Comparative study of implementation of online bidding for contractor selection in government construction projects

Abstract

Online bidding is now used in construction material procurements as well as in infrastructure projects tendering. This paper explores the current practices of online bidding in four Southeast Asian countries; Indonesia, the Philippines, Singapore and Thailand, especially for government construction projects. This paper aims to compare the practices in each bidding stage: bid invitation, document preparation, bid submission, pre-qualification, e-bidding process, winner selection, as well as contract award. The research outcome is expected to be an information exchange among these countries. Literature review from previous research was conducted to determine the major factors influencing online bidding implementation method. Interviews then were conducted to the government as system’s regulator, to the computer system providers, as well as to the users and the bidders to discover the benefits and obstacles of online bidding they experienced. System trials were also performed in Indonesia and the Philippines. A system is then proposed to accomplish the research objectives and address problems found from the observations. Registration process should be able to record history of contractor performance. Technical Service Provider should be under government so that it is easy to be monitored. Bidding should be conducted electronically to eliminate obstacles due to time and place. It also saves cost of preparing paperwork for both government and contractor. Moreover, electronic processes avoid direct contact among bidders so that possibility of making bid price arrangements among bidders is lessened. Training is important to adjust habitual changing from paper-based to computer-based practices. Accordingly, existing laws should also cover legal matters related to the use of digital media.