E-readiness of construction contract forms and e-tendering software

Robert Eadie, Phillip Millar, Srinath Perera, George Heaney, Gerald Barton

Research output: Contribution to journalArticle

9 Citations (Scopus)

Abstract

Eadie et al. (2010a, 2010b) reported on a set of drivers and barriers to construction e-procurement which encompasses e-tendering. The study identified 20 drivers and 30 barriers to e-procurement. Legal issues were identified collectively as one of the most important barriers. Although Martin (2003, 2008) identified that the impact of e-procurement and e-tendering had not been as expected, he nevertheless indicated that e-tendering could improve the tender process. This paper reports on an investigation into the e-readiness of the four most popular forms of contract. It also considers the attempt of the Royal Institution of Chartered Surveyors (RICS) to promote e-procurement software as a standard for the private sector of the construction industry. The paper concludes that the NEC Form of Contract is the most e-ready followed by the JCT 2005 Form of Contract. It also establishes that there is still a considerable gap in achieving industry standard e-procurement software solutions.
LanguageEnglish
Pages1-26
JournalInternational Journal of Procurement Management
Volume5
Issue number1
DOIs
Publication statusPublished - 5 Jan 2012

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Construction contracts
E-readiness
Tendering
Software
E-procurement
Construction industry
Legal issues
Industry standards
Private sector

Keywords

  • construction contract forms
  • electronic procurement
  • e-procurement use
  • e-readiness
  • e-tendering
  • electronic tendering
  • tender process
  • forms of contract.

Cite this

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title = "E-readiness of construction contract forms and e-tendering software",
abstract = "Eadie et al. (2010a, 2010b) reported on a set of drivers and barriers to construction e-procurement which encompasses e-tendering. The study identified 20 drivers and 30 barriers to e-procurement. Legal issues were identified collectively as one of the most important barriers. Although Martin (2003, 2008) identified that the impact of e-procurement and e-tendering had not been as expected, he nevertheless indicated that e-tendering could improve the tender process. This paper reports on an investigation into the e-readiness of the four most popular forms of contract. It also considers the attempt of the Royal Institution of Chartered Surveyors (RICS) to promote e-procurement software as a standard for the private sector of the construction industry. The paper concludes that the NEC Form of Contract is the most e-ready followed by the JCT 2005 Form of Contract. It also establishes that there is still a considerable gap in achieving industry standard e-procurement software solutions.",
keywords = "construction contract forms, electronic procurement, e-procurement use, e-readiness, e-tendering, electronic tendering, tender process, forms of contract.",
author = "Robert Eadie and Phillip Millar and Srinath Perera and George Heaney and Gerald Barton",
note = "Reference text: ACA (2000) ‘PPC2000 ACA Standard Form of Contract for project partnering, 2000’, Association of Consultant Architects, Bromley, UK. ACA (2003) ‘PPC 2000 the ACA Standard Form of Contract for project partnering’, available at http://www.acarchitects.co.uk/pdfs/PPC2000{\%}20-{\%}20Introduction{\%}20&{\%}20Taster{\%}20Jun03.PDF (accessed on March 2009). ACA (2009) ‘About PPC2000 and SPC2000 & their international versions’, available at http://www.ppc2000.co.uk/PPC2000.htm (accessed on March 2009). Achieving Excellence (2006) ‘Managing contract changes’ available at http://www.constructingexcellence.org.uk/pdf/insitemagazine_november_2006.pdf (accessed on March 2009). Alshawi, M. (2007) Rethinking IT in Construction and Engineering: Organisational Readiness, Taylor and Francis, UK. Always Associates (2007) ‘Website’, available at http://www.alway-associates.co.uk/nec-formscontract.asp (accessed on June 2008). Arup (2008) ‘Partnering contract review’, OGC report of 25th September 2008, available at http://www.constructingexcellence.org.uk/news/Pertnering_contract_review.pdf (accessed on March 2009). Atkinson, D. (2001) ‘NEC/ECC overview main options A-F’, Atkinson Law, available at http://www.atkinson-law.com/cases/StandardForms/NEC/ECC_Article_003.htm (accessed on March 2009). Barnes, M. (2003) ‘NEC a decade of success’, NEC Usersgroup Newsletter No. 25 April 2003, available at http://www.neccontract.com/documents/news/necnews25.pdf#search ={\%}22JCT{\%}20contract{\%}20EDI{\%}20{\%}22 (accessed on June 2008). Boulding, P. (2006) ‘The JCT 2005 Standard Forms of Construction Contract’, seminar by Keating Chambers Barristers, available at http://www.keatingchambers.co.uk/resources/publications/2006/pb_jct_2005_standard_forms.aspx (accessed on March 2009). Brook, M. (2008) Estimating and Tendering for Construction Work, Butterworth-Heinemann, UK. Broome, J (1999) The NEC Engineering and Construction Contract: A User’s Guide, Thomas Telford, UK. Broome, J. and Hayes, R. (1997) ‘A comparison of the clarity of traditional construction contracts and of the New Engineering Contract’, International Journal of Project Management, Vol. 15, No. 4, pp.255–261. Brunswick (2008) ‘Brunswick’s Website’, available at http://www.brunswickis.co.uk/standardform-contract/jct-forms-contract.asp (accessed on July 2008). Carayannis, E. and Popescu, D. (2005) ‘Profiling a methodology for economic growth and convergence: learning from the EU e-procurement experience for central and eastern European countries’, Technovation, Vol. 25, pp.1–14. Chappell, D. (2003) Understanding JCT Standard Building Contracts, 7th ed., Taylor & Francis,UK. Chappell, D. (2007) The JCT Design and Build Contract 2005, 3rd ed., Blackwell Publishing, UK. Chappell, D. and Parris, J. (2002) Parris’s Standard Form of Building Contract: JCT 98, 3rd ed.,Blackwell Publishing, UK. CIC (2004) ‘On-line bidding’, available at http://www.secgroup.org.uk/pdfs/brief/04/ onlinebidjan04.pdf (accessed on March 2009). Construction Partnership UK Ltd. Vs Leek Developments Ltd. (2006) available at http://www.nadr.co.uk/articles/published/ConstructionLawReport/Construction{\%}20v{\%}20Leek{\%}202006.pdf (accessed on February 2011). Davila, A., Gupta, M. and Palmer, R. (2003) ‘Moving procurement systems to the internet: the adoption and use of e-procurement technology models’, European Management Journal, Vol. 21, No. 1, pp.11–23. Davison, J. (2006) JCT 2005, Whats New, Coventry, RICS Books. DFP (2007) ‘Construction procurement guide’, available at http://www.cpdni.gov.uk/construction_procurement_guide_master.pdf (accessed on March 2009). di Gregorio, S. (2000) ‘Using NVIVO for your literature review’, Proceedings of Strategies in Qualitative Research: Issues and Results from Analysis Using QSR NVIVO AND NUD*IST, Institute of Education, London, 29–30 September, available at http://www.sdgassociates.com/downloads/literature_review.pdf (accessed on March 2009). Doig, D. (2006) ‘Changes, revisions and amendments arising from the update to the JCT Suite of Contracts published in the JCT 05 Form’, available at http://www.solomonseurope.co.uk/uploadedfiles/PDFs/JCT_Suite.pdf#search={\%}22JCT{\%}2005{\%}20{\%}22electronic{\%}22{\%}20standard{\%}20form{\%}20of{\%}20contract{\%}22 (accessed on March 2009). Eadie, R., Perera, S. and Heaney, G. (2010a) ‘A cross discipline comparison of rankings of e-procurement drivers and barriers for UK construction organisations’, ITcon, Vol. 15, pp.217–233, available at http://www.itcon.org/2010/17. Eadie, R., Perera, S. and Heaney, G. (2010b) ‘Identification of e-procurement drivers and barriers for UK construction organisations and ranking of these from the perspective of quantity surveyors’, ITcon, Vol. 15, pp.23–43, available at http://www.itcon.org/2010/2. Eadie, R., Perera, S., Heaney, G. and Carlisle, J. (2007) ‘Drivers and barriers to public sector e-procurement within Northern Ireland’s construction industry’, ITcon Journal, Vol. 12, pp.103–120, available at http://www.itcon.org/2007/6. Eggleston, B. (2001) The ICE Conditions of Contract, Blackwell Publishing, UK. Eggleston, B. (2006) The NEC3 Engineering and Construction Contract, 2nd ed., Blackwell Publishing, UK. Gerrard, R. (2005) ‘NEC3 gets UK Government endorsement’, Civil Engineering, Thomas Telford, UK, Vol. 158, No. 3, p.99. Hackett, M., Robinson, I. and Statham, G. (Eds.) (2007) The Aqua Group Guide to Procurement, Tendering & Contract Administration, Blackwell Publishing, Oxford. Hassen, T. (2002) ‘E-legal specifying legal terms of contract in ICT environment state of the art assessment funded by the European Community under the ‘information society technology’ programme (1998–2002)’, available at http://cic.vtt.fi/projects/elegal/public.html (accessed on February 2010). ICE (1995) NEC2 Conditions of Contract, Thomas Telford, UK. ICE (1999) ICE Conditions of Contract, 7th ed., Thomas Telford, UK. ICE (2002) ICE Term Conditions of Contract, 1st ed., Thomas Telford, UK, September. ICE (2005) NEC3 Conditions of Contract, Thomas Telford, UK. ICE (2008) ‘ICE website’ available at http://www.ice.org.uk/knowledge/contracts_conditions_of_contract.asp (accessed on April 2008). Improvement and Development Agency (2005) ‘E-tendering, London, Improvement and Development Agency’, available at http://www.idea.gov.uk/idk/core/page.do?pageId=82667 (accessed on 4 January 2010). Irani, Z. and Love, P.E.D. (2002) ‘Developing a frame of reference for ex-ante IT/IS investment evaluation’, European Journal of Information Systems, available at http://www.palgravejournals.com (accessed on December 2009). JCT (1998) Electronic Data Interchange in the Construction Industry, RIBA Publications, UK JCT (2005) JCT Suite of Construction Contracts, Sweet and Maxwell, UK. JCT (2008a) Deciding on the Appropriate JCT Contract, Sweet & Maxwell, London, UK. JCT (2008b) Whats New!, available at http://www.jctcontracts.com/JCT/whatsnew.jsp (accessed on March 2009). Jones, G. (1997) ‘Incentivising public service contracts: a methodology and recommendations’, European Journal of Purchasing & Supply Management, December, Vol. 3, No. 4, pp.233–240. Jones, N. and Baylis, S. (1999) Jones & Bergman’s JCT Intermediate Form of Contract, Blackwell Publishing, UK. Kassim, E. and Hussin, H. (2010) ‘Public e-procurement: a research synthesis’, in Proceedings of 2010 International Conference on E-Education, E-Business, E-Management and E-Learning, ic4e, pp.150–154. Lando, O. (1996) ‘Principles of European Contract Law’, in Proceedings of The EU-Japan Legal Dialogue, Kyoto, Japan, 21–22 November, available at http://www.kclc.or.jp/english/sympo/EUDialogue/lando.htm (accessed on June 2007). Latham, S.M. (1994) ‘Constructing the team’, Joint government of industry review of procurement and contractual arrangements in the UK construction industry, Her Majesty’s Stationary Office, London. Lavelle, D. and Bardon, A. (2009) ‘E-tendering in construction: time for a change?’, Interdisciplinary Studies in the Built and Virtual Environment, Vol. 2, No. 2, pp.104–113. Limesurvey (2010) ‘Limesurvey website’, available at http://www.limesurvey.org/ (accessed on September 2010). Lou, C. and Alshawi, M. (2009) ‘Critical success factors for e-tendering implementation in construction collaborative environments: people and process issues’, Journal of Information Technology in Construction (ITcon), Vol. 14, pp.98–109, available at http://www.itcon.org/2009/10. Martin, J. (2003) ‘E-procurement and extranets in the UK construction industry’, Conference paper given at FIG Working Week, Paris, France, 13–17 April, available at http://www.fig.net/figtree/pub/fig_2003/TS_6/TS6_4_Martin.pdf (accessed on December 2009). Martin, J. (2008) ‘E-tendering about time too’, RICS paper, available at http://www.rics.org/NR/rdonlyres/5B41E38D-2433-4AEE-A3DC-5B3C3BB84FB5/0/EtenderingabouttimetooJoeMartin.pdf (accessed on December 2009). Molla, A. and Licker, P. (2005) ‘Perceived e-readiness factors in e-commerce adoption: an empirical investigation in a developing country’, International Journal of Electronic Commerce, Fall, Vol. 10, No. 1, pp.83–110. Mutze, M., Senff, T. and M{\"o}ller, J. 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E-readiness of construction contract forms and e-tendering software. / Eadie, Robert; Millar, Phillip; Perera, Srinath; Heaney, George; Barton, Gerald.

In: International Journal of Procurement Management, Vol. 5, No. 1, 05.01.2012, p. 1-26.

Research output: Contribution to journalArticle

TY - JOUR

T1 - E-readiness of construction contract forms and e-tendering software

AU - Eadie, Robert

AU - Millar, Phillip

AU - Perera, Srinath

AU - Heaney, George

AU - Barton, Gerald

N1 - Reference text: ACA (2000) ‘PPC2000 ACA Standard Form of Contract for project partnering, 2000’, Association of Consultant Architects, Bromley, UK. ACA (2003) ‘PPC 2000 the ACA Standard Form of Contract for project partnering’, available at http://www.acarchitects.co.uk/pdfs/PPC2000%20-%20Introduction%20&%20Taster%20Jun03.PDF (accessed on March 2009). ACA (2009) ‘About PPC2000 and SPC2000 & their international versions’, available at http://www.ppc2000.co.uk/PPC2000.htm (accessed on March 2009). Achieving Excellence (2006) ‘Managing contract changes’ available at http://www.constructingexcellence.org.uk/pdf/insitemagazine_november_2006.pdf (accessed on March 2009). Alshawi, M. (2007) Rethinking IT in Construction and Engineering: Organisational Readiness, Taylor and Francis, UK. Always Associates (2007) ‘Website’, available at http://www.alway-associates.co.uk/nec-formscontract.asp (accessed on June 2008). Arup (2008) ‘Partnering contract review’, OGC report of 25th September 2008, available at http://www.constructingexcellence.org.uk/news/Pertnering_contract_review.pdf (accessed on March 2009). Atkinson, D. (2001) ‘NEC/ECC overview main options A-F’, Atkinson Law, available at http://www.atkinson-law.com/cases/StandardForms/NEC/ECC_Article_003.htm (accessed on March 2009). Barnes, M. (2003) ‘NEC a decade of success’, NEC Usersgroup Newsletter No. 25 April 2003, available at http://www.neccontract.com/documents/news/necnews25.pdf#search =%22JCT%20contract%20EDI%20%22 (accessed on June 2008). Boulding, P. (2006) ‘The JCT 2005 Standard Forms of Construction Contract’, seminar by Keating Chambers Barristers, available at http://www.keatingchambers.co.uk/resources/publications/2006/pb_jct_2005_standard_forms.aspx (accessed on March 2009). Brook, M. (2008) Estimating and Tendering for Construction Work, Butterworth-Heinemann, UK. Broome, J (1999) The NEC Engineering and Construction Contract: A User’s Guide, Thomas Telford, UK. Broome, J. and Hayes, R. (1997) ‘A comparison of the clarity of traditional construction contracts and of the New Engineering Contract’, International Journal of Project Management, Vol. 15, No. 4, pp.255–261. Brunswick (2008) ‘Brunswick’s Website’, available at http://www.brunswickis.co.uk/standardform-contract/jct-forms-contract.asp (accessed on July 2008). Carayannis, E. and Popescu, D. (2005) ‘Profiling a methodology for economic growth and convergence: learning from the EU e-procurement experience for central and eastern European countries’, Technovation, Vol. 25, pp.1–14. Chappell, D. (2003) Understanding JCT Standard Building Contracts, 7th ed., Taylor & Francis,UK. Chappell, D. (2007) The JCT Design and Build Contract 2005, 3rd ed., Blackwell Publishing, UK. Chappell, D. and Parris, J. (2002) Parris’s Standard Form of Building Contract: JCT 98, 3rd ed.,Blackwell Publishing, UK. CIC (2004) ‘On-line bidding’, available at http://www.secgroup.org.uk/pdfs/brief/04/ onlinebidjan04.pdf (accessed on March 2009). Construction Partnership UK Ltd. Vs Leek Developments Ltd. (2006) available at http://www.nadr.co.uk/articles/published/ConstructionLawReport/Construction%20v%20Leek%202006.pdf (accessed on February 2011). Davila, A., Gupta, M. and Palmer, R. (2003) ‘Moving procurement systems to the internet: the adoption and use of e-procurement technology models’, European Management Journal, Vol. 21, No. 1, pp.11–23. Davison, J. (2006) JCT 2005, Whats New, Coventry, RICS Books. DFP (2007) ‘Construction procurement guide’, available at http://www.cpdni.gov.uk/construction_procurement_guide_master.pdf (accessed on March 2009). di Gregorio, S. (2000) ‘Using NVIVO for your literature review’, Proceedings of Strategies in Qualitative Research: Issues and Results from Analysis Using QSR NVIVO AND NUD*IST, Institute of Education, London, 29–30 September, available at http://www.sdgassociates.com/downloads/literature_review.pdf (accessed on March 2009). Doig, D. (2006) ‘Changes, revisions and amendments arising from the update to the JCT Suite of Contracts published in the JCT 05 Form’, available at http://www.solomonseurope.co.uk/uploadedfiles/PDFs/JCT_Suite.pdf#search=%22JCT%2005%20%22electronic%22%20standard%20form%20of%20contract%22 (accessed on March 2009). Eadie, R., Perera, S. and Heaney, G. (2010a) ‘A cross discipline comparison of rankings of e-procurement drivers and barriers for UK construction organisations’, ITcon, Vol. 15, pp.217–233, available at http://www.itcon.org/2010/17. Eadie, R., Perera, S. and Heaney, G. (2010b) ‘Identification of e-procurement drivers and barriers for UK construction organisations and ranking of these from the perspective of quantity surveyors’, ITcon, Vol. 15, pp.23–43, available at http://www.itcon.org/2010/2. Eadie, R., Perera, S., Heaney, G. and Carlisle, J. (2007) ‘Drivers and barriers to public sector e-procurement within Northern Ireland’s construction industry’, ITcon Journal, Vol. 12, pp.103–120, available at http://www.itcon.org/2007/6. Eggleston, B. (2001) The ICE Conditions of Contract, Blackwell Publishing, UK. Eggleston, B. (2006) The NEC3 Engineering and Construction Contract, 2nd ed., Blackwell Publishing, UK. Gerrard, R. (2005) ‘NEC3 gets UK Government endorsement’, Civil Engineering, Thomas Telford, UK, Vol. 158, No. 3, p.99. Hackett, M., Robinson, I. and Statham, G. (Eds.) (2007) The Aqua Group Guide to Procurement, Tendering & Contract Administration, Blackwell Publishing, Oxford. Hassen, T. 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PY - 2012/1/5

Y1 - 2012/1/5

N2 - Eadie et al. (2010a, 2010b) reported on a set of drivers and barriers to construction e-procurement which encompasses e-tendering. The study identified 20 drivers and 30 barriers to e-procurement. Legal issues were identified collectively as one of the most important barriers. Although Martin (2003, 2008) identified that the impact of e-procurement and e-tendering had not been as expected, he nevertheless indicated that e-tendering could improve the tender process. This paper reports on an investigation into the e-readiness of the four most popular forms of contract. It also considers the attempt of the Royal Institution of Chartered Surveyors (RICS) to promote e-procurement software as a standard for the private sector of the construction industry. The paper concludes that the NEC Form of Contract is the most e-ready followed by the JCT 2005 Form of Contract. It also establishes that there is still a considerable gap in achieving industry standard e-procurement software solutions.

AB - Eadie et al. (2010a, 2010b) reported on a set of drivers and barriers to construction e-procurement which encompasses e-tendering. The study identified 20 drivers and 30 barriers to e-procurement. Legal issues were identified collectively as one of the most important barriers. Although Martin (2003, 2008) identified that the impact of e-procurement and e-tendering had not been as expected, he nevertheless indicated that e-tendering could improve the tender process. This paper reports on an investigation into the e-readiness of the four most popular forms of contract. It also considers the attempt of the Royal Institution of Chartered Surveyors (RICS) to promote e-procurement software as a standard for the private sector of the construction industry. The paper concludes that the NEC Form of Contract is the most e-ready followed by the JCT 2005 Form of Contract. It also establishes that there is still a considerable gap in achieving industry standard e-procurement software solutions.

KW - construction contract forms

KW - electronic procurement

KW - e-procurement use

KW - e-readiness

KW - e-tendering

KW - electronic tendering

KW - tender process

KW - forms of contract.

U2 - 10.1504/IJPM.2012.044151

DO - 10.1504/IJPM.2012.044151

M3 - Article

VL - 5

SP - 1

EP - 26

JO - International Journal of Procurement Management

T2 - International Journal of Procurement Management

JF - International Journal of Procurement Management

SN - 1753-8432

IS - 1

ER -