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Schoolof Technology

Undergraduate Dissertation
UNIVERSITY OF
WOLVERHAMPTON
KNOWLEDCE
.
INNOVATION
.
ENTERPRISE
Mohamed Ismath Kalideen
BSC/QS/QR/02/1132951
04-April-2012
Mohamed Ismath Kalideen
Student No: 1132951
02 - June - 2013
Frame work for Competitive
Bidding
DISSERTATION PROPOSAL


Mohamed Ismath Kalideen (SN: 1132951)
Contents: Page No

1. Acknowledgement

2. Research Context 1

3. Research Aim and Objective(s) 3

4. Methodology 4

5. Restraints/Limitations 5

6. Research Program 5

7. References 6

8. Appendix 7



DISSERTATION PROPOSAL




ACKNOWLEDGMENT:-
In the Name of Allah, the Beneficent, the Merciful

First praise is to Allah, the Almighty, on whom ultimately we depend for sustenance and
guidance. Second, my sincere appreciation goes to my Module Leader Mr. J ohn
Reynolds & Module Team Dr Ezekiel Chinyio, Mr. Phil Harris & Mr. Neil Hingorani,
whose guidance, careful reading and constructive comments were valuable. His timely
and efficient contribution helped me shape this into its final form and I express my
sincerest appreciation for his assistance in any way that I may have asked.

I would like to express my greatest gratitude to the people who have helped & supported
me throughout my research proposal. A special thank of mine goes to my colleague who
helped me in completing the research proposal & he exchanged his interesting ideas,
thoughts & made this research proposal easy and accurate.

I wish to thank my parents for their undivided support and interest who inspired me and
encouraged me to go my own way, without whom I would be unable to complete my
research proposal. At last but not the least I want to thank my friends who appreciated me
for my work and motivated me.











Mohamed Ismath Kalideen (SN: 1132951)
DISSERTATION PROPOSAL




Mohamed Ismath Kalideen (SN: 1132951) 1
6CN010

ASSESSMENT 1: DISSERTATION PROPOSAL - TEMPLATE
This accounts for 20% of the marks for your Dissertation module
Submission date: 04
th
April 2012
GENERAL DETAILS
Note: Add in text to ALL sections, following the guidelines given in each section, and
using Ariel 11 font, 1.5 spaced. Do not change the margins on this form.

Research
Title:
Bidding strategy : the consultants' perspective
Student
Details:
Family
Name: Kalideen
First
Name: Mohamed Ismath
Phone: +966 5331 97941 Email: Km_ismath@yahoo.com

Student
No.: 1132951
Date
Submitted: 04th April 2012

DISSERTATION PROPOSAL

Research Context

Despite the effort of researchers in developing bidding models in the past half century,
bidding decisions nowadays are still primitively based mainly on intuition and subjective
experience.

Unlike theories in other research areas in which progressive enhancement is normally a
consequence of further research development, bidding theories and models proposes by
Friedman and Gates and their followers as well as through to modern researches are
however inconsistent and a sound theoretical framework is inadequate, as concluded by
Runeson and Skitmore (1999) in their article Tendering Theory Revisited, thus leading to
poor implementation of these theories and models practically.

Bidding can be interpreted on the basis of game theory which is the analysis of problems
involving the interactions of rational agents (Baumol, 1977). Revealed by this view is the
DISSERTATION PROPOSAL




Mohamed Ismath Kalideen (SN: 1132951) 2
interactive nature of bidding among competitors which complicate the way of making
bidding decisions. One of the reasons for the impracticability of previous models is their
normative nature which is the concept of optimization by utility maximization founded on
the neoclassical assumptions of perfect information, infinite sensitivity and maximizing
behavior. Normative decision models concerned with the way in which idealized, rational,
super-intelligent people should act. This research aims to develop a systematic bidding
model with a prescriptive nature focusing on its applicability in reality. Whilst a prescriptive
model concerned with how decision makers ought to behave, it does not depend on the
unrealistic assumptions of perfect sensitivity and complete knowledge. Prescriptive
models are essentially pragmatic in nature and are intended to offer guidelines which can
be followed, rather than idealized mathematical formulations. In contrast to normative
models, prescriptive models recognize the limitations imposed by bounded rationality
which originally introduced by Simon (1957) describing situations where decisions are
made in the absence of perfect information by humans who posses a limited processing
capacity as well as the concept of satisfying which is used to describe decision making
behavior which is based on the acceptance of solutions which are good enough.

In the context of bidding, perfect information is obviously impossible to achieve. Even if all
cost data could be obtained with complete reliability, the intractable problem of predicting
the competitors act would remain. Sensitive as bidding data is and thus its confidentiality
in competitors organizations, previous normative models by the application of
mathematical formulations does restrict their implementation in practice.

The systematic bidding model concluded in this research, being a prescriptive decision
model, intends to provide a framework to help the decision maker identify the issues
involved in the decision and think about them explicitly.

The above-mentioned bidding models plus other tools and techniques such as
Incremental Decision Process Model, system approach, contingency approach, Analytic
Hierarchy Process (AHP), etc. were integrated together to develop a systematic bidding
model which aims to be able to implement in the real world in a practical manner.

Established by integrating elements from this research, literature as well as off-the-shell
tools and techniques, the systematic bidding model is in a cyclic form comprising stages
of identification, development, selection and implementation. The rationale behind this
model is to systemize the intuitive and subjective decision making process currently
DISSERTATION PROPOSAL




Mohamed Ismath Kalideen (SN: 1132951) 3
adopted by bidders by guiding them through a logical and systematic process via which
relevant determinants are taken into account in order to come up with the bidding
decisions.

Being aimed at practicality, this research also proposes ways of implementing the
systematic bidding model which comprises phases including short term, medium term and
long term implementation.

Research Aim and Objective(s)

Aim

Introduce the concept and general background of bidding and bidding strategy based on
which theories and models have been proposing by researchers,

Objectives
Knowing the bidding scenario of the consultants in the construction industry, the prime
objective of this research is to study the behavior of the consultants in their decision
making process for making bidding decisions, thereby proposing a systematic bidding
model aimed at being able to be implemented practically in real situation.

Bidding decisions in respect of:

(a) Whether to bid or not to bid a project; and
(b) mark-up level determination;

Are particularly looked at by:

(a) Identifying the significant factors considered by local construction consultants
when making bidding decisions of:
(i) Whether to bid or not to bid a project; and
(ii) mark-up level determination;
(b) Analyzing the inter-relationships amongst the identified factors to reveal any
implication on the decision making process with regard to bidding;
(c) Developing bidding models for the making decisions of:
DISSERTATION PROPOSAL




Mohamed Ismath Kalideen (SN: 1132951) 4
(i) Whether to bid or not to bid a project; and
(ii) mark-up level determination;
Aiming at rationalising the decision making process for marking bidding decisions.

Findings from the above plus literature and other analytical approaches are put together in
order to develop a systematic bidding model which is capable of being able to be
implemented in a practical manner. The intention is to assist management in consultancy
companies in the construction industry to come up with bidding decisions by undergoing a
rationalized and systematic decision making process, rather than merely relying on
intuition and subjective experience.

For avoidance of doubt, the objective of this research is to generalize a systematic bidding
model by studying the bidding behavior of the practitioners in order to rationalize the well-
known subjective and intuitive bidding decision making process which is to some extent
dependent upon personal characteristics and even emotional factors, but not to develop a
golden rule or principle for bidding which is true for all scenarios nor to give any guarantee
on the chance of winning a bid by its application.

Methodology

Bidding is a dilemma in which the bid price has to be high enough to ensure profit but in
the meanwhile low enough to get the job won in order to make profit to maintain as well as
to expand the business. This section outlines the method adopted in this research to
analyze the behavior of making bidding decisions from the perspective of consultants in
the construction industry.

The objective of this research is therefore four-fold in that the factors affecting bidding
decisions, including bid/ no bid and mark-up level, are
1. Identified from the consultants perspective in the construction industry.
2. The relationship among these pre-requisites for making bidding decisions is analyzed.
3. Identified factors into modeling by means of discriminate analysis and multiple
regressions,
4. Models for classifying bid/ no bid clusters as well as the likely mark-up level are
established.

DISSERTATION PROPOSAL




Mohamed Ismath Kalideen (SN: 1132951) 5
These findings plus previous research findings and literature all contribute to the
development of a systematic bidding model which aims at providing to the consultants
with a logical and systematic model rather than relying on intuitive and subjective feeling
when making bidding decisions, which is a critical issue for existence of the company.
This approach is further described and elaborated in the following sub-sections.

Restraints/Limitations

Bidding strategy is a broad topic which is applicable in any sort of industries and
professions in which bidding process is involved. This research is however not intended to
study generically the bidding strategy in all situations but limited to the following:

(a) Bidding strategy is thought to be subjective and intuitive which is to some extent
geographical and cultural specific. This research looks at the bidding behavior of the
consultants in the construction industry only.
(b) This research deals with bidding strategy for consultancy companies only and
excludes bidding for construction works from the contractors point of view.
(c) Consultancy services in this research include consultancy services for building projects
and civil projects; and for new works projects as well as renovation works to existing
buildings or structures.
(d) Consultancy services in this research are limited to project based type services. As
defined in A Guide to the Project Management Body of Knowledge (PMBOK Guide), a
project is temporary in nature with a definitely beginning and a definite end which is in
contrast with operations which is day-to-day and long lasting in nature without a definite
end (Project Management Institute, 2000).
(e) Consultancy services in this occasion include the services provided in feasibility stage
and design stage as well as during construction stage.

Research Programme

Please refer the Appendix I


DISSERTATION PROPOSAL




Mohamed Ismath Kalideen (SN: 1132951) 6
References

Ahmad, I. (1990). Decision Support System for Modeling Bid/No Bid Decision Problem.
J ournal of Construction Engineering and Management, American Society of civil
Engineers.

Benjamin, N. and Meador, R. (1979).A Comparison of Friedman and Gates Competitive
Bidding Models.ASCE J ournal of Construction Division.

Broemser, G.M. (1938). Competitive Bidding in the Construction Indsutry. Ann Arbor,
Mich: Unviersity Microfilms International, 1994.

Baumol, W.J . (1977). Economic Theory and Operations Analysis. 4th edition. Prentice
Hall, Englewood Cliffs, NJ .

Friedman, L. (1957). Bidding Models, in Introduction to Operations Research. Churchman,
C.W., Ackoff, R.L. and Amoff, E.L., (eds), New York: Wiley.

Gates, M. (1967). Bidding Strategies and Probabilities. J ournal of the Construction
Division. American Society of Civil Engineers.

Gates, M. (1970). Closure to Bidding Strategies and Probabilities. ASCE J ournal of the
Construction Division.

Gates, M. (1976). Gates Bidding Model a Monte Carlo Experiment. ASCE J ournal of the
Construction Division.

Lo, H.P. and Lam, M.L. (2001). A Bidding Strategy Using Multivariate Distribution, J ournal
of Financial Management of Property and Construction.

Marsh, P.D.V. (1989). Art of Tendering - Successful Bidding and Tendering, England:
Wildwood House.

Herman, H (1998). The Consultant's Guide to Proposal Writing: How to Satisfy Your
Clients and Double Your Income (3rd Edition). New York: Wiley.

Nickson, David (2003). The Bid Manager's Handbook. Burlington, V.T.: Gower.

Park, William R., P.E. (1979) Construction Bidding for Profit, Canada: J ohn Wiley & Sons
Inc.
DISSERTATION PROPOSAL




Mohamed Ismath Kalideen (SN: 1132951) 7

Lewis, Harold (2003). Bids, Tenders & Proposals: Writing Business Through Best Practice
London and Sterling, VA: Kogan Page Ltd.

Runeson, G. and Skitmore, M. (1999). Tendering Theory Revisited. Construction
management and Economics.
Simon, H.A. (1957). Administrative Behaviour. 2nd edition. New York: MacMillian.

Wanous, M, Boussabaine, H.A. & Lewis, L. (2003). A Neural Network Bid/No Bid Model:
the Case for Contractors in Syria. Journal of Construction Management and Economics
(October 2003).


Appendix

Appendix I Research Programme

Appendix II Dissertation Form

Appendix III - Amended Ethics Student Form
DISSERTATION PROPOSAL
October November December January February March April May June July August September October
1
Carry out research proposal with
multiple topic
2
Select suitable topic & module
leader approval
3
Project Inception Work &
collecting the resources
4
Completion of Dissertation
Proposal & Ethics forms.
5
Informal consultations with
module leader and tutors
6 Overview of proposal & Research
into selective topic allocation
7 Case study reseach & Submission
of dissertation Proposal
8
Waitting for Proposal marked and
feedback
9
Investigation finding from
feedback
10
Complete conclusion and
recommendation
11 Discussion with Module leader &
tutor getting advise on conclusion
12 Preparing Final Draught
13
Complition & Submission of Final
Dissertation
Research Programme (2011/2012)
Appendix I
2011 2012
Task to be carried out No
Mohamed Ismath Kalideen (SN: 1132951)
6CN010 DISSERTATION INCEPTION FORM
School of Technology Built Environment

_______________________________________________________________________________________

This form is an ideas forming tool to help you to select a provisional topic for your dissertation and
ultimately arrive at a research question which will form the aim of your dissertation.

What area of construction do you work in? Working in Tendering Department as a Tendering
Engineer of Power Substation Making Company. (My Contract up to J une 2012)

What is your main role?
1. Check the initial tender documents received from various clients.
2. Prepare soft copy and segregate the documents and give to concerned tender engineers for further
processing.
3. Collect all pre bid clarifications and inform to all concerned.
4. Study and send enquires for the particular scope of work allotted.
5. Study the technical offers for its correctness and completeness.
6. Site visit and preparation of report and send to all tender engineers.
7. Attend bid opening meetings.
8. Cooperate with all other tender engineers.
9. Keep all the documents In proper manner.

Identify five issues/topic areas that have a significant effect on the Qatar construction industry and
the way in which it will develop or operate in the future?
1. Studying Duties and Skills of Qatar Quantity Surveyors.
2. An Investigation into the Performance of Selective Tendering in Qatar Construction Industry
3. Development of A Framework for Total Quality Management Principles to the Construction
Companies in the State of Qatar.
4. Effectiveness of technology transfer in the search for sustainable development: the case of Qatar
5. Cost control in the period of recession: Post tender cost control and cost reduction in a contractor
organization in Qatar

Identify three issues/topic areas that have a significant effect on your own working practices and
company/organisation?
1. Bidding strategy: the consultant perspective.
2. Total Cost Management at the Design Stage Using a Building Product Model.
3. Life cycle costing (LCC) as a contribution to sustainable construction: a common methodology
What areas of construction are you interested in?
Building Construction


What sources of information do you have access to? (including people)

I believe that the books, journals, construction article & internet browsing will help to carry out my
research.

After selecting the heading; I want to find out people who are working related to my heading.
Appendix II
6CN010 DISSERTATION INCEPTION FORM
School of Technology Built Environment

_______________________________________________________________________________________

Write out two potential research questions


A) What do I have to think about & how do I know whether my dissertation topic is achievable?

B) Most importantly, will my study have a significant impact on my field?








































UNIVERSITY OF WOLVERHAMPTON
SCHOOL OF TECHNOLOGY

ETHICAL CONSIDERATION FOR STUDENTS STUDYING TAUGHT
PROGRAMMES
Please tick () aspects relevant to you and your investigation
Section 1: Your details
First Name & Surname: Mohamed Ismath Kalideen Student No: 1132951
Course: BSc (Hons) in Quantity Surveying
Project Title Bidding strategy : the consultants' perspective

Section 2: Your Project Topic
2.1 What problem/issue is this project addressing? (100
words or less)
Interviewing expert in the field is very
difficult in Saudi arabia
2.2 Will information or artefact resulting from your project
be available externally to the University?

No
2.2.1
If you answered yes to 2.2,
Will any such information place anyone at risk or possibly
result in any action that might be detrimental to their
wellbeing? (See guidelines)
Yes
2.2.2
In what format will the information or artefact be made
available?
Reference from books

Section 3: Method of Data Collection
3.1 Does any part of your proposed project involve human
participants?
If No go to Section 4.
No

3.1.1
If you answered yes to 3.1,
Is the sole involvement of human participants in order to
provide opinions to support the specification or testing of an
artefact to be produced as an outcome of the project?
Yes/No?



3.1.2
If you answered yes to 3.1.1,
Does this artefact/information have any characteristics
which might be detrimental to the wellbeing of any human
participants in your project? If so, explain.
Yes/No?
3.2
If you answered yes to 3.1,
Are there other ways you might meet your project aims
without involving human participants? If not, why?
If yes discuss with your Supervisor how you will achieve
this and go to section 4.

3.2.1
How will you select your participants?

3.2.2
How many participants will you contact?

3.2.3
How will you approach potential participants? E.g. email,
letter, face to face, telephone?


3.2.4
Are your participants adults? (over 18 and competent to
give consent) If no, answer 3.2.5
Yes/No?

3.2.5
Are your participants children or adults over 18 and not
competent to give consent? If yes, why is it necessary to
involve these participants? (See guidelines)
Explain how you will ensure parental/guardian consent.




1

Appendix III
3.2.6
Are you offering any incentives to any of your participants,
financial or otherwise? (See guidelines)
Yes/No?

3.2.7
How much time do you estimate will be needed from any
participants? (See guidelines)

3.2.8
Please list the method of data collection and analysis
intended to be used

3.2.9
Will all of the data collected contribute towards your
results?


Section 4: Confidentiality and data handling
Please read methods of ensuring confidentiality in the guidelines.
4.1 Will you ensure the anonymity of data collected from/and about
participants?
Yes
4.2 Will you store/protect data collected from individuals e.g.
password protected files?
Yes
4.3 Once your project is complete and information is no longer
needed, will you destroy your data?
No
4.4 Will anyone else have access to the data collected? No
If so,
(i) please name the individuals and/or groups that will have access;
(ii) why is access being given to those listed in (i)?


Section 5: Working with other parties and companies
5.1 Will you be using data on subjects held by another party or
organisation?
No
If Yes,
(i) Please refer to the covering letter template
(ii) How will you gain access to this information?

NB: If working with another organisation or company please familiarise yourself with their Health
& Safety procedures.

Things you must be aware of:

Data Protection Act: http://www.ico.gov.uk/what_we_cover/data_protection.aspx
Freedom of Information Act: http://www.opsi.gov.uk/Acts/acts2000/ukpga_20000036_en_1
University of Wolverhampton Ethical Approval Procedural Guidelines

Checklist:
1. Please include an introductory cover letter stating some information about you, your project
proposal and how your data will be used.
2. In addition, if you are using a questionnaire or interview sheet please include a list of sample
questions with your submission.
3. Final versions of questionnaires and interview questions to be submitted to supervisor for
confirmation of fitness for purpose BEFORE any data is collected.


2


Students Declaration
Sign and date against one declaration only
Category 0. I have answered
No to questions 2.2 and 3.1.
My project involves no human participation except for myself and I
agree to ensure that any information or artefact produced will not be
available outside the University.

Category A1. I have answered (delete one from each block)

Yes to questions 2.2, 4.1, 4.2 and 4.3 and No to
questions 2.2.1 and 4.4.
No to question 2.2

My project involves limited human participation and I agree to
ensure that
(i) any such participation is not detrimental in any way to
the interests of the participants;
(ii) all information collected as a part of the project will be
handled in accordance with the answers that I gave to
question 4;
(iii) No information or artefacts which may place anyone at
risk or be detrimental to their wellbeing will be made
available outside the University.

Category A2. I have answered
Yes to question 3.1
or I have answered
Yes to question 2.2
and my answers to subsequent questions prevent the project being
classified as A1.
My project involves human participation and may present some risk
to participants. I have considered alternative means of pursuing the
project which do not entail this risk but believe that there is no
practicable alternative. I agree to ensure that I take all necessary
steps to minimise risks to participants and third parties. I agree not
to proceed with any activities involving human participation until I
have received approval from the Department Ethics Panel.

Category B-E. My project does not conform to Category 0, A1 or
A2. I have considered alternative means of pursuing the project
which do not entail risk to human participants but believe that there
is no practicable alternative to the proposal made. I agree to ensure
that I take all necessary steps to minimise risks to participants. I
agree not to proceed with any activities involving human
participation until I have received approval from the School or
University Ethics Committee, as appropriate.


Supervisors Declaration
Sign and date against one declaration only
Category 0 or A1. I concur with the classification of this project as
0 or A1 and authorise continuation of the project. I have forwarded
a copy of this form to the Department Ethics Panel for monitoring
purposes.

Other. I believe that this project should be classified other than 0 or
A1. I do not authorise continuation of the project until approval has
been received from the appropriate Ethics Panel or Committee. I
have forwarded a copy of this form to the Department Ethics Panel
for consideration.


3

FOR SUPERVISOR/PANEL/COMMITTEE USE ONLY:

CLASSIFICATION ALLOCATED BY SUPERVISOR
Supervisor Action: Authorise and forward to DEP Date
DEP Action: File for possible monitoring Date
Selected for monitoring (tick) Date
Classification agreed? Yes No If No, give:
reason
0, A1

action
Supervisor Action: Refer to DEP for decision Date
CLASSIFICATION ALLOCATED BY DEPARTMENT ETHICS PANEL
0, A1 DEP Action: Project authorised to continue Date
Considered by DEP below Date
2.2 Is any risk associated with access to project acceptable in
context? If no, give reasons below:
Yes No

3.1 Is involvement of human participants justified? If no, give
reasons below:
Yes No

3.3 Is experimental method acceptable with regard to risk and
inconvenience to participants? If no, give reasons below:
Yes No

4 Are arrangements for confidentiality and data protection
appropriate? If no, give reasons below
Yes No

5 Do arrangements for working with external bodies protect
interests of participants and the external bodies? If no, give
reasons below
Yes No

DEP Action: Continuation of project
approved:
Yes No Date
A2
Conditions:
DEP Action: Refer to School Ethics Committee Date
CLASSIFICATION ALLOCATED BY SCHOOL ETHICS COMMITTEE
0, A1 SEC Action: Continuation of project approved Date
Considered by SEC below Date
2.2 Is any risk associated with access to project
acceptable in context? If no, give reasons below:
Yes No

3.1 Is involvement of human participants justified? If
no, give reasons below:
Yes No

3.3 Is experimental method acceptable with regard to
risk and inconvenience to participants? If no, give
reasons below:
Yes No

4 Are arrangements for confidentiality and data
protection appropriate? If no, give reasons below
Yes No

5 Do arrangements for working with external bodies
protect interests of participants and the external
bodies? If no, give reasons below
Yes No

SEC Action: Continuation of
project approved:
Yes No Date
A2, B
Conditions:
Other
Other
Other SEC Action: Refer to University Ethics
Committee
Date

4