Advances in Construction ICT and E-tender: Benefits and Barriers of E-tendering in Malaysia Construction Industry

Yap, Chin Sing (2021) Advances in Construction ICT and E-tender: Benefits and Barriers of E-tendering in Malaysia Construction Industry. Final Year Project (Bachelor), Tunku Abdul Rahman University College.

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Abstract

A tendering process is a critical and important process for various construction parties as it is an important opportunity to participate in a new project. Most of the developing countries were still using the traditional paper-based tendering method which is time-consuming and costly. Today, Information and Communication Technology (ICT) has become more developed and it playing an important role in construction industry. Construction industry experts had emphasised that E-tendering is one of the ICT tools that designed to help change in the industry’s culture and improving its processes, which is replaced the conventional paper-based system (Thida and Hlaing, 2019). E-tendering allow the various construction parties to complete the whole tendering process through online and it brings a lot of benefits is term of cost and time savings. Despite E-tendering may brought many of the benefits in to construction industry but the adoption of E-tendering in Malaysian construction industry is still low and slow due to some of the barriers that hindering the adoption of E-tendering. This study aims to review the benefits of adopting E-tendering, investigate the barriers that hindering the various construction parties to adopt E-tendering and to study the readiness of various construction parties towards the adoption of E-tendering in Malaysian construction industry. To achieve the objective of this finding, literature review was done and a portal questionnaire survey was chosen to collect the primary data from the consultant and contractor firm in Kuala Lumpur and Selangor. A total of 450 sets questionnaire were sent to the consultant and contractor and only manage to receive 105 responses. After data was collected from the targeted respondents, the data were interpreted using descriptive analysis and illustrated in chart and table form. Benefits and barriers have been ranked by the various construction parties in Malaysia who typically perform the tendering processes and cost planning in procurement systems.