Release of Construction Clients’ Pre-tender Cost Estimates: An Experimental Study

Clients engage consultant quantity surveyors or cost engineers to perform project cost estimates before calling for tender submissions. This experimental study examines the impact of releasing the clients’ pre-tender cost estimates prior to bidding on student subjects’ bidding behavioural patterns, and the extents to which their bidding tends to agree with the behavioural patterns proposed by Milgrom and Weber’s theory. The results show that the provision of clients’ pre-tender cost estimates prior to bidding does affect bidders’ bidding behaviour. Bidders with access to the clients’ pre-tender cost estimates prior to bidding, on average, recorded lower bids than those with no access to the estimate. However, the lower average bids do not result in statistically significant lower winning bids. These findings provide evidence in support of Milgrom and Weber’s theory, demonstrating the practicality of an experimental approach using student subjects for testing theories in building economics research. The practical implication is that construction clients would need to consider their information policy on releasing pre-tender cost estimates to enhance efficiency in their procurement for construction services

On the external validity of construction bidding experiment

The external validity of experimental studies and in particular, the subject pool effects have been much debated among researchers. The common objections are that the use of student as experimental subjects is invalid as they are likely to be unrepresentative. This paper addresses this methodological aspect in building economics research. It compares the bidding behavioural patterns of experienced construction executives (professionals) and student subjects through replication of a bidding experiment that aimed at testing theories. The results show that the student subjects’ bidding behavourial patterns, in terms of decision to bid and mark-up decision, are sufficiently similar to that of the professionals. This suggests that the subject pool per se is not a threat to the external validity of the bidding experiment. In addition, the demonstrated practicality of an experimental approach in testing theories should lead to more use of experimental studies with student subjects in building economics research. It is suggested that experimental and field findings should be seen as complementary in building economics research, as advocated in social sciences.  

Construction Procurement: Modelling Bidders’ Learning in Recurrent Bidding

Construction remains a significant area of public expenditure. An understanding of the process of changes in construction pricing, and how the process can be manipulated through the release of bidding feedback information is vital, in order to best design clients’ procurement policies. This paper aims to statistically model inexperienced individual bidders’ learning in recurrent bidding under partial and full information feedback conditions. Using an experimental dataset, the developed linear mixed model contains three predictor variables, namely: time factor, information feedback conditions, and bidding success rate in the preceding round. The results show nonlinearity and curvature in the bidders’ learning curves. They are generally less competitive in time periods after a winning bid with lower average bids submitted by those subjected to full information feedback condition. In addition, the model has captured the existence of heterogeneity across bidders with individual-specific parameter estimates that demonstrate the uniqueness of individual bidders’ learning curves in recurrent bidding. The findings advocate for adequate bidding feedback information in clients’ procurement design to facilitate learning among contractors, which may in turn lead to increased competitiveness in their bids

Changes in Job Situations for Women Workforce in Construction during the COVID-19 Pandemic

The COVID-19 pandemic has introduced unique circumstances to women workforce in construction including the need to work from home, changes in job situations and family responsibilities following the lockdowns. This exploratory study was conducted around six months into the pandemic in examining the changes of their job situations, and their perceptions of career aspects during the pandemic. The results show that most respondents were employed full-time at the time of survey, and that there were profound changes to their work location and working hours including working from home and worked more hours than usual. Their perceived negative impacts of the pandemic on their capacity to engage in paid work activities due to caring responsibilities, pay or earnings, job security, and career progression and advancement are modest. They were also seemingly confident in staying in their job in the next 12-month. Their perceptions have been found significantly associated with their age, education level, and years of experience in the industry. These findings provide a critical insight on women’s job situations in the industry during the pandemic, with implications for human resource practices towards addressing the challenges in retention of women workforce during and post COVID-19 pandemic

Sustainable Procurement in Australia: Quantity Surveyors' Perception on Life Cycle Costing

Life cycle costing (LCC) has long been recognised as one of the essential techniques for sustainable development. Over the past decades, the use of LCC in the industry has been restricted and building stakeholders are blaming each other for its limited application. The research aims to investigate quantity surveyors'perception towards LCC implementation in Australia by specifically examining their general awareness and application of LCC; determining the key obstacles hindering LCC implementation; and identifying the key enablers for LCC implementation. An online survey of 24 quantity surveying professionals was undertaken. The overall results indicate that quantity surveying professionals do have basic knowledge of LCC and appreciate its benefits. However, the results suggest that clients and architects are the key culprits for hindering the implementation of LCC by placing greater emphasis on initial costs and design over strategic value of an asset. For wider application, it is suggested that government and professional bodies play a vital role to enforcing and promoting the future use of LCC. In conclusion, the research informs building stakeholders the key issues in LCC implementation and adds to the existing body of knowledge on LCC application for future research to be undertaken

Women Workforce in Construction during the COVID-19 Pandemic: Challenges and Strategies

Changes and challenges in employment are inevitable under the measures enacted to contain the COVID-19 pandemic. Early evidence suggests that the pandemic would disproportionately affect women compared to men. Focussing on women workforce in construction, this exploratory study examines the challenges associated with changes in their job situations, the adopted strategies in addressing the challenges and their opinions on employment situation of women workforce during the pandemic. Results of a content analysis show that the top ranked challenges are: (i) overworked; (ii) working space; (iii) social interactions; (iv) collaboration; and (v) parenting. The most cited strategies in addressing these challenges are: (i) increased visual communication; (ii) a dedicated workspace; (iii) self-scheduling; (iv) flexible working arrangements; and (v) breaking out work time and personal time. The evidence is suggestive that most challenges are interrelated, and the strategies adopted by the respondents are multi-level and interdependent. The results also show that the most mentioned opinion is the increased caring and domestic responsibilities among women workforce. Under the uncertainty about the duration of the pandemic and future contagion waves, these findings are critical in informing employing organizations’ human resource management challenges to better support their female employees during pandemic time and beyond

Early career women in construction: Are their career expectations being met?

The recruitment, retention and development of early career women have always been a challenge in the construction industry. With the focus on early career women or new female construction management degree graduate hires in construction, this study explores: (i) factors influencing their choice of career in construction; (ii) the extent of which their career expectations were met in their first few years of job experience; and (iii) how their met or unmet career expectations are related their overall job satisfaction. Data was collected using an online survey questionnaire. The results show that the top significant factors influencing the respondents’ career choice are career opportunities and belief of getting better pay. Their career expectations, on the other hand, were met or exceeded to a great extent for almost all the measurement items. The results also show that the respondents have a relatively high overall job satisfaction level. Although there is lack of evidence that their overall job satisfaction increased as met career expectations increased, there are statistically significant positive correlations among the career expectation measurement items. These findings have implications for human resource practices of construction employers that aimed to attract early career women into the industry, and to reinforce their met career expectations and job satisfaction

Information Feedback and Learning in Construction Bidding

Information feedback condition in recurrent construction bidding is an important design variable about optimal procurement design. Contractors tend to optimize their bids in recurrent bidding with positive review of historic bids. Our experiment examines the effects of partial and no information feedback conditions on student (inexperienced) bidders’ bidding trends, and the extent to which their bidding trends agree with the behavioural patterns proposed by learning direction theory. The results show that the variations in bids over time for both information feedback conditions are statistically significant. Although the bidders with partial bidding feedback information are more likely to vary their bids as indicated by learning direction theory, their bids are less competitive than those with no bidding feedback information. Construction clients would need to consider the information feedback conditions in their procurement of construction services with the goal to achieve efficiency in construction bidding

Users’ long-term satisfaction with post-disaster permanent housing: a case study of 2010 Merapi Eruption, Indonesia

An objective evaluation of users’ long-term satisfaction with the post-disaster permanent housing provided is important for judging the successes or failures of housing reconstruction programs. Focussing on four resettlement sites built via the REKOMPAK program after the 2010 Merapi eruption, this paper examines the users’ long-term satisfaction with the provided housing, and explores how their satisfaction level relates to their demographic characteristics and level of participation in the reconstruction processes. The results show that the households are in overall satisfied with the present housing. Their overall satisfaction level is statistically positively associated with household income, but not their level of participation and other demographic characteristics. These findings provide evidence on a satisfactory outcome in the long-term for the REKOMPAK, a community-based reconstruction program that was implemented in Indonesia since 2004, and a useful insight for local authorities, humanitarian and other agencies involved in post-disaster reconstruction program