University of Twente Student Theses


Stimulating construction industry development by qualitative tendering

Wargers, L. (2021) Stimulating construction industry development by qualitative tendering.

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Abstract:The change from contract awarding based on the lowest bid price to awarding based on the most economically advantageous tender (MEAT) has been recognized to be a stimulator for innovation. According to literature it is a procurement methodology that eliminates the drawbacks of traditional lowest bid tendering. For proper functioning, to create stimulus for innovation, contractors should be able to add value to their bids to be able to differentiate on quality from competitors (distinctive capability). The MEAT-methodology is regularly used in Dutch construction as a result of legal obligations. However, according to Dutch contractors, the governmental tenders lack possibilities to differ from competitors on qualitative aspects. This paper analyses the tender data of Dutch’ largest civil works contracting authority, the department of transportation. A four-case study based on interviews was used for the interpretation of the findings from the data investigation. The study shows a loose relationship between tender characteristics and distinctive capability, but still provides insights in ways to improve MEAT-procedure effectiveness. As standardisation, short-termism and aversive behaviour have not led to the right extent of innovation, a more innovative procurement and collaboration approach is suggested, within or beyond current procurement structures.
Item Type:Essay (Master)
Faculty:ET: Engineering Technology
Programme:Construction Management and Engineering MSc (60337)
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