PhD Final Thesis April 2013.pdf - Anglia Ruskin Research Online

Thesis Keith Gale 2013case study. Verification of this statement is provided through use of adatabase by the quantity surveyor that aligns with tender prices producedfrom the Road Construction Tender Price Index (RCTPI) issued by BuildingCost Information Service regulated by RICS.• The pre-tender estimate is a genuine attempt to calculate market value of theproject representative of the technical class.The accepted tender is checked to ensure conformation to standing orders andfinancial regulations set by the public sector organisation as a bona fide tender. Thisrequires analysis of individual prices for predicted norms. Inference of the variationbetween estimated and actual production costs is used to detect if a change inprocurement method is reflected by the difference between anticipated tender valuesand actual tender values. This variance is used to determine if a procurement methodaffects anticipated value and thus tender prices.8.5 Analysis of engagement and performance monitoring transaction costsAn attempt to discover the financial effects of engagement transaction costs forprojects included within this case study uses investigation of records from theorganisations’ SAP accountancy system (appendix 16). Costs for fees charged toeach project have been collated for two groups of projects that are matched closelyfor size according to contract value: 60 discrete projects of a total value of£30,431,702.52 (mean = £507,195.04) and 60 framework projects of a total value of£16,403,695.97 (mean = £273,394.93). Engagement transaction costs for all 120projects are abstracted from costs reports for each project, an example of which isshown in Appendix 17. The project group activity staff report represents resourcesspent on various activities together with a cost for each and forms raw data foranalysis of hypothesis H4:H4: There is no significant difference between engagement transaction costs offramework agreements and traditional tendering methods.Within this hypothesis, the term ‘engagement transaction’ refers to the followingcosts:172