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Assessing Innovation in Comparative Tender Assessment in the Road Sector

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Assessing Innovation in Comparative Tender Assessment in the Road Sector 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
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