Analysis The Effect of Bidding Process on Project Performance in PT Pelabuhan Indonesia III (Persero)

Abstract

In this paper, we develop a testable holistic procurement framework that examines how a broad range of procurement related factors affects project performance criteria. Based on a comprehensive literature review, we put forward propositions suggesting that cooperative procurement procedures (joint specification, selected tendering, soft parameters in bid evaluation, joint subcontractor selection, incentive-based payment, collaborative tools, and contractor self-control) generally have a positive influence on project performance (cost, time, quality, environmental impact, work environment, and innovation). We additionally propose that these relationships are moderated or mediated by the collaborative climate (i.e. the trust and commitment among partners) in the project and moderated by the overall project characteristics (i.e. how challenging the project is in terms of complexity, customization, uncertainty, value/size, and time pressure). Based on our contribution, future research can test the framework empirically to further increase the knowledge about how procurement factors may influence project performance. © 2010 Elsevier Ltd and IPMA.