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The extent of integration along the front-end of the project lifecycle: a marketing perspective on two major contractors

Smyth, H; Kusuma, I; (2015) The extent of integration along the front-end of the project lifecycle: a marketing perspective on two major contractors. Procedia Economics and Finance , 21 pp. 170-177. 10.1016/S2212-5671(15)00164-1. Green open access

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Abstract

This paper is part of a programme of research work. A lack of cross-functional integration has been reported in four major international contracting organisations both vertically in the management hierarchy and horizontally along project lifecycles. One of the main aspects previously reported was the low level of management coordination and hence integration of value propositions between business development and bid management functions. This paper examines the matter further. It specifically examines business development (BD) and bid management (BM) in two additional major contractors where the two functions are combined under a single functional department. In the department, the same personnel manage BD and bidding. It poses the research question as to whether this leads to greater levels of coordination and integration. Two dimensions are examined in particular, namely understanding client needs to develop value propositions through BD and developing win-strategies during BM to potentially add value and deliver benefits during execution. The conceptual lens of marketing in construction is used for analysis. There are two main findings. First, the degree of coordination is marginally improved, yet the understanding and effort committed to BD was lower compared to BM. Therefore, the ability to develop win-strategies during BM was compromised by the lower emphasis on BD. Second, it was found that the level of integration between the two functions and with other functions, such as procurement and supply chain management, was low. This compromised the value propositions and delivery of benefits. The outcome is a contractor focus upon survival with sub-optimal strike rates and value propositions.

Type: Article
Title: The extent of integration along the front-end of the project lifecycle: a marketing perspective on two major contractors
Open access status: An open access version is available from UCL Discovery
DOI: 10.1016/S2212-5671(15)00164-1
Publisher version: http://dx.doi.org/10.1016/S2212-5671(15)00164-1
Language: English
Additional information: Crown Copyright © 2015. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).
Keywords: Bid Management, Business Development, Coordination, Integration, Marketing
UCL classification: UCL
UCL > Provost and Vice Provost Offices
UCL > Provost and Vice Provost Offices > UCL BEAMS
UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment
UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment > The Bartlett Sch of Const and Proj Mgt
URI: https://discovery.ucl.ac.uk/id/eprint/1463942
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