Infrastructure Engineering - Theses

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    A competitive estimating and tendering strategy model for use in the civil engineering construction industry
    Fayek, Aminah ( 1996)
    The Australian civil engineering construction industry does not have a formal methodology for setting margin (markup) on project tenders. A need exists to structure and formalise the decision-making process used in setting margin, since the margin-size decision is critical to a company's success in winning work and its subsequent profitability. Despite the number of software systems available for cost estimating, none has features to help in making the margin-size decision. Numerous competitive tendering strategy models for setting margin have been developed, but very few are used in practice. A number of disadvantages in the features of these models make them unsuitable and difficult to apply. The objective of this thesis is to improve the procedures and tools available for use in the competitive tendering process in the civil engineering construction industry. This objective is achieved primarily by the development of a competitive tendering strategy model. The competitive tendering strategy model uses fuzzy set theory, a modelling technique designed for handling linguistic and approximate information, to model the margin-setting process and provide recommendations of margin size. The use of fuzzy set theory allows assessments to be made in qualitative terms, which suit the subjective nature of the margin-size decision. The goal of the competitive tendering strategy model is to help a company achieve its objectives in tendering. The model provides over ninety factors that may influence the choice of margin size, and enables the company to assess the impact of those that are relevant to its tender situation. The competitive tendering strategy model formalises the decision-making process and provides a standard methodology for setting margin on civil engineering project tenders, which can be tailored to suit the individual practices of each company. The implementation of the model in the form of a software system, named PRESTTO, makes the model quick and easy to use. The PRESTTO software system can increase the efficient use of the brief time available for setting margin. The competitive tendering strategy model provides accurate recommendations of margin size, based on its validation with actual project tenders collected from a survey of the Australian construction industry. The model therefore reflects current sound decision-making practices in setting margin and can be used with confidence as a guide to setting margin. The objective of this thesis is also achieved by the development of a theoretical framework that defines a standard methodology for the integration of cost estimating, tendering, and cost control, for use by both clients (owners) and contractors. The competitive tendering strategy model is placed in the context of this overall framework, since the margin-size decision is not made in isolation. This framework provides the theoretical basis for the implementation of a fully integrated software system. The PRESTTO software system, which consists of a cost estimating module integrated with a tendering module, is a partial implementation of this fully integrated system. A major conclusion of this thesis is that fuzzy set theory can be applied successfully to model the margin-size decision. Fuzzy set theory is an enhancement on previous modelling techniques because it allows assessments to be made in qualitative and approximate terms, which suit the nature of the margin-size decision. The competitive tendering strategy model developed, which supports subjective judgement and experience, can help civil engineering contractors gain a competitive edge in tendering. By providing them with a standard methodology to improve the quality of their decision-making, this model can help contractors reduce the uncertainty associated with setting margin, resulting in a more competitive bid.
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    Construction contracts for reduced costs for developing countries with special reference to Tanzania
    Fundi, Gaspar M. ( 1985)
    This report is an investigation made into four major areas of construction work in Tanzania namely construction contracts and their administration, construction risks, labour versus equipment methods, and construction joint-ventures. Some of the major findings include: Improper project management in Tanzania is a cause of wastage of money, time and materials. Unfair allocation of construction risks lead to submission of high bids by contractors trying to cover themselves against potential risks at the expense of owners. The use of labour-intensive methods for some construction tasks is appropriate and will alleviate shortages of capital and foreign exchange and provide employment to the abundant unskilled cheap labour in the country. Joint ventures between local companies and between local and foreign companies have financial and technological advantages to the country. The report is designed to describe for the owner, the consultant, the contractor, and the policymaker a broad range of methods to deal with spiralling construction costs and also the development of construction industry capacity in Tanzania and other developing countries in similar situations.