applied skewness on all seven key factors of innovation and the tendering process (the importance of the assessment of innovation in tendering evaluation in the road construction industry) and the results show that every factor in the proposed factors of innovation in the bidding process exhibited positive skewness, and the ordinary distribution of the study data is towards the left. Figure 6.3 shows the results of the skewness test, which demonstrates that in Australia, all road contractors both public and private understand the importance of innovation in the tendering process for the suitable development of roads in the country.
6.3.4.3 Descriptive statistics
According to Tabachnick et al. (2007), research key factors or sub-factors belongs to specific key factor can be used to describe data sample that then could be well-defined as a descriptive measurement. Subsequently, graphical information, for example, tables or outlines, are regularly utilized to summarize data taken from various mathematical tests and produce results about standard deviation, arithmetical mean value, value in the form of percentage, mode value and statistical frequency. For this study, these types of descriptive data analyses are presented in order to classify the participants’ work experience, company profile, employment status, participants’ occupation, total number of employees in their respective company and the importance for “research and development” in the area of bid evaluation in the road construction industry.
In the context of confirmation and identification of research hypotheses, the descriptive analysis of study data that donates to describe doubts in the collected raw data (Hair et al., 2006b).
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Before we applied advanced statistical formulas into the data collection for this study, we examined some data using descriptive statistics analysis. The advanced statistical analysis includes regression analysis, confirmatory factor analysis (CFA) and factor analysis. The literature review in the field of tender evaluation in the road construction industry in Australia indicates the process of tender evaluation lacks factors related to innovation in road construction, which is why Australia’s most recently constructed roads cannot deal with the current environmental changes. This research evaluates the following five key points: which state in Australia evaluating factors related to innovation during tender evaluation, what are the key drivers of innovation in the road construction industry, what level of importance does a road construction company place on encouraging creative problem solving, how important is innovation in bid evaluation in the road construction industry, and who traditionally introduces new product innovation ideas to road construction projects?
6.3.4.4 Confirmatory factor analysis
The statistical test CFA is a data measurement approach that is utilized to affirm the structure of a factor for the pattern between selected study factors or variables (Anderson & Gerbing, 1984). CFA allows researchers to look at the research hypothesis that a relationship between the observed research factors and their essential for the proposed study (Anderson and Gerbing, 1984). The examiner utilizes an experimental exploration, information on the hypothesis, or both.
Anderson and Gerbing (1984) documented three important strategies for data analysis in the field of quantitative study: first, identifying the research factors; second, assigning the study factors across the data sample and third, generating the relations among the study factors. The SPSS software tool and its complement AMOS version 6.3.1 were identified to be the most appropriate software for analysing and examining the quantitative study data due to their ability to examine and model latent factors for data screening, cleaning and analysis.
In this research, Structural Equation Modelling (SEM) in AMOS is used to classify the relations among the research key factors and the factor loadings in the context of the proposed factors of innovation in the bidding process validation (Hair et al., 2006). Moreover, in this research, we used CFA to measure the multi-dimensionality and the rationality of the study factors of innovation in the bid evaluation process. According to Hair et al. (2006), there are two steps in the SEM analysis for quantitative research data: examining the model quantitively and second, examining the model structurally. Numerous software tools can be used to implement
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SEM, such as AMOS, LISREL or EQS. However, in this research, SEM is undertaken through SPSS AMOS.
6.3.4.5 Quantitative data analysis
The literature indicates that data analysis is the process of investigating, categorizing and grouping of data, or cleaning raw research data with the goal of identifying and measuring the results of the research questions and hypothesis (Creswell, 2009; Creswell & Creswell, 2017; Mingers & Brocklesby, 1997; Morse, 2003). This chapter quantitatively describes the study data analysis so that proposed tender evaluation factors of innovation in the bidding process can be evaluated and validated empirically.
6.4 QUANTITATIVE DATA ANALYSIS RESULTS
This research discusses the factors of innovation to evaluate the tender process in the field of road construction in Australia. Seven key factors are included in the factors of innovation in the bidding process and every key factor includes sub-factors. This section discusses the results of this study data analysis.
6.4.1 Demographic profile
In the first part of the questionnaire, the participants were asked several demographic-related questions. In the first question, the participants were asked about their location of residence in Australia. Table 6.1 shows that the participants came from 30 cities around Australia. Of the 216 responses, 13.9% of the participants were from Sydney; 1.9 % of the participants were from Armidale; 1.4% of the participants were from Broken Hill; 3.2% of the participants were from Cessnock; 1.4% of the participants were from Coffs Harbour; 0.9% of the participants were from Gosford; 4.2% of the participants were from Griffith; 1.9% of the participants were from Lake Macquarie; 2.3% of the participants were from Maitland; 4.6% of the participants were from Newcastle; and 1.9% of the participants were from Wagga Wagga.
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Table 6-1: Respondents’ city of residency
Participants’ city of residence in Australia
City Frequency Percent Valid Percent Cumulative Cumulative relative Percent frequency Sydney 30 13.89 12.5 1 100 Armidale 4 1.85 0.86 0.2 20 Broken Hill 3 1.39 0.64 0.4 40 Cessnock 7 3.24 1.50 0.45 45 Coffs Harbour 3 1.39 0.64 0.88 88 Gosford 2 0.93 0.43 0.1 10 Griffith 9 4.17 1.93 0.3 30 Lake 4 1.85 10 0.99 99 Macquarie Maitland 5 2.31 12.5 0.66 66 Newcastle 10 4.63 10 0.1 10 Wagga Wagga 4 1.85 7.5 0.66 66 Wollongong 4 1.85 0.86 0.77 77 Wyong 1 0.46 0.21 0.644 64.4 Darwin 6 2.78 3.33 1 100 Alice Springs 7 3.24 4.00 1 100 Brisbane 21 9.72 4.50 0.7 70 Cairns 2 0.93 4.66 0.8 80 Charters 6 2.78 1.29 0.66 66 Towers Gold Coast 9 4.17 1.93 0.44 44 Rockhampton 11 5.09 2.36 0.12 12 Sunshine Coast 10 4.63 2.14 0.34 34 Adelaide 7 3.24 1.50 0.76 76 Hobart 9 4.17 1.93 0.77 77 Melbourne 26 12.04 10.00 1 100 Ballarat 4 1.85 0.86 1 100 Bendigo 3 1.39 0.00 1 100 Geelong 3 1.39 0.64 1 100 Shepparton 3 1.39 0.64 0.787 78.7 Perth 3 1.39 0.64 0.66 66 Total 216 100 100.00
Moreover, 1.9% of the participants were from Wollongong; 0.5% of the participants were from Wyong; 2.8% of the participants were from Darwin; 3.2 % of the participants were from Alice Springs; 9.7% of the participants were from Brisbane; 0.9% of the participants were from Cairns; 2.8% of the participants were from Charters Towers; 4.2% of the participants were from the Gold Coast; 5.1% of the participants were from Rockhampton; 4.6% of the participants were
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from the Sunshine Coast; 3.2% of the participants were from Adelaide; 4.2% of the participants were from Hobart; 12.0% of the participants were from Melbourne; 1.9% of the participants were from Ballarat; 1.4% of the participants were from Bendigo; 1.4% of the participants were from Geelong; 1.4% of the participants were from Shepparton and 1.4% of the participants were from Perth.
This result indicates that the road contractors are aware of the importance of evaluating the innovation factors in the tendering process in the road construction industry. Moreover, the number of road contractors from larger cities participated in this study than the number from smaller cities because most road building contractors are based in larger cities.
6.4.2 Study participants’ occupation
In question 2 of section 1 of the study questionnaire, the participants were asked about their occupation. Figure 6.3 indicates that 4.65% of the participants belong to the road building occupation in Australia; 32.56% of the participants belong to the “contractors” occupation; no participants were from the “manufacturer” occupation; 20.93% of the participants belong to the “main contractors” occupation; 25.5% of the participants belong to the “consultant” occupation; 9.30% of the participants belong to the “client” occupation, meaning the participants work for the client of any private company in the road development sector and 6.98% of the participants belong to the other occupation, meaning that they belong to the “supplier” occupation in the road construction industry in Australia
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Figure 6-3: Participants’ occupation
6.4.3 Study participants’ sector role in the construction industry
In question 3 of section 1 of the study questionnaire, the participants were asked about their sector in the road construction industry. Figure 6.4 indicates that 12.5% of the participants work in “construction” in the road industry; 15.60% of participants ork in “engineering” in the road industry; 19.25% of participants work in “surveying” in the road industry; 20.00% of participants work in “design” in the road industry; 12% of participants work in “architecture” in the road industry; 8% of participants working in the “legal” area in the road industry; 2% of participants work in “facilities management” in the road industry; 6% of participants working in “education” in the road industry; and 34.65% of participants work in “consultancy” in the road industry
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Participants' role
40.00%
35.00%
30.00%
25.00%
20.00%
15.00% value in percentage in value
10.00%
5.00%
0.00%
-5.00% Facilities Other (please Construction Engineering Surveying Design Architecture Legal Education Consultancy Other management specify) Responses 12.50% 15.60% 19.25% 20.00% 12.00% 8.00% 2.00% 6.00% 34.65% 0.00% 0.00%
Figure 6-4: Participants’ role
These results indicate that all the study participants belong to different sectors in the road construction industry and play a different role in the tendering process and all these participants agreed with the proposed innovation factors and related sub-factors, this what study data result shows.
6.4.4 Number of employees in each selected construction company
In question 4 of section 1 of the study questionnaire, the participants were asked about the number of employees in their company. Figure 6.5 indicates that 16% of the participants’ company had less than 20 employees; 14.25% of the participants’ company had between 20 to 50 employees; 35.50% of the participants’ company had between 50 to 100 employees; 19.25% of the participants’ company had between 100 to 200 employees; 10% of the participants’ company had between 200 to 500 employees and 5% of the participants’ company had more than 500 employees.
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Figure 6-5: Number of employees in participants’ company
This result indicates that in Australia, mostly road construction companies have employees between 50 to 100. Therefore, it is important for the government to train staff members in medium-sized companies as this will improve the generation of innovative ideas among the company’s staff members.
6.4.5 Introduction of innovation in the road construction industry
In order to build suitable roads, it is important to introduce innovative ideas to staff members in construction industries. In other words, government agencies should welcome innovative ideas from contractors, clients, distributors, consultants etc. In this research question, participants were asked who traditionally introduced innovative ideas in the process of tendering in the road construction industry. In section 2 of the questionnaire, the participants were asked to rank the importance of each factor of innovation in the context of evaluating the tendering process in the road construction industry. A 5-point Likert scale was employed to analyse the respondents’
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opinions regarding the importance each of the proposed factors of innovation in the bidding process, where 1 means “Extremely unimportant”, 2 means “Unimportant”, 3 means “Neutral”, 4 means “Important” and 5 means “Extremely Important”.
Figure 6.6. shows that the mean score for “who traditionally introduced innovative ideas in the process of tendering in the road construction industry“, participants from the client company ranked this question between “neutral” and “important”, participants from the contactors’ companies ranked this questions between “neutral” and “important” and participants from the consultant company ranked this questions between “neutral” and “important”. This means that staff members from these companies felt that evaluating innovation during the tendering process is very important. On the other hand, participants from the manufacturing industry ranked this question between “highly unimportant” and “unimportant” and participants from the distributing company ranked this questions between “highly unimportant“ and “unimportant” which means that staff members from these types of companies require strong training on innovation so that sustainable roads can be developed.
Figure 6-6: Who introduced innovation
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6.4.6 Key drivers of innovation
For a long time, many government agencies and private investors in the construction industry have called for improvement in output and modernization, but some major problems exist. The project-based construction industry features gradual innovation, which is usually based on the existing knowledge and skill that fall within particular building projects. A transitory economic perception is usually adopted in the construction industry, while modernization depends on lasting economic strategies. Authority is often regionalized for temporary construction project management, and innovations derived from resolving issues at the sites are generally not used in related projects, which hinders its flow. The flow of innovation among projects and organizations is equally hindered. Likewise, ‘radical’ innovation (which outspreads margins of current knowledge and practice) is uncommon in the construction sector.
However, many innovations like BIM and lean construction have been presented. Contractors have also identified the potential of platform-based building roads to enhance output by reducing complications and improving standardization. Modular structures, more widespread off-site construction, and the use of building schemes challenge existing frames of reference. Purposefully exceeding single building developments and assimilating knowledge across organizations also fundamentally vary from construction in detached projects, although it has been quite challenging to completely understand the potential advantages offered by such platforms, somewhat due to the difficulties in merging a homogeneous contribution with the inhomogeneous customer demands.
Furthermore, no improvement has been achieved from innovations until they are applied on a large scale (which is not an easy task). The reason for this is that the construction industry incorporates a complex social system where aspects like tensions amid erratic project missions are steady which can fast-track innovation. Also, consistent firm procedures hinder the flow of pioneering technologies and practices. Hence, applying innovation and technology in a huge construction establishment is a highly complicated and non-linear process, which is strongly influenced by rooted circumstantial elements stemming from numerous intricate systems. Therefore, the social subsystems’ impacts on the circulation of innovation are predominant whereas corporate-level social systems necessitate more consideration.
Zakaria et al. (2018) produced a review of the various impacts on commercial building systems, identifying circumstantial, organizational, and behavioural aspects that influence
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construction decisions. Subsequently, Shibeika and Harty (2015) studied the significance of a contextualist method responsible for transforming innovations, reiterative procedures over time, and intricate and erratic framework in the examination of the flow of digital innovation into project-based international engineering firm. Likewise, Lindgren and Emmitt discovered that treating building structures as systems of various components that interconnect with each other and the environment provided a much more general interpretation of the diffusion of multi-storey wooden buildings in the Swedish market than an optimistic approach would have done. Schweber and Leiringer (2012) observed that deviations in construction technologies, administrative structures, and marketplace dynamics should be considered. Schweber and Leiringer (2012) also determined that optimistic approaches subjugated the study on energy and buildings, while the challenges associated with the administrative and operational facets have been ignored.
Key drivers of innovation in road construction industry 4.8
4.6
4.4
4.2 Meanvalues 4
3.8
3.6 Technology/M Use of new Speed of Communicatio Time saving ethod material communication n transparency Score 4.71 4.26 4.35 4 4
Figure 6-7: Key drivers of innovation
In this research, five key factors (time saving, technology/method, use of new material, speed of communication and communication transparency) have been included under the key factors of innovation in the road industry. The result of skewness in Figure 6.7 indicates (ranked between 4 and 5 on the 5-point Likert scale) the mean score for each driver of innovation. The
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factors “time saving, “technology/method” and “use of new material” of innovation received a high score and were ranked between “important” and “highly important”.
However, innovation factors “speed of communication” and “communication transparency” were ranked as “important” factors of innovation in the road construction industry. This means all clients, engineers, managers, suppliers, consultants, road builders and manufactures all agreed to evaluate bidders’ skills during the tendering process examination. If road builders are not innovative, they will not able to complete road development projects on time and save money, and suitable roads cannot be developed in this rapidly changing environment due to global warming. Furthermore, without innovation, project quality cannot be guaranteed and projects cannot be controlled due to the lack of strong communication among the project team.
Figure 6-8: Importance of innovation in bid evaluation
6.4.7 Bid evaluation and innovation
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The process of bid evaluation takes place once the tender submission deadline has passed. The bidding process involves the opening and evaluation of bids to identify the favoured contractors for the road construction project. In this research, the factors of innovation in the bid process include seven key factors, but in this section our focus is mainly innovation. Usually, an large amount of manpower is required to prepare the tender, particularly for large-scale contractors. Furthermore, contractors find that a bid submission is an expensive activity.
However, electronic bidding or e-bidding is an alternative to this and it has helped save the contractor’s money. An e-bidding system allows contractors to exchange, transmit, issue, connect, access, submit, and accept their bids through electronic means, which has replaced the old-style bidding procedure. If contractors use e-bidding systems, they can perhaps optimize business operations for all investors. The e-bidding system is a much more economical and time- saving procedure. Switching from a traditional bidding system to a digital one has significantly reduced unnecessary activities and expenses such as printing, scanning, etc. Considering the aforementioned benefits, it is obvious that organizations can restructure their bidding procedures by progressing towards digital systems. E-bidding supports the bidding procedure by empowering organizations to carry out numerous bidding- related activities over the Internet.
E-bidding plays a crucial role in enhancing productivity and supporting construction industry experts by allowing them more control over the bidding method. Assuming that the bidding stage is fundamental for the successful accomplishment of a construction project, these benefits can spread out across the whole project. An important element for the success of an organization is its flexibility to adapt to change which usually comes by employing ground- breaking operating methods while conforming to traditional industry guidelines.
An e-bidding system has three drivers associated with time and cost-saving. This process helps save a significant amount of cost for the contractors and governmental bodies, including internal and external managerial and administration expenses of an organization. These reduced administration requirements and documentation errors lead to considerable savings. Administration expenses include photocopying, printing, scanning and data entry. Hence, the e- bidding system provides the double benefits of streamlining administrative procedures and reducing the workload. The e-bidding system entails a simple bid form which is downloaded from the Internet, thus eliminating the need for any printing. The e-bidding system empowers governmental organizations by reducing the need for manpower and other resources, which also helps to reduce costs.
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Former research has verified that the reduction in cost is mainly due to the e-bidding system. For instance, Eadie et al.'s (2007) study showed that 75% of the participants regarded cost reduction as the major driver of the e-bidding system. Other research published in North Ireland confirmed that a significant driver of the e-bidding system in the construction industry was ‘diminished administrative cost’. This study also showed that the Taiwanese government and its contractors were able to save $14 million and $26 million (correspondingly) each year due to the e-bidding system. An analysis of the Canadian construction industry showed that a decrease in the documentation and administrative costs were considered the second most important driver of the automated bidding procedure.
Figure 6-9: Bid evaluation and innovation
Online tendering is a good idea, and it is an innovative and reliable method of tendering however, it is also necessary to consider the security of the tender data and how data can be transferred from one end to the other. Moreover, bidders need to demonstrate that they are capable of implementing new methods and techniques when building roads, how quickly they
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can build a road, whether they use new materials to build roads and what communication channel they use to communicate with the project team. In the questionnaire, the study participants were asked to rank the importance of cultural alignment. The result of skewness in Figure 6.8 indicates (ranked between 3 and 5 on the 5-point Likert scale) that in Australia, all road developers and contactors considered all seven factors of bid evaluation are important in order to evaluate suitable bids in road construction industry. Moreover, the mean score for ‘the importance of bid evaluation in Australia’ ranked between 4.5 and 5.0, as shown in Table 6.2.
Table 6-2: Importance of bid evaluation in Australia
Factors 1 2 3 4 5 Mean Highly Unimportant Neutral Important Highly unimportant Important Evaluating bidders’ 0 0 5 96 115 4.50 past experience in the field (0%) (0%) (2.3%) (44.4%) (53.24%) Evaluating how good bidders are in 0 0 2 100 114 4.51 bringing innovation (0%) (0%) (0.92%) (46.29%) (52.7%) to the road construction industry What is the bidder’s performance ranking 0 0 5 95 116 4.51 in the market (0%) (0%) (2.3%) (53.7%) (53.7%) How good bidders are in managing 0 0 6 80 130 4.57 technical and (0%) (0.) (2.7%) (37.0%) (60.2%) managerial skills Evaluating bidders available resources 0 0 8 75 133 4.58 (0%) (0%) (3.7%) (34.7%) (61.5%) Evaluating bidder’s 0 0 11 80 141 4.90 management system or infrastructure (0%) (0%) (5.0%) (37.0%) (65.2%) Evaluating and comparing project 0 0 16 82 118 4.5 cost among all the (0%) (0%) (7.4%) (37.9%) (54.6%) bidders
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6.5 FACTOR ANALYSIS IN BID EVALUATION
6.5.1 CFA: Confirmatory factor analysis
Confirmatory factor analysis (CFA) is a technique to determine the structure of the study factors. In the field of evaluating the tendering process in the road construction industry, the key objectives are to help government bodies award project to bidders who are reliable, innovative, charge less money, are able to complete a project on time, who have all the required resources and skills, and have the ability to develop roads that are durable in this rapidly changing environment due to global warming. Therefore, factor analysis is significant, and this study implements CFA to evaluate all the proposed factors of innovation in the bidding process through model fit and several other statistical tests which were performed to determine how the planned model fit to the research data (Bryman, 2008). In CFA, model fit is calculated based on the following formulas:
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According to MacCallum et al. (1996), the data sample size to perform RMSEA fit as goodness by understanding the model degrees of freedom and means of effect size. A structural
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equation model (SEM) was used, tested and evaluated in order to examine the research hypothesis to document the factors that are involve in the effective tendering process in the road construction industry.
For our proposed factors of innovation in the bidding process fit, the SEM results are as follows: the NFI is 0.899, the RMSEA is 6.99 and the GFI is 0.999. This SEM results show that our proposed factors of innovation in the bidding process are valid and all sub-factors are loaded on their respective parent factor. Moreover, the standardized covariance in Table 6.3 shows that the proposed factors of innovation are interconnected to one another. Moreover, most of the innovation factors received a value in standardized covariance analysis of 0.4 or below, which means all the factors are equally important for bid evaluation in the road construction industry.
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Table 6-3: Standardized covariance using SEM F F F F F F F F F F F F F F F F F F F F F F factor 1 factor 2 factor 3 factor 4 factor 5 factor 6 factor 7 factor 8 factor 9 factor 10 factor 11 factor 12 factor 13 factor 14 factor 15 factor 16 factor 17 factor 18 factor 19 factor 20 factor 21 factor22
F . factor 1 000
F 0 . factor 2 .32 000
F - 0 . factor 3 0.30 .11 000
F - 0 0 . factor 4 1.23 .26 .26 000
F 0 0 0 - . factor 5 .11 .32 .32 .289 000
F 0 0 0 - 0 . factor 6 .26 .11 .35 .327 .26 000
F 0 0 0 - 0 . . factor 7 .32 .26 .35 .373 .32 295 000
F 0 0 0 0 0 - 0 . factor 8 .35 .32 .28 .32 .35 .237 .26 000
F 0 0 - 0 0 0 0 . . factor 9 .35 .35 0.43 .35 .35 .25 .32 320 000
F 0 0 - 0 0 1 0 . 0 . factor 10 .28 .35 0.82 .35 .39 -.32 .35 231 .22 000
F - 0 0 0 - 0 0 . 0 0 . factor 11 0.43 .79 .24 .28 0.75 .21 .35 403 .32 .18 000
F - 0 0 - 0 0 0 . 0 0 - . factor 12 0.28 .77 .34 0.43 .26 .13 .19 022 .90 .31 1.15 000
F 0 . . - 0 0 0 - 0 - 0 . . factor 13 .33 40 40 0.28 .12 .26 .37 0.32 .52 0.54 .54 370 000
F 0 - - 0 0 0 - 0 0 0 - - 0 . factor 14 .30 0.11 0.11 .32 .25 .32 .40 .35 .09 .35 1.04 1.005 .37 000
F . 0 0 0 0 0 0 0 . - 0 0 . . 0 factor 15 40 .37 .37 .35 .15 .35 .26 .35 40 0.28 .12 .26 034 122 00
F - 0 0 0 0 0 0 0 - . - . 0 . - . factor 16 0.11 .11 .11 .45 .19 .35 .11 .28 0.04 199 0.86 328 .47 302 1.48 000
F 0 . . - 0 0 - - 0 - 0 - 0 . 0 . . factor 17 .37 40 40 .011 .17 .79 0.50 0.43 .09 .572 .30 .878 .13 040 .30 392 000
F 0 - - . . . - - 0 . - . - - 0 - - . factor 18 .11 0.11 0.11 305 40 285 0.21 0.28 .04 146 0.07 350 0.38 .805 .38 .794 2.004 000
F - 0 - . 0 . 0 0 0 . 0 . . . . - - . . factor 19 0.43 .37 0.46 324 .31 319 .19 .32 .19 316 .35 317 000 000 000 1.55 2.02 336 000
F . . - . 0 . - - . 0 . . . . - . - . . . factor 20 30 385 0.21 30 .15 359 0.31 0.46 324 .31 319 000 000 000 0.46 324 2.004 333 25 000
F . . - . 0 . - - . . . - . 0 . - - . . . . factor 21 30 385 0.21 30 .15 359 0.31 1.55 30 30 385 0.21 30 .15 359 0.31 3.02 000 000 000 000
F 0 0 - . . . - - 0 . . . - . . - ...... factor 22 .13 .21 0.31 405 30 385 0.21 0.38 .14 246 30 385 0.21 30 385 0.21 30 000 000 000 000 000
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SEM is a multivariate numerical analysis technique which has been implemented to understand and analyse structural relationships among the proposed innovation factors. This technique is the mixture of factor analysis and regression analysis and these methods are used to analyse the relation of each factor with their parent factors. This technique of data analysis is one of most useful analysis techniques recommended by many different researchers, as the techniques help estimates the interconnected and multiple requirement in another type of analysis. For this study data, SEM is implemented and the result is presented in Figure 6.10. According to this result, each factor’s score shows its importance to the parent factors. Each selected sub-factor loads directly on their key factor, which means the proposed factors of innovation in the bidding process could have a positive impact on the process of evaluating bids in the road construction industry when it comes to developing quality roads.
The results also indicate that when considering all project bid aspects, the key assessment factor is the cost and innovation evaluation that may directly influence the contractor selection decision compared to the other factors. Though the lower-most bidder system protects the public from inappropriate practices, it has major drawbacks such as unqualified contractors, compromised quality, cost influx, and a greater likelihood of disputes. Over time, a few adjustments to the lower-most bid system were made such as a rational bidder, communal interest, and prequalification list which opened avenues for other evaluation techniques instead of a single criterion system.
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Previous project outcome
Related experience company α=.85 experience Builder profits
Time saving
Technology/Method
Use of new material α =.78 innovation
Speed of communication
Communication transparency
Staff requirements performance in Quality standards ranking
Tender process Tender assessment Management tools
α=.79 Technical expertise management skills
Project quality
Fixed budget α=.89 resources Facilities α=.81
Staff expertise
System quality α=.90 management system Environmental awareness cost
Staff training
Maintenance/operation cost project cost
Fixed capital
Figure 6-10: Model fit through SEM
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6.5.1.1 Pattern matrix analysis
In order to validate the hypothesis of the proposed research, it is important to understand and classify the connections between all the sub-factors to the respective key factors of the proposed factors with their parent factor and sub-factor loading on their parent factor. All sub-factors in the innovation process loaded on their perspective parent factor, which means that they are aligned strongly and mathematically and the proposed study factors of innovation in the bidding process are valid. For example, Bryant and Yarnold (1995) stated that if all sub-factors in any research loaded on their parents factors, the research is valid and all the selected factors are equally important in proving the research hypothesis. Moreover, the author recommended that factor rotation be conducted, which is a process in which all the included sub-factors are rotated in an effort to achieve a modest structure. For this study, varimax rotation is used to maximize the interconnection among sub-factors with their respective key factor.
The pattern matric results are summarised in Table 6.4. The results of the pattern matrix show that all the sub-factors belong to their connected parent factor and a well-organized factor structure is shown in Table 6.4. The “company experience” bid evaluation factor was divided into three sub-factors: "previous project outcome", "related experience" and "builder profits". All three sub-factors are loaded on the “company experience” parent factor, showing that all three sub-factors are part of the “company experience” factor and shows zero correlation with the other key factors in the innovation process.
The “innovation” bid evaluation factor was divided into five sub-factors: "time saving", "technology/method", "use of new material", "speed of communication" and "communication transparency". All five sub-factors are loaded on the “innovation” parent factor, showing that all three sub-factors are part of the “innovation” factor and shows zero correlation with the other key factors in the innovation process. The “performance in ranking” bid evaluation factor is divided into three sub-factors: "staff requirements", "quality standards", and "tender process". All three sub-factors are loaded on the “performance in ranking” parent factor, showing that all three sub-factors are part of the “performance in ranking” factor and shows a zero correlation with the other key factors in the innovation process.
The “management skills” bid evaluation factor was divided into three sub-factors: "management tools", "technical expertise", and "project quality". All three sub-factors are loaded on the “management skills” parent factor, showing that all three sub-factors are part of the
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“management skills” factor and shows a zero correlation with the other key factors in the innovation process. The “resources” bid evaluation factor is divided into two sub-factors: "fixed budget" and "facilities". All three sub-factors are loaded on to the “resources” parent factor, showing that the two sub-factors are part of the “resources” factor and shows a zero correlation with the other key factors in the innovation process.
Table 6-4: Bid evaluation factor loadings Pattern Matrix
Factor 1 2 3 4 5 6 7 company experience Previous project outcome .681 Related experience .853 Builder profits .526 innovation Time saving .885 Technology/Method .785 Use of new material .569 Speed of communication .856 Communication transparency .985 performance in ranking Staff requirements .588 Quality standards .668 Tender process .77 management skills Management tools .892 Technical expertise .892 Project quality .778 resources Fixed budget .589 Facilities .699 management system Staff expertise .895 System quality .874 Environmental awareness cost .682 project cost Staff training .985 Maintenance/operation cost .685 Fixed capital .855
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The “management system” bid evaluation factor is divided into three sub-factors: "staff expertise", "system quality", and "environmental awareness cost". All three sub-factors are loaded on the “management system” parent factor, showing that all three sub-factors are part of the “management system” factor and shows a zero correlation with the other key factors in the innovation process. The “project cost” bid evaluation factor is divided into three sub-factors: "staff training", "maintenance/operation cost" and "fixed capital". All three sub-factors are loaded on the “project cost” parent factor, showing that all three sub-factors are part of the “project cost” factor and shows a zero correlation with the other key factors in the innovation process.
6.6 SUMMARY
This chapter discussed the quantitative study which included the planning for the quantitative data collection, the questionnaire design and implementation, details of the quantitative method and proposed new innovation factors in the bid evaluation process. The data analysis results from the quantitative study reveal that the proposed factors of innovation in the bidding process are ideal factors for agencies who are interested in the effective evaluation in bids in the road construction sector. This chapter started with a general analysis of the techniques to assess the consistency in the collected data by finding missing values, data outliers, and the prospects of normal data distribution.
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Chapter 7: Conclusions and future research
7.1 INTRODUCTION
The research findings from the qualitative and quantitative studies were discussed in chapter 5 and chapter 6. This chapter concludes the research and its related research findings. This chapter presents a summary of the research, how the proposed research questions have been answered, the research implications and future research directions.
7.2 SUMMARY OF THE WORK
The literature indicates that choosing a contractor for a construction project can be highly challenging, particularly in the context of evaluating innovation in the road construction industry. Bid assessment is one of the major trials that project owners and experts may face in both the public and private sectors. On the contrary, there are unbiased means to measure the ability of a contractor to appropriately manage the business facets of a construction project. A few number of guidelines have been established to assess contractors’ bids and choose the best one.
In the road construction industry, innovation is a continue process in a multiparty atmosphere and is constrained by the requirements of the project. Therefore, the analysis and evaluation of innovation with other factors of bid evaluation is important. In order to ensure the quality of project contractors, the evaluation of innovation can be undertaken prior to bid submission using the contractor qualification approach. The government or contract owner’s examination regarding a contractor’s ability to tackle the business aspects of the process during prequalification enables the contractor to focus on the details of the projects after the contractor has passed the pre-tendering process.
This enables the contract owner’s bid assessment team to focus only on the predefined project essentials, without being side-tracked by other business aspects. Prequalification is a pre- tendering process that empowers experts to choose the best candidate among numerous applicants. Prequalification is defined as the shortlisting of contractors by the owners for a construction or development project according to a fixed set of criteria deemed essential for
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successful project completion. This helps to determine the contractor’s capability to contribute to a specific project bid.
According to Clough et al. (2015), prequalification implies that a firm which seeks to contribute to the tendering process should be qualified before it is given the bidding documentation or can apply. Prequalification and innovation assessment encompass various standards such as overall, methodological, administrative, and monetary criteria, which help estimate the general competency of the contractors. A few important contractor assessment/evaluation factors include financial reliability, administrative capacity and strength, technical proficiency, appropriate experience, firm scope, and safety record.
As outlined in chapter 1, the aims and objectives of this research were to:
• To conduct a systematic literature review in the context of bid evaluation factors with innovation in the road construction industry.
• To evaluate the factors including innovation that impact the bid evaluation process in the road construction industry.
• To study and assess the bidder’s innovative capability during the bid evaluation process in the road construction industry.
• To study and evaluate the existing methods and techniques to develop roads in Australia and other innovative ideas used across the world.
• To propose factors of innovation in the bidding process to select the best and most reliable bid for Australian road construction.
7.3 ANSWERING RESEARCH OBJECTIVES AND RESEARCH SUMMARY
In this section, the answers to the research questions shown in Figure 7.1 and in chapter 1 are discussed and a summary of this study is presented.
The following subsections encapsulate the research work that has been done to achieve the research aims and objectives.
• To present the proposed study aims and objectives, in chapter 1 of this study, the following research elements were discussed: the research context, research aims and objectives, research objectives, research contributions and research outline in the context
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of the evaluation of innovation and other factors associated with bid assessment in the road construction industry.
Answered RQ2 Answered RQ Study Questions 1, 2, 3 1. What is the key procedure to evaluate innovation factors in the bid evaluation process? 2. Do the existing bid evaluation techniques and methods used by the government and other agencies assess Conceptual research stage innovation as part of the evaluation process? • Research philosophy 3. What is the level and extent of introducing innovation in • Research gap new projects related to the road construction industry? • Factors impacting the bid
evaluation process
Extended Extended
Research Design and Methodology Related work • Research design • Data analysis and research Answered RQ hypothesis 1, 2, 3 • Pilot study • Research plan • Proposed factors of innovation
Qualitative Research Quantitative Research • Interview of experts • Survey of users in the road industry in the road industry Supported Supported • Model validation by by • Model validation qualitatively quantitatively • Thematic analysis • Data sampling Extended process • Research findings Supported Supported • Research findings by by
Extended Extended Conclusion and Future work Summary of research Research questions and answers Future research Research limitations
Figure 7-1: Conclusions across all study contributions
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In order to examine the proposed factors of innovation in the bidding process, a qualitative study was conducted among experts from innovation and road construction industry in chapter 5. This chapter also answers three research questions (What is the key process to evaluate the innovation factors in bid evaluation?; Do the existing bid evaluation techniques and methods used by the government and other agencies assess innovation as part of the evaluation process?; To what extent has innovation been introduced in new projects related to road construction industry?) • The study results indicate that the implementation of innovative ideas and the use of new material in developing suitable roads is a challenging job.
• To examine and identify the factors to include in the bid evaluation process and the assessment of innovation in the road construction industry. A systematic literature review was detailed in chapter 2 of this thesis. This chapter also, partially answered research question 1, in which we identify the factors that impact the bid evaluation process.
• To quantitatively evaluate the research process factors of innovation in the bidding process, chapter 6 presented a quantitative study, in which a survey was conducted among users and people related the evaluation of innovation during the bid process in the road construction industry. The data analysis of this study indicates that the proposed factors of innovation in the bidding process are suitable and could have a positive impact on the evaluation of bids from the bidders and identifying a suitable and innovative bid for the construction project. Moreover, this chapter also answers three research questions (RQ1, RQ3) by conducting research among the bigger audience of the road industry and innovation.
• To evaluate the current situation of bidding in Australia. The research context was discussed in chapter 3 of this thesis. In this chapter, we summarised the current situation of innovation in the road construction industry in Australia, the criteria to assess innovation, bid evaluation and innovative cases from different countries and presented the comparison.
7.4 RESEARCH FINDINGS
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It is widely accepted that projects related to the road construction industry must be completed in an effective and efficient manner. The need to develop new roads in Australia has been growing rapidly due to the expansion of existing cities and the establishment of new cities. These issues and challenges represent a paradox, as failure to appropriately manage a road project can lead to difficulties for the road construction team. Therefore, the selection of a road developer should be made carefully by assessing their road development capabilities, which increases the chance of the successful completion of a project. This thesis analysed the factors related to innovation in the field of bid evaluation in road industry and the study findings are as follows:
7.4.1 Improvement of bid evaluation and value of money
The findings indicate that there is a growing need for improvement in the bidding process, which leads us to a further evaluation of this topic in the context of identifying the factors related to bid evaluation and innovation. Moreover, research results shows how to successfully verify Value for Money, for example evaluations are realistic and fair is needed. In Australia most of the Treasuries around the country have methods to evaluate Value for Money, although it would be meaningful examining these to guarantee that they are adequate. An innovative method in bid evaluation process or innovative goods could be built with suitable environmental consequences likely as an outcome but might come at a substantial cost. How does the team of bid evaluation scale up the advantages of such a plan and take into consideration the supplementary cost to determine the value of the bid relation to other bids? Therefore, further research in this area could be useful.
7.4.2 Introduction of innovation and its awareness during tendering
The qualitative study in this research indicates that all stakeholders who involve directly or indirectly in the process of bid have the ability to provide significant innovations. All stakeholders want to understand and see the benefits of accessing innovation in the process of bidding. The research also shows that what enables the innovation group is the governance from the customer about the significance of innovation to their companies or the prospect by every stakeholder to design and develop an innovation which decreases costs or delivers an extremely
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valued invention so that no one else is able to bring into the filed. Governance also stems from high-ranking executives of private and public sector corporations to promote innovations that help them to cut costs and help them to compete the market. Moreover, during the analysis of the different case studies, we find that developed and developing countries are aware of the need for the implementation of new and innovative methods to develop roads.
7.4.3 Motivation of innovation and methods of bid evaluation
In Australia, firms in road development industry are always encouraged to be innovative but there needs to be a purpose to drive the enthusiasm for innovation. The purpose usually comes when they are provided with opportunities to bid for work, but the tender time periods are typically short and do not enable them to fully develop innovations. For example, in Victoria, unsolicited proposals are permitted, and this process enables proponents to take their time to develop innovative proposals. The research results show that the techniques and methods of developing roads in Australia are constantly evolving to react to stakeholder expectations and new challenges.
7.4.4 What attract bidders to participate in the bid?
Study result shows that a variety of factors attracts bidders, such as the cost, time, location and scope of a project. Most of bidders in Australia have meetings before tenders coming to market to consider the information they have and decide whether or not they will submit a tender when it comes to market. Some large organisations in Australia believe their key strengths is to undertake large scale works. The project scope is a key factor in deciding which tender opportunities to pursue. But firms also consider the skills of their staff for key roles in their tender submission. A very important factor that arises during the bid phase is the contractual documents and what risks firms face. The potential rewards must outweigh the risks. Bidders have considered the risks and how they would mitigate them, and they have a meeting with their risk committee to assess whether they are well placed to manage the risks or if there are some areas of the contracts they would need to negotiate with clients to try and reach a reasonable position.
Chapter 7: Conclusions and future research 165
There have been contractual requirements in some contracts that firm have not been prepared to sign up to.
7.4.5 Government investigation of bidder’s innovative skills
Our qualitative and quantitative analysis result shows that typically, Governments have a short time to evaluate tenders and make an award. Hence, they rely on bidders making any proposed innovations, which are obvious and easy to understand. If tenders include innovations as options, then those assessing tenders may have to make value for money evaluations in order to decide whether to accept any of the innovation options. Depending on the complexity of an option, considerable time may be involved in making value for money evaluations and deciding whether or not to accept an option.
It can be helpful to explore potential innovations during the tender development. This involves a bidder presenting an innovative proposal, still at preliminary status, to the client during an interactive workshop/meeting. In this way, if the customer shows no concern the tenderer can terminate development and work on other issues. Conversely, if the customer demonstrates some interest in an innovative application, the tenderer has assurance to continue to develop the application and submit it with the bid. Procedures that improve the development of inventions in road industry and which carefully evaluate them during the bidding phase are crucial. Therefore, this research in the area of innovation in bid evaluation in road industry is worthwhile.
7.4.6 An environmental policy for the evaluation of innovative methods
This study result shows that in Australia Governments often request environmental policies and procedures as part of the tender process. However, what is most important is an organisation’s performance in environmental management and safety. There can be a disconnect between policy, procedures, and performance. Some clients seek data on performance over recent years, particularly for safety during the tender assessment process. In Australia public and private firms are willing to offer innovative methods in the context of evaluation of environmental policies in bidding process when given the opportunity, and in this context, innovation should be encouraged during the bid evaluation process in the road construction industry.
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7.5 RESEARCH IMPLICATIONS
In this research, the proposed factors of innovation in the bidding process in the context of the assessment of innovation were evaluated for the Australian environment. Numerous research and practical implications emanate from this study as follows:
• For the assessment of innovation in bid evaluation, it is important that clients make it clear that they want innovative solutions and the criteria by which they will judge innovations in the process of selecting their preferred bidder. Bidders need guidance so that they can prepare their bids that fully respond to the client’s expectations. This study result shows that Value for Money assessments should a key criterion used in making assessments. It is important to demonstrate that choices are made in the best interests of the community and taxpayers. This research analyse innovation in bid evaluation process qualitatively and quantitatively. Therefore, practitioners who are interested in how to evaluate and assess bids from different bidders will benefit from this research. This research proposed the evaluation of factors related to innovation in the bidding process and the assessment of innovation in the road construction industry from both qualitative and quantitative perspectives.
• The literature indicates that most of the bids were evaluated based on the following factors: project cost, project development time, bidder performance ranking, management skills, bidders’ resources capabilities, etc. However, in this research we included factors related to innovation, which is especially important in the assessment of any bid due to the changing environment, which impacts existing roads. Therefore, it is important to assess bids in relation to the changes in weather conditions.
• Academics and researchers interested in the research area of bid evaluation and the assessment of innovation in the road construction industry will benefit from this research. Chapter 2 presented detailed information on the factors included in the bid evaluation process, how to assess innovation in the process of bid evaluation, existing bid evaluation techniques and methods, the motivation behind bid evaluation and the assessment of innovation in the road construction industry, and the evaluation of different innovative case studies in road construction industries.
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7.6 LIMITATIONS AND FUTURE WORK
In this section, the limitations of this research and future research directions are presented.
• The assessment of innovation in the bid evaluation process is a continuous process which could have a significantly positive impact on the road construction industry. Innovation is a gradual process and is not like we press the button and fixed or evaluate the bidder’s innovative capability. However, the process innovation evaluation varies with the size of the project, the weather conditions and project location. Therefore, future research could be to conduct research on innovation assessment in the road construction industry from different perspectives, such as projects of varying size and projects in different environmental conditions.
• The literature indicates that most project contracts in the road construction industry are allocated based on the lowest contract price and shortest project development time. Therefore, it is important to conduct further research to find out which type of road construction projects is selected based on cost and time, government projects, semi- government projects, projects from particular locations or private business projects.
• In this research, we proposed several factors of innovation in the bidding process in the context of the assessment of innovation. For this study, we collected data from nine experts in the road construction industry, all of whom worked in the industry in roles such as supervisor, road construction advisor, project leader, senior executive, executive project director, or technical director. However, the study is limited to nine point of views. Due to COVID 19 it was difficult to approach road construction experts. Therefore, in order to strengthen the proposed factors of innovation in the bidding process validity and completeness, future research is required involving a larger audience of experts in the road construction industry.
The proposed factors of innovation in the bidding process have only been validated in Australia and the implications of this research are limited to one country. In future, it would be useful to evaluate the proposed factors of innovation in another country and in other weather conditions, for example to evaluate the factors of innovation in the bidding process in European countries where the weather is extreme at certain times of the year and African countries where the weather most of the time is hot.
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Appendices
Appendix A: Study Questionnaire, Survey and Ethic approval Qualitative Study Questionnaire HOW TO ASSESS INNOVATION CONCEPTS PROPOSED BY BIDDERS IN COMPARATIVE TENDER ASSESSMENT
CONDUCTED BY MR PARDEEP KUMAR OAD, PhD STUDENT QUEENSLAND UNIVERSITY OF TECHNOLOGY (QUT)
Note for participant. Your feedback is essential for this PhD research and will stay completely confidential. Moreover, this questionnaire is a part of a PhD program at the School of Civil Engineering and Built Environment, Science and Engineering Faculty, QUT, Australia. Road Construction is a one of a kind environment and by definition is an innovative industry. Therefore, no single idea of project is the same as another and that decent variety breeds road innovation and creative problem solving at the handy level. The purpose of these questions is to help to study the process of road assessment of innovation in the project proposal.
If you have any questions or queries about this study or the overall research, please contact Mr Pardeep Kumar Oad, Science and Engineering Faculty, QUT, Australia at [email protected]. The interview should take approximately 40 minutes to complete.
If you are unable or do not wish to answer any part of this survey, please feel free to simply leave it blank. There is also a section at the end of the survey where you can submit any recommendations regarding this proposed research.
How to submit: This is face to face interview with road builder’s experts
1. Which of the following best describes the activity of your organisation? Road builder Contactor Manufacturer Consultant Client
Appendices 193
2. What do you know about the bid evaluation process in road construction industry?
......
3. How much roughly it cost to prepare the tender?
......
4. Who manage the tender project in your organization?
......
194 Appendices
......
5. What information your organization need to gather, when preparing road tender?
......
6. Who typically introduces process/product/management in the road industry and who assess new ideas?
......
7. Do you think Australia should update their old methods of developing roads as old methods are not suitable these days?
......
Appendices 195
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8. Do you think road builder experience in testing new material, could impact the performance capability of newly developed road project?
......
9. What you think the assessment of innovation is an important factor during the bid evaluation process in the road industry?
......
10. If you agreed on the importance of innovation assessment during the bid evaluation process, what type of innovation factors you like to see in the process?
......
196 Appendices
......
11. Which area do you think required continue research in the bids assessment process in road construction industry?
......
12. What do you think, who (Manufacturer, Contractors, Subcontractor, Distributor, Client and Head distributor) traditionally introduces innovative ideas to road construction projects?
......
13. What do you think, what (Cost effectiveness, Sustainability, Client Demands, Time constraints, Technology) are the main drivers of innovation in road construction industry?
......
Appendices 197
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14. In Australia, where do you believe most innovation is taking place?
......
15. What do you think, what is the main driver (Awards, Grants, Government scheme, Access to new technologies) of innovation in road construction industry?
......
16. Does your organisation encourage creative problem solving for improving innovation?
......
198 Appendices
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17. What attract your organisation to participate in the bid? project cots, project location, project time, or scope of the project.
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18. Does Government investigate the organisation financial capacity, organisation performance, their resources, related experience and project management skills, when they evaluate bidders bit?
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19. Does Government investigate the organisation environmental policy and occupational health and safety procedures, when they evaluate bidders bit?
......
Appendices 199
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20. Does Government investigate the innovation offered from the organization, when they evaluate bidders bit?
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FEEDBACK (any other comments)
......
200 Appendices
Quantitative Study Survey PhD Research
Assessing Innovation in Comparative Tender Assessment in the Road Sector
Queensland University of Technology, Brisbane
Research Topic summary
The road construction industry and related programs in Australia are expanding rapidly, therefore, it is important to update the process of selecting suitable road builders and evaluating their skills prior to sign any contract. The bid evaluation process is used to designate the method for strategic assessment and evaluation to tender bids submitted by registered and pre-qualified road contractors. However, bid evaluation is one of the key challenges that face proprietors and advisors in the private and public sectors. The purpose of this project is to investigate the assessment of innovation ideas proposed by the contactors or bidders in comparative tender assessment in the road construction sector. Note for recipient
Your feedback is very valuable for this PhD research and will stay completely confidential. This questionnaire is a part of a PhD program at the School of Civil Engineering and Built Environment, Science and Engineering Faculty, Queensland University of Technology, Australia. The purpose of this questionnaire is to identify factors that contribute to the assessment of innovative ideas proposed by the contactors or bidders in comparative tender assessment in the road construction industry.
If you have any questions or queries about this study or the overall research, please contact Mr Pardeep Kumar Oad, Science and Engineering Faculty, Queensland University of Technology, Australia at [email protected].
Principal supervisor Professor Stephen Kajewski Head, School of Civil Engineering and Built Environment Queensland University of Technology, Brisbane [email protected]
External Supervisor Emeritus Professor Arun Kumar RMIT University, Melbourne, Editor-in-Chief, Infrastructure Asset Management Journal, Institution of Civil Engineers, UK [email protected]
The questionnaire should take around 10 to 15 minutes to complete.
If you are unable or do not wish to answer any part of this survey, please feel free to leave it blank. There is also a section at the end of the survey where you can submit any recommendations regarding this proposed research.
Appendices 201
How to submit: this is online survey conducting through SurveyMonkey, please, complete the survey and press submit button.
SECTION 1: Personal Data
1. What is your employment status?
Employed Self-employed Proprietor Unemployed Other
2. What description best suits your occupation?
Road builder Contactors Manufacturer Main contractor Consultant Client Other 3. Please specify sectors your closely involved with (the role/unit you best associated with?)?
Construction Engineering Surveying Design Architecture Legal Facilities management Education Consultancy Other 5. Please, specify number of employed at your company?
Less than 20 20 to 50 50 to 100 100 to 200 200 to 500 More than 500 Other SECTION 2: Importance of innovation in the road industry 1. Please rate the level of importance for the “research and development” in the area of bids evaluation in road construction industry? Highly-unimportant Unimportant Neutral Important Highly Important
2. Who traditionally introduces new product innovation ideas to road construction projects? Could you please rate the below from 1 to 6 (1 means higher rank and 6 means lowest in the rank)
Manufacturer Contractors Subcontractor Distributor Client Head distributor
3. Please specify the key drivers of innovation in road construction industry? Could you please rate the below drivers from 1 to 6 (1 means higher rank and 6 means lowest in the rank)
Cost effectiveness Sustainability Client Demands Time constraints Technology Global competition
202 Appendices
4. Where do you believe most innovation is taking place? A ranking from 1to 7, please rank the Australian states according to their level of innovation
VIC NSW Qld SA WA Tas NT
5. What level of importance does your company give to encourage “creative problem solving”? Highly-unimportant Unimportant Neutral Important Highly Important
6. Could you please rate the importance of “innovation” as part of bids evaluation process in the bidding evaluation methods used by the Government and other agencies?? Highly-unimportant Unimportant Neutral Important Highly Important
7. What is the level of importance and extent of introducing innovation in new projects related to road construction industry? Highly-unimportant Unimportant Neutral Important Highly Important
SECTION 3: Please rate the following factors according to their levels of importance in the bid evaluation process in road construction industry
Factors Highly- Unimportant Neutral Important Highly unimportant Important Evaluation of Contractors/bidder’s knowledge about the project. Evaluation of Contractors/ bidder’s experience Evaluation of contractors/bidder’s annual revenue Evaluation of Contractors/bidders construction experience Bid cost from bidder’s Evaluation of materials and products proposed by Contractors/bidders Carbon neutral buildings Evaluation of Contractors/bidders methods/techniques Evaluation of health and safety procedures Evaluation of Contractors/bidders policy about road quality Evaluation of Contractors/bidders plant and machinery
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Evaluation of contractors/bidders previous projects outcome Team and business process management tools Evaluation of project quality procedures and methods Check Quality of standards Evaluation of Contractors/bidder’s policy about Awards, Grants, Government scheme Evaluation of Contractors/bidders project management skills
SECTION 4: Please rate the following innovation factors according to their importance in the bid evaluation process in road construction industry in Australia
Factors Highly- Unimportant Neutral Important Highly unimportant Important Evaluation of contractors/bidder’s policy about environment sustainability Obstructive tender assessment standards Evaluation of how Contractors/bidder’s evaluates the risk of new project failure Evaluation of contractors/bidder’s ability to implement new project ideas Evaluation of contractors/bidder’s research capability on implementing new road development ideas against the new environmental challenges Evaluation of contractors/bidder’s involvement in the early project design Evaluation of how experienced contractors/bidders are in Information Technology and communication Evaluation of contractors/bidder’s procedures of developing roads against Energy efficiency
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Evaluation of new products or material procedures proposed by contractors/bidder’s Evaluation of use of natural power and other natural resources used by Contractors/bidder’s Evaluation of contractors/bidder’s education and training program for their staff about innovation in the sector Evaluation of Contractors/bidder’s policy about Waste management Check Contractors/bidders have access to new technologies Evaluation of how Contractors/bidders can handle the pressure from the industry Evaluation of Contractors/bidder’s skills about road sustainability
SECTION 5: Feedback
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Ethic approval and consent form
Dear Prof Stephen Kajewski and Mr Pardeep Oad
Ethics Category: Human - Negligible-Low Risk UHREC Reference number: 1800001175 Dates of approval: 16/01/2019 to 16/01/2021 Project title: Assessing "innovation" in comparative tender assessment in the road sector
Thank you for submitting the above research project for ethics review. This project was considered by Chair, Queensland University of Technology (QUT) Human Research Ethics Committee (UHREC) or a Faculty-based low risk review panel. We are pleased to advise you that the above research project meets the requirements of the National Statement on Ethical Conduct in Human Research (2007) and ethics approval for this research project has been granted on behalf of the UHREC, to be ratified at their next scheduled meeting.
Please find attached the Research Governance Checklist. Please ensure you address any items you identify as relevant to your research project.
Approval of this project is valid as per the dates above, subject to the following conditions being met:
< The Chief Investigator (CI) / Project Supervisor (PS) will immediately report anything that might warrant review of ethical approval of the project.
< The CI/PS will notify the UHREC of any event that requires a modification to the protocol or other project documents and submit any required amendments in accordance with the instructions provided by the UHREC. These instructions can be found at http://www.orei.qut.edu.au/human/.
< The CI/PS will submit any necessary reports related to the safety of research participants in accordance with UHREC policy and procedures. These instructions can be found at http://www.orei.qut.edu.au/human/.
< The CI/PS will report to the UHREC annually in the specified format and notify the UHREC when the project is completed at all sites.
< The CI/PS will notify the UHREC if the project is discontinued at a participating site before the expected completion date, with reasons provided.
< The CI/PS will notify the UHREC of any plan to extend the duration of the project past the approval period listed above and will submit any associated required documentation. Instructions for obtaining an extension of approval can be found at http://www.orei.qut.edu.au/human/.
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< The CI/PS will notify the UHREC of his or her inability to continue as CI/PS including the name of and contact information for a replacement.
This email constitutes ethics approval only. If appropriate, please ensure the appropriate authorisations are obtained from the institutions, organisations or agencies involved in the project and/or where the research will be conducted.
The UHREC Terms of Reference, Standard Operating Procedures, membership and standard forms are available from: https://qutvirtual4.qut.edu.au/group/staff/research/ethics-and-integrit y/human-research-ethics/manage-approved-projects/standard-conditions-of-appr oval
Should you have any queries about the consideration of your project please contact the Research Ethics Advisory Team on 07 3138 5123 or email [email protected].
We wish you every success in your research.
You recently received support or advice from the Human Research Ethics Advisory Team at OREI. Please consider giving us some feedback on your experience, or other general feedback. https://forms.office.com/Pages/ResponsePage.aspx?id=o1IL3MVo90SIHZOD2IULltIq 2IkGVmlPh6xNk69wWLtUM1ozSllNNlpNS1lKVUdLTlpUUFhIQ1VPSS4u
Research Ethics Advisory Team, Office of Research Ethics & Integrity on behalf of the Chairperson, UHREC Level 4 | 88 Musk Avenue | Kelvin Grove +61 7 3138 5123 [email protected]
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WITHDRAWAL OF CONSENT FOR QUT RESEARCH PROJECT
Assessing "innovation" in comparative tender assessment in the road sector
QUT Ethics Approval Number 1800001175
RESEARCH TEAM Mr Pardeep Oad [email protected] 041 3004 296 Prof Stephen Kajewski [email protected] 07 3138 2676 Science and Engineering Faculty, Queensland University of Technology (QUT)
I hereby wish to WITHDRAW my consent to participate in the research project named above. I understand that this withdrawal WILL NOT jeopardise my relationship with QUT.
I request that data collected about me be destroyed if it is still identifiable. Please use data collected about me so far for the study.
Name
Optional: Signature
Date signed or noted
Optional: Reason for withdrawal (if provided)
PLEASE RETURN THE SIGNED WITHDRAWAL FORM TO THE RESEARCHER. PLEASE NOTE THAT YOU MAY ALSO WITHDRAW VERBALLY OR VIA EMAIL.
Sample approach email
Subject Title:
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Proposal to participate in a research study about assessing “innovation” in comparative tender assessment in the road sector
Dear colleagues
My name is Pardeep Kumar Oad from the School of Civil Engineering and Built Environment, Science and Engineering Faculty, Queensland University of Technology (QUT) and I’m doing a PhD research on the investigation on the assessment of innovation ideas proposed by the contractors or bidders in comparative tender assessment in the road construction sector.
I’m looking for people between the ages of 20 years and 60 years who have knowledge of applying for a bid or evaluating bids in road construction industry.
Please view the attached Information Form and Consent Form for further details on the study. If you are interested in participating or have any questions, please contact me via email.
Please note that this study has been approved by the QUT Human Research Ethics Committee (approval number 1800001175).
Many thanks for your consideration of this request.
Mr Pardeep Kumar Oad PhD Student 0413 004 296 [email protected]
Professor Stephen Kajewski Principal Supervisor 07 3138 2676 [email protected] School of Civil Engineering and Built Environment, Science and Engineering Faculty, Queensland University of Technology (QUT)
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