FACULTY OF ARCHITECTURE, PLANING AND SURVEYING

DEPARTMENT OF BUILDING SURVEYING

CONTRACT AND CONSTRUCTION MANAGEMENT

BSR304
INDIVIDUAL ASSIGNMENT 1: E-TENDERING

AP1195G
PREPARED BY:
MATRIC NO NAME

2018692692 NUR ALEEZA BINTI PIEI

PREPARED FOR:
DR AN NISHA NUR WELLIANA BINTI ABD RASHED

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TABLE OF CONTENT

NO CONTENT PAGE NUMBER

1 INTRODUCTION OF E-TENDERING IN MALAYSIA 3

2 LITERATURE REVIEW 4

3 CASE STUDY (E-PROCUREMENT) 5–7

4 BENEFIT OF PRACTICING E-TENDERING 8

5 CHALLENGES IN E-TENDERING IMPLEMENTATION 9

6 CONCLUSION 10

7 REFERENCES 10

8 APPENDIX 10

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1.0 INTRODUCTION OF E-TENDERING IN MALAYSIA

E-tendering is the system where the procurement process is conducted online. All government procurement
process online under the electronic Perolehan (e-perolehan) programme. The e-Perolehan system was launched
is September 1999 as one of the Prime Applications of the Electronic Government under the MSC Malaysia.
This system was created to ensure the transparent, fair and integrity government procurement system. E-
procurement (e-perolehan) system has been in operation for more than 15 years and has successfully
transformed the Federal Government’s revenue from manual process into a more user-friendly, fast and truthful.

Services offered in the e-perolehan system include:

1. Submit tender
2. Submit Application
3. Receive Application
4. Check the status of the applications
5. Submit a tender offer
6. Make/receive payment online
7. Electronic Catalog (ecat)

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2.0 LITERATURE REVIEW

Generally, gives an overview of the study discussing related matters benefits of practicing e-tendering and
challenges in e-tendering implementation. This study was conducted based on the construction industry in
Malaysia.The literature review was referenced with some of material such as published journal from local and
abroad, an article, previous thesis and reliable sources over the internet that can be used in the study. Besides,
the literature reviewed also be done to ensure the achievement of research goals and further achieve the
objectives precisely that have been set at the beginning of this study.

Through greater use of information technology, the government expects to create an efficient administration by
providing better and faster service to the people, thus bringing a distinctive change from traditional practice
(Ibrahim and Goh,1998). Tendering process here can be defined as an invitation to those relevant parties to
make an offer to the principal, which must be capable of accepting the offer, thereby creating a legally binding
contract (Atlas, Pitney, Curtis, Greenham, Hanly, Glodstein, Mansfield & Grace, 1993, Thrope & Bailey, 1996 ).
According to Harry, The Builder in Construction News and Views, Issue 3 ( JUBM, 2002 ), electronic tendering
or E-Tender is one of the many interesting development in today’s construction industry.

The main advantages e-procurement can deliver include cost reduction, process re-organization, improved
contract fulfilment, increased spending under management, and many other benefits (Tiago, 2009). Other
researchers (Thai, 2001) concluded that practicing e-procurement will provide quality bidding, efficient
timeliness, cost saving, minimizing effort in doing business, reduce financial risks and technical risks, and finally
increase supplier competition, which would lead to save cost of buying goods or services at high prices. (Layne
and Lee, 2001) that bidding for public sector projects is the best place to practice e-procurement of goods and
services, and this is because of the high transparency of information resulting from electronic bidding.

Suppliers need to be able to handle different E-Procurement systems customers are using. Ariba, i2, Commerce
One, for instance, each have specific formats (Bedell,2002). Most manufacturing plants are still using decades-
old equipment and parts whose documentation is paper-based and lacks the digital format necessary for E-
Procurement systems (Moore, 2003).

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3.0 CASE STUDY

Here will be stated the advertisement regarding the tender management from the official website under the
responsibility of the government. Before applying for a government tender, the applicant must register on the
eperolehan website for check-in tokens. This is important to enable the applicant to qualify in making a tender
application.

Diagram 3.1

After check-in, the advertisements on tender offers will be submitted according to the qualifications applied by
email (diagram 3.1)

Diagram 3.2

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For bidding or preparation of tenders and quotations will be attached once. This will be occurred in ‘My
Applications’.

Diagram 3.3

Diagram 3.4

Both above shows the site for making bids online and preparing quotation suggestions through online. The
supplier/contractor need to fill up the information that needed by the management.

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 Diagram 3.5

This display shows the tender that is an eligible for the company based on the terms and conditions of the
application before. The company may choose the tender offer an appropriate and ready to prepare all the
document that stated.

Diagram 3.6

This display will state the documents that need to be prepared by the company before they start their work. They
need to attach all the documents clearly to make sure their companies is worthy.

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4.0 BENEFITS OF PRACTICING E-TENDERING

1. Reduce Time

Time can be reduced through the submission of documents involving long delays, circulation of tender
documents, many questions and many pursuits.

2. Cost and Environment Saving

There are no more costs for virtually sending documents and paper usage can be reduced.

Previous researchers (Ronchi, 2010) identified and measured four types of cost savings from using the e-
procurement system, namely order cost, administrative cost, lead-time order cost, and opportunity cost of capital.

3. Manage suppliers’ bids online

A system that sorts out the cycle. An e-Tendering system will naturally welcome and oversee entries. This means
the individuals liable for acquisition can focus in on things other than guaranteeing offers are submitted on
schedule and with the correct data.

According to (Layne and Lee, 2001) that bidding for public sector projects is the best place to practise e-
procurement of goods and services, and this is because of the high transparency of information resulting from
electronic bidding.

4. Improved Quality

Clients can picture the status on each offering process by the extensive advancement following capacity,
reducing time for monitoring status. Database of goods, services, works and contractors gets build up.

5. Systematic Process

Increases the size of your supplier pool and formalises how information is held, leading to better

organisation of their credentials and capabilities. Suppliers can additionally update their credentials in

your system when necessary.

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5.0 CHALLENGES IN E-TENDERING IMPLEMENTATION

Based on previous researchers, there are factors contributing to challenges in the implementation of e-
procurement such as technology, infrastructure and legislation, environment; besides, resource constraints, and
organizational and management characteristics are also contributing factors to the success, or otherwise, of an
e-procurement implementation.

1. An inability to support suppliers

A new supply will occur at each supply as the system will connect with all suppliers on a large scale.

2. Complex Use

The applications are hard to navigate, making it difficult to locate their desired seller and product/service in want,
the favoured product/carrier isn't inside the machine or fee does now not represent the negotiated or best fee,
or the approval manner is simply too complicated and prolonged, possibilities are that stop-consumer adoption
might be minimal.

3. Lack of communication

By using this system, this prohibits the use of e-tendering system and presents a huge setback for the
government attempting to establish and electronic government system. Other different systems, creating a
diverse but fragmented e-procurement environment.

The wide-spread use of e-procurement systems also depends on the availability of supporting infrastructures
such as sufficient broadband coverage

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6.0 CONCLUSION
The study shows that the E-procurement is the process of the system for making purchases online. The process
of the document flow was reduced approximately from 3 months to a month only. By using this system (e-
procurement), it helps the government in making informed and accurate decisions. Besides, the process would
be very organised and precise. Overall, the government need to pay more attention on the infrastructure involved
in Information Technology (IT) and related on it (ICT). For better outcomes, the improvements could be made.

7.0 REFERENCES

1. Ibrahim Ariff and Goh (1998). Multimedia Super Corridor: What the MSC is all about and how it benefits
Malaysians and the rest of the world, Leeds Publications: Kuala Lumpur, Malaysia.

2. Tender, Pejabat Bnedahari, Universiti Putra Malaysia, Serdang, Selangor.

(https://www.bursar.upm.edu.my/web/tender.htm)

3. THE MALAYSIAN ADMINISTRATIVE MODERNISATION AND MANAGEMENT PLANNING UNIT

(https://www.malaysia.gov.my/portal/index)

4. Goh, Pei Lim (2020) E-tendering Systems Applications in Malaysian Construction Industry: Benefits and
Challenges

(https://eprints.tarc.edu.my/id/eprints/15586)

5. Portal Rasmi eProlehan Kerajaan Malaysia

(https://www.eprolehan.gov.my)

6. E Mohamed Elias (2003) E-Tendering System for Construction Projects.

(https://repo.uum.edu.my/533/1/e-tendering_system_for_construction_projects.pdf)

APPENDIX

Diagram 3.1 – Diagram 3.6

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