THE DIFFERENCES BETWEEN THE PERCEPTION AND PRACTICAL APPLICATION OF eBIDDING IN CONSTRUCTION INDUSTRY

Abstract

eBidding has become a widely used means of awarding contracts and continues to gain in popularity because of its benefits. As an international trend, it provides benefits for all forms of commerce including the construction industry. The eBidding system is expected to reduce corruption in the bidding process and to maximize a project‟s potential for success. However, how to expand the eBidding system poses some challenges, particularly in rural, developing countries. Firstly, this paper aims to analyze some of the current problems with the eBidding process as used in the construction industry. Secondly, the differences between eBidding‟s perceived benefits and its practical application are explored. Finally, the underlying causes of problems with eBidding are studied. This research was conducted using a survey of 200 questionnaires during June and July 2011 in Vietnam. Statistical methods and factor analysis were used to analyze the results. From the results, eBidding is encountering a number of problems that can be classified into three groups related to governmental involvement, systemic issues and lack of standardization, and corporate officers and support staff in construction industry. It may cause the difference between the respondents‟ perceptions about eBidding benefits and its practical application. Even with a positive perception about the benefits, few people apply eBidding in their work if it not compulsory for a project. The analysis also illustrates three factors influencing the eBidding process. They are government guidelines, company leadership, and resource factors. Among these, the role of government is emphasized to effect the users‟ perception positively. However, there are some current challenges that negatively impact the eBidding system which require a systematic resolution. Therefore, further research to mitigate preventable factors underlying each type of problem is needed to improve the system so that it can be applied more widely.