omniture

Electronic tenders double, but industry moving too slowly, says BCIS

RICS (Royal Institution of Chartered Surveyors)
2009-06-09 19:15 1454

HONG KONG, June 9 /PRNewswire-Asia/ -- More firms are transferring tender documents in electronic formats such as disks, but the majority of surveyors are yet to explore the benefits of more secure web based e-tendering services, opting instead to still post or email tenders to their clients, according to the BCIS e-tendering Survey Report published recently.

The percentage of tender documents sent solely in electronic format has almost doubled since 2006, increasing from 8 percent two years ago to 15 percent. However the percentage of electronic documents being delivered by physical means, such as on a disk, increased from 2 percent to 46 percent whilst the percentage sent by email, a medium not recommended by the RICS, decreased from 64 percent to 46 percent.

“The way that firms are choosing to communicate their electronic documents seems to me the strangest result of the recent survey,” commented Joe Martin, Executive Director of BCIS (the Building Cost Information Service of the RICS). “There has been a welcome move away from e-mail for the distribution of contract tender documentation, something that the RICS advises against in its guidance note. However this has been mirrored by a strong growth in the practice of sending them on discs through the post. This must add four to five days of non-productive time to the construction tender process. Despite this CDs continue to be regarded as low or ‘no cost’ solutions.”

Mr. Kenneth Kwan, spokesperson of RICS Hong Kong, commented on local practice, “Different forms of e-tendering, ranging from sole web-based tender submission to the submission of soft copy of tenders as supplement to the conventional hard copy tender submission, had been used in major projects in Hong Kong. There are certain advantages in using e-tendering system especially for those tenders requiring international bidding. These include reduction of paper used, the convenience in sorting of information for cost comparison and analysis, the ease of transmission of the documents. However, for whichever form of e-tendering, it is important to ensure the authentication of the tenders and that the returned tender document is the same as the issued tender document, in particular if the tender is to be submitted solely on electronic basis. RICS e-tendering system is sure to have a lot of potentials to become more popular in Hong Kong.”

RICS members’ sentiment toward e-tendering remains strongly positive. 77 percent of responding surveyors feel that the ability to tender projects by electronic means will enhance their service in the market place.

Between 91 percent and 65 percent of members agreed with five key benefits associated with e-tendering: lower administration costs and effort (printing, copying and distribution), better contractor access to information for sub-contractors, reduced effort in issuing clarifications, reduced timescale of tendering, and reduced effort in analysing tenders.

Despite e-tendering being widely considered as providing a framework where both clients and tenderers can reduce their costs, remove unnecessary administration and streamline the overall tendering process, the perceived costs associated with web based e-tendering and the assumption that clients are not interested seem to be the greatest barriers to switching to a web based system.

Joe Martin continued: “It seems clear from these results that a main concern is still the presumed costs of adopting this system. The eTendering service that the RICS provides to its members was designed specifically to address these cost concerns by eliminating any set-up costs and offering the service on a pay-per-tender basis. The hope was that this would open it up to more people and in particular smaller firms.”

http://www.creativegp.com/RICS/PR/RICS%20e-tendering%20PR%20Graphics%20Eng.pdf

The full 2009 BCIS e-tendering Survey Report is available at http://www.bcis.co.uk/etendering .

About RICS eTendering

RICS eTendering is a web tendering service offered on a pay-per-tender basis. RICS eTendering allows clients and their consultants (buyers) to run tenders through a secure website. It offers a simple, secure, standard, efficient and cost effective way to manage tenders online. It provides a major opportunity to replace existing paper based procedures and achieve significant cost savings, while producing a more efficient and reliable process. Use of the system is charged on a per tender basis to buyers, there are no subscription fees. Use of the system is free to contractors (suppliers).

Information about RICS eTendering can be found at https://www.ricsetendering.com/web/login.shtml .

About BCIS

BCIS (Building Cost Information Service) publishes information on the capital cost of new and refurbished work collected from Chartered Quantity Surveyors and others working in the building industry. BCIS is a trading name of RICS and was established in 1962 to exchange detailed building price information.

About RICS & RICS Asia

RICS (Royal Institution of Chartered Surveyors) is an independent professional body originally established in the UK by Royal Charter. Since 1868, RICS has been committed to setting and upholding the highest standards of excellence and integrity - providing impartial, authoritative advice on key issues affecting businesses and society.

RICS is the worlds’ leading qualification when it comes to professional standards in land, property and construction. With over 140,000 members globally, RICS represents, regulates and promotes the work of property professionals throughout 146 countries.

The RICS Asia supports a network of over 9,000 individual professionals across the Asia region with an objective to help develop the property and construction markets in these countries, by introducing professional standards, best practice and international experience. It promotes RICS and its members as the natural advisors on all property matters. It also ensures that services and career development opportunities are provided to members.

The RICS Asia region covers national associations and local groups locating in Brunei, Malaysia, Singapore, Thailand, The People’s Republic of China and the SAR Hong Kong. It also has members working across the region such as Bangladesh, Bhutan, Burma/Myanmar, Cambodia, Indonesia, Japan, Kiribati, Laos PDR, Macao, Mongolia, Nepal, North Korea, South Korea, Taiwan, The Maldives, The Philippines, Timor East and Vietnam. For further details, please visit our new website: http://www.ricsasia.org

Media enquiry, please contact:

RICS Asia Pacific Public Relations Representative

Ms Katherine Chow / Ms Kate Kwan

Tel: +852-2372-0090

Mobile: +852-9256-3223 / +852-9077-1337

Fax: +852-2372-0490

Email: kat@creativegp.com / kate@creativegp.com

Source: RICS (Royal Institution of Chartered Surveyors)
collection