E-tendering in the South African construction industry

Abstract

E-tendering is gaining recognition in the construction industry in many countries across the world. However, there is a limited understanding of the extent of its adoption in construction in African countries. Therefore, this research investigated the state of e-tendering in the South African construction industry using data derived from an online questionnaire survey involving 593 respondents, and oral interviews with selected construction clients, professional consultants, contractors and supply chain managers conducted in 2014 in South Africa. The data were analysed using descriptive statistics and content analyses. It was found that 26% of the respondents were involved in e-tendering, and that 72.4% of them used e-mail, while 21% used web- based systems to support the execution of e-tendering activities. It was also revealed that the main benefits were reduction in transaction cost, and turnaround time of the tendering process, while the barriers to e-tendering in construction were slow Internet connectivity; resistance to change; expensive Internet services; and the inability of small-, medium- and micro-sized enterprises (SMMEs) to afford the technology, training and skills needed to engage in e-tendering. The paper concludes by suggesting ways for ensuring a critical mass uptake of e-tendering and maximising its benefits in the South African construction industry.

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