ICT and intermediate tender forms : value-adding or a threat?

Student thesis: Master thesis (including HD thesis)

  • Jonas Gammelgaard Kristensen
  • Helene Rosendal Elsborg
The focus of this master thesis is the ongoing revision of the agreed document with the title General Conditions for the provision of works and supplies within building and engineering (AB92), in the Danish construction industry. There is a trend towards increased use of tender forms, which is situated in the field between AB92 and ABT93 (General Conditions for turnkey contracts). These new tender forms is in this thesis refered to as intermediate tender forms. An example of this could be situations where the contractors have elements of the design as parts of their services. Consequently, challenges of the intermediate tender forms arise due to the strict division of phases and roles found in AB92. This division is not compatible with the types of cooperation between actors in the construction project, where the design is relocated from the design phase to the execution phase.

This trend is connected to the rapid development of information- and communication technology (ICT), which poses a challenge to the contractual framework in the construction industry.

ICT has been regulated in the construction industry since 2007, where the objective from the beginning has been to coordinate the use of ICT with a tender form that is based on a bill of quantities generated by 3D simulations. The most recent revision of the Departmental Order for ICT made it optional whether to use the tender form based on bill of quantities in the tender material.

The aforementioned issue has led to the main part of the thesis’ problem statement, which is as follows:
How is AB92 compatible with the increased use of ICT and intermediate tender forms and which consequences does it have for the revision of AB92?

To answer this question data was collected through questionnaires. The respondents include representatives from selected governmental construction projects and construction projects with governmental funding. The applied theory includes relevant sections in the agreed document AB92, the departmental order of ICT, Price and time circular, ABR89 and Description of Services –-- Building and Planning. Further, theoretical aspects include descriptions of the scope of intermediate tenders.

By drawing on both questionnaire data as well as the theoretical underpinnings of the regulations in the construction industry, it was found that the AB92 is not only being undermined legislatively but also from the general development within the cooperation and processes of the construction industry.

Indications are that the Departmental Order for ICT has lessened the requirements for tenders with bill of quantities especially regarding the tender forms falling outside the traditional tender forms. However, evidence shows that governmental building owners and regional building owners with financial support from the government, to a greater extent provide tender with bill of quantities at the same time as they utilise supplier and contractor design in the intermediate tender forms.

The results from the questionnaires in combination with the theoretical framework show the considerable dissonance between the conditions in the theory and the developments of the types of cooperation as expressed by the results in the questionnaire. Moreover, the results point to fundamental compatibility issues between the regulations for the construction industry, which is highly problematic as it threatens the construction industry’s productivity growth and risks increasing transaction cost.
Publication date1 Jun 2016
Number of pages158
ID: 235032194