A

PROJECTREPORT
ON
“Onl
inebi
ddi
ngandE-
tender
ing”
SUBMI
TTEDBY

MR.Tej
asSWaghchawar
e
MR.Rohi
tSShi
nde

UNDERTHEGUI
DANCEOF

PROF.A.
A.BHAWTANKAR

CIVI
LENGI NEERINGDEPARTMENT
S.E.S.
POLYTECHNI C,SOLAPUR
BudhawarPeth,Samratchowk,
Sol
apur,PI
N-413002, Maharasht
ra,
Indi
a
(
APPROVEDBYAI
CTE,
NEW DELHI
,
RECOGNI ZEDBYDTE,
MUMBAIANDAFFI
LIATED
TOMSBTE,MUMBAI.)
2020-
2021

1
 ACKOWLEDGMENT

Thesat i
sfact
ionandeuphori
athataccompaniesthesuccessful
completi
onofanyt askwouldbeimpossibl
ewi t
houtapr of
ound
acknowledgement of t
he people whose constant gui
dance,
encouragementmadei tpossi
bleforust oexecuteourproject
withsuccess.
Wearehighlyindebt
edt oProf
.A.A.BHAWTANKARf or
hi
sgui danceandconst antsupervi
sionaswel lasforpr
ovi
ding
necessaryinf
ormationregardi
ng t heprojectandal
soforhis
supporti
ncompl et
ionofthisproj
ect.
Weexpressoursincer
ethankstoProf.
A.A.BHAWTANKAR
(Pr
inci
pal
,
)andPr of.M.C.MASHYAL( H.C.
E.D)forgivi
ngus
i
mmenseco-operati
onincompleti
ngthisproj
ect,
“Onli
nebi
dding
andE-t
ender
ing”

Fi
nall
y,ourt
hanksandappr
eci
ati
ongoesthemeni
alst
aff
andotherpeoplewhohavewil
l
inghel
pedusoutwit
hthei
r
abi
li
ti
es.

NAMEOFSTUDENT:
-

MR.Tej
asSWaghchawar
e(3219)
MR.Rohi
tSShi
nde(
3220)
.

2
 CERTI
FICATE

Thi
sist
ocer
ti
fyt
hatpr
ojectent
it
led

“
Onl
inebi
ddi
ngandE-
tender
ing”

Hasbeensuccessf
ull
ysubmi
tt
edbyt
hef
oll
owi
ngst
udent
s

MR.Tej
asSWaghchawar
e(3219)
.
MR.Rohi
tSShi
nde(
3220)
.

HASBEENAPPROVEDI
NTHEPARTIALFULFI
LLMENTFORTHE
AWARDOFDIPLOMA(CI
VILENGINEERI
NG)
“
DIPLOMAI
NCI
VILENGI
NEERI
NG”
BY
MSBTE,
MUMBAI
.

PROF.
A.A.
BHAWTANKAR PROF.
M.C.MASHYAL PROF.
A.A.
BHAWTANKAR

PROJECTGUI
DE H.
C.E.
D. PRI
NCI
PAL

3
Onl
ineBi
ddi
ngandE-
tender
ing

4
 Abst
ract

Wi t
ht headv ancement sinInformati
onandCommuni cationTechnol ogies
(ICT),theuseofonl i
nebiddingissteadilyi ncreasingi ntheconst ructi
on
i
ndust ry.Onl inebiddingall
owscont ractorst opr epar eandsubmi tproject
bidsel ectronicall
yinencryptedf or
matv iaasecur enet work, t
her eby
resulti
ngi nsubst antialt
imeandcostsav ings.Thi spaperwi l
lfirstdiscuss
theconceptofonl inebiddi
ngwi thit
sadv ant agesov erthet raditi
onal paper-
basedbi dding.Thent wot ypesofonl i
nebi ddi ngsy stems, namel y
tradit
ional onl i
nebiddingandr eserv
eauct ionbi dding,willbediscussed
wi t
hthei rprosandcons.Att heend,fi
ndingsofar esearchpr ojectwhi ch
i
nv estigatedt hecur r
entstatusandf uturepr ospect sofonl inebi ddinginthe
U.S.const ruct i
onindustrywillbepresented.

Key
wor
ds:

Onl
i
nebi
ddi
ng,
E-t
ender
ing,
Biddi
ngpr
ocess,
Inf
ormat
iont
echnol
ogy

5
 1.I
ntr
oduct
ion
Thebi ddingprocessisoneoft hemosti mpor tantphasesofaconst ructi
onproject.The
maj orobject
iveofconst r
uct i
oncompani esistoexpandbusi nessv olumebysuccessf ul
biddingonpr oj
ects.Forthispur pose,compani esmustpr eparebi dproposal
sv ery
carefull
y.Thetradit
ionalbiddingpr ocessistimeconsumi ngandr equir
essubstantial
monet aryandhumanr esour ces.Wi t
htheadv ancement sinInformationand
Communi cati
onTechnol ogies( I
CT) ,t
heuseofonl inebidding(alsocalledE-
bidding)
systemsi ssteadil
yincreasingi ntheconstructi
onindustry.Onlinebiddingsyst
em
al
lowscont r
actorstoprepar eandsubmi tproj
ectbidselectronical
lyinencry
ptedf ormat
vi
aasecur enetwork,therebyr esult
inginsubst ant
ialt
imeandcostsav i
ngs.

Onli
nebiddingwasf i
rsti
ntr
oducedintheearly1990’swit
hsmall
one-waybidprogr
ams.
One-wayelectr
onicbidsyst
emsallowedbi dpackagestobedownloadedf
rom awebsi
te,
wit
hbidsreturnedonpaper,andsomet i
meswi tharequi
rementt
hattheybe
accompaniedbyf i
lesonadisk(Sawyer,2001).

Theseprogr
amswer edesignedtoincr
easetheef
fi
ciencyandeaset owhich
contr
act
orscouldreceiv
ebidpackages.Ast
heconstruct
ionindust
ryhasprogr
essed,
sohasthetechnol
ogy .I
n1993thefir
sttwo-
wayonli
nebiddingsystem wasdevel
oped
f
ort
heGeor
giaSt
ateDepar
tmentofTr
anspor
tat
ion.Thi
ssy
stem al
lowedbi
dder
sto
submi tabi
dt hr
oughanonl i
nebiddingsy st
em, andpermitcli
ent
sto
recei
veandopenbi dsonli
ne.Two- wayonl i
nebiddi
ngsy stemsdonotall
ow
anyotherbidders,
northecli
ent,t
ov iewthebidpr i
cesuntilt
heduedate
andt i
me.Thissetupensuresthesecur i
tyofthesystem tostopanyactof
fraudandhacking.Fi
gure1explainst heconceptoftwo-wayonli
nebiddi
ng.

6
7
 2.BENEFI
TSOFE-
TENDERI
NG

 Compl
etel
yAut
omat
edPr
ocess.

 Shor
tensPr
ocur
ementCy
cle.

 Economi
cal
andEnv
ironmentFr
iendl
y.

 Gr
eat
erTr
anspar
ency
.

 I
mpr
ovementi
nwor
kcul
tur
eint
hedepar
tment
s.

 Sy
stem ai
dedEv
aluat
ionpr
ocess.

 Ont
hef
lyr
epor
ts/
compar
ati
vesst
atement
.

 Mi
nimi
zeHumaner
ror
s.

 Mi
nimal
Stor
ageSpaces.

 Changei
nPer
cept
ion-Pr
ogr
essi
veOr
gani
zat
ion.

 Lesserhassl
eofcommuni
cat
ionandadmi
nist
rat
ion.

8
 3.Adv
ert
isementorI
nvi
tat
ion

4.Cur
rentTr
endsandFut
urePr
ospect
sofOnl
ineBi
ddi
ng
Toi nv esti
gatecurrentt r
endsandf utureprospectsofonlinebi ddi
ngi ntheU. S.
const ructionindustr
y ,
aquest ionnairesur v
eywasconduct ed.Thequest i
onnairewas
desi gnedbasedont heski p-l
ogicmet hod,inwhichtheselectionoft henextquest i
onis
basedont heansweroft heprev i
ousquest ion.Theskip-
logicmet hodpr event s
respondent sfrom answer i
ngquest ionswhi cht
heyarenotqual i
fi
edt oanswer .The
quest ionnairewasdi videdintofivesect i
onsasf oll
ows:(1)Company ’
sbackgr ound;(
2)
Informat ionaboutbi ddingmet hods; (3)Inf
or mati
onaboutonl inebidding,ifused;(4)
Per ceptionsofuser saboutonl inebidding; and(5)Reasonsf ornotusi ngonlinebiddi
ng.

9
 5.E-
BIDDI
NG(
Onl
inebi
ddi
ng)

 I
sanel
ect
roni
cbi
ddi
ngev
ent
.

 I
thasdef
inednegot
iat
ionr
ules.

 Abuy
erandt
woormor
esuppl
i
erst
akepar
tint
hisonl
i
neev
ent
.

TYPESOFBI
DDI
NG
1.PennyAuct
ion

2.Begi
nner

3.Peakauct
ion

4.Dut
chbi
ddi
ngt
ype

5.Scr
atchbi
ddi
ngpr
ocess

6.Hi
ghestuni
que

7.Lowestuni
que

10
ADVANTAGESOFE-
BIDDI
NG

 Buy
ersr
ecei
vecompet
it
ivepr
ices.

 Buy
erscanr
eachsuppl
i
erswor
ldwi
de.

 Bi
dscanbeeasi
l
ycompar
edbyt
hebuy
er.

 Ti
mesav
ingi
ncompar
isont
ousual
negot
iat
ions.

 Costsav
ingduet
olessper
sonhour
s,l
esspaper
wor
kandl
esst
rav
elcost
s.

 Suppl
i
ersgai
nmor
eknowl
edgeoft
hemar
ket
.

 All
bidder
shav
eaccesst
othesamei
nfor
mat
ionandt
hepr
ocessi
scl
ear
ly
defi
ned.

 Secur
eBi
ddi
ngSy
stem.

 Suppl
i
erscanr
eactdi
rect
lyt
obi
dsf
rom compet
it
ors.

11
12
HomepageofCent
ralPubl
icPr
ocur
ementpor
tal

(
epr
ocur
ement
)

13
 6.Concl
udi
ngRemar
ks

Ther esear chresul

tsi ndicat
edt hattheonlinebiddingisar el
iabl
e,costeffecti
veand
mor epr oducti
vealternat etothetraditi
onalpaper-
basedbidding.Onli
nebiddingof f
ers
manybenef i
tstocont ractor
ssuchascapabi li
tyofeasilyobtaini
ngprojectplansand
document ati
onatal ow- cost
,andr educedbiddi
ngcost sbecauseitisnotnecessaryfor
anyonet ot rav
eltoanowner ’soffi
cetosubmi tabid.Ofthetwot ypesofonli
nebi ddi
ng,
the traditi
onalt wo-way bi dding sy st
ems ar e used by maj ori
ty of construct
ion
organizati
ons.

Wecanconcl udethatt
enderi
ngpr ocessandwor kwithtenderingmet hodi
sasy stem or
processt hatshoul
duseadv isably
,int
ell
igentl
y.Basi
cal
l
y ,theset hi
ngsarethejob,duty
andr esponsibi
li
ti
esoftheQuant it
ySurveyor.AsaQuant it
ySur veyor,weshoul
dhav ea
betterknowledgeabouttendering.

Thoughsomeowner sar ealsousi

ngr everseauct ionbiddi
ngbuti thasnotr ecei
ved
good revi
ews fr
om the constr
uction stakeholders.Based on t he result
s oft he
questi
onnai
resur
veyandotheranecdotalevidencesi tmaybepr edictedthattheonli
ne
biddi
ng can r
epl
acetradi
ti
onalpaper-based bidding inthenext10- 20 years.Such
changewouldhel
ptoimprovetheproducti
v i
tyoftheconstruct
ionindustry
.

14
 BI
BLI
OGRAPHY

 Nati
onalElectr
ical
Cont r
actor
sAssociat
ion(NECA).(
2002)."NECA'sMinneapol
i
s
ChapterExplor
es"ReverseAucti
onBidding"Onl
ineat
ht
tp:
//www. necanet.
org/news/i
ndex.
cfm?fa-
show&art
icl
eID=626,Accessedon
November26, 2009

 Sawy
er,T.(
2001)
."St
atesTum ont
oWebf
orHi
ghwayBi
ddi
ng.
"Engi
neer
ing
NewsRecord,
246(8)
,53-54.

 Teel
,J.(2007)
.E-biddi
ngintheConst
ruct
ionI
ndust
ry.TheCur
rentSt
ate,
unpubl
ishedcapstoneproj
ect.

 Aubum Univer
sit
y,Auburn,AlabamaWil
l
iams,T.(2007).I
nfor
mation
Technol
ogiesforConstr
uctionManager
s,Ar
chitects,
andEngineers.Thomson
DelmarLearni
ng,NeyYor k

 ht
tps:
//et
ender
s.gov
.i
n

 www.
googl
e.com

 www.
Wiki
pedi
a.com

 ht
tps:/
/www.google.
com/url
?sa=t
&sour
ce=web&rct
=j&ur
l=ht
tps:
//eprocur
e.gov
.i
n/epr
ocur
e/app&ved=2ahUKEwigr
5SEqI
fwAhWS8XMBHbAzBbYQFj ABegQIJBAC
&usg=AOvVaw2-aCWfg22KCoas0SzQHS6E&cshi
d=1618732430712

 ht
tps:
//mahat
ender
s.gov
.i
n›appTender
s-Mahat
ender
s.gov
.i
n

15