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Appraisal of the efficiency of tender adjudication methods in public procurement of construction projects in South Africa
Author(s)
Damba, Babalwa
Date Issued
2024
Type
Thesis
Publisher
Cape Peninsula University of Technology
Abstract
Due to poor performance caused by non-adherence to proper processes and procedures, procurement performance has for decades attracted the attention of practitioners, academics, and researchers. From observations, it was found that the adjudication process has not been adopted properly by procurement stakeholders. The aim of this research was to investigate the effectiveness of the current tender adjudication methods in public sector procurement in the construction industry of South Africa. A questionnaire was distributed to the Department of Public Works, the Department of Transport, the Department of Human Settlements, and the local government in the Western Cape Province of South Africa. To validate the questionnaire survey, interviews questions were developed and conducted concurrently with the survey. The data were analysed using the Statistical Package for the Social Sciences (SPSS), descriptive statistics, and content analysis.
The findings of the study revealed the following: i) the Supply Chain Management (SCM) team involved in the tender adjudication do not have sufficient knowledge of the Preferential Procurement Policy Framework Act used in the adjudication process to select a suitable contractor; ii) the current tender adjudication method has loopholes that permit corrupt activities in the tender adjudication process; iii) many of the contractors selected under the current tender adjudication process do not possess adequate capabilities to complete the project; and iv) the tender adjudication process is perceived as effective in assisting with the selection of a suitable service provider for a construction project.
It was furthermore found that price, points for HDI status/BEE/B-BBEE, and points for youth are important criteria that should be included by contractors to secure projects; however, all the criteria were noted as significant. In the re-allocation process, the respondents noted that functionality, price, and points for youth are significant in the tender adjudication process. With regard to an alternative tender adjudication process, price, functionality, and gender were recognised by the respondents as the most significant criteria for tender adjudication. Knowledge, education, and training were noted in the qualitative findings. The results obtained from this research reveal the efficiency of tender adjudication practices towards achieving sustainable procurement of construction projects in South Africa. This research, based on the efficiency of tender adjudication in the public sector of South Africa, proposes a more comprehensive, effective tender adjudication method. Improvement in terms of the efficiency of tender adjudication are also recommended.
The findings of the study revealed the following: i) the Supply Chain Management (SCM) team involved in the tender adjudication do not have sufficient knowledge of the Preferential Procurement Policy Framework Act used in the adjudication process to select a suitable contractor; ii) the current tender adjudication method has loopholes that permit corrupt activities in the tender adjudication process; iii) many of the contractors selected under the current tender adjudication process do not possess adequate capabilities to complete the project; and iv) the tender adjudication process is perceived as effective in assisting with the selection of a suitable service provider for a construction project.
It was furthermore found that price, points for HDI status/BEE/B-BBEE, and points for youth are important criteria that should be included by contractors to secure projects; however, all the criteria were noted as significant. In the re-allocation process, the respondents noted that functionality, price, and points for youth are significant in the tender adjudication process. With regard to an alternative tender adjudication process, price, functionality, and gender were recognised by the respondents as the most significant criteria for tender adjudication. Knowledge, education, and training were noted in the qualitative findings. The results obtained from this research reveal the efficiency of tender adjudication practices towards achieving sustainable procurement of construction projects in South Africa. This research, based on the efficiency of tender adjudication in the public sector of South Africa, proposes a more comprehensive, effective tender adjudication method. Improvement in terms of the efficiency of tender adjudication are also recommended.
Additional information
Thesis (MTech (Construction Management))--Cape Peninsula University of Technology, 2024
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