Decision-Making by Contractors in Large Infrastructure Tenders

Examensarbete för masterexamen

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Type: Examensarbete för masterexamen
Master Thesis
Title: Decision-Making by Contractors in Large Infrastructure Tenders
Authors: Hill, Karin
Abstract: The majority of tenders in the building industry have until recently been solely decided from a monetary perspective. There is now a shift towards qualitative, nonprice criteria being integrated in the tendering process by the clients. As decisionmaking is an essential part of the tendering process, it will be affected by this change. Therefore the thorough understanding of how decisions are made during the tendering process as well as which possibilities to improve, help and influence the organisation has, is crucial. Furthermore problems and challenges that can arise during tender decisions are looked at. The processes during the tender phase, including decisionmaking, are rarely investigated. The objective of this thesis is to close a part of the gap in research and to increase the understanding regarding decision-making in tenders. Due to the gap in literature, the research is explorative. A single case-study at a large contractor in Sweden was conducted, with a focus on large infrastructure tenders. Three types of data were collected and used during the case-study: secondary data from organisations involved in the case-study, on-site observations, and 10 interviews. Through pattern matching and content analysis four main themes of decision-making were identified in tendering: Experience, Intuition, Expertise and Collection of Information. In addition to the four themes input and feedback in relation to the tender and the minimisation of costs were identified as main influences. Challenges include biases, a conflict of the objectives profitability and sustainability, a lack of structures for knowledge transfer and restrictions regarding time and cost. Deliberate Practice, including the modification of input and feedback by the organisation, is suggested for organisations to influence the decision-making process in order to improve implementation of new parameters into the tendering process.
Keywords: Samhällsbyggnadsteknik;Civil Engineering
Issue Date: 2016
Publisher: Chalmers tekniska högskola / Institutionen för bygg- och miljöteknik
Chalmers University of Technology / Department of Civil and Environmental Engineering
Series/Report no.: Examensarbete - Institutionen för bygg- och miljöteknik, Chalmers tekniska högskola : BOMX02-16-46
Collection:Examensarbeten för masterexamen // Master Theses

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