Introduction: 2

Analysis of how the construction industry have developed: 2

The way construction industry encompasses professionalism and ethics within the industry: 3

The scope and the linkage between my company and other parties that would be involved in the proposed offer: 4

Types of contractual work tendered by the contractor: 4

Critical evaluation of the process of development of business ethos and structures of the construction companies: 5

Analysis of relation between construction companies: 5

Brief comparison of factors influencing contract relationships involved in tendering: 6

Conclusion: 8

Reference List: 9

Introduction:

The study entails a detailed analysis of the construction industry that has been developed overall in terms of company structures and its wide range of employees. Here, a construction professional for a medium size building contractor, a detailed research regarding the potential for a company has been carried out in order to determine how the company can expand or maximize their offer into the construction frameworks, like housing associations and the local authorities (Kopeliovich, 2017). Ducker Construction Company is a residential building company and committed to deliver highest quality construction services. Apart from that, pertaining to the wide range of common constructing practices, an organizational structure of the concerned company has been set out including the various changes that are required to fulfill the aspirations of the company and for the future steps in association with the resources, personnel, and supply (Kopeliovich, 2017). Also, in addition, the technical report also consists of a detailed demonstration of how the construction industry has developed entirely pertaining to the various company structures, the workers and staff, and the professionalism within the structure (Utama et al. 2017). The relationships that the various construction companies share with the other companies dwelling in the construction industry has also been included in this technical report. Additionally, the various organograms of the concerned company “Ducker Construction” and the various existing as well as proposed strategies has also been discussed in detail in this report.

Analysis of how the construction industry have developed:

The construction industry is basically the branch of manufacture and the trade, which is based on building, repairing, and maintaining different structures. In the last few decades, the construction company has developed in terms of real estate, land, property, and so on (Shi, Li and Xu, 2013). The various developments in the construction industry also involve financing different construction activities, refurbishment of old buildings for earning profits (Utama et al. 2017). A wide range of positive trends on the growing residential market are the factors that are responsible for the booming of the construction industry (Kopeliovich, 2017). Ducker Constructions Pty Ltd. has been dwelling in the residential constructions and is now thinking of expanding its construction offers (Shi, Li and Xu, 2013). The construction industry mainly consists of operative builders, general contractors, commercial or industrial firms of other buildings (Utama et al. 2017). Ducker constructions tend to possess a simple organizational structure and have the general manager as the hierarchy within the industry group (Utama et al. 2017). The organization currently has a two-stage organizational structure having the managers in the first and the employees. However, in order to achieve the aspirations of the company, the future structure has been proposed below:

Figure: Proposed Organizational structure for Ducker constructions

It is proposed to the Ducker construction to employ a decentralization method in the organizational structure (Dave, 2017). Also, it is recommended that Ducker constructions must employ functional or decision making based decentralization (Shi, Li and Xu, 2013). In the case of functional decentralization, the organization is split into various functional sectors. On the other hand, decision making based decentralization means whether or not the company has sectors where the decisions are made (Shi, Li and Xu, 2013).

The way construction industry encompasses professionalism and ethics within the industry:

As a construction professional, the best way to expand Ducker constructions is by encompassing cutting edge professionalism within the industry (Danesh, Ryan and Abbasi, 2018). Professionalism and ethics within the construction industry is of utmost importance as the durability and reliability of structures they build depends on how professional the workers within the construction industry are. In the case of Ducker constructions Pty Ltd professionalism is taken quite seriously and their main motive is to provide a smooth experience of building to their customers and to achieve their trust (Utama et al. 2017). However there are few recommendations in terms of Ducker constructions in the present scenario as they aspire to expand their business in different sectors such as incorporating modern methods of construction, using BIM, subcontracting with design expertise, critical path programming, and so on. First of all, Ducker constructions must be aware of the fact that customer satisfaction is the most important thing and thus they must employ more and more strategies to fulfill the customers’ varied needs (Utama et al. 2017). Also, the transparency maintained between the customers and the company, such as by explaining what raw materials are being used and in what way may ensure reliability and faith (Danesh, Ryan and Abbasi, 2018). In terms of using new and advanced technological constructions, the hierarchy of the company must provide required training to their subordinates and the constructions (Utama et al. 2017).

The scope and the linkage between my company and other parties that would be involved in the proposed offer:

The main linkage that is associated between the company and the other party is the linkage between the customers and the companies (Danesh, Ryan and Abbasi, 2018). The professionalism and the ethics within the organizational structure tend to connect the customers and the company and retain the customers. Apart from that, the main stakeholders of Ducker constructions are the companies whom they have partnered with (Wolny, 2016). These companies include the suppliers of the raw materials, training providers, marketing and promoters, and so on (Delgado et al. 2018). Apart from that, the other parties who would be involved in the proposed offers of the Ducker constructions include technical partners, procurement partners, and design industry and so on (Wolny, 2016).

Types of contractual work tendered by the contractor:

Basically, in the present scenario, the most common contractual work tendered by the contractors of Ducker constructions are the “lump sum or fixed price contract”. These types of contractual works tend to involve the buyer agreeing to spend a fixed amount of price and the builders agreeing to complete the work for that price. However, with this type of contractual work, the buyer has the certainty but the builders or the constructors are often at risk. This is because the price of the raw materials or any other thing may go up and in such cases problem may arise for the builders because the amount they are going to get at the work is fixed before starting the work (Delgado et al. 2018). Therefore, apart from “lump sum or fixed price contractual works”, another proposed contractual work for Ducker constructions are “time and material contract”. In this type of contract, the buyer tends to pay an amount for the total time spent by the builders to complete the work and the actual costs of the various construction materials. This type of contractual work also ensures the safety of the constructors and the builders (Delgado et al. 2018). Often, the material contracts may constrain the maximum price clauses as well.

Critical evaluation of the process of development of business ethos and structures of the construction companies:

As discussed earlier, the business ethos of the company involves various knowledge standards as well as the standards of behavior.

The business ethos tend to relate to the level of knowledge needed and the wide range of practices of using that expertise or knowledge. Furthermore, business ethics within the construction company is also majorly identified as a system of various behavioral norms. In the case of Ducker constructions, the ethos of the companies has a strong connection with the overall structure of the company (Paolini, Kollmannsberger and Rank, 2019). Within the various departments of the Ducker constructions, the particular roles possessed by the wide range of employees tend to have a hierarchical structure of their own (Paolini, Kollmannsberger and Rank, 2019). In order to retain the various organizational ethos, it is important to follow a particular pattern in terms of the ways various decisions are made and the way through which the communication flows. The authorities that are assigned specifically, also follow the ethical principles (Paolini, Kollmannsberger and Rank, 2019). For example, in the Ducker constructions, the roles are assigned to the personnel having expertise in that particular field. Apart from that, in the construction operational department, the wide range of authorities and power tend to flow from the head or the hierarchy of the operations department of the company. The perfect flow of communication to the various sectors within the industry is ensured by the organizational structure and eventually effective communication accompanied by collaborative work ensures that the ethos of the business is preserved. Again, the amount of power that is passed on to the various subordinates from the higher authorities of the company will also tend to depend on the specific sets of policies of the company as well as the company size (Shakor et al. 2019). This is because as large the size of the company, the more complex is the structure of the company and more agility is required to organise the communication flow. In the case of Ducker constructions, the main fundamental figures of the organizational structure are the chief executive officers, the managing director, the project director, design team, supervisor, and the coordinator (Wagner and Kulwiec, 2020). The business ethos on the other hand, can be developed by introducing various policies and legislations that retain transparency between the company’s products and services and the customers, for example, keeping the staff accountable for the culture of the company, maintaining transparency between the stakeholders and the company owners, and so on, offering free maintenance in case of genuine issues, and so on.

Analysis of relation between construction companies:

The procurement processes within the construction company has witnessed a number of phases of alterations in terms of both clients and the contractor. Ducker constructions tend to explore more and more options in order to maximize the various profits and benefits from the various construction processes (Wagner and Kulwiec, 2020). The different impacts of the investments of the construction on the various financial positions of the stakeholders of the industry tends to make it imperative that all the parties involved in the process of construction tend to adopt the most effective types of procurement. In order to look for such effective procurement forms, the construction industry has experienced and perceived various practices of “traditional competitive tendering via a wide range of design and build to various “collaborative alternatives” (Wagner and Kulwiec, 2020). The supply chain of the Ducker constructions has been depicted in the figure below:

Figure: Supply chain of operational activities

There are different types of construction companies in the construction industries are “civil engineering company”, “construction contracting company”, “heavy engineering companies”, “project management companies”, and so on. The wide range of organizational relationships that have characterized and has adversely influenced the changing procurement processes are of varied nature. In the case of Ducker constructions, the organizational relationships within the construction industry tend to range from “close cooperation management between the parties”, and “arms-length” cases (Wagner and Kulwiec, 2020). The proposed organizational relationship that Ducker constructions must share with the other companies within the industry is characterized by trust and openness (Wagner and Kulwiec, 2020). Apart from that, the recent aspirations of the company tends to associate a greater level of awareness about the various potential benefits that the wide range of collaborative relationships can generate when employed for the management of various construction services along the supply chain.

Brief comparison of factors influencing contract relationships involved in tendering:

In most of the countries out there, the construction industry tends to occupy one of the most competitive business environments which is driven by a factor called “lowest cost mentality”. In the case of the Ducker industry, most of the construction projects are often awarded based on the “lowest tender sum”. However, apart from the costs, there are few other additional factors that are taken into consideration other than the costs (Wagner and Kulwiec, 2020). The most influencing factors that mostly affects the contract relationships involved in tendering are:

Previous experiences with the company’s employer
The requirement of work
Various past experiences in the similar projects
The project size
The identity and the reputation of the organization within the industry.
Financial stability of the organization
Availability of various project resources, and so on.

Amongst the various factors influencing the various crucial decisions that are exercised in a regular manner by the construction contractors is to decide whether or not a project is perfect for bidding. Competitive tendering is the process of obtaining a “sizable proportion” of the business. Tendering also involves the contractors making various strategic decisions as it takes into account the various financial, physical, and managerial resources. Also, there are some contractors who tend to conduct various construction activities without even winning a “tender” but the most contractors would only be able to survive and earn profit within the industry with the help of winning the tenders (Paolini, Kollmannsberger and Rank, 2019). Apart from that, contract relationships pertaining to tendering in the case of Ducker constructions tend to involve making various effective strategic decisions including financial, managerial, physical and manpower resources, also, the ability of the contractors to fulfil the conditions of the tendering situations is also a very potential factors needed for the survival of the contractor in the present day competitive markets (Jones, 2020). In the vase of the tendering process of the Ducker constructions, the various bidding tendering situations put together with the decisions involved in converting the estimation into a tender bid is needed to be considered to be one of the most important steps in the bidding processes (Paolini, Kollmannsberger and Rank, 2019). Thus, as construction professionals for Ducker constructions, it can be said that the company must be careful about the financial aspects of the organization in order to attract more bidders (Paolini, Kollmannsberger and Rank, 2019). A company that is financially stable often has more number of bidders and has healthy contract relationships. Keeping in mind the various future aspirations of the company, it is recommended that the company should try to retail the relationships with its stakeholders and the project managers by giving them the best construction experience and by maintaining the company’s ethos and professionalism.

Conclusion:

The paper includes a brief discussion about the construction company “Ducker constructions”, which is a medium sized building contractor. This company tends to specialize in the “competitive single-stage tendering along with a directly employed workforce of the site personnel. The technical report about the Ducker constructions mainly consists of the discussion about how the company has developed in terms of the structures of the company and the way they employ professionalism within the business. The report also includes a brief analysis of the various relationships that the other construction companies share with Ducker constructions in terms of tendering and procurement processes. The proposed strategies have been discussed in order to achieve the various future aspirations of the company including expanding the business service offers such as modern business techniques, utilizing BIM, design expertise, local programming, and so on. In addition, the various potential factors that influences contract relationships and the tendering processes have also been discussed in brief in the report.

Reference List:

Danesh, D., Ryan, M., and Abbasi, A., 2018. Multi-criteria decision-making methods for project portfolio management: a literature review. International Journal Of Management And Decision Making, 17(1), 75. doi: 10.1504/ijmdm.2018.088813

Dave, B., 2017. Business process management – a construction case study. Construction Innovation, 17(1), 50-67. doi: 10.1108/ci-10-2015-0055

Delgado C, D., Clayton, P., O’Brien, W., Seepersad, C., Juenger, M., Ferron, R., and Salamone, S., 2018. Applications of additive manufacturing in the construction industry – A forward-looking review. Automation In Construction, 89, 110-119. doi: 10.1016/j.autcon.2017.12.031

Jones, K., 2020. 12 Tips to Grow Your Construction Business. Retrieved 3 November 2020, from https://www.constructconnect.com/blog/12-tips-grow-construction-business

Kopeliovich, Y., 2017. Benchmark Construction and Performance Evaluation of Mezzanine Finance Funds. The Journal of Private Equity,.

Paolini, A., Kollmannsberger, S., and Rank, E., 2019. Additive manufacturing in construction: A review on processes, applications, and digital planning methods. Additive Manufacturing, 30, 100894. doi: 10.1016/j.addma.2019.100894

Shakor, P., Nejadi, S., Paul, G., and Malek, S., 2019. Review of Emerging Additive Manufacturing Technologies in 3D Printing of Cementitious Materials in the Construction Industry. Frontiers In Built Environment, 4. doi: 10.3389/fbuil.2018.00085

Shi, H., Li, X. and Xu, H., 2013. Game Analysis on Collusion Tender in the Construction Projects Bidding. Applied Mechanics and Materials, 357-360, pp.2414-2419.

Utama, W., Chan, A., Gao, R. and Zahoor, H., 2017. Making international expansion decision for construction enterprises with multiple criteria: a literature review approach. International Journal of Construction Management, 18(3), pp.221-231.

Utama, W., Chan, A., Gao, R., and Zahoor, H., 2017. Making international expansion decision for construction enterprises with multiple criteria: a literature review approach. International Journal Of Construction Management, 18(3), 221-231. doi: 10.1080/15623599.2017.1315527

Wagner, H., and Kulwiec, A., 2020. Expanding Pre-apprenticeship Training Programs as a Model to Improve Recruitment and Retention of Building Construction Tradeswomen. International Journal Of Construction Education And Research, 1-14. doi: 10.1080/15578771.2020.1808547

Wolny, M., 2016. Analysis of the Multiple Attribute Decision Making Problem with Incomplete Information about Preferences among the Criteria. Multiple Criteria Decision Making, 11, 187-197. doi: 10.22367/mcdm.2016.11.12

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