UNIVERSIDADE TCNICA DE LISBOA

INSTITUTO SUPERIOR TCNICO

Social e-Business: A New Vision for Construction
e-Procurement Platforms
Antnio Morais Aguiar da Costa




Chairperson: Chairman of the IST Scientific Board
Members of the Committee:
Doctor Lus Antnio de Castro Valadares Tavares, Professor Catedrtico Emrito do Instituto Superior
Tcnico, da Universidade Tcnica de Lisboa
Doctor Antnio Ado da Fonseca, Professor Catedrtico Aposentado da Faculdade de Engenharia, da
Universidade do Porto
Doctor Jos lvaro Pereira Antunes Ferreira, Professor Associado do Instituto Superior Tcnico, da
Universidade Tcnica de Lisboa
Doctor Antnio Carlos Brbara Grilo, Professor Auxiliar da Faculdade de Cincias e Tecnologia, da
Universidade Nova de Lisboa
Doctor Amlcar Jos Martins Arantes, Professor Auxiliar do Instituto Superior Tcnico, da
Universidade Tcnica de Lisboa

December 2011
Supervisor: Doctor Lus Antnio de Castro Valadares Tavares
Co-Supervisor: Doctor Jos lvaro Pereira Antunes Ferreira





i
ABSTRACT

E-procurement platforms generate positive impacts and raise interesting opportunities for
the construction industry. However, various challenges must be faced when designing and
managing these systems to attract new users, potentiate e-procurement networks and
promote innovative procurement and working systems.
To overcome these challenges, a new vision for construction e-procurement platforms is
proposed. This new vision is called Social e-business; it recognizes the role of multicriteria
evaluation instruments, it emphasizes the strategic importance of relationship-based
approaches to procurement and assumes the increasing relevance of Information and
Communication Technologies, such as BIM and web-based collaborative platforms, in
construction projects performance. This vision exploits the benefits of online social
networks to create a collaborative, integrated and interoperable space where social capital is
potentiated and supply chain management assumes a central role. One feature that
contributes to this inter-organizational perspective is the Satellite network model proposed,
which promotes supply chain dematerialization and collaboration in a project-based
environment.
This innovative vision for e-procurement platforms has been implemented in a platform
prototype developed throughout the research, which has been tested in a pilot case study
focusing a construction project. Finally, the particular case of Social e-business vision
implementation in the public sector has also been analysed.

Key-words: e-procurement, social e-business, social networks, supply chain management,
BIM, multicriteria evaluation, past performance, future performance, game theory, pilot
case.
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RESUMO

A contratao electrnica tem impactos positivos e cria oportunidades relevantes para a
indstria da construo. Contudo, o desenvolvimento e a gesto das plataformas de
contratao electrnica tendo em vista o seu crescimento contnuo, a progressiva
potenciao das redes electrnicas geradas e a implementao de sistemas inovadores de
contratao e trabalho colaborativo, levanta inmeros desafios.
neste contexto que se prope uma viso inovadora para as plataformas de contratao
electrnica, designada por Social e-business. A abordagem proposta reconhece o papel
fundamental dos modelos multicritrio na contratao electrnica, valoriza a importncia
estratgica da gesto dos relacionamentos e assume a relevncia das novas Tecnologias de
Informao e Comunicao, designadamente o BIM e as plataformas colaborativas online,
no desempenho dos projectos de construo. A viso proposta explora as potencialidades
das redes sociais tendo em vista a criao de um espao colaborativo, integrado e
interopervel onde o capital social potenciado e a gesto das cadeias de abastecimento
assume um papel central. Uma das funcionalidades que contribui para esta perspectiva
integrada o modelo das redes satlites, que promove a desmaterializao e a colaborao
numa lgica orientada para o projecto.
Esta viso inovadora foi implementada num prottipo desenvolvido ao longo da
investigao realizada, e aplicada a um caso piloto. Finalmente, a viso proposta foi ainda
analisada no mbito particular do sector pblico.

Palavras-chave: contratao electronica, social e-business, redes sociais, gesto da cadeia
de abastecimento, BIM, avaliao multicriteria, past performance, future performance,
teoria dos jogos, caso piloto.

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ACKNOWLEDGMENTS


I thank many people who contributed in various ways to this thesis, giving support and
motivation and sharing knowledge and vision.
Foremost, I express my sincere gratitude to my supervisor, Professor Lus Valadares
Tavares, for continuous support during my study and research, his patience, motivation and
enthusiasm, and immense knowledge. The good advice of my co-supervisor, Professor Jos
Antunes Ferreira, has been invaluable, for which I am grateful.
I thank the members of my thesis committee, Professors Ado da Fonseca, Antnio Grilo
and Amlcar Arantes, whose helpful suggestions improved my thesis significantly.
I thank Patricia, secretary of CESUR/IST, for helping me whenever necessary. I thank all
entities involved in this research directly: Vortal S.A., Microfil S.A., Primavera BSS S.A.,
CESUR/IST- Technical University of Lisbon, UNIDEMI/FCT - New University of Lisbon,
OPET and APMEP.
I express gratefulness to Natacha, who support me in every moment, and my good friends
Carlos and Pedro, not only for their insightful remarks, but mostly for their friendship. I am
thankful to Lus Silva for helpful discussions.
Most importantly, I thank my parents for their encouragement, support and love. To them I
dedicate this thesis.

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TABLE OF CONTENTS

ABSTRACT ............................................................................................................................................... I
RESUMO.............................................................................................................................................. III
ACKNOWLEDGMENTS........................................................................................................................ V
TABLE OF CONTENTS ...................................................................................................................... VII
LIST OF FIGURES ............................................................................................................................. XII
LIST OF TABLES ............................................................................................................................... XVI
LIST OF ABBREVIATIONS ........................................................................................................... XVIII
LIST OF SYMBOLS ........................................................................................................................... XIX
GLOSSARY ...................................................................................................................................... XXII
1. INTRODUCTION
1.1. Background ...............................................................................1
1.2. Research Study ......................................................................... 9
1.2.1. Research questions ............................................................................................. 9
1.2.2. Propositions and hypotheses ........................................................................... 10
1.2.3. Purposes of the Thesis....................................................................................... 11
1.2.4. Methodology ...................................................................................................... 12
1.2.5. Limitations .........................................................................................................16
1.2.6. Rationale ............................................................................................................ 17
1.3. Thesis Structure ...................................................................... 18
1.3.1. Chapters description .........................................................................................19
1.3.1.1. Chapter 2 The Electronic Paradigm and Construction Industry ............ 20
1.3.1.2. Chapter 3 Social e-Business and BIM-based Environments ................... 21
1.3.1.3. Chapter 4 Social e-Business and the Public Sector ................................. 22
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2. THE ELECTRONIC PARADIGM AND THE CONSTRUCTION INDUSTRY
2.1. The electronic paradigm in Portugal ....................................... 27
2.1.1. Public e-procurement and the Portuguese case.............................................. 29
2.1.1.1. The new Portuguese Public Contracts Code ................................................ 32
2.1.2. The impact of public e-procurement in Portugal ........................................... 34
2.1.2.1. Methodology.................................................................................................. 34
2.1.2.2. Survey results ................................................................................................ 39
2.1.2.3. Discussion of surveys results ........................................................................ 49
2.1.3. E-marketplaces in construction and emerging challenges ............................ 51
2.1.3.1. B2B e-marketplaces ...................................................................................... 51
2.1.3.2. The case of Econstroi and Mercado Aberto........................................... 54
2.2. How e-procurement is transforming supply chains ................. 58
2.2.1. B2B electronic markets behaviour................................................................... 58
2.2.2. Multicriteria evaluation to improve electronic markets ................................. 61
2.2.2.1. Past Performance and buyer-supplier relationships .................................. 64
2.2.3. SCM improvement through e-procurement ................................................... 68
2.3. On the dynamics of e-procurement networks .......................... 71
2.3.1. Modelling social and e-procurement networks .............................................. 72
2.3.1.1. Methodology.................................................................................................. 73
2.3.1.2. A model of social networks ........................................................................... 74
2.3.1.3. A model of e-procurement networks ........................................................... 76
2.3.2. Three theorems on the dynamics of networks ............................................... 80
2.3.2.1. A theorem on the dynamics of social networks .......................................... 80
2.3.2.2. A theorem on the dynamics of e-procurement networks ........................... 81
2.3.2.3. A theorem on the equilibrium state of a e-procurement Network ............. 82
2.3.3. Networks dynamics simulation ....................................................................... 84
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2.3.3.1. Social networks dynamics simulation ......................................................... 84
2.3.3.2. E-procurement networks dynamics simulation .......................................... 85
2.3.4. Discussion of results on e-procurement networks ..........................................91
2.4. A vision for e-procurement in construction ............................ 93
3. SOCIAL E-BUSINESS AND BIM-BASED ENVIRONMENTS
3.1. Social e-business: an innovative approach to construction ..... 99
3.1.1. Social networks in e-business ........................................................................ 100
3.1.2. Collaborative networks in action: the Satellite network model ................... 105
3.1.3. Multiple actors in Social e-business ............................................................... 111
3.2. BIM-based interface to improve Social e-Business ................. 117
3.2.1. Interactive BIM to enhance information management ................................ 118
3.2.2. BIM-based e-procurement.............................................................................. 121
3.2.3. The role of taxonomies in collaborative environments ................................ 123
3.3. PLAGE platform prototype .................................................... 127
3.3.1. Background ...................................................................................................... 127
3.3.2. Methodology ................................................................................................... 128
3.3.3. Prototype development .................................................................................. 130
3.3.3.1. Business process modelling ....................................................................... 130
3.3.3.2. Use cases and front-end development....................................................... 132
3.3.3.3. Technological solution................................................................................ 133
3.3.4. Major results .................................................................................................... 135
3.3.4.1. Social e-business environment .................................................................. 136
3.3.4.2. BIM-based interface .................................................................................... 141
3.3.4.3. SCM services ............................................................................................... 142
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3.4. Pilot case study Liceu Passos Manuel .................................. 147
3.4.1. BIM modelling ................................................................................................ 148
3.4.1.1. IFC tests ....................................................................................................... 153
3.4.1.2. Linking tasks to BIM model ....................................................................... 155
3.4.2. Simulation Environment ................................................................................ 156
3.4.2.1. Starting new project .................................................................................... 156
3.4.2.2. Phases management ................................................................................... 160
3.4.2.3. Satellite networks management .................................................................. 161
3.4.2.4. Communication and social networking ..................................................... 162
3.4.2.5. BIM-based interface ................................................................................... 164
3.4.2.6. Contract management ................................................................................ 166
3.4.2.7. E-catalogue and application store .............................................................. 167
3.5. Discussion of results ............................................................. 168
4. SOCIAL E-BUSINESS: THE PUBLIC SECTOR CASE
4.1. Multicriteria evaluation in public procurement ..................... 175
4.1.1. Multiple criteria decision analysis ..................................................................175
4.1.2. Multicriteria evaluation under the European Directives and Portuguese
Public Contracts Code ..................................................................................................... 178
4.1.2.1. Multiattribute Value Theory ....................................................................... 180
4.2. Past performance in Public procurement .............................. 182
4.2.1. On the path of Relationship-based procurement in public sector ............... 182
4.2.2. The case of Europe and USA .......................................................................... 184
4.2.3. An alternative approach to past performance .............................................. 188
4.2.3.1. Alternative approach example ................................................................... 189
4.2.3.2. Discussion on Future performance approach ........................................... 196
4.3. Perspectives on Social e-business in Public Sector ................ 199
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5. CONCLUSION
5.1. Further developments .......................................................... 208
5.1.1. E-procurement networks dynamics .............................................................. 208
5.1.2. Social e-business case studies ........................................................................ 208
5.1.3. Pricing policy .................................................................................................. 209
5.1.4. Automated learning using BIM ...................................................................... 211
5.1.5. e-Catalogue in Social e-business ................................................................... 214
5.2. Final statement ...................................................................... 217
APPENDICES
APPENDIX A ...................................................................................................................................... 221
APPENDIX B ...................................................................................................................................... 223
APPENDIX C ...................................................................................................................................... 227
APPENDIX D ...................................................................................................................................... 231
APPENDIX E ...................................................................................................................................... 233
REFERENCES
REFERENCES .................................................................................................................................... 235


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LIST OF FIGURES
Fig. 1 - Gross value added per hour worked by activity 2
Fig. 2 Dimension of Portuguese construction companies 4
Fig. 3 - Portuguese companies with Internet connections 5
Fig. 4 - Companies with more than 10 employees with Internet presences 5
Fig. 5 BIM benefits in United Kingdom, France and Germany 6
Fig. 6 Scope and major issues 12
Fig. 7 - Action research cycles 16
Fig. 8 Chapter 2 structure 20
Fig. 9 Chapter 3 structure 21
Fig. 10 Chapter 4 structure 22
Fig. 11 - Thesis organization 23
Fig. 12 - Full online availability for EU27 28
Fig. 13 - e-Procurement lifecycle 31
Fig. 14 Number of entities considered in surveys 38
Fig. 15 Results of open question related to not been using public e-procurement 39
Fig. 16 Contracting authorities respondents distribution 40
Fig. 17 - Suppliers respondents contracts distribution 40
Fig. 18 - Characteristics of the contracting authorities who responded to the
questionnaire 41
Fig. 19 - Characteristics of the suppliers who responded to the questionnaire 42
Fig. 20 Major e-procurement platforms used by the contracting authorities (CA) and
suppliers (S) 42
Fig. 21 Impacts of e-procurement on contracting authorities 44
Fig. 22 Impacts of e-procurement on suppliers 44
Fig. 23 Impacts on organization and ICT investments 45
Fig. 24 Contracting authority need for training courses 46
Fig. 25 Supplier need for training courses 46
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Fig. 26 Contracting authority answers to question related to e-procurement difficulties
47
Fig. 27 Suppliers answers to question related to e-procurement difficulties 47
Fig. 28 - Suppliers suggestions on e-procurement improvement 48
Fig. 29 Contracting authorities suggestions on e-procurement improvement 49
Fig. 30 E-marketplace services 53
Fig. 31 - Top 5 companies in Portugal 55
Fig. 32 - Effect of coordination cost reduction on the optimal number of suppliers 59
Fig. 33 Optimal number of suppliers when considering investment in non-contractibles
and respective benefits for buyers 60
Fig. 34 Strategic importance of multicriteria evaluation consistency 63
Fig. 35 Multicriteria evaluation and past performance in e-procurement 64
Fig. 36 - Measuring relationship quality 66
Fig. 37 Effects of e-procurement 69
Fig. 38 E-procurement networks 71
Fig. 39 Social Network simulation results 85
Fig. 40 E-procurement network simulation results Open strategy 87
Fig. 41 E-procurement network simulation results Bounded strategy 88
Fig. 42 E-procurement network simulation results Cost-based strategy 89
Fig. 43 - E-procurement network simulation results Value-added strategy 90
Fig. 44 Social Network Sites use 101
Fig. 45 Social e-business strategy 104
Fig. 46 Collaborative networks 107
Fig. 47 Common Web-based Collaborative Network 108
Fig. 48 Types of networks 109
Fig. 49 Satellite Network Model 109
Fig. 50 Satellite networks going on-site 111
Fig. 51 - Linking external information to BIM 119
Fig. 52 - Method to link external Information to BIM 119
Fig. 53 Method to search for BIM-based external information 119
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Fig. 54 Defragmented BIM management approach 120
Fig. 55 BIM in e-procurement 121
Fig. 56 Method to include in the BIM model additional information 122
Fig. 57 Method to initiate procurement process using BIM model 122
Fig. 58 Method to make a proposal using the BIM model 123
Fig. 59 Research strategy 129
Fig. 60 BMPN map example 131
Fig. 61 PLAGE fron-tend structure 132
Fig. 62 - Main Page (after login) 133
Fig. 63 - Projects page 133
Fig. 64 - Project Wall 133
Fig. 65 - General information of the project 133
Fig. 66 - PLAGE platform architecture 135
Fig. 67 - PLAGE Platform Functional Architecture 137
Fig. 68 Companys Wall 139
Fig. 69 Example of projects Wall 139
Fig. 70 Document and model management 139
Fig. 71 - Meetings management 139
Fig. 72 Private and Public Project Information 140
Fig. 73 - BIM viewer 141
Fig. 74 E-procurement interface 142
Fig. 75 Risk analysis form 143
Fig. 76 Contract management area 143
Fig. 77 SIAP software 144
Fig. 78 Online SIAP embedded in PLAGE platform 145
Fig. 79 SIAP interface to create and manage evaluation models 145
Fig. 80 Physical model of Liceu Passos Manuel School 147
Fig. 81 Photos of Liceu Passos Manuel School 147
Fig. 82 LOD100 visualization 3D 150
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Fig. 83 Detail of spaces organization in 2D 150
Fig. 84 - 3D visualization of model LOD200 151
Fig. 85 LOD300 model (main building) 151
Fig. 86 LOD300 model (interior and circulations) 152
Fig. 87 - HVAC system in LOD300 152
Fig. 88 - Section and plant automatically generated from BIM model 152
Fig. 89 IFC test 1 153
Fig. 90 IFC test 2 153
Fig. 91 - BIM model created in ArchiCAD 154
Fig. 92 - IFC model imported into Revit 154
Fig. 93 - Wall created in Revit 154
Fig. 94 - IFC model imported into ArchiCAD 154
Fig. 95 Projects main page 157
Fig. 96 Projects general information 157
Fig. 97 - Multimedia gallery 158
Fig. 98 - PLAGE user's main page 158
Fig. 99 Network management page 159
Fig. 100 Phases management page 160
Fig. 101 Collaborative space for document and model management 160
Fig. 102 Satellite networks page 161
Fig. 103 - Project's main page 162
Fig. 104 Messages page 162
Fig. 105 - Meetings management page 163
Fig. 106 Task management page 163
Fig. 107 Company wall 163
Fig. 108 Project wall 164
Fig. 109 IFC model viewer 165
Fig. 110 BIM-based messages 165
Fig. 111 BIM e-procurement 166
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Fig. 112 Contract management page 166
Fig. 113 PLAGE e-catalogue 167
Fig. 114 PLAGE application store 167
Fig. 115 Social e-business and the public sector 174
Fig. 116 Example of criteria tree 180
Fig. 117 Example of scoring function 181
Fig. 118 Award criteria 188
Fig. 119 Criteria tree 189
Fig. 120 Cost scoring function 189
Fig. 121 Duration scoring function 190
Fig. 122 Reward percentage scoring function 190
Fig. 123 Reward and penalties in procurement 198
Fig. 124 Social e-business networks 205
Fig. 125 Recommendation system architecture 213
Fig. 126 Continuous recommendation process 214
Fig. 127 Social e-business e-catalogue dimensions 214
Fig. 128 BIM object (LG HVAC equipment) 216
Fig. 129 Information on BIM object 216
Fig. 130 Equipment rental e-catalogue model 217

LIST OF TABLES
Table 1 Portuguese GDP and Construction share of the GDP 1
Table 2 Surveys confidence intervals 41
Table 3 Number of users of Portuguese construction marketplaces 56
Table 4 Payoff matrix of a 2-player, 2-strategy game 73
Table 5 Payoff matrix for social network members 75
Table 6 Construction industry actors and Social e-business 112
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Table 7 - Most relevant specific features of Social e-business per type of actor 114
Table 8 - Most relevant specific features of Social e-business per type of actor (cont.) 115
Table 9 - Most relevant specific features of social e-business per type of actor (cont.) 116
Table 10 Comparison between Uniclass and Omniclass 124
Table 11 Evaluation matrix 192
Table 12 Scores matrix 193
Table 13 Final cost of tenders including reward 193
Table 14 cost scoring rule 194
Table 15 duration scoring rule 194
Table 16 - client satisfaction scoring rule 195
Table 17 LODs versus model content and use 231


xviii
LIST OF ABBREVIATIONS
3D Three-dimensional
AHP - Analytical Hierarchy Process
APMEP - Portuguese Association of Public Markets
API Application Programming Interface
B2B Business to Business
B2C Business to Consumer
BIM Building Information Modelling
CA Contracting Authorities
CESUR Center for Urban and Regional Systems
EBITDA - Earnings Before Interest, Taxes, Depreciation and Amortization
ERP Enterprise Resource Planning
EU European Union
GDP Gross Domestic Product
GUID Globally Unique Identifier
GVA Gross Value Added
ICT Information and Communication Technologies
IFC Industry Foundation Classes
INCI - Institute of Construction and Real Estate
INCM - Portuguese Mint and Official Printing Office
INE National Institute of Statistics
KPI Key Performance Indicators
MAUT- Multiattribute Utility Theory
MAVT Multiattribute Value Theory
OGC Office of Government Commerce
xix
OPET - Observatory Perspective of Engineering and Technology
PLAGE Plataforma Electrnica para a Contratualizao e Gesto Integrada de
Empreendimentos (Electronic Platform for Procurement and Integrated
Management of Construction Projects)
PN - E-Procurement Networks;
PPC Public Contracts Code
R&D Research and Development
RFI Request For Information
RFQ Request For Quote
S Suppliers
SC Supply Chain
SCM Supply Chain Management
SME Small and Medium Enterprises
SaaS Software as a Service
SN - Social Networks;
SOA Service Oriented Architecture
SQL Structured Query Language
UID Unique Identification
UNIDEMI - R&D Unit in Mechanical and Industrial Engineering

LIST OF SYMBOLS
The following notations appear throughout this thesis (mostly chapters 2 and 4):
- positive coefficient that relates the benefit of belonging to SN with

();
B (t) - set of buyers in PN at time t;

(t) - net benefit for any member of B(t) for participating in PN;
xx

() - expected benefit for a potential new member k participating in the network;

(t) - net benefit for any member of S(t) for participating in PN;

() - net benefit of SN due to k joining the network;

- positive coefficient that relates the benefit of belonging to PN with

() and

();

- positive coefficient that relates the benefit of belonging to PN with

() and

();

- individual participation cost in PN for any member belonging to B(t);

- individual participation cost in PN for any member belonging to S(t);

- individual participation cost in SN;

() - change on benefit of the whole set of existing buyers due to adding k to B(t);

() - change on benefit of the whole set of existing suppliers due to adding k to B(t);

() - change on benefit of whole PN due to adding k to B(t);

() - change on benefit of the whole set of existing buyers due to adding k to S(t);

() - change on benefit of the whole set of existing suppliers due to adding k to S(t);

() - change on benefit of whole PN due to adding k to S(t);

() - expected number of new members joining SN at time t;

() - expected number of new members joining B(t) at time t;

() - expected number of new members joining S(t) at time t;

- benefit for buyers per cost unit;

- benefit for suppliers per cost unit;

- a new potential network member;

() - the number of members of a SN at time t;

xxi

() - number of buyers in PN at time t;

() - number of suppliers in PN at time t;

S (t) - set of suppliers in PN at time t;
S(i) - the overall score for alternative i;
s(i,j) - the partial score of the alternative i respecting criterion j;
w(j) - the weight of criterion j;
wc - cost criterion weight,
wt - duration criterion weight
wr - reward criterion weight

xxii
GLOSSARY
To improve the readers experience and clarify expressions used throughout the thesis, a
list of terms and respective definitions are presented considering the domain of
knowledge of this study.
Benchmarking - A process of continuous improvement based on the comparison of an
organizations processes or products with those identified as best practice;
Bertrand model - A Game Theory model to study oligopoly markets, based exclusively
on price competition;
Bertrand paradox - A phenomenon related to the fact that in a price-based
competition (Bertrand competition), the Nash equilibrium is obtained when players
profit is zero (price equal to marginal cost);
Building Information Modelling - A modelling technology and associated set of
processes related to the development of 3D virtual and parametric models of buildings
containing precise geometry and relevant data needed or produce throughout the entire
projects lifecycle;
Business to business - Transactions between businesses or enterprises (e.g., between
a manufacturer and a general contractor);
Business to consumer - Transactions between businesses and consumers (e.g.,
between a retailer and a consumer);
Cloud computing - Software, data access and storage services delivered over the
Internet and supported by hardware and software in data centres, which represent the
cloud;
Dematerialization - Transformation of paper-based processes into electronic-based
processes;
E-business (electronic business) - The application of information and
communications technologies to support business activities, preferably involving the
entire value chain;
xxiii
E-marketplace (electronic marketplace) - An e-procurement model that allows
sellers and buyers to communicate, collaborate and perform commercial transactions,
usually based on online product catalogues;
E-procurement (electronic procurement) - Inter-organizational electronic
platform normally provided over the Internet to support processes and electronic
exchanges of data related to the entire procurement cycle, including several services: e-
noticing, e-sourcing, e-tendering, e-evaluation, e-awarding, e-payment, etc. In its most
advanced form, it supports contract management and provides the necessary tools for
effective supply chain management. According to Vaidya et al. (2006), e-procurement is
an end-to-end solution that integrates and streamlines many procurement processes
throughout an organization;
E-procurement networks - Networks of buyers and suppliers supported by e-
procurement platforms and managed by e-procurement service providers;
Electronic markets - Markets made up of buyers and suppliers supported by e-
procurement platforms;
Electronic platform - A computing system including hardware, architecture and
a software framework that supports software development and delivery. Commonly,
electronic platforms are hosted in an Internet cloud and software applications are
delivered as a service (SaaS);
Game theory - A mathematical method that analyzes the strategies of two or more
players in games where a players success is based on the choices of others;
Gross Domestic Product - The monetary value of all finished goods and services
produced within a country in a specific period (usually annually);
Gross Value Added - The monetary value of all finished goods and services produced
in an area, industry or sector of an economy minus intermediate consumption (value of
goods and services consumed or used as inputs in production). The sum of Gross Value
Added in various economic activities plus indirect taxes less subsidies on products
is GDP;
Interoperability - The ability of systems and entities to inter-operate (communicate,
collaborate, etc.);
xxiv
Key Performance Indicators - Standardized measures that reflect key factors of a
project or organization; support performance monitoring and projects and contract
management;
Multicriteria Evaluation - An evaluation method that uses multiple criteria and a
specific aggregation model to evaluate several alternatives;
Nash equilibrium - A Game Theory solution for a game involving two or more players
in which each player knows the equilibrium strategies of the other players and no player
has anything to gain by changing his/her own strategy unilaterally. In market
competition, the Nash equilibrium is the solution that maximizes player profits given
other firms actions;
Non-contractibles - Product or supplier characteristics that buyers observe but are
difficult or impossible to specify in advance in a contract, such as internal process quality
attributes, innovation, information sharing, assurance, reliability, supplier
responsiveness (ability and willingness to accommodate buyers non-contractual
requests) and flexibility (Mithas et al., 2002);
Oligopoly - A market with few players where one player influences market prices;
Partnering - A relational approach to contracts based on trust relationships and a
framework for establishment of mutual objectives among the building team, encouraging
the principle of continuous improvement (Naoum, 2003).
Past Performance - Performance demonstrated by a supplier in previous contracts or
projects;
Performance - The result of a specific task or the characteristics of a product measured
according to existing standards of accuracy, completeness, cost, time, satisfaction, etc.
Performance management - A management approach that focuses on the outcomes
of the organizations and projects rather than incomes, usually referring to Key
Performance Indicators to monitor organizations and project performance;
Performance-based procurement - An approach to procurement focusing on the
outcomes of a specific contract. Performance is an obligation fulfilled by the contractor.
Incentives and penalties are instruments to reward or penalize eventual performance
deviations;
xxv
Pilot case study - A case study to test a specific concept or theory in a controlled,
simulated environment (Yin, 2009);
Process mapping - A technique used to describe how a process is carried out, usually
referring to schematic representations;
Procurement - A delivery-relationship between buyers and sellers involving various
phases (sourcing, noticing, tendering, awarding, ordering, etc.) and where a strategic
approach to supply chains receives special attention (Grilo and Jardim-Goncalves, 2011);
Proof of concept - A demonstration project or prototype to verify the feasibility of
some concept or theory, usually simple and incomplete;
Prototype - A simplified model to test a concept or process;
Rank reversal A multicriteria decision-making phenomenon related to changes in
old alternatives rank due to the consideration of an additional alternative;
Relationship management - A dimension of Supply Chain Management focusing on
promoting, monitoring and managing relationships throughout a projects lifecycle;
Relationship-based procurement - Procurement procedure that focus on a
delivery-relationship between parties that transcend the exchange of goods and services
and portrays attributes of a community with shared values and trust-based interactions
(Forbes and Ahmed, 2011); it requires more intense collaboration and information
sharing than traditional procurement;
Service providers - An entity that provides services to other entities responsible for all
activities related to delivery such as management, maintenance and continuous
improvement;
Social networking - An emerging phenomenon related to widespread online platforms
supporting and linking users (social networks), and providing various communication,
collaboration and interaction tools;
Social networks - Online networks of users generated by social networking online
platforms;
xxvi
Software as a service - A technological solution based on the delivery of software
applications over the Internet as services (Armbrust et al., 2009);
Supply chain - A system of suppliers, manufacturers, retailers, distributors, architects,
engineers, specialists, consultants and customers where material, financial and
information flows connect participants in both directions;
Supply Chain Management - Encompasses the planning and management of all
activities undertaken in an organization to promote effective management of the supply
chain (Li et al., 2006);
Taxonomies - A standardized collection of terms organized into hierarchical structures;
Value-added services - Non-core services from a service provider capable of meeting a
customers value proposition;
Web services - A technology solution to improve communication between two
electronic systems over a network;
Web-based collaborative platforms - Web-based electronic platforms that support
collaboration processes;
Web-based project management platforms - Web-based electronic platforms that
support project management.










Chapter 1

Introduction




1
1. INTRODUCTION
1.1. BACKGROUND
Construction influences national economies significantly. In Europe, it
represents 9,9% of Gross Domestic Product (GDP) and employs more than 14
million European Union (EU) citizens; 44.6 million workers in the EU depend in
one way or another on the construction sector (FIEC, 2010). In Portugal,
construction represents about 6% of GDP (Table 1) and involves more than 470
thousand workers.
Table 1 Portuguese GDP and Construction share of the GDP
2007 2008 2009 2010
GDP (10
9
) 169,3 171,9 168,5 172,8
GVA of construction (10
9
) 10,7 10,8 9,6 9,8
Taxes less subsidies on products (10
9
) 0,9 0,9 0,9 0,9
Construction share of the GDP (%) 6,8 6,8 6,2 6,2
Source: Eurostat and National Institute of Statistics (INE), 2011
Despite its influence on national economies, it is a stagnant industry with low
productivity and low innovation indices (Egan, 1998, Egan, 2002, Latham, 1994,
Government, 2011). It has been widely criticized for its slow adoption of new
technology and modern management methods (McGeorge and Palmer, 2002).
In fact, if we look closer at the Portuguese case, we see that the construction
industry is among the economic activities with lower Gross Value Added (GVA)
per hour worked (Fig. 1). Considering that GVA is output minus intermediate
consumption - the total monetary value of goods and services consumed or used
as production inputs including materials, services and various operating
expenses to generate outputs - it can be said that this is a symptom of the
construction sectors limited performance.
2

Fig. 1 - Gross value added per hour worked by activity (INE, 2011)
Among the most significant factors that explain this behaviour, some are
particularly relevant: high market fragmentation, strong price competition, lack
of project uniformity, lack of a highly trained workforce, project location
diversity and lack of trust among players (Alarcon et al., 2009, Ekstrom et al.,
2005). Each construction project has specific characteristics depending on
numerous uncontrollable variables (such as the weather or site conditions),
involves a significant number of players, has a disintegrated lifecycle (several
phases may exist and the actors differ from phase to phase), requires large
amounts of information that is usually dispersed, has a disparate nature (various
products may be used for the same purpose) and requires considerable
investments. All of these characteristics make each construction project unique
and raise challenges for construction industry.
If addressed inadequately, this complex and demanding environment may lead
to numerous errors and substantial losses. In Portugal, a global report on five
public works developments with direct State management (Auditors, 2009)
3.5
13.3
181.9
20.2
10.4
12.1
11.3
37.6
63.6
160.2
12.4
17.6
12.6
0.0 50.0 100.0 150.0 200.0
Agriculture, forestry and fishing
Manufacturing and mining
Electricity, gas, steam and
air-conditioning supply
Watersupply and sewerage
Construction
Wholesale and retail trade, repair of
motor vehicles and motorcycles
Accommodation and food service activities
Information and communication
Financial and insurance activities
Real estate activities
Professional, scientific, technical
and administrative activities
Public sector services
Arts and entertainment
Euros
Gross value added per hour worked (2008)
3
shows the relevance of this concern. Audits found a widespread phenomenon of
serious cost slippages (between 25% and 295% above the ceiling rates
established by the contracts), and, cumulatively, significant deadline deviations
(between 1.4 and 4.6 years more than expected for completion). According to
Portuguese Court of Auditors, the primary causes for cost slippages and deadline
deviations in construction were the following:
lack of rigor and quality of tender documents;
errors and omissions on design documents;
numerous changes made to design;
lack of previous studies and project revisions;
modifications to work and extra work due to project errors and
omissions, unforeseen events, and by the way reasoning;
work carried out at the same time as projects;
delays in expropriating land and obtaining an Environmental Impact
Statement;
constructive process modifications;
uncertain geological conditions;
deadline extensions;
lack of interoperability and bad communication between players;
bad planning and project management;
bad supervision;
force majeure causes.
Against such a complex and dynamic background, innovation emerges as vital to
successful, long-term company performance in the construction industry, and a
requirement for organizational growth or survive (Gambatese and Hallowell,
2011). Notwithstanding, investment in Information and Communication
Technologies (ICT) in the construction industry is limited substantially; the
European Commission (2006) suggests that investment is about 4% of total
expenditures. Moreover, business enterprise R&D (Research and Development)
4
expenditures in the construction sector are nearly non-existent. Taking Portugal
as an example, in 2009 the total allocated by business enterprises to R&D
corresponded to 0,78% of GDP, of which only 0,01% was associated with the
construction sector (Eurostat, 2011). This is extremely low, especially
considering that Portuguese construction represents about 6% of GDP, a
significant percentage that should be addressed with additional concern.
The European Commission (2006) argues that reduced investment in innovation
is due primarily to the high number of small companies in the construction
sector. In fact, in Portugal, statistics show that more than 92% of construction
companies have fewer than 10 employees and the discrepancy between the
number of small and bigger companies has been a constant (Fig. 2).
A subsequent analysis of the number of Portuguese companies with Internet
connections shows that only about 50% of small companies (fewer than 10
employees) have Internet access (Fig. 3), which seems to confirm significant
resistance toward innovation and modernization of small companies. Comparing
Internet presences in other economic sectors (information exist only for
companies with more than 10 employees), the construction sector has the lowest
rate (Fig. 4), signifying that it is in fact the least concerned with innovation and is
not a technologically advanced economic sector.

Fig. 2 Dimension of Portuguese construction companies (Pordata, 2011)
0
20000
40000
60000
80000
100000
120000
140000
1985 1990 1995 2000 2005 2010
N
u
m
b
e
r

o
f

c
o
m
p
a
n
i
e
s

Year
Construction companies in Portugal by number of employees
Total
< 10
10 to 19
20 to 49
50 to 249
>250
5

Fig. 3 - Portuguese companies with Internet connections (Pordata, 2011)

Fig. 4 - Companies with more than 10 employees with Internet presences (INE, 2011)
Despite the inertia of the construction industry, in the last few years as an answer
to the increasing need to reduce waste and improve performance, several
innovative technologies emerged in the construction sector. New ICT challenged
traditional working methods and stimulated change and modernization,
particularly in areas of e-procurement, 3D technology and web-based
collaboration and project management (Anumba and Ruikar, 2002, Alshawi and
Ingirige, 2003, Commission, 2006, Froese, 2010, Cheung et al., 2004, Plume and
Mitchell, 2007, Riese, 2008). Slowly but progressively, these technologies are
0%
20%
40%
60%
80%
100%
2003 2004 2005 2006 2007 2008 2009 2010
Year
% Portuguese companies with Internet connections
< 10
10-49
50-249
250+
Total
Number of
employees
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Economic sectors
% Companies with Internet presence (2010)
Construction
Accommodation, restaurants and
similar
Manufacturing industries
Transport and logistic
Retail
Finance activities and insurance
6
integrated into construction processes and demonstrate that potential gains are
possible.
It is worth emphasizing the growing use of Building Information Modelling
(BIM) (Eastman et al., 2008, Smith and Tardif, 2009, Grilo and Tavares, 2008)
to improve project quality and potentiate collaborative work, while giving the
supply chain a more integrated perspective. According to Eastman et al. (2008),
using BIM technology makes possible constructing an accurate 3D virtual and
parametric model of a building containing precise geometry and relevant data
needed to support construction, fabrication and procurement activities necessary
to the building process. It promotes collaboration, integration and process
automation; it potentiates virtual reality simulations and fosters visualization
and project understanding (Thorpe et al., 2008). Several initiatives demonstrate
effective performance improvements (Suermann and Issa, 2007, Olofsson et al.,
2008). As noted in Fig. 5, the benefits of BIM are recognized in the United
Kingdom, France and Germany, though the adoption rate is considerably lower
than in North America. According to Bernstein et al. (2010), the BIM adoption
rate in the United Kingdom, France and Germany was 36% in 2010 but already
49% in North America in 2009.

Fig. 5 BIM benefits in United Kingdom, France and Germany (Bernstein et al.,
2010)
0% 20% 40% 60% 80%
Reduced number of RFIs (Requests for
Information)
Better cost control/predictability
Fast client approval cycles
Reduced changes during construction
Reduced conflicts during construction
Improved overall project quality
Improved collective understanding of
design intent
BIM benefits contributing the most value
7
Web-based collaborative platforms are also emerging as effective support to
collaboration, information management, and sharing, stimulating easy and
stable communication (Chong et al., 2009, Wang and Archer, 2007). Web-based
collaborative platforms and BIM possess an interesting synergy, exploited
progressively by innovative electronic platforms that foster a collaborative and
integrated environment. Asite (2011) demonstrates an example of these new
platforms, a document and model management platform connected to a BIM
server and supporting several procurement procedures.
Against this potential technologically advanced background, strategic
perspectives on procurement and more integrated approaches to supply chains
gain momentum. While ICT facilitate communication and automate operational
processes, players have more time to think strategically about procurement and
management (Puschmann and Alt, 2005, Watson et al., 2007) and relationship
management becomes more relevant throughout the project lifecycle (Thompson
and Sanders, 1998, Hines and Sammuel, 2007, Smyth and Edkins, 2007). At the
same time increasing market complexity demands integrated approaches to
supply chains and suggests more proactive collaboration between all intervening
actors in early phases of the decision-making process.
Progressively, the construction sector increasingly recognizes designer influence
on functionality, lower lifecycle costs, safety, and value. Many important
decisions such as site location, technologies to implement, construction
processes, etc. are made in early phases, and an integrated and collaborative
approach to design phase involving multiple actors is fundamental to ensuring
project performance (Azambuja and OBrien, 2009, Jrgensen, 2006, AIA,
2007). New competition models emerge that shift from firm versus firm to a
supply chain versus supply chain competition. Supply Chain Management (SCM)
(Lambert et al., 1998) appears as a competitive advantage, integrating suppliers,
manufacturers, distributors, and customers (Vonderembse et al., 2006, Presutti,
2003, Schary, 2007), and emerging as one of corporate managements major
concerns; on average, 70% of a companys sales revenues are spent on supply
chain-related activities (Presutti, 2003). SCM is progressively relevant in
construction (OBrien et al., 2009, Pryke, 2009), promoting an integrated vision
of the construction process and supporting generation of strong network
8
relationships, sometimes managed by incentives or based on partnerships
(Christopher, 2007).
Considering these emerging issues, this thesis proposes an innovative approach
to e-procurement in construction, aiming to improve collaboration and
integration throughout the supply chain while providing advanced e-
procurement instruments and enhanced value-added services. BIM is considered
necessarily as a relevant component of the e-procurement platform proposed,
assuming a central role in procurement process. The result is an integrated
instrument connected to a rich knowledge base capable of advanced operations
and able to strengthen transaction relationships and collaboration throughout
the supply chain.
Existing e-procurement platforms are the starting point for developments
proposed. Procurement represents a significant portion of the total cost of
construction projects, having relevant influence on construction gains. Moreover,
the new Public Contracts code (PCC), approved by Decree-Law 18/2008 on 29
January 2008 and in force since 29 July 2008 mandates public e-procurement in
Portugal, which raises an interesting opportunity for e-procurement platforms
and offers an important incentive to construction modernization since it pushes
firms and public authorities to modernize and dematerialize, and obligates
implementation of more responsive, collaborative and intelligent working
systems.
9
1.2. RESEARCH STUDY
The research study conducted is presented in detail in subsequent sub-sections,
and respective elements are identified clearly. The research questions,
propositions, hypotheses and purposes of the thesis are defined, and the research
methodology is described and explained. Particular emphasis is given to
correlation between research questions and research work developed to examine
the integrated nature of the research. Finally, limitations of this research are
discussed and the rationale for the thesis is emphasized.
1.2.1. RESEARCH QUESTIONS
The major research question behind this thesis challenges some of most recent
issues in construction, and envisions the opportunity for a new perspective on e-
procurement platforms for construction. It faces existing procurement systems
and working models, envisioning more collaborative, interoperable and
integrated environments capable of providing enhanced projects performance.
The major research question is:
How can e-procurement platforms be potentiated to improve
procurement and working models in the construction industry?
This research question divides into three sub-questions that reflect three major
concerns behind the study: one related to e-procurement networks growth, a
crucial issue for e-procurement services providers and e-procurement platform
users; another related to the increasing role of social networks and collaboration
in construction, increasingly important in e-business and may help to support e-
procurement network growth; the last, and a consequence of the former, related
to a more relational and integrated approach to public sector procurement where
multicriteria evaluation and past performance may play a relevant role.
10
So, the sub-questions in which the major research question is divided are:
A. How can growth dynamics of e-procurement platforms be potentiated
and managed?
B. How can an e-procurement platform be enhanced to be used as a
social and collaborative space for development of construction
projects?
C. How can multicriteria evaluation and past performance be considered
in an e-procurement platform for public procurement?
1.2.2. PROPOSITIONS AND HYPOTHESES
Any scientific question must be based on propositions and hypotheses. The
former deal with concepts not yet tested, the latter are proposed explanations for
a phenomenon, usually based on previous observations and testable conditions.
While propositions emphasize the vision of the researcher and reflect research
questions, hypotheses guide the researcher through subsequent investigations.
The proposition encouraging this study is:

Considering this proposition, several hypotheses are offered to guide and
support further research. They are based on the role of e-procurement in
construction, inherent challenges and emerging opportunities, and envision a
more integrated and collaborative approach to construction projects:
The existing model of e-procurement platform for the construction
industry needs to improve to promote e-procurement network growth
and adapt to new, more collaborative and relationship-based
procurement and working models.


11
A deeper knowledge on the dynamics of e-procurement networks
allows improving e-procurement platforms management and
performance;
The use of multicriteria evaluation and past performance criteria
in procurement leverages procurement performance and
promotes more relational approaches to e-procurement
platforms;
An e-business platform providing collaborative work and social
networking tools, and integrating e-procurement as a value-
added service prompt e-procurement network growth more than
traditional e-procurement platforms;
An e-business platform providing collaborative space and several
value-added services such as e-procurement, BIM-based
instruments, multicriteria evaluation tools and other SCM
instruments improves project performance and emphasizes the
role of relationships in construction.
1.2.3. PURPOSES OF THE THESIS
E-procurement witnesses growing implementation and demonstrates interesting
results. In Portugal, it already plays a central role in public procurement, mostly
due to new legal frameworks that oblige the use of e-procurement platforms in
public procurement procedures. Despite its advantages, there are several
challenges that should be considered, and various advances that should be
achieved. The proposition and hypotheses suggest that existing e-procurement
platforms must be reformulated to respond to the most recent construction
industry requests. E-procurement platforms should stimulate e-procurement
network growth, and emerge as support for communication, collaborative work
and supply chain management instruments.
12
This thesis aims to obtain in-depth understanding of e-procurement and,
subsequently, draw innovative e-procurement solutions with concerns of the
construction industry in mind. Both private and public sectors are considered,
though the public sector receives special attention because it raises relevant
limitations to buyer-supplier relationships and past performance, particularly
with regard to procurement procedures. In Fig. 6 the scope of the thesis and the
most relevant factors influencing the research are identified.

Fig. 6 Scope and major issues
1.2.4. METHODOLOGY
This study was developed under the post-positivist paradigm, based on the
following considerations (Ryan, 2006):
research is broad rather than specialized;
theory and practice cannot be separated;
13
research is not only concerned with using correct techniques for
collecting and categorising information, a major precept of the positivist
approach;
research is primarily interpretative, which leads to seeing experience
and knowledge as multiple and relational, not bound by reason
(Henriques et al., 1998);
there is emphasis on learning rather than on exclusively testing; the
exploratory character assumes additional importance since problems
sometimes must be discovered;
conclusions are regarded as partial and revisable, there is not one
overall truth.
Under the post-positivist paradigm, an action research (Lewin, 1946) is
conducted within a business environment and a team of several elements,
presupposing strong commitment between research and collaboration with team
members (Gilmore et al., 1986). Most of the research herein was developed
within a R&D project carried out by Vortal S.A., Microfil S.A., Primavera BSS
S.A., CESUR from Instituto Superior Tcnico - Technical University of Lisbon,
and UNIDEMI from Faculdade de Cincias e Tecnologia New University of
Lisbon. They gave rich, full insight and participated proactively. In the case of
the national surveys presented in chapter 2, the Portuguese Observatory of
Technology and Engineering (OPET) and the Portuguese Association of Public
Markets (APMEP) coordinated the studies, which also involved a group of
several researchers.
A participative and collaborative process that is based on cycles, each of which
comprises several steps, characterizes this type of research: planning, action, and
fact-finding about the result of the action. These cycles converge on better
understanding of the problems and phenomena throughout a learning process
based on continuous refinement of methods, data and interpretation (Koshy,
2005). Throughout research cycles, answers to research questions are refined
and hypotheses are tested and validated progressively.
14
The proposed research considers three major cycles, each focusing on a specific
research sub-question (Fig. 7). Throughout the cycles, different research
purposes (Alston and Bowles, 2003) are considered:
exploring a phenomenon or theories (exploratory research)
describing various aspects of the world (descriptive research)
explaining a phenomenon (explanatory research)
These three research purposes are often found in the same research. Frequently,
a preliminary phase of a study begins with descriptive research, where the
researcher describes a phenomenon in detail. Exploratory research is conducted
when little is known about an area, a precursor to a more detailed study.
Explanatory research is applied to explain the reason for phenomena and
answers questions about causes.
In the case of the present thesis, the research methodology considers all research
purposes, combining the three main cycles of research (Fig. 7):
Research Cycle 1
This first phase of action research is descriptive and explanatory, and
answers the first research sub-question (sub-question A).
Several research activities are performed:
- theory and empirical evidence regarding the electronic paradigm,
particularly e-procurement, are discussed and analysed;
- two research surveys are conducted at the national level to assess the
impact of public e-procurement;
- a case analysis is conducted focusing the Portuguese construction e-
marketplaces;
- a numerical model is constructed using game theory to explain the
behaviour of e-procurement networks.
15
This part of the study was crucial to develop deeper understanding of the real
world and propose strategic directions for subsequent research.
Research Cycle 2
The second phase of action research focuses on the second research sub-
question (sub-question B), and is primarily exploratory. It considers three
components:
- proposition of an innovative approach to e-procurement platforms,
considering previous phase results;
- development of a proof of concept (prototype) of the solution
proposed;
- simulation and test of the prototype developed using a pilot case
study, an experiment with a fixed approach and a controllable
environment.
These components allowed searching for innovative solutions capable of
responding to the challenges and opportunities identified in the previous
research cycle.
Research Cycle 3
The third research cycle, descriptive and exploratory, answers sub-question
C. It considers the following research activities:
- literature review, analysis of public procurement legal frameworks,
case analysis and problem identification;
- exploratory analysis to propose the most adequate approaches to the
problems identified in the previous phase.
This final research cycle focuses on several key issues raised in research
cycles 1 and 2, such as buyer-supplier relationships, multicriteria evaluation
16
and past performance, which have strategic relevance and may raise any kind
of interference with the public sector.

Fig. 7 - Action research cycles
1.2.5. LIMITATIONS
The proposed research includes some limitations related to its approach (i.e.,
action research involving several actors, distinct perspectives and multiple
phases). Such research is demanding in terms of planning and management. In
some instances, the research is unable to offer complete answers to the questions
raised, and the approach focused primarily on the problem setting than problem
Reflect
Plan
Act
Observe
Reflect
Plan
Further
developments
Cycle 1
Cycle 2
Cycle 3
How can the growth dynamics of e-procurement
platforms be potentiated and managed?
How can an e-procurement platform be enhanced to
be used as social and collaborative space for the
development of construction projects?
How can multicriteria assessment and past
performance be considered in an e-procurement
platform for public procurement?
Act
Observe
Reflect
Plan
Act
Observe
Reflect
Hypothesis
Hypothesis
Hypothesis
17
solving. Nevertheless, it achieves results reflected in various viewpoints that
enrich the state of the art and leverage the pertinence of final findings.
1.2.6. RATIONALE
Despite limitations and difficulties raised by the proposed study, it is important
to emphasize the pertinence of the research. Besides focusing on progressively
relevant subjects for the construction industry such as e-procurement, e-
business, collaboration, SCM and BIM, the project generated interesting
synergies among several players who met several times to discuss results and
propose further developments. They demonstrate significant interest in research
development, which confirms its opportunity and evidences its relevance.
Among the entities that participated in these meetings are the following:
Administrao do Porto de Lisboa, Afaconsult, Arktec, ASEP, Autodesk, Cmara
Municipal de Lisboa, Construsoft, CXS computing, EDP, Faculdade de Cincias e
Tecnologia, Infor, Instituto Superior Tcnico, Lidera, Microfil, Miguel Krippahl
arquitectos, Opway, Parque Escolar, Primavera Bss, Rumo ao Objectivo,
Somague, Tecad, Tekla, and Vortal. All contributed to the final results of the
study.
Moreover, the research study has been largely presented in workshops,
conferences and construction-sector publications (listed in Appendix E), and the
reaction of construction sector players were positive, evidencing importance and
pertinence of the results. Additionally, various articles have been submitted to
major scientific journals and one of them (Costa and Tavares, 2011b) have
already been accepted.

18
1.3. THESIS STRUCTURE
The structure of the present thesis reflects the type of research considered and
methodology proposed. Action research has a dynamic and participatory nature
that often makes research unpredictable and path-dependent. Research teams
and other entities involved may decide on future actions along the research
journey; results depend on external conditions, and the direction of research is
refined based on partial results. Knowledge production is not organized as in
traditional research, and the thesis structure reflects this differentiated nature. It
is a topic-based thesis (Paltridge, 2002) since work is presented as a report of
various studies.
So, considering the methodology proposed and the studys inherent
characteristics, the following chapter organization was chosen:
Chapter 1 Introduction
The introductory chapter offers the context of the thesis and justifies its
opportunity. The study is discussed, its methodology is presented and the
thesis structure is explained.
Chapter 2 The Electronic Paradigm and Construction Industry
This chapter gives special attention to the electronic paradigm in Portuguese
context, evidencing the case of the public sector and construction industry. E-
procurement challenges are discussed and the influences of electronic
systems on supply chains are analysed. A new perspective on e-procurement
platforms for construction is raised.
Chapter 3 Social e-Business and BIM-based Environments
This chapter proposes an innovative approach to e-procurement, responding
to challenges and opportunities identified in chapter 2. This new approach
relies on collaboration and social networking, and provides e-procurement as
19
a value-added service of an e-business platform. A proof of concept
developed to validate the innovated model of e-business platforms is
presented and tested. Finally, a pilot case study involving the simulation of a
construction project is presented.

Chapter 4 Social e-Business: The Public Sector Case
Considering the innovative vision proposed in chapter 3, this chapter
discusses in detail the application of Social e-business in the public sector,
giving particular attention to buyer-supplier relationships, multicriteria
evaluation and past performance, all significantly relevant for the Social e-
business vision proposed in chapter 3, but not completely consensual in the
public sector.

Chapter 5 Conclusion
In the last chapter, major conclusions of the study are presented and
research results are discussed. Further developments are also proposed,
envisioning forthcoming research.
1.3.1. CHAPTERS DESCRIPTION
Concerning the topic-based chapters of this thesis (chapters 2, 3 and 4) and
keeping in mind the importance of offering an integrated perspective on the
issues discussed throughout the thesis, it is pertinent to describe and explain
more closely internal organization of each topic-based chapter and clarify the
correlation between the topics covered in each one.
So, subsequently, additional detail of each of these chapters is presented and
correlations between them are emphasized.

20
1.3.1.1. CHAPTER 2 THE ELECTRONIC PARADIGM AND CONSTRUCTION
INDUSTRY

Fig. 8 Chapter 2 structure
Throughout this chapter (Fig.8), the
electronic paradigm is discussed,
focusing on e-procurements role on
public and private sectors. Special
attention is given to the Portuguese
context, Portuguese legal framework,
and construction industry.
Public e-procurement and its impacts
on the public sector are investigated.
Private e-marketplaces and electronic
market behaviours are also studied in
detail to show the most relevant
challenges and opportunities raised
by e-procurement.
Subsequently, an explanatory re-
search is conducted and some
recommendations to improve elec-
tronic markets performance are
offered, particularly focusing on SCM,
multicriteria evaluation and past
performance.
Finally, considering the analysis that emphasizes the role of multicriteria
evaluation and SCM on improving e-procurement performance, a deeper
analysis on e-procurement networks dynamics is presented, with special
attention paid to e-procurement network growth and management. It identifies
several important considerations when developing and managing e-
procurement platforms, which are taken into account to propose an innovative
perspective on e-procurement for the construction industry.
21
1.3.1.2. CHAPTER 3 SOCIAL E-BUSINESS AND BIM-BASED ENVIRONMENTS

Fig. 9 Chapter 3 structure
Bearing in mind the results presented
in chapter 2, a new approach to e-
business is proposed that integrates e-
procurement as a value-added service
(Fig.9).
This innovative approach values
collaboration and focuses on the
dematerialization and integration of
the supply chain, aiming to promote
the generation of large e-procurement
networks. The social networks
phenomenon and the increasing role of
collaboration and buyer-supplier
relationships in construction is
considered, and a new e-business
approach emerges: Social e-business.
In the context of Social e-business, an
integrative and project-based approach
to e-business is drawn, potentiating
collaboration, social networking, buyer-
supplier relationships and BIM
technology.
Subsequently, a prototype developed as proof of concept (PLAGE platform
prototype) is presented to demonstrate the feasibility and value of the Social e-
business approach and a pilot case conducted to test PLAGE platform prototype
and its innovative features is discussed. Finally, the most relevant benefits and
fragilities of Social e-business and PLAGE platform prototype are analysed and
discussed.
22
1.3.1.3. CHAPTER 4 SOCIAL E-BUSINESS AND THE PUBLIC SECTOR

Fig. 10 Chapter 4 structure
Throughout chapters 2 and 3, several
concepts such as multicriteria eva-
luation, past performance and
relationship management are
evidenced as important contributions
to e-procurement networks and
construction performance.
These subjects raise several concerns
for the public sector, mostly due to
the principles of public admi-
nistration and existing public
procurement legal frameworks. Thus,
a deeper approach to these concepts is
opportune and a broader discussion
on major challenges and oppor-
tunities is pertinent.
So, through chapter 4 multicriteria
evaluation and past performance are
analysed closely, considering the
specific case of the public sector and
focusing on the case of the European
Union and Portugal (Fig. 10).
Regarding these subjects, European Directives and the Portuguese PCC are
analysed in detail to identify eventual limitations to full implementation of the
Social e-business approach and a comparison with other countries regulations in
the case of past performance use in tender evaluations, concretely US
regulations, is conducted to have a better understanding on past performance
use. Finally, new perspectives on the application of past performance to the
public sector are drawn that consider the debate raised throughout the chapter.
23
All chapters connect by a logical baseline that reflects the nature of the research
and answers the questions and challenges that emerge along the research
journey. Fig. 11presents a global overview on chapter organization.

Fig. 11 - Thesis organization

24









Chapter 2

The Electronic Paradigm and the
Construction Industry


27
2. THE ELECTRONIC PARADIGM AND THE CONSTRUCTION
INDUSTRY
Throughout the present chapter, the recent electronic paradigm emerging in
society is discussed, giving particular attention to e-procurement and the specific
context of the construction industry. A new perspective on e-procurement
emerges and several directions for further developments are recommended.
2.1. THE ELECTRONIC PARADIGM IN PORTUGAL
The European Commission (2009a) recognizes that Europe is facing serious
economic, social, and environmental challenges. All over Europe, national
governments, businesses and society try to optimize resources, redesign
processes and develop innovative instruments to improve productivity and
support better decisions. ICT appear as strategic instruments to improve
communication, collaboration and processes efficiency, enhancing performance-
based approaches to projects and processes. E-government emerges as a key
enabler to deliver continent-wide policy goals across disparate sectors to increase
efficiency and effectiveness and support transition to a leading knowledge-based
economy. Beyond becoming more open, flexible, and collaborative, governments
stimulate modernization among citizens and businesses, inducing change and
promoting innovation.
E-government benchmark results (Commission, 2009b) demonstrate that the
advantages of electronic solutions are already recognized, and Europe
demonstrates steady progress toward full online availability (Fig. 12). Though,
the vision contained in the declaration made at the 5
th
Ministerial e-Government
Conference (Commission, 2009a) is ambitious, asking for continuous e-
government improvement. The European e-Government Action Plan 2011-2015
(Commission, 2010e) confirms the relevance of this subject, stating that by 2015,
a number of key cross-border services will be available online. Even so, 50% of
EU citizens and 80% of enterprises will have used e-government services.
28

Fig. 12 - Full online availability for EU27 (Commission, 2009b)
Regarding e-government implementation in Portugal, the European Commission
(Commission, 2009b) argues that:
Portugal has made a substantial effort in providing public services in
Europe. However, this success in supply of electronic services stands in
contrast with the low usage of e-government, particularly by citizens. This
is likely to be due to at least in part limited Internet access and
broadband uptake. Its broad drive towards more competitiveness through
ICT deployment and administrative simplification is poised to improve
this situation.
Portugal developed several electronic solutions, but some cultural and
organizational changes still need to be stimulated and managed so that all
institutions share the benefits. Regarding public procurement, a recently-
published legal framework drives these changes. The new Public Contracts code
(PCC), approved by the Decree-Law 18/2008 on the 29 January 2008 and in
force since 29 July 2008, introduced important transformations in the
procurement process, obligating all actors to interact and communicate through
the Internet using certified e-procurement platforms and qualified digital
signatures.
29
2.1.1. PUBLIC E-PROCUREMENT AND THE PORTUGUESE CASE
Public procurement is a key issue in most countries because its value tends to be
higher than 17% of GDP in the EU (17.23% to EU-27, equivalent to EUR 2.16
trillion in 2008) (Commission, 2010d), a significant percentage. Therefore,
considerable gains are achieved by increasing procurement efficiency. This is
especially true since public contracts are criticized for high complexity and cost
and low transparency and value (Spiller, 2008, Tavares, 2008). Public
contracting frequently requires renegotiation and proactive conflict management
that lead to additional costs. Thus, a more rigorous contract design and better
contract management signifies considerable savings.
In this adverse but challenging context, e-procurement emerges in the public
sector with the objectives of reducing complexity, improving competitiveness
and transparency, and creating an integrated electronic environment to support
advanced electronic instruments to manage and monitor contracts. Use of e-
procurement platforms results in a reduction of more than 3% of public
expenditures without reduction in outputs (Duyshart et al., 2003, Tavares, 2010)
and promotes the basic principle of good governance through public
procurement including transparency, accountability and integrity (Armstrong,
2005). These benefits explain the current emphasis given to e-procurement.
In the last few years, e-procurement gained popularity and is discussed at length
in the literature (Garrido et al., 2008, Schoenherr and Tummala, 2007, Walker
et al., 2008, Ronchi et al., 2010). According to Schoenherr and Tummala (2007),
the earliest publications referring to electronic procurement appeared in 1997,
and academic community activity around this issue increased in 2001, reaching a
peak in 2004. Successful practices that make the most of e-procurement
potential include:
reduction or elimination of authorization stages;
regulation of exceptions to a limited degree at the beginning;
elimination of paper;
integration of suppliers in the entire process chain;
30
consideration of the complete process from searching for articles to
invoicing.
These practices eliminate difficulties experienced in the traditional procurement
method, and promote integrated and simple processes. They build a new vision
of procurement that deserves special attention. This vision must be more
integrated, more efficient, and performance-based, focusing on a wider range of
procurement subjects, considering strategic perspectives, and giving the contract
a central role (Collins, 1999, Vincent-Jones, 2006).
Although there are various forms of e-procurement such as e-marketplace, e-
auction or e-catalogue, e-procurement is best viewed broadly as an end-to-end
solution that integrates and streamlines many procurement processes
throughout an organization (Vaidya et al., 2006). In this integrated and
dematerialized context, contract execution is easier and more rigorous since all
relevant information is available electronically, and more attention is paid to
non-operational concerns.
The e-procurement platforms may provide services for communicating,
handling, treating and storing data according to high levels of security and trust,
based on a sequence of phases (Fig. 13):
ex-ante e-evaluation, refers to multicriteria evaluation of needs and
procurement strategies;
e-noticing, concerning electronic publication of public procurement
notices;
e-submission, concerning electronic submission of proposals;
e-decision, concerning electronic evaluation of proposals, subsequent
communication of evaluation results, and discussion and analysis of
results;
e-award, concerning electronic contract awards to suppliers with the
best proposals;
e-ordering, concerning all activities from sending an order document
from public buyers to suppliers, up to the transmission of delivery
instructions for ordered goods and services;
31
e-invoicing, concerning claim for payment for goods and services
ordered and delivered under agreed-upon conditions;
e-payment, agreed electronic payment management and execution;
e-Contract management, refers to the use of electronic contract
management instruments to monitor and improve contracts
performance;
ex-post e-evaluation, agreed multicriteria evaluation of the contract
execution, and the eventual generation of KPIs to support future
tendering processes.

Fig. 13 - e-Procurement lifecycle
Recognizing the benefits of e-procurement and with the intention of creating a
single market for public e-procurement in the European Union, the Manchester
Declaration (2005) set two ambitious targets. The declaration reports that:
...by 2010 all public administrations across Europe will have the
capability of carrying out 100% of their procurement electronically, where
legally permissible, thus creating a fairer and more transparent market
for all companies independent of a companys size or location within the
single market. By 2010 at least 50% of public procurement above the EU
public procurement threshold will be carried out electronically.
Presently, the public sector (usually behind the private sector regarding the
adoption of new technologies and work methods (Lindskog, 2004)) is leading
change in the procurement field, though, according to a detailed e-procurement
indicator based on an analysis of 746 national, regional and local EU27 public
organizations (Commission, 2010d), EU Member States are still far from the
ambitious availability target established by the Manchester Declaration.
32
Portugal is an exception since public procurement is 100% electronic as of 1
November 2009 for any open, restricted or negotiated process, making the
country an interesting case study. Confirming this, the European Commission
(2010d) states that:
Overall take-up, both within most countries and across the EU as a whole,
remains low and is estimated to be less than 5% of total procurement by
value. The exception to this low use is Portugal, where the use of
electronic means to conduct the procurement phases up until contract
award has been mandatory since 1 November 2009 for most public
purchases.
2.1.1.1. THE NEW PORTUGUESE PUBLIC CONTRACTS CODE
When the European Union published its new Directives on the coordination of
procedures for the award of public contracts (Directive 2004/17/CE and
Directive 2004/18/CE), Portuguese law was discussed and a new legal
framework developed to overcome existing fragilities and transpose the
European directives to the Portuguese legal system (Commission, 2004). Since
the beginning of the process, the e-procurement was given a significant role; it
was positioned as an instrument to improve processes efficiency, promote cross-
sector innovation gradually and push private and public sector dematerialization.
Development of the new code was inspired by disparate objectives such as
(Tavares, 2008):
full adoption of web-based e-business;
broad flexibility of procedures to award contracts, including new
options such as reverse auctions, dynamic acquisitions systems,
framework agreements, etc.;
availability of full specification of the multi-criteria model for evaluating
tenders before having to present its tender (Tavares et al., 2010).
On 28 January 2008, the new PCC was finally published, substituting the
previous Portuguese legal framework for procurement, based on two laws:
33
one for public supply contracts and public service contracts (Decree-
Law 197/99);
one for public works contracts (Decree-Law 59/99).
One of the most relevant changes stemming from the new PCC was mandatory
use of e-procurement platforms to support public procurement open procedures.
This change introduced significant transformations to organizations and
processes, and enhanced the role of ICT in the organization and its inter-
relationships. It is pertinent to note that beyond dematerialization of the
procurement process, a complete restructuring of processes was also proposed.
Implementation of the electronic systems was one of the major reasons for this
since several activities such as the Public act ceased to exist.
Today, there are eight public e-procurement platforms certified by a Supervisory
Board
1
that can be used for any public procurement procedure. Contracting
authorities may choose the one that best fits their needs. While contracting
authorities chose the e-procurement platform they want to use, and may use only
that one during a predefined period, suppliers may be registered and able to use
various e-procurement platforms since tenders must be submitted in the
platform that has been used to create the procurement procedure.
Although e-procurement implementation models vary across Europe and at least
10 countries mandate use of a national platform, some countries such as Portugal
(8 public e-procurement platforms), Germany (46 public e-procurement
platforms) and France (16 public e-procurement platforms) take a more
decentralized approach (Assar and Boughzala, 2008, Commission, 2009b). In
Portugal there is a regulated market and each service provider must comply with
strict security and safety requirements, such as authentication and non-
repudiation (adoption of advanced electronic signature), time stamping,
confidentiality (encryption) and security (Betts et al., 2006).

1
http://www.ceger.gov.pt/
34
Each service provider strives for innovation and service excellence according to
its history, potential, mission and strategy. Some were created as marketplaces
for important sectors (e.g., construction), others based on ICT consultancy and
one was a spin-off of the largest Portuguese industrial services group. They
adopted aggressive competitive models, understood the high value of
cooperation, and became an excellent example of the new management paradigm
of co-opetition (Brandenburger and Nalebuff, 1996), which they use to create
interoperability.
2.1.2. THE IMPACT OF PUBLIC E-PROCUREMENT IN PORTUGAL
The Portuguese Technology and Engineering Observatory (OPET) and the
Portuguese Association of Public Markets (APMEP), under contract with InCI
(Institute of Construction and Real Estate), administered two surveys to analyse
the impact of e-procurement in public sector: one conducted in September 2009
(Tavares et al., 2009) when public contracting authorities had to follow the new
code but were not compelled to adopt e-procurement; the other conducted on
October 2010 (Tavares et al., 2011), about one year after mandatory adoption of
e-procurement ( November 1
st
2009). The author of this thesis participated
actively in the semi-structured interviews and data analyses, and is co-author of
a study (Costa and Tavares, 2011a) based on the results of the surveys.
2.1.2.1. METHODOLOGY
A survey is a non-experimental, descriptive research method used extensively to
assess attitudes and characteristics of a wide range of subjects (Jansen et al.,
2007). It was the method chosen to study the impact of e-procurement on the
public sector. Using two surveys in two consecutive years and conducted under
distinct stages of e-procurement implementation, they offer rich insight into the
Portuguese experience and public e-procurement impacts, demonstrating the
pertinence of the Portuguese case.
35
The questionnaire used in both surveys was cross-sectional; it considered a
single point in time and data collection was web-based, directly connected to a
database where all completed survey data were categorized and stored. The
questionnaire design was based on well-established rules for social surveys
(Goode and Hatt, 1962), and included open and multiple-choice items. In each
case, two questionnaires were constructed, one for the contracting authorities
(CA) and the other for suppliers (S).
Several interviews in organizations from various sectors were also conducted
with senior management personnel with e-procurement experience in order to
enrich and refine the survey questionnaires. The interviews had a semi-
structured format to enrich the questionnaires with supplementary insights. This
initial phase made it possible to test and validate the preliminary draft of the
questionnaires and consolidate the research questions, which focused on the
expected impacts of e-procurement on transparency, competition, value of the
winning tender, process cost and duration, and recommendations from existing
studies (Vaidya et al., 2006).
In 2009, the semi-structured interviews were conducted with six entities,
representing contracting authorities and suppliers with varying characteristics:
Central Purchasing Body of the Ministry of Justice, charged with the
responsibility of all procurement activities for the Ministry of Justice,
having 5 employees working exclusively on these issues. This central
body is also responsible for optimizing and centralizing purchasing to
reduce costs and improve contract management. In 2009, more than 20
million Euros have been awarded using e-procurement platforms;
Municipality of Oeiras, one of the most developed cities of the
metropolitan area of Lisbon. In the context of public procurement, the
municipality has a division for purchasing and supply management
(Division for public procurement), run by 14 employees. During 2009,
the municipality celebrated more than 300 contracts using an e-
procurement platform;
ANA - Portuguese airports, a public company responsible for the
management and development of most Portuguese airports. It is one of
36
the major public works contracting entities with global purchasing value
of 180 million Euros in 2009, and 18 employees working on
procurement processes. In 2009, more than 300 contracts have been
awarded using e-procurement platforms;
RTP - National broadcasting corporation, a private entity with public
capital that before this new code was not subject to the public
procurement legal framework. This change led to creation of a specific
purchasing department with 7 employees dedicated to these
responsibilities. In 2009, only about 20 public procurement procedures
were electronic, corresponding to about 100 thousand Euros;
OMEP, a small construction company working as a general contractor
in the private and public sectors. In 2009, OMEP participated in several
e-procurement procedures (between 10 and 20), achieving about 3.5
million Euros of awarded contracts;
Mota-Engil Engenharia (sub-holding of Mota-Engil), a large
construction company with more than 7000 employees (2500 in
Portugal). This major general contractor has two departments focused
exclusively on purchasing and contracts: one responsible for the
development of the proposals with about 70 employees, the other for
requests for quotations in private markets with about 15 employees. In
2009, it participated in several public e-procurement processes
(between 10 and 20), but none have been concluded electronically due
to e-procurement platforms operational problems and lack of e-
procurement experience.
In 2010, semi-structured interviews were conducted with emphasis on small and
medium enterprises (SME). The SMEs considered in the interviews were:
ASEP, a small company dedicated to project management, design and
construction supervision. Between 1 January and 31 August, 2010 it
responded to 3 e-procurement procedures. Although few proposals were
submitted through e-procurement platforms, it is registered in every
platform to respond quickly to any procurement process;
37
CISED, a small consulting company focused on public management and
evaluation, procurement, contract management, logistics, urban
planning and transportation. Due to its intervention area, it possesses
profound knowledge on the new public procurement code. Though
CISED did not participate in any e-procurement process between 1
January and 31 August, 2010;
COCIGA, a medium-sized construction company dedicated to both
public and private works. In parallel with the construction works,
COCIGA also commercializes construction products, which already
represent nearly 15% of turnover. Between 1 January and 31 August,
2010 it responded to almost 100 e-procurement procedures;
CTLIMPE, a medium company specializing in cleaning services, with
about 60% of annual turnover from the public sector. Between 1
January and 31 August, 2010 it responded to 34 e-procurement
procedures;
ECOSERVIOS, a medium-sized company dedicated to delivery of
sustainable services and management such as water treatment,
environmental assessment studies and environmental monitoring.
Between 1 January and 31 August, 2010 it responded to 35 e-
procurement procedures.
As a result of the semi-structured interviews, the preliminary questionnaire was
refined to allow obtaining valuable information from the entities without
encouraging misunderstandings or ambiguities. Some changes were made to
adapt the questionnaire to the two types of respondents: contracting authorities
and the suppliers.
Finally, the questionnaire for contracting authorities had 26 structured questions
as follows:
characterization of the responding contract authority (7 questions);
contracting authority experience on e-procurement (2 questions);
e-procurement platforms used and the respective volume of
transactions (2 questions);
38
impacts on costs, procedures duration, number of tenders,
transparency, bureaucracy and the perceived value of e-procurement (6
questions);
human resource training planned and conducted (2 questions);
impacts and consequences of e-procurement on the organization (3
questions);
investment in technology due to e-procurement (3 questions);
other dimensions of e-procurement challenges (1 question).
The questionnaire for suppliers was similar to the one designed for contracting
authorities, but questions related to supplier turnover, transaction volume and
perspectives on the opportunity for Internet marketing were included.
Concerning 2010 survey, although the questionnaire was similar to the one used
in 2009, information collected in the 2009 survey was used to improve the
design of the second survey, in particular a closed question about the difficulties
perceived with public e-procurement have been included.
Finally, the questionnaires were distributed electronically to a random sample of
entities governed by public law and covering a diverse array of institutions (Fig.
14), provided by the Ministry of Finance, and to a list of random suppliers (public
works, goods and services) that participated in public procurement processes,
provided by InCI.

Fig. 14 Number of entities considered in surveys
0
500
1000
1500
2000
2500
3000
3500
Survey 2009 Survey 2010
N
u
m
b
e
r

o
f

e
n
t
i
t
i
e
s

Survey samples
Contracting authorities
Suppliers
39
2.1.2.2. SURVEY RESULTS
Concerning the 2009 survey, questionnaire distribution yielded 171 responses
from contracting authorities and 32 responses from suppliers. Only 31% of the
contracting authorities (53 entities) completed the questionnaire; the remaining
were not yet using e-procurement platforms. An open question identified the
major reasons for this, which are presented in Fig. 15. A significant percentage of
entities that were still using paper-based procurement was related to the
significant inertia to change shown by public sector organizations, which needed
the entire transition period provided by the PCC to implement an e-procurement
platform.

Fig. 15 Results of open question related to not been using public e-procurement
Concerning the 2010 survey, distribution yielded 224 completed surveys from
contracting authorities and 102 responses from suppliers. Since the use of e-
procurement platforms in the public sector was already mandatory, all
respondents were using e-procurement platforms. Respondent characteristics
are presented in Fig. 16 and Fig. 17.
12%
24%
28%
20%
9%
4%
3%
0% 10% 20% 30%
% total of answers
Reasons for not been using public e-procurement
Difficulties raised by digital
certification and platform login
Direct awards do not obligate e-
procurement
Lack of e-procurement training
E-procurement platform service
acquisition is under development
E-procurement platform
implementation still in progress
Other reasons
Did not know
40


Fig. 16 Contracting authorities respondents distribution

Fig. 17 - Suppliers respondents contracts distribution
0% 5% 10% 15% 20% 25% 30% 35%
Local government
Higher education institutions
Public institutes
General directorates
Ministries/General secretaries
Public firms
Civil governments
Inspectorates
Regional directorates
Courts
Other
Contracting authorities respondents
Survey 2009 Survey 2010
0% 10% 20% 30% 40% 50% 60%
Public works
Goods
Services
Suppliers' contracts distribution
Survey 2009 Survey 2010
41
The confidence intervals () were studied using the binomial distribution
(Fowler, 2009) and considering a confidence level equal to 90% (see Appendix
A). The values obtained are presented in Table 2.
Table 2 Surveys confidence intervals
Survey 2009 Survey 2010
Contracting authorities () 0,09 () 0,0
Suppliers () 0, () 0,06
Considering the high professional level of those who answered the
questionnaires (Fig. 18 and Fig. 19), it can be assumed that the subject of e-
procurement is of strategic importance to organizations.
Comparing the surveys, it is clear that the hierarchical level of respondents
changed; after one year of e-procurement experience, the Intermediate level
directors of contracting authorities delegated responsibilities on technical
positions. For suppliers, fewer changes have been noticed; the majority of the
answers were still given to the management level (51 %). This different approach
may be related to organizations dimensions and levels of hierarchical
stratification, both more significant in contracting authority organizations.

Fig. 18 - Characteristics of the contracting authorities who responded to the
questionnaire
0% 20% 40% 60% 80% 100%
Survey 2010
Survey 2009
Contracting authorities respondents
Upper level director
Intermediate level director
Upper technical level
Technical level
Other
42

Fig. 19 - Characteristics of the suppliers who responded to the questionnaire
Concerning the e-procurement platform use (which has been surveyed among
contracting authorities in 2009 and 2010, but among suppliers only in 2010), it
is interesting to note that although a considerable number of e-procurement
platforms is available, the market share is concentrated on few of them (Fig. 20).
Since suppliers are dependent on contracting authoritys e-procurement
platform and, as stated by the PCC do not pay to use them, they have access to
more than one e-procurement platform. According to the survey, more than 80%
of the suppliers use VortalGov and Compras Pblicas, and more than 60% use
BizGov and AnoGov. Understandably, the majority of suppliers concentrate on
the most used e-procurement platforms of the contracting authorities.

Fig. 20 Major e-procurement platforms used by the contracting authorities (CA)
and suppliers (S)
0% 20% 40% 60% 80% 100%
Survey 2010
Survey 2009
Suppliers respondents
Upper level director
Intermediate level director
Upper technical level
Technical level
Other
>60
>15
<10
<2
<10
>50
>30
10 >10 <10
>85
>80
>60
>65
<30
VortalGov Compras Pblicas
Construlink
BizGov AnoGov Other
Public e-procurement platforms share
CA - Survey 2009 CA - Survey 2010 S - Survey 2010
43
Considering respondents opinions about the impact of e-procurement (Fig. 21
and Fig. 22), it must be evidenced that a significant percentage of respondents
considered that costs and duration have been reduced and transparency has been
increased. Concerning impact on costs, there was a considerable difference
between the contracting authorities and suppliers answers; about 30% of
contracting authorities considered costs had been reduced, but a considerably
higher percentage of suppliers, more than 50%, mentioned a reduction. This may
occur because use of e-procurement not only permits more efficient and agile
communications, it allows suppliers to submit proposals electronically, which
results in significant savings, particularly for printing and delivery services.
However, there was also a significant percentage of suppliers that pointed out a
cost increase, which may have to do with entry costs, particularly ICT
investments (Fig. 23) (computer upgrades, digital signatures equipment
acquisition, etc.) and training courses (Fig. 24 and Fig. 25). Regarding the value
of the contract and the number of proposals it can be observed that a large
majority of respondents considered that both have maintained or increased.
From 2009 to 2010, it is interesting to note that a higher percentage of suppliers
considered costs with procurement processes decreased, while a higher
percentage of the contracting authorities considered they increased. This
contrasting perspective may have to do with the fact that while contracting
authorities have to pay e-procurement platforms service, suppliers are saving
considerable amounts of money with electronic submission, progressively
evident over time. Moreover, the higher percentage of contracting authorities
that consider a negative impact on costs may be explained by the fact that while
in 2009 only innovation leaders, more enthusiastic about innovation, used e-
procurement platforms, in 2010, the followers were also obliged to use e-
procurement platforms, producing negative opinions on the impacts of e-
procurement.
The same might happened regarding the impact on procedures duration and
bureaucracy identified from 2009 to 2010; actually, a higher percentage of
respondents have considered that duration and bureaucracy has increased. In
the case of the number of proposals there was a similar behaviour; although a
significant percentage of respondents considered that the number of proposals
44
increased, a considerable percentage of contracting authorities argued that the
number of proposals reduced.

Fig. 21 Impacts of e-procurement on contracting authorities

Fig. 22 Impacts of e-procurement on suppliers
0% 20% 40% 60% 80% 100%
2010
Value of contract - 2009
2010
Number of proposals - 2009
2010
Bureaucracy - 2009
2010
Transparency - 2009
2010
Cost of processes - 2009
2010
Duration of processes - 2009
E-procurement impacts on contracting authorities
Increased
Reduced
Maintained
0% 20% 40% 60% 80% 100%
2010
Value of contract - 2009
2010
Number of proposals - 2009
2010
Bureaucracy - 2009
2010
Transparency - 2009
2010
Cost of processes - 2009
2010
Duration of processes - 2009
E-procurement impacts on suppliers
Increased
Reduced
Maintained
45
Challenges raised by the new code and the electronic approach to public
procurement had relevant impact on the functional structure of organizations;
surveys show that although there were not specific needs to hire specialized
resources, there were relevant changes in organizations to adapt to e-
procurement. To face this new legal framework, ICT investments were also
inevitable for more than 30% of the respondents (Fig. 23).
From 2009 to 2010, a lower percentage of suppliers said that the organization
needed to adapt its functional structure to face e-procurement, perhaps because
organizations were able to adapt gradually to the necessary changes.

Fig. 23 Impacts on organization and ICT investments
Regarding training courses, it became clear that a majority of respondents
understand the importance of training for e-procurement implementation (Fig.
24 and Fig. 25). In fact, as Vaidya (2006) argues training is a critical factor in e-
procurement implementation, particularly because it involves new technologies
and innovative processes. In the case of the present survey, more than 70% of
respondents reported that their entities promoted training courses. From 2009
to 2010, it is interesting to note that in the case of suppliers internal training
increased significantly, evidencing internal training practices of Portuguese
companies.
0% 20% 40% 60% 80% 100%
S - 2010
S -2009
CA - 2010
CA - 2009
% repondents that have felt the impacts
Organization and ICT investments
The functional structure of the
organizations has changed or
will change to implement e-
procurement
Entities hired or need to hire
specialized human resources to
face e-procurement
Entities invested or need to
invest in ICT to implement e-
procurement
46

Fig. 24 Contracting authority need for training courses

Fig. 25 Supplier need for training courses
From the 2009 survey, major difficulties were identified from an open question,
which were considered to design in the survey of 2010 a closed question with a
Likert scale about this issue. The answers to this question show that the number
of platforms, interoperability between different platforms, use of digital
signatures and cost of time stamps are critical problems perceived by more than
40% of the suppliers, while the contracting authorities consider that digital
signatures and operational problems are the critical issues (Fig. 26 and Fig. 27).
0% 10% 20% 30% 40% 50% 60% 70% 80%
Have done, with external trainers
Have done, with internal trainers
Have not done training courses
Have training courses planned
Training courses - contracting authorities
Survey 2009 Survey 2010
0% 10% 20% 30% 40% 50% 60% 70% 80%
Have done, with external trainers
Have done, with internal trainers
Have not done training courses
Have training courses planned
Training courses - suppliers
Survey 2009 Survey 2010
47

Fig. 26 Contracting authority answers to question related to e-procurement
difficulties

Fig. 27 Suppliers answers to question related to e-procurement difficulties
0% 20% 40% 60% 80% 100%
Organization resistance to change
Lack of training
Lack of human resources
Problems with e-procurement
platforms
Excessive number of platforms
Low interoperability between the
different platforms
Excessive requirements respecting
digital signatures
Excessive cost of Time stamps
Difficulties on public e-procurement - contracting
authorities' opinion
1) Irrelevant 2) 3) 4) 5) Very relevant
0% 20% 40% 60% 80% 100%
Organization resistance to change
Lack of training
Lack of human resources
Problems with e-procurement
platforms
Excessive number of platforms
Low interoperability between
the different platforms
Excessive requirements respecting
digital signatures
Excessive cost of Time stamps
Difficulties on public e-procurement - suppliers' opinion
1) Irrelevant 2) 3) 4) 5) Very relevant
48
The 200 survey included an open question to obtain respondents opinions
regarding e-procurement improvement measures they would recommend. The
most cited suggestions are presented in Fig. 28 and Fig. 29.

Fig. 28 - Suppliers suggestions on e-procurement improvement
2
2
2
6
7
14
15
25
25
26
0 40
Number of
answers
Suppliers' suggestions on e-procurement improvement
E-procurement platforms standardization or reduction in the number
of e-procurement platforms (there are 8 certified e-procurement
platforms)
Improvements in operation of e-procurement platforms related to e-
platform reliability and availability, and technical support
Interoperability improvement between e-procurement platforms and
other services, provided by governmental institutions such as the
INCM and the Court of Auditors
Dissemination of best practices and training
Simplification of electronic technical requisites related to qualified
digital signatures
Simplification and timeliness of supplier registration in the e-
procurement platforms
Termination of obligatory use of time stamps or end respective cost
Improvements in the observatory for public procurement
(base.gov.pt)
Implementation of a national database with qualified suppliers
Improvement of the Common Procurement Vocabulary
49

Fig. 29 Contracting authorities suggestions on e-procurement improvement
Due to the fact that suppliers must operate all the existing e-procurement
platforms in order to answer to procurement procedures, they are particularly
concerned with standardization and interoperability issues. Contracting
authorities, on the other hand, do not make any reference to interoperability
problems, though they evidence the role of standardization, mainly because they
understand that it will improve e-procurement processes efficiency.
2.1.2.3. DISCUSSION OF SURVEYS RESULTS
According to results, e-procurement is perceived as a way to rationalize
processes, increase transparency, competition and value of tenders, and reduce
bureaucracy and transaction costs. Few investment needs and organizational
changes were identified.
4
4
12
23
31
0 40 Number of
answers
Contracting authorities' suggestions
E-procurement platforms standardization or reduction in
the number of e-procurement platforms (there are 8
certified e-procurement platforms)
Improvements on operation of e-procurement platforms,
related to e-platform reliability and availability,
integration with ERPs and technical support
Termination of obligatory use of time stamps or end
respective cost
Dissemination of best practices and training
Simplification of electronic technical requisites related
to the qualified digital signatures
50
Though, some difficulties and considerable inertia to change were perceived.
Although experiences and opinions of entities using public e-procurement varies,
as expected, a consistent view on major criticisms and suggestions emerges,
mainly as a result of:
lack of consistency and standardization between certified platforms,
particularly prejudicial for suppliers that have to work with all of them;
Lack of systems interoperability;
complexity introduced by digital signatures, particularly when
considering groups of competitors presenting a common proposal;
lack of training and experience;
operational and technical problems raised by e-procurement platforms.
Throughout the survey it is interesting to notice that contracting authorities and
suppliers have a different perspective of public e-procurement. This has mainly
to do with the fact that while contracting authorities may choose the certified e-
procurement platform they prefer, suppliers need to be registered with every
platform to respond to any tendering procedure, since these are launched in the
e-procurement platform chosen by the contracting authority. Thus suppliers are
more aware of standardization and interoperability problems.
Concerning the semi-structured interviews it is important to refer that
respondents confirmed e-procurement allowed considerable savings, most relate
to electronic submission of proposals, and facilitated access to e-tendering
procedures. Though, suppliers evidenced special concern about the reduction of
proposals costs and deadlines and the increasing number of suppliers in each
tendering procedure, which may induce the degradation of the proposals quality.
As it is possible to verify in Fig.22, suppliers are particularly concerned with the
value of proposals, as a relevant number of suppliers referred it has been reduced
with e-procurement. This is an important insight that will be taken into account
in forthcoming research.
In sum, it can be said that despite the difficulties inherent in e-procurement
dissemination, the electronic paradigm encourages dematerialization of
51
processes within the public sector and related private companies. Several
opportunities to improve exist and new challenges emerge from the e-
procurement networks gradually generated.
2.1.3. E-MARKETPLACES IN CONSTRUCTION AND EMERGING
CHALLENGES
The surveys presented in previous section show that public e-procurement has a
relevant impact in society and business. In the construction industry, this impact
was particularly noticed as argued by ASEP, OMEP, Mota-Engil and COCIGA in
the semi-structured interviews. One of the major consequences is the wider use
of electronic and more collaborative work instruments, not only to guarantee
that all the information is available in digital format, but to improve coordination
and integration of information flow throughout the supply chain. In fact, as
stated by Mota-Engil, advanced technologies such as BIM or web-based
collaborative platforms become particularly pertinent within this dematerialized
context.
However, despite the significant impact of public e-procurement on the
Portuguese construction sector, e-procurement was not new in this sector. In
fact, two construction e-marketplaces for private markets already existed since
2000 and have been used by a reasonable number of companies.
Notwithstanding, these e-marketplaces never demonstrate significant growth
rates; considering that procurement plays a central role in construction and
electronic systems may have positive impacts on procurement processes, it is
relevant to understand the reasons for such contained growth.
2.1.3.1. B2B E-MARKETPLACES
A B2B e-marketplace is an e-procurement model that allows sellers and buyers to
communicate, collaborate and perform commercial transactions through web
platforms. These e-marketplaces can be divided into two types: horizontal and
vertical (Issa et al., 2003). The former provides common services across many
industries, such as financial, procurement, contract and SCM services; the latter
52
focuses on a specific industry, aggregating disparate content and services to
integrate and streamline a specific supply chain (SC). Technologically, the e-
marketplace infrastructure should guarantee information confidentiality, user
access control, audit trail and system availability (Issa et al., 2003).
The main advantage of B2B e-marketplaces is related to the fact that they allow a
purchasing company access to multiple selling companies and a selling company
access to multiple purchasing companies (Alarcon et al., 2009), which improves
buying and selling opportunities, potentiates the integration of the SC, supports
exchange transactions and stimulates strategic approaches to SC (Fig. 30) (Eng,
2004). Besides acting as electronic hubs that bring together buyers and sellers,
B2B e-marketplaces function as inter-organizational information systems,
playing an important role in managing relationships and business processes (Dai
and Kauffman, 2002). Increasing integration of continuous replenishment
processes programs in e-marketplaces (Clark and Lee, 2000) is a good example
of this role.
While B2B e-marketplaces move toward more complex transaction services and
specialized solutions, recent trends indicate that industry-sponsored e-
marketplaces are emerging as the type of e-marketplaces most capable of facing
forthcoming challenges (Chang et al., 2002). They focus on a specific market
segment, which enables them to provide dedicated services; they also provide
specific industry standards, which leverage communication efficiency and
collaboration. In the case of the construction industry, several e-marketplaces
specifically focus on construction have been identified (Casaseca, 2005). Though,
according to Casaseca, in 2005 only 21% of companies used B2B e-marketplaces;
the major reasons identified for such a low percentage were lack of security and
transparency, lack of uniformity in industry products and a large industry
presence of SMEs, sceptical of adopting these virtual alternatives.
Actually, these reasons are still relevant and the percentage of companies using
these systems did not increase significantly. Though, considering the momentum
of public e-procurement that emerges and gives companies more confidence with
electronic systems, and improves information management and standardization
capabilities gradually, increased use is expected. Actually B2B e-procurement has
immense potential; although B2C e-marketplaces shows fastest growing (Shim et
53
al., 2000, Grigoryan, 2006), B2B e-procurement is more significant in terms of
economic impact, estimated six times larger than B2C (Eng, 2004). This is
mainly due to the substantial amounts of money involved in B2B procurement
processes. For instance, in the case of construction supplies represent a large
portion (50% to 70%) of the total cost of construction projects (Alarcon et al.,
2009), and construction products typically account for 40% to 45% of the cost of
all construction work (Agapiou et al., 1998). Moreover, the rate of subcontracting
is considerably high, particularly in building construction (Constantino and
Pietroforte, 2005).

Fig. 30 E-marketplace services (adapted from Eng, 2004)
Service
provider
Technology
platform and
software
Support
services
E-marketplace
Transaction supply chain
services
Processing (e.g.,
orders, payments)
Auctions/Reverse
auctions
Communications
and exchanges
Catalogues
Buyers/Sellers
search
Collaborative
procurement
Strategic supply chain
Services
Interfirm
relationship
management
Collaborative
project management
Demand and
inventory
management
Forecasting and
replenishment
Technical exchange
and development
Key Performance
Indicators
54
2.1.3.2. THE CASE OF ECONSTROI AND MERCADO ABERTO
There are two B2B e-marketplaces in Portugal focused exclusively on
construction, Econstroi
2
and Mercado Aberto
3
. The former is owned by Vortal
and was launched in 2000 with the ambitious vision of integrating a value chain
with 80000 potential companies (Grilo et al., 2004); the latter emerged in 1999
within the academic environment of Instituto Superior Tcnico of Technical
University of Lisbon, and later originated a University spin-off company
Construlink. The solutions available offered by these e-marketplaces are
transactional and information based, essentially focusing procurement
processes, contracts, information management and SC communication. Some
collaborative instruments are offered too, largely document sharing tools and
messaging tools focused on independent and isolated tasks.
Among the shareholders of Vortal and Construlink, large buyers (general
contractors) support these e-marketplaces. In the case of Vortal, the main
shareholders from the construction sector are Mota-Engil, Soares da Costa,
Somague, and Opway, and in the case of Construlink, the main construction
company shareholder is Teixeira Duarte. These companies are the top five
Portuguese construction companies (Fig. 31) (Deloitte, 2011, Deloitte, 2009),
which gives them considerable influence on the success of these e-marketplaces
since they buy significant amounts of products and services, and establish
business relationships with a large network of suppliers.
These large construction companies understand that e-marketplaces may be
useful for them since they are able to reduce transaction and search costs, and
enable them to get better prices. So, despite widely recognised construction
companies inertia toward innovation, a considerable volume of transactions of
these large companies is made using these e-marketplaces. Grilo et al. (2004)
argues that 90% of the procurement processes of Mota-Engil were supported by
Econstroi e-marketplace.

2
www.econstroi.com
3
www.mercadoaberto.net
55

Fig. 31 - Top 5 companies in Portugal (source: companies consolidated reports and
accounts)
Focusing e-marketplace strategy primarily on buyers influence may make e-
marketplaces vulnerable because suppliers feel unhappy with this buyer-focused
strategy. While this strategy may be successful initially since buyers help
disseminate e-marketplaces within their supply chains, it has not improved the
number of e-marketplaces users in the last few years.
In sub-section 2.3.3 this situation is discussed in detail, and it is demonstrated
that, in fact, if a determined group of users (e.g., a group of buyers) manages e-
marketplace according to their own interest and accepts more new supplier
members than buyer members, the e-procurement network created tends to stop
growing. This situation is particularly negative if we consider that the marginal
cost for service providers decreases for additional users over time since the e-
marketplace absorbs additional users without additional investments, so service
providers are interested in experiencing continuous growth rates.
The significant dropout rate of these e-marketplaces is evidence of this, showing
that companies are not able to retain users and grow. In the case of Econstroi,
this rate is around 30% per year (Felcio et al., 2005). Thus, although there is a
2005
237
69.4
1445
150
39.4
894
88
15.6
799
56
9.9
594
12 5.4
0
500
1000
1500
2000
2500
Sales EBITDA Net income
M
i
l
l
i
o
n

e
u
r
o
s

Top 5 Portuguese construction companies
Mota Engil Teixeira Duarte Soares da Costa Somague Opway Engenharia
56
constant volume of new users each year due primarily to the continuous direct
selling approaches of Vortal and Construlink, the total number of users does not
increase significantly. According to the institutional sites, of 80000 potential
users (Grilo et al., 2004), only 12400 use private e-marketplaces (Table 3). Due
to a lack of information, it was not possible to assess if there are users
corresponding to the same entity in both e-marketplaces, which would permit
determination of the total number of entities using e-marketplaces. Nevertheless,
it is important to retain that market is still largely unexplored.
Table 3 Number of users of Portuguese construction marketplaces
E-marketplaces
Number of users
(according to institutional sites)
Econstroi 7000
Construlink 5400
At this stage, it is important to analyse the role of government in e-marketplace
private markets and its influence on e-marketplaces limited use rates. Is it also
influencing e-marketplaces reduced growth rates?
The Portuguese legal framework that specifically focuses on e-commerce is the
Decree-Law 7/2004, which transposes the European Directive 2000/31/EC
(known as the E-commerce Directive) and article 13 of the Directive 2002/58/EC
(Directive on Privacy and Electronic Communications), and clarifies some of
information societys most relevant concerns. These concerns include the
freedom to use electronic contracts for the majority of contracts without
referring to any specific security and technical aspects.
Besides Decree-Law 7/2004, there are several other relevant Decree-Laws that
must be referred:
Decree-Law 41/2004 that transposes the European Directive
2002/58/EC concerning the processing of personal data and the
protection of privacy in the electronic communications sector
57
Decree-Law 62/2003 that combines Decree-Law 290-D/99 and
European Directive 1999/93/EC, both related to digital signatures
Decree-Law 32/2008 transposes Directive 2006/24/EC related to the
retention of data generated or processed in connection with the
provision of publicly available electronic communications services or of
public communications networks
These legal frameworks are vague in practical terms (infrastructure
specifications, technological solutions, etc.), though they represent an adequate
basis for the development of innovative electronic systems since they have a
constructive rather than restrictive approach. So, existing legal framework
cannot be considered a cause of low e-marketplaces use rates in construction.
Concerning this it must be added that the new PCC and the advances in the
public sector regarding public e-procurement, largely discussed earlier in this
thesis, although without a direct relationship to private sector e-marketplaces are
influencing positively private e-marketplaces growth since companies are
incentivized to become paperless and implement privacy, communication and
security specifications similar to those implemented on certified public e-
procurement platforms.
58
2.2. HOW E-PROCUREMENT IS TRANSFORMING SUPPLY CHAINS
At this stage, some relevant questions emerge:
Why did some of the surveyed entities (sub-section 2.1.2) report that e-
procurement may induce the degradation of proposal value or quality?
Why did Portuguese construction private e-marketplaces not show
higher growth rates?
What factors may influence e-procurement networks growth?
To find answers to these questions, it is important to analyse in detail the major
impacts of electronic systems on supply chains by identifying the major
transformations in markets due to electronic systems use and understanding the
challenges and opportunities raised.
2.2.1. B2B ELECTRONIC MARKETS BEHAVIOUR
The case of Econstroi and Mercado Aberto demonstrates that electronic markets
(i.e., virtual markets supported by e-procurement solutions) have complex
behaviour. Although electronic systems seem to have a positive impact on
processes efficiency, B2B e-marketplaces have considerable difficulties in
attracting new users, and grow in a considerable way.
To understand the reasons behind this problem, it is inevitable to analyse in
detail the behaviour of electronic markets, which are constituted by two types of
users: the ones who buy products or services (buyers) and the users who sell
them (sellers). Moreover, it is important to note that e-procurement allows
reductions in search and coordination costs, and provides detailed price and
product information, what induces improved transparency and push markets
(especially price-based markets such as commodity markets) toward the classical
idea of a Walrasian auction where buyers are fully informed about seller prices at
no cost (Bakos, 1997). Against this background, the number of suppliers in
procurement procedures tends to increase, as shown in Fig. 32.
59

Fig. 32 - Effect of coordination cost reduction on the optimal number of suppliers
This informed buyer environment may lead suppliers to a competitive price-
taking equilibrium, underlying the Bertrands zero-profit equilibrium in
oligopolistic settings, improving buyers benefits and reducing sellers power
(Bakos, 1997, Riggins et al., 1994, Wang and Seidmann, 1995). This situation
may instigate strong price competition among suppliers, and, in some cases, may
degrade supply quality (delays, less client support, etc.), especially in situations
in which non-contractible factors are relevant. Therefore, as Mithas et al. (2002)
argue, buyers face a considerable dilemma when switching from their existing
supply chain relationships to e-marketplaces since the change may harm existing
social connections, and prejudice future purchasing. Similarly, large suppliers
are reluctant to join e-marketplaces because of high pressures and very limited
benefits (Chang et al., 2002).
This situation may push firms to rely on fewer suppliers (Malone et al., 1987,
Bakos and Brynjolfsson, 1993b, Clemons et al., 1993). One of the main reasons
for this has to do with the fact that smaller and tighter networks of suppliers
incentivize suppliers investment in non-contractibles, such as innovation,
adoption of new technology, quality improvement, trust improvement and
responsiveness. So, when non-contractible supplier investments are important,
limiting the number of suppliers is an incentive for the suppliers who belong to
60
the network since they must be confident of their own ex-post bargaining power
to make these investments (Bakos and Brynjolfsson, 1993a).
Conversely, when buyers limit their supply network, they reduce their bargaining
power; though this negative consequence may be mitigated or overcome by the
supplier non-contractible investments results, promoting win-win rather than
zero-sum situations. In Fig. 33, it is possible to see that when the benefits
resulting from the suppliers non-contractible investments are valued in buyers
total costs, the optimal number of suppliers tends to decrease.

Fig. 33 Optimal number of suppliers when considering investment in non-
contractibles and respective benefits for buyers
When non-contractible investments are not significant, the best solution is
increasing the number of suppliers until the marginal cost of search equals the
expected marginal benefit, which in a technological advanced environment can
mean that the number of suppliers will tend to be infinite. However, it is worth
asking which cases, besides commodities markets, do not depend on non-
contractible investments, particularly taking into consideration that with the
growing implementation of ICT, the importance of non-contractibles increases;
mostly because ICT enables consistent approaches to contracts and respective
monitoring, leveraging consciousness of the benefits relying on trust and ex-post
bargaining.
61
Thus, although at first glance ICT seems to promote endless expansion of B2B
electronic markets, a more careful analysis shows that e-procurement solutions
may induce development of bounded networks of suppliers (in order to face
degradation of proposals quality), in which buyer-seller relationships are valued.
Therefore, answering the questions raised at the beginning of this sub-section it
should be emphasized that:
in contexts in which suppliers non-contractible investments are
important (usually the case of construction industry) price-based
competition promoted by e-procurement systems may tend in fact to
reduce tenders quality over time;
probably, in order to face quality degradation and promote social
connections, most of the buyers in the Portuguese construction e-
marketplaces have already created their own groups of qualified
suppliers. Thus, new suppliers entering the e-marketplace will have
difficulties selling their products (or services) or may not want to pay a
membership fee to belong to an e-procurement network that will
increase price competition among suppliers; consequently, e-
procurement networks will show reduced growth rates;
at this stage, non-contractibles and buyer-supplier relationships emerge
as major factors influencing e-procurement networks success.
2.2.2. MULTICRITERIA EVALUATION TO IMPROVE ELECTRONIC
MARKETS BEHAVIOUR
The previous analyses raise pertinent perspectives on electronic markets
behaviour. They emphasize the opinions of buyers and suppliers concerning e-
procurement and identify relevant trends in e-procurement networks. As shown,
strong price-based competition potentiated by electronic platforms may cause
dissatisfaction among suppliers, inducing suppliers to abandon or degrade
proposal quality. To face quality degradation, some buyers limit the number of
suppliers, establishing restricted groups of qualified suppliers to promote
62
trustworthy buyer-supplier relationships and stimulate suppliers investment in
non-contractibles.
Though, creating restricted groups of suppliers, buyers become vulnerable to
collusion (Elmaghraby, 2004), may have trust concerns (Luo, 2002)or receive
less competitive bids unless they continue monitoring the entire market.
Moreover, focusing on the public sector, there is an additional problem: buyers
will not be able to decide the size of their procurement network since most of the
calls for tenders must be obligatorily open to the entire market.
So, it seems that reducing the size of the procurement network may not be the
most adequate option. Considering the nature of the problem, which emphasizes
the negative consequence of strong price-based environment and the reduction
of competition due to the formation of limited groups of suppliers, it is more
appropriate to:
implement integrated evaluation mechanisms such as multicriteria
evaluation models capable of valuing the various characteristics of
suppliers and respective proposals (cost, quality, innovation, deadlines,
technical capacity, etc.), which evidence suppliers non-contractibles
investments;
consider past performance information as a criterion of multicriteria
evaluation models to value stakeholders investment on buyer-supplier
relationships and promote more stable and performance-based
relationships.
Actually, as stated by Ho et al. (2010), choosing the right suppliers involves
much more than scanning a series of price lists; choices depend on a wide range
of both quantitative and qualitative factors that should be considered in an
integrated way. Similarly, as argued by Castro-Lacouture et al. (2007), research
concerning e-marketplace purchasing optimization should rely on the context of
a differentiated marketplace, not limiting the decision to quantities, prices and
delivery times but other relevant criteria.
It is interesting to note that without introducing any evident limits to the
dimension of e-procurement networks, use of these mechanisms allow buyers to
create smaller virtual networks based on supplier performance and overall value
63
of their proposals. This has a similar result to creating groups with a limited
number of suppliers, which is incentivizing suppliers to invest in non-
contractibles and promote more stable buyer-supplier relationships, but without
limiting competition.
To generate these qualified and motivated virtual networks of suppliers
gradually, buyers should construct good multicriteria evaluation models capable
of valuing proposal characteristics that they find the most important, and include
past performance information on these models. Evaluation criteria should be
defined taking into account not only the needs of a specific moment, but
repeated procurement procedures and the expected value of future proposals.
This way buyers give clear indications of what they expect from proposals and,
consequently, stimulate a homogeneous network of suppliers competing for
submitting progressively better proposals and investing in non-contractibles to
improve performance according to criteria valued by buyers.
Multicriteria evaluation has a strategic influence, incentivizing suppliers to invest
in non-contractibles such as innovation, quality, processes efficiency, and others,
and obligating buyers to understand their needs more deeply and think more
profoundly about their options (e.g., giving more importance to the price or
quality of tender). If buyers provide consistent evaluation models, they stimulate
an informed network of suppliers that improves their capabilities to provide
progressively better tenders (Fig. 34). In this context, the creation of a database
with historic information about multicriteria models used to support buyers and
guide suppliers over time is favourable.

Fig. 34 Strategic importance of multicriteria evaluation consistency
Evaluation model
consistency over time
+
Strategic
planning
Motivated
buyers
+
+
Qualified
suppliers
Value of
tenders
Information on
buyer strategy
+
+
+
64
2.2.2.1. PAST PERFORMANCE AND BUYER-SUPPLIER RELATIONSHIPS
When considered as a criterion in multicriteria evaluation models, past
performance functions as a reputational mechanism through which buyers can
reward loyal firms with whom they have had successful experiences (Doni,
2006). While buyers motivate suppliers and encourage trust-based relationships,
suppliers will see their effort and performance rewarded.
To help explain this behaviour, a process model was developed (Fig. 35) taking
special consideration of the theoretical research model proposed by Akkermans
et al. (2004), which explains how trust and transparency are generated. In the
model presented here, it is possible to see not only the effect of e-procurement on
transaction costs and transparency, but the strategic role of multicriteria
evaluation on improving e-procurement networks potential, and the influence of
past performance on decision-making.

Fig. 35 Multicriteria evaluation and past performance in e-procurement
E-procurement
Transaction
costs
Number of
potential
suppliers
Multicriteria
evaluation
Value of tenders
-
+
+
+
+
Integrated
approach
Quality of
decision-making
History of
evaluation models
More informed
suppliers
+
+
+
Past
performance
Trust
Information
transparency
Openess of
communication
+
+
+
+
+
+
+
+
+
+
Information on
buyer strategy
+
65
Past performance is a key element of trust development and relationship-based
approaches. It allows buyers reducing risk of underperformance and support the
development of trust-based environments. In general, performance is a central
issue in procurement and project management; it focuses on outcomes instead of
incomes, stimulating transparency and continuous improvement and
maximising more strategic approaches to projects and contracts.
However, measuring performance is not easy; it is not a one-time event and
involves multiple dimensions and large amounts of information. To be effective
in inter-organizational environments, it requires standardization (i.e., it must
involve development of a common framework upon which performance
measures can be implemented so as to evaluate and guide entities) (Kagioglou et
al., 2001).
The work of Lebas and Euske (2004) suggests that performance can be expressed
as a set of parameters or indicators describing the process through which various
types of outcomes and results are achieved. These indicators are known as Key
Performance Indicators (KPIs) and viewed as effective instruments to measure
performance and enhance information management. If used within a
benchmarking perspective KPIs allow companies to compare their performance
with other companies or industries, guiding them through continuous
improvement cycles (Beatham et al., 2004). They can also be viewed as
instruments to support translating organizational strategies into reality. As
Melnyk et al. (2004) argue, metrics and strategy are tightly and inevitably linked;
strategy without metrics is useless, metrics without a strategy are meaningless.
KPIs should be standardized and their use largely disseminated. The usefulness
of benchmarking and other inter-organizational uses of KPIs depends on
universality; parties should be able to use the same KPIs and obtain them in the
same way to communicate and share information and knowledge more
effectively. For example, instead of creating their own criteria and scoring rules,
which may be difficult to define in a transparent and objective way, contracting
authorities could use standardized KPIs, that improve communication and
mutual understanding between parties, and maximise continuous improvement
and more strategic approaches to e-procurement. Jointly, application of KPIs
66
and multicriteria evaluation methods allow implementing cycles of improvement
based on integrated evaluation, standardized metrics and historic information.
Focusing on relational and collaborative approaches to projects and contracts, it
should be stated that to exploit social potential and trustful relationships
generated over time, standardized KPIs are essential to help characterize,
monitor and manage relationships. In repeated procurement, this is especially
relevant. For example, if a buyer and supplier establish a simple transaction
relationship and repeat this transaction several times with success, over time, the
type and quality of the buyer-supplier relationship improves. In Fig. 36, this
behaviour is schematized by the move from (1) to (2). Since this is an implicit
progress, actors will not be fully aware of the new situation (2) and, therefore,
may not exploit the relationship effectively, identified with (y) in Fig. 36. In case
of relationship degradation, a similar situation may occur; if the relationship
degrades but parties are not completely aware or do not have means to monitor
it, significant losses may emerge in the future. To clarify these situations and
promote maximum transparency, use of KPI systems is pertinent and its
standardization is crucial to leverage mutual experience, understanding and
trust.

Fig. 36 - Measuring relationship quality (adapted from Lendrum, 2003)
Concerning standardized KPIs, it is worth mentioning that this subject has been
discussed widely within the industry in recent years (Luu et al., 2008, Cheung et
1 2
67
al., 2004, Duren van and Dore, 2008, Guerriero et al., 2010, Cox et al., 2003,
Kagioglou et al., 2001, Ramrez et al., 2004, Lee et al., 2005). Several
international initiatives to promote broad use of standardized KPIs can be
identified. For example, in the UK, the Egans Report (Egan, 1998) clearly
emphasizes strategic KPIs importance in the construction industry and espouses
the need for dissemination of KPIs and related practices. The Constructing
Excellence organization was created and is responsible for managing KPIs,
handling information, disseminating best practices and developing the KPI web-
based system (KPIzone
4
). This web-based system functions as a benchmarking
instrument that enables any construction company to measure and compare
their performance with the performance of the industry or of a specific
construction category. Other initiatives such as the Brazilian project called
SISIND-NET (Berr, 2007) also developed a group of relevant KPIs and
implemented a web-based indicators system for construction benchmarking. In
Denmark, the Benchmark Centre for the Danish Construction Sector
5
was
created to pursue construction efficiency, quality and performance. In Chile, the
national benchmarking system incorporated two initiatives (Ramrez et al.,
2004): one related to performance measurement and benchmarking and the
other to creation of benchmarking clubs, groups of companies that share
managerial practices and information to compare performance through meetings
and visits to construction sites. In the U.S., the Construction Industry Institute
6

(CII) (Lee et al., 2005) developed a benchmarking program called CII
Benchmarking and Metrics (BM&M), created with four main objectives: to
provide the construction industry with a common set of metric definitions and
performance norms to the industry, to quantify the use and value of best
practices, and to help focuses CII research and implementation efforts.
In Portugal, the Institute of Construction and Real Estate (InCI) supported a
similar initiative similar to those initiated by other countries. It was designated
by icBench
7
and focuses on the development of a benchmarking web platform for

4
http://www.constructingexcellence.org.uk/zones/kpizone/
5
http://www.byggeevaluering.dk/
6
https://www.construction-institute.org/scriptcontent/index.cfm
7
http://www.icbench.net/
68
various players in the construction industry (Moreira da Costa et al., 2006).
Results of this initiative reduced the impact on the industry; the KPI system was
not disseminated significantly and there were not relevant case studies to share.
Social e-business may play a relevant role in forthcoming initiatives involving
icBench since it is capable of integrating standard KPIs in the workflows and
promoting its dissemination within e-procurement networks.
2.2.3. SCM IMPROVEMENT THROUGH E-PROCUREMENT
As communication becomes more efficient, transaction costs are reduced,
competitive environments are stimulated and performance-based approaches
emerge, there is an increasing need for strategic procurement and SCM. For
instance, as it has been already referred, to motivate suppliers and stimulate
development of stable relationships in an open and electronic environment, it is
essential to implement integrated and multicriteria evaluation models and
monitoring systems capable of evaluating suppliers according to past
performance and other non-price criteria; this requires deeper knowledge about
suppliers, supply chains, and respective performance and management.
Understanding industries in terms of chains, clusters, and networks is becoming
increasingly important (Sawhney and Parikh, 2001), and change to a more
complex approach to market and firm interconnection and interdependence is
crucial.
Fortunately, ICT allow improving supply chain efficiency (Graham and
Hardaker, 2000, Tan et al., 2000, Bhoon and Wadhawa, 2004, Gunasekaran and
Ngai, 2004, Puschmann and Alt, 2005, Commission, 2010c), promoting the
development of innovative systems strategically focus on SCM (Horvath, 2001,
Johnson and Whang, 2002, Serve et al., 2002), offering contract management a
key role throughout the project (Vakharia, 2002) and improving the importance
of a strategic procurement management approach to an effective business
strategy (Cox, 1996, London and Kenley, 2001, Puschmann and Alt, 2005).
So, although e-procurement asks for more strategic approaches to supply chains
it also emerges creating a higher profile for SCM, opening up new perspectives
69
about procurement and respective strategic tasks (Porter, 1985, Lamming and
Cox, 1995). It is interesting to note that in their review of e-procurement
literature Schoenherr and Tummala (2007) argue that the focus on the link
between e-procurement and SCM rose in 2005; since then, several studies have
been conducted on this subject.
As Puschmann and Alt (2005) argue, e-procurement enables reduction of
administrative work and automates operational processes, offering more time to
think strategically (Fig. 37). Walker et al. (2008) also emphasize that e-
procurement accelerates market information efficiency allowing further fine-
tuning of procurement decisions such as supplier and proposal evaluations,
procurement methods and negotiation strategies. Consequently, e-procurement
paradigm is shifting from managing transactions to managing suppliers
(Puschmann and Alt, 2005) because more efficient operational processes lead to
higher managing capacities in which supplier management occupies a strategic
position and SCM emphasizes the management of upstream and downstream
relationships.

Fig. 37 Effects of e-procurement (adapted from Puschman and Alt, 2005)
Dematerialization promotes strategic approaches, maximises SCM and enables
new perspectives on supply chains, promoting efficient communication and
collaboration. In e-procurement, collaboration arises primarily from buying
requirements for procurement through the specification development process by
using real-time communication and exchange of information (Presutti, 2003,
Operational functions Supplier
management
Strategic
procurement
Operational
functions
Supplier
management
Strategic
procurement
Electronic
Procurement
Traditional
Procurement
Searching for the
best options
Paperless operations
Evaluations (KPIs)
70
Commission, 2010b). Though, collaborative vision may extend to design and
development of products, manufacturing processes, logistics and distribution
strategies; electronic collaborative services may offer many value-based
capabilities to their communities (Horvath, 2001). Real-time information
sharing, ease of communication, and electronic processes simplify information
flows and promote integrated and coordinated decision-making in supply chains
where a growing ability to collaborate emerges (Vakharia, 2002, Lee and Whang,
2004). E-procurement also provides organizations with efficient data
warehousing capabilities, which give supply managers advanced support, for
example, by enhancing inventory levels management or e-sourcing.
So, SCM and e-procurement generate interesting synergies and offer new
perspectives on procurement. It is pertinent to emphasize that there is
convergence between the challenges and opportunities raised by e-procurement.
While e-procurement success is much dependent on an increasing need to apply
integrated and consistent multicriteria models to evaluate proposals and
implement KPI systems and SCM instruments able to monitor and manage
contracts and relationships, electronic systems also potentiate these strategic
approaches to procurement and leverage SCM capabilities, revealing interesting
perspectives on procurement performance.

71
2.3. ON THE DYNAMICS OF E-PROCUREMENT NETWORKS
As it has been emphasized, the improvement of supply chains through stronger
competition and qualification of suppliers is supported and potentiated by e-
procurement platforms, explaining why they are implemented gradually in
private and public sectors. However, e-procurement platforms must be designed
carefully to be successful; as discussed in sub-section 2.2., it is crucial to
implement effective multicriteria evaluation mechanisms capable of valuing the
various characteristics of proposals (cost, quality, deadlines, etc.), taking into
consideration past performance information.
If correctly designed and implemented, e-procurement platforms increase
performance-based competition, stimulate non-contractible investments,
encourage trust development and promote projects quality. E-procurement
networks (Fig. 38) may grow and consolidate, which is beneficial to buyers and
suppliers and also service providers, who are able to increase profits.

Fig. 38 E-procurement networks
Though, it is pertinent to ask whether e-procurement networks grow indefinitely,
and what management approaches service providers should implement to
encourage growth and obtain maximum benefits; challenging questions about e-
procurement networks dynamics may be raised:
how far e-procurement network size increases?
how should potential new members be managed?
72
how should participation costs be increased or reduced to guarantee e-
procurement networks growth?
Another pertinent question has to do with emergent social networks
phenomenon, which is opening new perspectives for e-procurement platforms.
Several social network sites such as Facebook and LinkedIn are experiencing
exponential growth, raising the following question:
is it possible to have an e-procurement platform with features similar to
social network platforms, demonstrating viral growth? If so, how can
this be achieved?
These questions offer new perspectives on e-procurement networks, crucial for
development of more valuable platforms. Though, to answer them, it is necessary
to model the inherent e-procurement network dynamics and conduct a
comparative analysis with the social network phenomenon. In the following sub-
sections a research study on this subject will be present and answers to the
questions raised will be given.
2.3.1. MODELLING SOCIAL AND E-PROCUREMENT NETWORKS
Tavares and Costa (2011) propose two models to support deeper analysis of
social and e-procurement network dynamics, which were developed using game
theory. Game theory has been developed by Newman and Morgenstern (1953)
who analysed in detail what they call the games of strategy. Although some work
on this subject had existed, the work of Newman and Morgenstern conferred a
sense of scientific legitimacy on game theory and inherent mathematical
constructions (Schmidt, 2004). Since then, much work has been conducted on
this subject, the importance of which has been recognized by the Academy of
Stockholm, which, in 1994, awarded the Nobel Prize in Economic Sciences to
three game theorists: John Nash, John Harsanyi and Reinhard Selten.
Game theory provides a mathematical basis to analyse strategic interaction
between a set of players, considering a set of moves available and a set of payoffs
73
for each strategy combination. In its normal form, the game is displayed with a
matrix presenting the strategies and respective payoffs for each player (Table 4),
given by a value or function (Tavares et al., 1996, Samuelson and Nordhaus,
2004).
Table 4 Payoff matrix of a 2-player, 2-strategy game
Player 2

Strategy A Strategy B
P
l
a
y
e
r

1

Strategy 1 Payoff player1; Payoff player 2 Payoff player1; Payoff player 2
Strategy 2 Payoff player1; Payoff player 2 Payoff player1; Payoff player 2
Based on the models developed, three theorems were deduced and discussed and
five computer simulations were developed to support in-depth networks analysis
and clarify e-procurement networks behaviour. In subsequent sections, the study
is presented in detail. The notation used is listed and explained at the beginning
of this thesis in the list of symbols.
2.3.1.1. METHODOLOGY
E-procurement networks (PN) and social networks (SN) are sets of members
exchanging services and open to deny and accept new numbers at any time;
modelling their dynamics implies:
modelling benefits and costs for existing members;
modelling the decision process of each member to stay or to leave the
network;
modelling the decision process of each potential new member to join or
not join the network.
The proposed models consider that benefits are generated by interaction
between members. Cost is due to the participation in the network (time, effort,
opportunity costs, etc.) and to eventual membership fees. Benefits generated for
74
sellers (buyers) in an e-procurement network are proportional to the selling
(buying) opportunities offered by buyers (sellers). In a social network, the benefit
generated for any member is proportional to the value of interactions established
with all other members.
This formulation considers the existence of intermediary service providers,
usually represented by the management of the adopted e-procurement platform
who are responsible for managing the network services (website operation,
communication and data handling, security protections, hazard recovery, data
storage, etc.), and for defining and implementing membership rules. The
manager decides acceptance or rejection of membership applications for new
members and the pricing model. Finally, any existing members can leave the
network, though some fidelity rules apply for specific periods (e.g., 1 year).
2.3.1.2. A MODEL OF SOCIAL NETWORKS
Let

() represent the number of members of SN at time t, and a new

potential member, which considers two alternatives:

- joining the network;

- not joining the network;

Obviously, also considers two alternatives:

- accepting k;

- rejecting k.
The benefit of derived from being a member of at time is assumed
proportional to

(), and can be modelled by:

() [

() ],
adopting a homogeneous assumption about the potential benefit of interacting
with any member of SN, and where is a positive parameter.
75

Thus, each existing member of SN has an additional benefit equal to if joins
, and so the benefit of SN due to

is:

() [

() ].
Participation cost is assumed equal to

, so the decision of joining or not

joining the network by can be formulated in terms of the usual payoff matrix of
a two-player game:
Table 5 Payoff matrix for social network members
SN

{ [

() ]

}; { [

() ]

} 0;0
0;0 0;0
The usual notation is adopted:
Left payoff for
Right payoff for ().
Obviously, [

] is the stable solution for this cooperative game providing that:

[

() ]

,
so the manager should accept (for most social networks

is negligible since
there is no membership fee and all interactions are web-based).
(1)
76
2.3.1.3. A MODEL OF E-PROCUREMENT NETWORKS
Members of an e-procurement network are classified into two groups: Buyers,
B(), and Suppliers, (). The advantage offered to buyers by belonging to PN
stems from obtaining better buying opportunities from suppliers. The additional
value of such opportunities is due to increasing competition between sellers since
they are all invited to tender for each specific procurement request according to
their capacity to cope with the type of the contract and the additional advantages
offered by suppliers.
Therefore, the total benefit for buyers is proportional to the advantages offered
by each seller (on average, expressed by a positive parameter,

) and to its
number,

(), and so is given by [

()]. This means that the benefit per

buyer is:

()

()
,
if a homogeneous set of buyers is assumed.
Participation of in implies supporting multiple types of cost (time, effort,
membership fee, opportunity cost, etc.); their sum can be expressed by
individual participation cost

.
Thus, the net benefit for any member of B() is:

()

()

()

.
If is a potential new member of B(), its net benefit due to joining the network
is:

()

()

()

77
Similarly, the advantage for sellers belonging to stems from obtaining better
selling opportunities offered by (). Thus, the net benefit for any member of
() is given by:

()

()

()

where

is the participation cost for each seller.

For a new potential member of () one has:

()

()

()

Adding to B() reduces the benefit of the entire set of existing buyers

(), but
increases benefit of existing sellers

():

()

() {

()

()

()

()
}

()

()

()

() {

()

()

()

()
}

so,

()

()

()

()

()

Adding to () reduces the benefit to existing sellers but increases benefits to
existing buyers:

()

()

()

()

with
78

()

()

()

()

()

where

() is the increase of benefit for B() due to having a new seller, , and

() is the corresponding reduction for ().

In summary, the payoff table is:
a) ()

()

()

} {

()

()
}
0;0
0;0 0;0
b) ()

()

()

} {

()

()
}
0;0
0;0 0;0
Therefore, this is a cooperative game if and only if:
a) ()

()

()

(2)
(3)
79

()

()

or

()

()

and
b) ()

()

()

()

()

or

()

()

This means that if the number of buyers (or sellers) grows, then

()

()
(

()

()
) reduces to zero.
Cooperation and growth implies that:
a) for B()

()

()

where

means the benefit for buyers per cost unit:

80
b) for S()

()

()

with

For a given:
a)

()

() grows until the upper bound

assuming that

is satisfied.
b)

()

() grows until the upper bound

assuming that

is satisfied.
Therefore, the dynamics of viral growth sustainable growing network size and
increasing net benefit - is not possible for e-procurement networks.
2.3.2. THREE THEOREMS ON THE DYNAMICS OF NETWORKS
The proposed models support the deduction of three theorems on the dynamics
of networks (social and e-procurement networks), which are presented
subsequently.
2.3.2.1. A THEOREM ON THE DYNAMICS OF SOCIAL NETWORKS
According to (1) and providing that

()

is positive for

, it can
be concluded that:
(4)
(5)
81
Theorem 1:
The growth rate per time unit of the number of members of a social network is
positive and grows proportionally to

() for

assuming that the expected

number of new members per time unit, () is proportional to the net benefit for
each new member.
Proof:
() [

()

] ()

()

,
confirming that () grows proportionally to

().
If [

()]

for

, then no member will leave for

because

() will always be increasing and so with the net benefit of any member.
This is the viral growth (not specifically related to exponential growth but to
sustainable growing network size and increasing net benefit) known well in most
social networks. The manager keeps

negligible and generates revenues from

publicity proportional to

() and growing with t.

2.3.2.2. A THEOREM ON THE DYNAMICS OF E-PROCUREMENT NETWORKS
The two payoff matrices, (2) and (3), demonstrate how different is the case of e-
procurement networks when compared with the previous case of social networks,
and the following theorem can be proved.
Theorem 2:
Assuming that the expected number of buyers (or sellers) joining

() (

()) is proportional to the net benefit of each new member, and if

()

()

or (

()

()

) for some

, then:
82
a) For a given

()

() decreases with , being

and reaches zero at

with

b) For a given

()

() decreases with being

and reaches zero at

with

.
Proof:
The proof is given by results (2), (3), (4) and (5). If Ns (or Nb) is increased
progressively, one can increase Nb (or Ns) but with a decreasing

(or

).
2.3.2.3. A THEOREM ON THE EQUILIBRIUM STATE OF A E-PROCUREMENT
NETWORK
As explained previously, for any with () and (), the net benefit for a new
potential buyer is:

()

()

,
and the buyer does not join the network if

()

()

. Thus, break-even
is achieved with:

()

()

.
If (6) holds, no buyers will leave because

()

()

. Similarly, the net

benefit for a new potential seller is:

()

()

.
Thus, equilibrium (no new members and no loss of members) is achieved for


()

and

()

satisfying:
(6)
83

or

Thus, the solution of (8) is:

(7)
(8)
84
2.3.3. NETWORKS DYNAMICS SIMULATION
To obtain deeper insights into social and e-procurement networks behaviour,
several computer simulations were developed that consider the models
presented in this study.
2.3.3.1. SOCIAL NETWORKS DYNAMICS SIMULATION
Social networks dynamics have been simulated considering the model proposed,
and given that:
a) Hypotheses:
users enter the network to maximize their benefit, providing that
[

() ]

;
there is an unlimited number of potential new members;
b) Initial conditions:
CSN = 100 (arbitrary value);
=200 (arbitrary value but higher than CSN; otherwise users would not
want to enter the network);
N=1 (initial number of social network members);
c) Management rules:
network members do not accept new members if [

() ]

;
the simulation runs until N=30 is reached.
As shown in Fig. 39, social networks exhibit viral growth and benefits for users
increase proportionally to the size of the network.
85

Fig. 39 Social Network simulation results
2.3.3.2. E-PROCUREMENT NETWORKS DYNAMICS SIMULATION
Concerning e-procurement networks dynamics four different computer
simulations have been developed, which are presented subsequently.
Simulation 1 Open Strategy
Continuous increase of both Nb(t) and Ns(t) can be achieved if both groups
continuously attract new members. This is the case of the open strategy defined
by the following hypotheses, conditions and management rules:
a) Hypotheses:
users enter the network according to expected net benefit, which is

()

()

()

, if the new member is a buyer, and

()

()

()

, if is a supplier;
0
1000
2000
3000
4000
5000
6000
7000
0 5 10 15 20 25 30 35
Number of members Net benefit for network members
Time
70
60
50
40
30
20
10
Number of
members
Net benefit for each
member
10
86
decision on type of member that joins the network is based on type of
user that has the highest expected value, which should be positive;
if expected value for both types of user is equal, the new member
entering the network will be a supplier;
there is an unlimited number of suppliers and buyers.
b) Initial conditions:
Cb= Cs= 100 (arbitrary value);
b= s=150 (arbitrary value but higher than CSN; otherwise users would
not want to enter the network);
b=s= 1,5;
Nb0=Ns0= 10 (initial number of buyers and suppliers).
c) Management rules:
neither network members nor network managers can deny entry to
new members;
simulation runs until Nb=70 is reached.
Simulation result shows that under this strategy, e-procurement networks grow
indefinitely. Though, the net benefit for network members degrades
progressively (Fig. 40), which did not happen in the case of social network
simulation (Fig. 39).
It is important to note the relevance of initial conditions, which influence e-
procurement network behaviour over time. Looking at Fig. 40, the benefit for the
type of user who is the first to join the network (in this case, a supplier) is never
higher than for the other type. This happens because the size of the group of the
type of user who joins the network first is never lower than the size of the other
group.
87

Fig. 40 E-procurement network simulation results Open strategy
Simulation 2 Bounded Strategy
This strategy is similar to the previous one but no more buyers are accepted as
new members beyond a maximum. As an example, the following management
rules were adopted:
neither network members nor network managers can deny entry of new
members until Nb=70;
after reaching Nb=70, the network does not accept more buyers but still
accepts new suppliers.
The result of this simulation confirms theorem 2; for a given number of buyers
(Nb=70) the number of suppliers has an upper bound equal to

. Simulation results are shown in Fig. 41.

0
10
20
30
40
50
60
70
80
0 20 40 60 80 100 120 140
Number of buyers Number of suppliers
Net benefit for each buyer in the network Net benefit for each supplier in the network
Time
80
70
60
30
Number of
buyers/suppliers
Net benefit for
each buyer/supplier
20
10
40
50
88

Fig. 41 E-procurement network simulation results Bounded strategy
Simulation 3- Cost-based strategy
This simulation is an extension of the previous case. When the expected benefit
for suppliers reaches zero and no more suppliers are motivated to enter the e-
procurement network, the participation cost for suppliers (Cs) is reduced to
attract them. Therefore, the following management rules were adopted:
neither network members nor network managers can deny entry of new
members until Nb=70;
after reaching Nb=70, the network does not accept more buyers but still
accept new suppliers;
when net benefit for suppliers reaches 0 and no more suppliers want to
join the network, the participation cost for suppliers (C
s
) is reduced to
half of initial cost (

).
0
20
40
60
80
100
120
140
0 50 100 150 200
Number of buyers Number of suppliers
Net benefit for each buyer in the network Net benefit for each supplier in the network
Time
140
120
100
60
Number of
buyers/suppliers
Net benefit for
each buyer/supplier
40
20
80
89
Results demonstrate that under the new management rules, suppliers were
motivated to join the network only up to a new upper bound,

209 (Fig. 42).

Fig. 42 E-procurement network simulation results Cost-based strategy
Simulation 4- Valued-added strategy
In this simulation, the hypotheses and initial conditions of the previous
simulation were maintained, but when Nb=40, value-added services were
provided to buyers (reflecting this change, b changes from 150 to 200).
Therefore, the following management rules were adopted:
neither network members nor network managers can deny entry to
new members;
after reaching Nb=40, b changes from 150 to 200;
the simulation runs until Nb=100.
-50
0
50
100
150
200
250
300
350
400
0 50 100 150 200 250 300
Number of buyers Number of suppliers
Net benefit for each buyer in the network Net benefit for each supplier in the network
Time
400
350
300
250
Number of
buyers/suppliers
Net benefit for each
buyer/supplier
200
150
100
50
90
Results demonstrate that providing additional value-added services to buyers (or
suppliers) induces a new equilibrium between the benefits of buyers and
suppliers, which is achieved for a higher ratio between the number of buyers and
suppliers (Fig. 43). The type of users with higher tends to be part of an e-
procurement network with more users of their type than the other. This change
allows both parties to obtain higher net benefits; the users with additional value-
added services gain directly from the upgrade and the other type of users gain
because of the higher number of users from the other group entering the
network.

Fig. 43 - E-procurement network simulation results Value-added strategy
0
20
40
60
80
100
120
0 20 40 60 80 100 120 140 160 180
Number of buyers Number of suppliers
Net benefit for each buyer in the network Net benefit for each supplier in the network
Time
120
100
80
Number of
buyers/suppliers
Net benefit for each
buyer/supplier
60
40
20
91
2.3.4. DISCUSSION OF RESULTS ON E-PROCUREMENT NETWORKS
E-procurement networks include buyers and suppliers who become members
based on their perception of costs and benefits; these depend on the members
potential to buy or sell and how e-procurement networks are managed in terms
of fees and value-added services.
Studying the dynamics of these networks is essential to understanding their
behaviour and to proposing better management rules. Moreover, comparison
between these networks and social networks is inevitable since these represent a
growing phenomenon on the web and may be an opportunity for e-procurement
platforms. Unfortunately, no published results compare social with e-
procurement networks, which was an extra motivation for this study.
The mathematical models developed allow analysing network dynamics in detail
and propose three theorems based on their behaviour. The first theorem suggests
that social networks follow a viral growth dynamic providing that service
providers keep the network with a constant cost per member. The second
theorem suggests that procurement network dynamics are more complex, as it
was shown for a specific

()

, (or

()

), growth rate decays with

() (or with

() ) reaching zero for

(or

) Therefore, e-procurement networks do not follow a viral growth pattern.

However, management can increase the size of

() (or

()) by increasing

() (or

()), respectively; this can be achieved by additional marketing effort,

services improvement or cost reduction,

(or

). These two theorems prove

that the idea of developing e-procurement networks following the viral growth
paradigm of social networks is not possible; for a new member (buyer or seller),
the benefit for the respective group diminishes over time if the rules and features
of the network are constant, even if adequate SCM instruments are used.
The third theorem suggests that e-procurement networks reach equilibrium
defined by no loss or increase of members with numbers of buyers (

) and
92
sellers (

) defined in terms of net benefit per unit cost of participation (

and

) and expressed by

.
Afterwards, five computer simulations were developed to gain in-depth
knowledge of network dynamics and management: one focusing on social
network dynamics and four on e-procurement networks dynamics (considering
different management rules). The former confirms that social networks
experience viral growth. The subsequent emphasize the role of initial conditions
on e-procurement network behaviours and demonstrate the importance of
proactive e-procurement network management, which should monitor network
configurations continuously and strive to attract new users.
The study on network dynamics reveals that service providers face considerable
challenges to guarantee e-procurement network growth since they must conduct
significant marketing to attract new buyers and suppliers to the network and
maintain an equilibrium between their numbers. In simulation 2, it is clear that
if a type of user (buyer or supplier) stops joining the network, the other type will
experience participation benefit decrease and the e-procurement network will
soon stop growing. Thus, it is important to attract new members continuously
from both types of users. This simulation 2 helps explaining Portuguese
construction e-marketplaces behaviour, presented in sub-section 2.1.3. Buyer-
focused e-marketplaces favour buyers and attract more suppliers than buyers,
which reduces the benefit of e-procurement networks for suppliers and degrades
suppliers expected benefit gradually.
Reducing participation costs or providing extra value-added services allows
service providers stimulating networks growth, mainly by increasing expected
benefit. However, although pricing policy is a relevant market regulation
mechanism to take into account (Galbreth et al., 2003), service providers usually
have limited margins to reduce prices that constrain the application of price-
based strategies. Thus, providing value-added services may be considered a
pertinent option; it depends on creativity, innovativeness and available capital.

93
2.4. A VISION FOR E-PROCUREMENT IN CONSTRUCTION
Throughout the present chapter, particular emphasis has been given to electronic
paradigm in the Portuguese context, focusing on public e-procurement and e-
marketplaces in construction. E-procurement challenges have been discussed,
the role of e-marketplaces in construction has been analysed and the influence of
electronic systems on supply chains has been investigated. All over the research
several interesting findings emerged, promoting the development of a new
perspective on e-procurement for construction. It was interesting to note that, if
electronic systems raise several opportunities for the industry and generate
positive impacts, e-procurement systems must receive special attention to be
successful and exhibit positive growth rates.
The case of e-marketplaces in construction has shown that suppliers tend to be
unsatisfied with a strong price-based competition environment created;
therefore, many users abandon the platform or gradually degrade the quality of
their tenders. To combat this problem, buyers create smaller groups to
incentivize them and obtain valuable proposals under higher quality standards.
This behaviour tends to be harmful to all parties. If users abandon e-
marketplaces, electronic market potential is reduced; if buyers use e-
marketplaces for creating smaller groups of sellers, then the electronic platform
is not used to exploit its advantages and may be transformed into a set of several
internal networks rather than a large network of potential buyers and suppliers.
Behind potential risk for collusion and less competitive environment created,
this situation may also be disadvantageous for service providers who want to
capitalize the potential of open and large e-procurement networks.
Against this background, multicriteria evaluation and SCM appear as key
instruments to guarantee the generation and maintenance of open, competitive
and motivated networks. Appropriate use of these instruments in procurement
procedures promotes dissemination of integrated performance-based
approaches to competitive networks, which create virtual, stable groups of
qualified suppliers (who should invest in non-contractibles to deliver good
performances) in an open market, rather than limited groups of suppliers. This
situation is favourable for all parties involved: buyers have instruments to
94
increase their value and promote win-win relationships, suppliers are valued
according to their performance and reputation and service providers potentiate
large e-procurement networks.
Considering the existence of an open e-procurement network in which both
buyers and sellers benefit for being part of it, the behaviour of these agents were
modelled and analysed. The results show that e-procurement networks dont
tend to grow as a viral network; network growth depends heavily on proactive
management, adequate pricing policy and considerable effort of service
providers to attract new users. The analysis permits conclusions and raises new
viewpoints on e-procurement.
Consequently, three major challenges for e-procurement platforms are
identified:
e-procurement platforms should provide advanced instruments to support
multicriteria evaluation and SCM, giving particular emphasis to past
performance use and management to promote the generation of competitive,
qualified and win-win e-procurement networks;
since e-procurement networks do not grow as viral networks, service
providers must monitor networks and continuously attract new users
(buyers and suppliers), while guarantying that existing members do not
abandon the network;
service providers should manage e-procurement platforms (price policy,
value-added services, marketing strategies, etc.), considering e-procurement
network dynamics.
Undoubtedly, the most relevant of these challenges (perhaps because it depends
on several externalities) is to attract new members to e-procurement platforms
and create large and successful e-procurement networks. This is especially
difficult because in reality, many users still have old-fashioned ideas about e-
procurement, based on pure price-based competitive electronic markets that
were not able to grow and disseminate in the past. Therefore, they show
considerable resistance to entry.
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It would be convenient to refresh existing solutions and deliver new approaches
to e-procurement platforms. For example, social networking phenomenon,
generating disruptive perspectives on ICT, should be taken into account to
enhance e-procurement. As it has been shown earlier, e-procurement networks
do not have a viral growth so synergies with social networks should help them
growing. Social networks sites are an appropriate example of success; they
connect users while providing attractive web-based services, generating a
cooperative game with positive acceleration. Even if managed correctly, e-
procurement networks do not show this behaviour. However, instead of being
supported exclusively by e-procurement platforms, e-procurement networks
could be a part of an e-business platform, which could exhibit stable, cooperative
behaviour similar to social networks.
Supporting an open, collaborative, relationship-based free space, an e-business
platform could expand more easily than an e-procurement platform, and act as a
vehicle for e-procurement network growth. In this context, e-procurement
services should appear as value-added services of an e-business platform,
specifically designed to attract new users and growth. This approach would
generate a significant Internet marketing potential that would help with facing
the major challenge of e-procurement platforms: to attract new users. As it is
widely recognized, electronic technologies generate a powerful e-marketing
environment and provide the perfect conditions for relationship marketing
(Lancastre and Lages, 2006).
This e-business approach should integrate several social networking tools to
stimulate e-business networks growth, though it should be considered that B2B
environments are extremely competitive and users commonly play the role of
supplier and buyer simultaneously. For example, a company may not be
interested in sharing, rating or recommending their suppliers online (as it occurs
in B2C e-commerce platforms) since these suppliers may be part of their
competitive advantage that vanishes if information is shared. Similarly, suppliers
may not be interested to see their competitive advantages exposed in social
networking environments. Consequently, social networking approaches should
focus collaborative processes, win-win relationships and supply chain integration
instead of competition-based situations.
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Creating a collaborative and relationship-based environment may contribute
positively to e-procurement success. As stated by Grilo (1998) an atmosphere of
co-operation between firms, where they may have mutual expectation of long-
term commercial interaction, is very important to the emergence and
sophistication of these systems. The frequency and volume of information and
financial exchanges and social contacts also largely influence the adoption of e-
procurement instruments, providing the adequate environment for a growing
growth rate.
Considering the perspectives raised, it should be pertinent to develop an
innovative e-business platform that should:
provide e-procurement as a value-added service, but without obligating
potential e-business platform users to use the service. More important
is stimulating generation of large networks of users to increase network
expected value and marketing potential;
provide various communication, sharing and collaboration tools,
preferably for free, to attract users;
promote supply chain dematerialization, incentivizing inter-
organizational and project-based collaboration;
stimulate user interaction and relationship-based initiatives to promote
collaboration and trust development;
provide social networking tools integrated in collaborative
environments rather than in competition-based situations.









Chapter 3

Social e-Business and
BIM-based Environments


99
3. SOCIAL E-BUSINESS AND BIM-BASED ENVIRONMENTS
In this chapter, a new approach to e-procurement emerges and a new vision for
e-business is proposed. To test the innovative solution, a pilot case study is
conducted and its results are discussed in detail.
The work presented in this chapter has produced a scientific paper accepted by
Automation in Construction (Costa and Tavares, 2011b). A second paper
discussing Social e-business as a new vision for e-procurement is also under
development (Costa and Tavares, 2011c).
3.1. SOCIAL E-BUSINESS: AN INNOVATIVE APPROACH TO
CONSTRUCTION PROJECTS
In the previous chapter, e-procurement platforms were discussed in detail, giving
particular emphasis to the construction industry. It was possible to verify that e-
procurement has positive impacts on markets but raises several challenges. To
face these challenges, an innovative approach to e-procurement was suggested
that should be based on an e-business platform providing e-procurement as a
value-added service. This e-business platform should be inspired on social
networking phenomenon to grow significantly and generate a large network of
users, which potentiates strategic Internet marketing approaches and allows
disseminating value-added services, particularly e-procurement services. As
discussed in chapter 2, e-procurement networks do not expand as a viral
network. To grow, a continuous marketing approach focused on attracting new
potential members is necessary.
Considering the vision proposed for e-procurement, a new approach to e-
business in construction is drawn in this chapter. Following the strategic
directions proposed in the previous chapter in mind, it focuses on the
importance of collaboration and relationships in construction, and covers a wide
range of electronic services, including not only the dematerialization of internal
business processes but also the cooperative and collaborative processes between
companies. A set of collaborative tools and SCM instruments is considered to
100
improve e-procurement network potential and stimulate supply chains
dematerialization.
3.1.1. SOCIAL NETWORKS IN E-BUSINESS
Castells (2004) argues that it is because of ICT that network society is
transcending the limits of networks as forms of social organization and
interaction. The impersonal and atomistic relationship among individual actors
competing in an impersonal marketplace is inadequate in a world where firms
are embedded in networks of social, professional and exchange relationships.
These networks are strategic, creating a more competitive economic environment
where a firms network assumes enhanced importance (Gulati, 1998, Gulati et
al., 2000, Monge and Contractor, 2001).
In this networked economy and Internet-enabled society, business focuses on
alliances and partnerships; virtual communities emerge as important social and
professional structures enabled and empowered by an increasing amount of
Internet technologies such as bulletin boards, list servers, newsgroups, chat,
workspaces, and document repositories (Camarinha-Matos et al., 2008). These
online professional networks share a body of knowledge of their professions,
invent new relationships and induce new ways of sharing and creating
knowledge; they empower supply chain (SC) integration, collaboration and
technological development. Progressively, advanced collaborative tools,
electronic processes, and social network phenomena are transforming society
and markets, and generating new work paradigms (McAfee, 2006, McAfee,
2009, Agarwal et al., 2008).
The social network phenomenon plays a significant role in recent
transformations. Although it is recognized as a disruptive transformation among
the non-professional Web, there is a broader impact influencing professional use
of the Internet. Wellman (1996) previews this change and discusses the evolution
of computer-supported social networks regarding the influence of social
networks on collaborative work. Social Capital (Bourdier, 1986, Coleman, 1988)
is the notion behind this social networking vision, defined as an investment in
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social relations with expected returns (some of the most common expected
returns have to do with knowledge integration, team performance and trust
development (Inkpen and Tsang, 2005, Robert et al., 2008). Online social
networks (OMurchu et al., 200, Boyd and Ellison, 2007, Gneiser et al., 2009)
exploit social capital fully, demonstrating that relevant gains can be achieved. As
a result, social networking sites arose in multiple sectors and contexts (Kamel
Boulos and Wheeler, 2007, Goble and Roure, 2007, Eysenbach, 2008, Osimo,
2008) (Fig. 44).

Fig. 44 Social Network Sites use
According to Lin (Lin, 2001), social networks allow actors to interact through
relational ties and produce profits (capital) primarily because they:
facilitate the flow of information, reducing transaction cost;
simplify the generation of social ties, which influence decision agents
who make critical decisions involving the actor;
enhance an individuals social credentials to the organization to which
he/she belongs since its social ties are useful to the organization;
reinforce identity and recognition.
Government
Business
Education
Society Medicine
Social Network
Sites
Manage institutional information
Share knowledge
Share experiences
Link users with common interests
(doctors or patients)
Discuss ideas
Share knowledge
Get students and teachers closer
Create online learning
communities
Get citizens opinion
Inform citizens
Discuss priority areas
Connect professionals and
companies
Share information and knowledge
Promote collaborative work
Link citizens
Generate online communities
Support citizens initiatives
Share information
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In the case of e-business, the online social network environment induces relevant
changes in electronic platform behaviour and transforms e-business into a
broader concept aware of collaborative work and social capital. In the past, e-
business focused on dematerialization processes, particularly internal business
processes, enterprise communication and electronic commerce; now e-business
integrates collaboration tools, links professionals, promotes knowledge sharing,
generates online communities and supports evaluation tools to improve supply
chain coordination (McDonald, 2003, OMurchu et al., 200). E-business is
gradually becoming a broad transaction network linking all organizations and
respective internal networks where trust development contributes positively to
improving supply chain performance.
Social networks play a significant role in trust development. They not only make
it possible to improve coordination between firms and mitigate transaction costs
by making opportunism more costly because of reputational effects (Gulati et al.,
2000), they provide several trust development-oriented mechanisms (OMurchu
et al., 2004) that improve relationships within the supply chain and help achieve
more efficient results, as firms will more likely to share knowledge and accept
risk (Dyer and Singh, 1998, Child, 2001).
Looking at common social network sites such as Facebook and LinkedIn
(Wikipedia, 2011), several of these mechanisms are identified easily. For
example, it is possible to add users to a network, search in friends networks,
comment on profiles and posts, rate posts, recommend network elements, share
information and create subgroups. Several communication channels are
available (private and public) and a dynamic wall page is updated continuously
with network news. In summary, information sharing, network management
tools and several communication options contribute to improving trust and
exploiting collective intelligence.
Some of these social mechanisms should inspire e-business platforms. For
example, e-business platforms should allow users to create and manage their
own collaborative networks, comment and evaluate working experiences and
partners, create and manage relationships and promote dynamic KPIs to support
strategic SCM, enhance relationships management and monitor project
performance. As an interoperable information support mechanism that is
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changing construction industry, BIM should appear as a part of this innovative
vision for e-business, stimulating collaboration, integration and information
share. An electronic platform integrating BIM technology offers the opportunity
for a broad range of value-added services oriented specifically to collaborative
processes and able to improve information management, process automation
and SC integration.
To systematize this vision of e-business, a new designation is proposed to define
this collaborative approach: Social e-business. This concept emerges to enhance
collaboration and trust relationships in e-business, integrating and adapting
common social network collaborative tools and emphasizing the role of e-
procurement and SCM in e-business. Social e-business is an answer to challenges
identified in chapter 2 and should:
attract users more efficiently than e-procurement platforms, integrating
supply chains and creating a significant Internet marketing potential;
support e-procurement as a value-added service;
provide multicriteria evaluation instruments and SCM tools focused
especially on past performance information management, inevitable to
enhance e-procurement networks potential;
promote collaboration and potentiate trust development;
improve standardization and information management.
Among major strategic challenges that Social e-business faces (Fig. 45), the most
relevant are to attract users and integrate supply chains, since multicriteria
methods and past performance management systems are relatively simple to
implement. Special attention should be given to collaboration and social
networking when developing a Social e-business platform, which should provide:
several communication channels and social networking tools (email,
forums, comments, blogs, online communities, recommendation
systems, etc.);
distinct tools for information sharing, providing various permission
levels;
104
a BIM server to improve collaboration and enhance information
management;
an application store to support advanced models from different users
and companies;
various value-added services such as e-procurement, collaborative e-
catalogues and multicriteria evaluation instruments;
a SCM system including KPI management instruments to monitor
project performance and network relationships, giving special attention
to past performance information;
a project-based collaborative network architecture able to promote
supply chain integration and users interaction.

Fig. 45 Social e-business strategy
As Walker and Hampson (2003a) argue, efficient communication and
collaboration infrastructures are crucial to potentiate the development of trust
relationships, which should be strengthened by cooperative interaction for
improvement, problem solving, dispute resolution, coordination, achieving
shared goals and understanding others goals. Social e-business assumes this
vision and invests in a collaborative and relational environment, envisioning the
development of large online networks supported by social and trust links and
105
generating significant marketing capable of disseminating e-procurement and
other value-added services.
3.1.2. COLLABORATIVE NETWORKS IN ACTION: THE SATELLITE
NETWORK MODEL
In 1985, Porter studied the competitive advantage of organizational networks
and argued that communication infrastructure and social links are essential for
networks working collectively to upgrade, improve and add value (Porter, 1985).
Years later, Camarinha-Matos et al. based on extensive research (Camarinha-
Matos and Afsarmanesh, 2004, Camarinha-Matos and Afsarmanesh, 2005b,
Camarinha-Matos et al., 2005, Camarinha-Matos and Afsarmanesh, 2008,
Camarinha-Matos et al., 2008) added that rapid progress on computer networks
and pervasive computing contributed to the establishment of a networked society
where new forms of collaboration are explored. These collaborative networks are
becoming increasingly important for any organization that strives to achieve a
differentiated competitive advantage; collaboration is a key issue to addressing
market demands and turbulence.
Camarinha-Matos et al. emphasize that recently, various manifestations of
collaborative networks variants emerged such as virtual enterprise, virtual
organization, dynamic virtual organization, extended enterprise, virtual
organization breeding environment, and professional virtual community among
others; all showing a common pattern (Camarinha-Matos and Afsarmanesh,
2005a). They:
are networks of autonomous entities;
are driven by common goal/intentions;
operate on agreed principles and interoperable structure.
According to Camarinha-Matos and Afsarmanesh (2005b), a collaborative
network can be defined as follows:
a collaborative network is constituted by a variety of entities (e.g.,
organizations and people) that are largely autonomous, geographically
106
distributed, and heterogeneous in terms of their: operating environment,
culture, social capital, and goals. Nevertheless these entities collaborate to
better achieve common or compatible goals, and whose interactions are
supported by computer network. Unlike other networks, in collaborative
networks collaboration is an intentional property that derives from the
shared belief that together the network members can achieve goals that
would not be possible or would have a higher cost if attempted by them
individually.
Most collaborative network variants imply some organization over the activities
of their constituents, identifying roles for participants and some governance
rules. However, spontaneous forms of collaboration in networks can also be
foreseen, for example, when organizations collaborate voluntarily, aiming to
improve results but with no plan or previous network structure. In any case,
collaborative networks are already recognized in the society as an important
instrument for organizational survival in a period of turbulent socio-economic
changes. For instance, concerning innovation, Tidd and Bessant (2009)
emphasize that collaborative networks:
increase collective efficiency, providing a way for getting access to
resources through a shared exchange process;
stimulate collective learning, promoting exchange of experiences and
knowledge and supporting shared experimentation and innovation;
promote collective risk taking that permits higher risk in shared
experiences and R&D developments;
promoting sharing of various perspectives and construction of
relationships across knowledge frontiers.
In construction, collaborative networks emerge as a modern working paradigm
(Tuomela, 2004). Progressively, the role of the focal firm (building owner) is
altered by creation of a more open network interaction where specialized and
integrated actors increase end-user interaction, flexibility and iterative facilities
design.
Considering the idiosyncrasies of the industry, these networks should be project-
based, oriented toward trust improvement and SC integration, extremely flexible
and open to the network of actors around the network of projects. As Linderoth
107
(2010) suggests, each time a project ends and a new one begins, new networks of
actors are generated; the challenge is to transfer experiences, knowledge and the
benefits achieved in previous projects to new projects and collaborative
networks.
Generating dynamic and flexible collaborative networks in an electronic
environment represents a major challenge to which special attention must be
given. To achieve this, it is crucial to have an electronic platform capable of
integrating the entire SC participating in a specific project, providing a flexible
and dynamic environment. Moreover, in order to retain and transfer valuable
information throughout the projects (including information concerning
relationships management), it is essential to implement strategic KPIs and other
information management instruments (Fig. 46).
A Social e-business platform should provide this project-based collaborative
network behaviour and implement a functional model capable of promoting the
development of dynamic social networks to exploit collaboration, integrate
knowledge within the projects and strengthen relationships over time, while
respecting information confidentiality. This complex behaviour is difficult to
implement, though it is fundamental for enhancing social capital potential in e-
business.

Fig. 46 Collaborative networks
Common e-business platforms are based typically on single networks, and are
managed by an administrator who controls site permissions; this is usually the
owner of the project (Fig. 47). However, several parties are not able to use the
Collaboration
Networks
Partnerships
SC actors
Project A
Project B
KPIs; Knowledge
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platform without restriction. For example, if the owner is the only user allowed
to manage the project network, then the general contractors subcontractors will
not be a part of the collaborative network. Social e-business must avoid such
situations and promote integrated online networks covering entire supply chains,
offering all actors the possibility to interact through the electronic platform. In
this way, information flows without structural limitations, new opportunities
arise and it is possible to provide better e-business services.

Fig. 47 Common Web-based Collaborative Network
Baran (1964) suggests there are three possible architectures: centralized,
decentralized and distributed (Fig. 48). Monge and Contractor (2001) argue that
centralized networks are recommended for routine tasks while decentralized
networks are for creative tasks or collaborative problem solving activities;
construction usually fits in the latter. A decentralized network allows dynamic
and heterogeneous connections and contributes to development of new ideas and
knowledge creation. Members are active actors in the network configuration,
considering their locations on the network effectively change making and
learning opportunities. A distributed network probably does not exist in any real
business case, but represents a structure with high connectivity that could act as
innovative, knowledge-generation networks. Network management trends in
construction management indicate that client centrality is the primary variable
for network governance in the industry (Tuomela, 2004), though self-
governance, virtuality and specialization also play significant roles.
Building owner
Consultants
Architect Engineers
Supervisor
Contractor
Candidates and bidders
Main Project Network
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Fig. 48 Types of networks (Baran, 1964)
To avoid rigid client centrality, promote flexible behaviour, stimulate
collaborative and creative interactions and enhance online integration of the
supply chain, it is important to create decentralized network structures in which
players create their own networks and manage them without restriction, using
existing collaborative tools and services. At the same time, it is important to
avoid the generation of several fragmented networks concerning the same
project, which would make information and project management complex and
inefficient. So, an innovative collaborative network model is proposed that is
project-based and capable of integrating all interested parties without generating
fragmented information. Shown in Fig. 49, this is the Satellite network model.

Fig. 49 Satellite Network Model
Building owner
Consultants
Architect Engineers
Supervisor
Contractor
Consultants
Consultants
Satellite
Network
Satellite
Network
Suppliers
Trade contractors
Satellite
Network
Satellite
Network
Candidates or bidders
Consultants
Satellite
Network
Satellite
Network
Main Project Network
Subconsultants
Satellite
Network
Satellite
Network
Consultants
Suppliers
Satellite
Network
Estimators
Satellite
Network
Estimators
Satellite
Network
110
In the Satellite network model, all connected actors can create their own satellite
networks to work privately and independently of the main project
administrators collaboration network. These networks have administrative
permissions and manage confidentiality simply; users invite whom they want
and manage viewing and editing permissions over time. Using this model, it is
possible to simulate a network of networks within a specific project and support
the large numbers of actors involved, existing phases, knowledge backgrounds
and work networks that make construction projects a complex system composed
of multiple SCs (OBrien et al., 2002). This model mimics the dynamic and
interactive industrys behaviour and gives the platform the capability to organize
existing information in a project-based structure. Each satellite network has its
own permission configuration and reduced information fragmentation and
duplication since users do not need to create independent collaboration networks
and share files between different networks (if they have the required
permissions).
To promote integration and enhance supply chain synergies, satellite networks
should reach all supply chain actors. Commonly, most of the existing ICT
available raise significant barriers to entry for players from lower tiers of the
supply chain hierarchy. This has to do not only with the pricing model and the
specificity of the solutions available, but with reduced incentives players might
have to use these technologies. In many cases, large organizations implement
ICT and then try to convince the supply chain to use the technology; however,
they usually have limited influence on lower tiers of the supply chain hierarchy,
making the task extremely difficult. The Social e-business and satellite networks
approach may be a way to combat this problem. If barriers to entry are negligible
(considering that the basic services are free), the satellite network model creates
a domino effect that helps disseminate the electronic platform throughout the
supply chain since each level of the hierarchy is pushed to enter by the one
immediately above it.
In the construction industry, the integration of the supply chain has an
additional difficulty that has to do with the fact that many users are outdoors.
Construction projects usually involve multiple locations, an obstacle to
implementing electronic systems. So, Social e-business should be designed for
use outdoors; it is important to design electronic systems to be accessed using
111
tablet PCs with Wi-Fi or 3G/4G connections, providing useful value-added
services (Fig. 50).

Fig. 50 Satellite networks going on-site
3.1.3. MULTIPLE ACTORS IN SOCIAL E-BUSINESS
Social e-business must consider the complex nature of the construction industry
to be successful. It is widely recognised that the industry is a problematic sector,
which presents multiple objectives, locations, products, and actors. Social e-
business must offer answers to these challenges and support supply chains
throughout project lifecycle. To face multiple objectives, locations and products,
it is crucial to increase responsiveness, strengthen collaboration, improve
communication efficiency, encourage multicriteria evaluation, promote
standardization, encourage BIM use, stimulate supply chain dematerialization
and enhance performance monitoring. Concerning multiple actors, it is essential
to adapt electronic systems to the specificity of each type of actor (most relevant
types of actor are identified in Table 6). This is a major challenge, related directly
to the collaborative and integrative nature of Social e-business.
Satellite Networks
Construction management
Meetings management
Facilities management
- 3D visualization
- Conflict management
- Meetings management
- 4D simulation
- Cost control
- Performance management register
- 3D visualization and annotation
- e-Procurement and order management
- Maintenance planning and control
e-Procurement on-site
Contract management
-Request for information
- Request for proposal
- Order management
- Contract performance management
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Table 6 Construction industry actors and Social e-business
Type of user Description
Owner (public or
private)
The owner represents an individual or legal entity, public or private,
who decides to launch a construction project and gets the necessary
funds for execution. The interest fulfils the needs identified initially,
showing maximum quality and performance possible without
exceeding the planned deadline and cost.
Promoters

Promoters are responsible for presenting the project to the
customer, promoting marketing and dissemination actions.
Although not participating directly in project execution, they must
have a deep knowledge on the product, which enables them to
inform potential customers.
Design
Coordinator

A design coordinator ensures that the outcome of the project design
meets initial purposes and all activities are performed in a
coordinated manner within planned cost and duration. Commonly,
the architect assumes this role. The large number of stakeholders in
the project design phase makes coordination a complex process,
requiring rigorous coordination and integration of various actors
and designs.
Designers

These professionals participate in project design and take part in
the execution phase, giving technical assistance. Architects,
specialty engineers (structures, MEP, acoustic, etc.) are part of this
group of professionals, chosen by the owner or builder in cases of
design-build contracts.
Specialists and
Consultants
These professionals offer support to project planning, design,
management or execution. Their participation is usually limited.
Financial and technical advisers, topographers and health and
safety consultants are among this type of actor.
Constructor

The constructor is chosen by the owner to execute what has been
designed. The constructor may also be responsible for design
(design-build contracts) or for design plus operation and
maintenance (concessions contracts); other variations exist, though
are uncommon. In Portugal, the most usual situation is for the
constructor to be responsible for only the construction phase. In
this case, the constructor has the main objective of performing work
in accordance with the construction design, fulfilling contract
conditions in terms of deadlines, costs, specifications and
performance.
Suppliers, Service
Providers and
Manufacturers
For suppliers, service providers and manufacturers, the main
objective is to provide their products and services to owners,
designers and constructors, and carry out contracts with the best
possible performance. It is desirable for these entities to collaborate
with designers in preliminary phases, ensuring that construction
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procedures and design solutions are the most appropriate for each
case.
Project
Coordinator
The owner contracts the project coordinator to monitor work and
check for compliance with the contract, including project design.
This professional collaborates with various stakeholders to solve
problems that arise.
Licensing
authorities
Licensing authorities are responsible for construction company and
project licensing. There are a variety of entities corresponding to
this profile such as governmental agencies and local bodies.
It is important to note that although there are non-specific features important to
all actors on which Social e-business should rely, there are specific features that
should be provided exclusively to each type of actor in the industry. Non-specific
features include:
improving communication and promoting collaborative work;
stimulating trust development and social capital strengthening;
optimizing information flow and mapping information exchanged
among various actors throughout project lifecycles;
maximizing BIM use;
managing all information, documentation and contracts efficiently;
improving system interoperability;
increasing information and processes standardization;
enhancing information management.
Concerning the main types of construction industry actors, it is worth
emphasizing some of the most relevant specific features of Social e-business
(Table 7 and Table 8).


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Table 7 - Most relevant specific features of Social e-business per type of actor
Owner (public or private): Promoters Design Coordinator
simplifying procurement and pre-procurement, and
enhancing contract management, by providing e-
procurement services and SCM instruments;
improving collaborative work, providing BIM-based
environment and other collaborative tools;
storing, viewing and manipulating BIM models, allowing
access to information contained in the model;
diminishing search costs, providing easy access to list of
suppliers (and respective information) and standardized e-
catalogues (including green information and BIM objects);
improving decision-making and evaluation by providing
multicriteria evaluation tools;
enhancing project monitoring and performance
management (as past performance management), mainly
by providing KPI management system;
simplifying access to past projects history, including
respective performance indicators;
monitoring rigorously the evolution of the project,
considering updated information.
simplifying access to project
information and project progress
monitoring;
facilitating and optimizing product
promotion and information sharing
with potential customers;
improving Internet marketing
potential;
sharing online 3D models and
multimedia elements (pictures and
videos);
improving communication with
potential customers and getting
their feedback.

streamlining coordination,
communication and collaboration
among different actors on design
phase;
increasing coordinated response to
arising challenges;
improving design management and
optimizing planning;
maximizing BIM use and simplifying
conflicts, checking between designs
(architecture, MEP, structures, etc.);
potentiating KPI use during the
design phase.

115
Table 8 - Most relevant specific features of Social e-business per type of actor (continuation)
Designers Specialists and Consultants Constructor
simplifying tendering processes by providing
several e-procurement services;
potentiating BIM use, and models share,
storing, viewing and manipulating, allowing
access to information contained in the model;
incentivizing design quality and performance;
potentiating the access to e-catalogues and
information on products, equipment and
solutions;
increasing design coordination with other
designers;
getting designers, manufacturers and
suppliers closer;
improving management capabilities,
particularly through the use of KPIs;
simplifying access to past information;
sharing company information and project
portfolios;
improving Internet marketing potential.
increasing coordination with other
stakeholders;
facilitating the access to project
information;
potentiating the use of BIM;
maximizing access to potential
clients.
simplifying procurement and pre-procurement,
and enhancing contract management by providing
e-procurement services and SCM instruments;
potentiating BIM use and model sharing, storing,
viewing and manipulating, allowing access to
information contained in the model;
facilitating access to a vast online network of
suppliers and sub-contractors, with whom it is
possible to communicate simply;
improving coordination with other stakeholders,
particularly suppliers and sub-contractors;
providing access to product e-catalogues
containing up-to-date information and, whenever
possible, respective BIM models;
improving decision-making and evaluation by
providing multicriteria evaluation tools;
enhancing project monitoring and performance
management, mainly by providing KPI
management system;
maximizing use of performance indicators and
benchmarking instruments.
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Table 9 - Most relevant specific features of social e-business per type of actor (continuation)
Suppliers, Service Providers and Manufacturers Project Coordinator Licensing authorities
simplifying procurement and enhancing contract
management by providing e-procurement services
and SCM instruments;
increasing collaboration between different suppliers,
manufacturers or service providers, maximizing
generation of synergies;
simplifying the upload of products and service
information to online e-catalogues (including
respective BIM models);
improving communication with potential customers
and maximizing access to feedback;
simplifying access to public information during
projects to potentiate direct marketing approaches;
maximizing use of KPIs and benchmarking
instruments;
improving Internet marketing potential.
simplifying access to project and contracts
information;
improving active communication between
various stakeholders to maximize
coordination and management;
simplifying BIM models viewing and
manipulating, allowing easy access to
information contained in the model;
enhancing project monitoring and
performance management provided by KPI
management systems;
increasing transparency and control over
project execution.
simplifying access to project
information;
simplifying BIM models viewing and
manipulating, improving code-
checking automation capabilities;
improving active communication
between various stakeholders.
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3.2. BIM-BASED INTERFACE TO IMPROVE SOCIAL E-BUSINESS
In the context of Social e-business, BIM emerges as the most adequate tool to
enhance information management and process automation in collaborative
environment. As described in chapter 1, BIM is an innovative digital technology
based on information-rich 3D models that plays a relevant role in construction
projects and, in a few years, will become the most important support of
information for construction. So, Social e-business must consider this new
technology and integrate it as part of its set of value-added services. Thus, in the
following sub-sections two solutions integrating BIM will be proposed.
Despite that several commercial BIM software are available, current solutions
are very limited in terms of inter-organizational BIM collaboration because they
are usually oriented to a specific type of user and not based on interoperable
architectures such as Service Oriented Architectures (SOA), and IFC formats.
Thus, development of an advanced system capable of integrating BIM users and
providing a collaborative and interoperable space to link existing BIM software is
opportune. Social e-business may be the adequate platform for this
implementation not only because collaborative work improves, but also because
BIM increases SC integration.
To guarantee maximum interoperability, all BIM operations must be processed
using the IFC format(Chen et al., 2005). The Industry Foundation Classes (IFC)
data model is a neutral and open specification that allows transferring not only
geometry, but also the entire set of information associated with BIM models,
facilitating interoperability. This format arose in 1994, as a result of a process of
consensus-building in the construction industry in which various entities and
companies - many of them competitors - worked together toward a universal
format development. It is registered with the International Standardization
Organization ISO16739 and its continuous development, maintenance,
implementation, and dissemination are the responsibility of buildingSMART
International (http://www.buildingsmart.com).
118
Due to its open and interoperable nature it is the most adequate format for
collaborative environments such as provided by Social e-business platforms,
though it raises several challenges, as explained later in sub-section 3.4.1.
3.2.1. INTERACTIVE BIM TO ENHANCE INFORMATION MANAGEMENT
Construction projects deal with huge amounts of information, usually
fragmented throughout the supply chain and, typically, have an iterative and
complex nature, which make information management one of the major
challenges in construction.
The growing dissemination of e-mails within the organizations, difficult to track
and organize, is one of the emerging issues in construction information
management. This was confirmed in a meeting with the responsible of Mota-
Engil innovation department, who evidenced the dimension of the problem. Any
organizations member may have several email accounts containing relevant
project information. There are numerous communication channels available for
any user based on independent instruments, which makes information tracking,
collection and management difficult. Although ICT allows easier and faster
communication, it also disperses information repositories and lacks standardized
and structured communication channels.
To reduce this problem, a solution is proposed to map project information using
a Social e-business platform, integrating a BIM server and viewer. Alone, BIM
increases project information management capabilities, particularly concerning
information related directly to the model elements, though there is a significant
part of project information that it is not included in the model such as messages
exchanged between different actors or external documents dispersed throughout
the network that are difficult to share and manage. The proposed solution
connects this external information with the BIM model, creating a global
information mapping system that uses a BIM model as a management
instrument interface. It is worthwhile pointing out that the proposed solution
maintains linked information outside the model (information is saved in an
external database) to avoid overloading the BIM model; it is the globally unique
119
identifier (GUID) of each BIM element that assumes the role of connector
between existing depositories: the BIM and SQL servers (Fig. 51).

Fig. 51 - Linking external information to BIM
The method to create the connections between messages and/or files and the
BIM model is presented in Fig. 52. Fig. 53 shows the method to search external
information using the BIM viewer integrated in the collaborative online
platform; by selecting a determined BIM element, it is possible to access all the
information related to it, not only information within the model but also external
information connected to the model previously (messages, files, external links,
etc.). This interactive BIM vision to map information may be applied to the
entire lifecycle of projects, particularly to relevant stages as contract
management, performance evaluation or facilities management.

Fig. 52 - Method to link external Information to BIM

Fig. 53 Method to search for BIM-based external information
120
This BIM information mapping system and the Satellite network model require a
fragmented approach to BIM models management as proposed by Autodesk
(2010). A single BIM model would cause the process to become too complex and
heavy, and would also make permissions management too cumbersome; it would
require rigorous information and processing standard. Thus, it is recommended
to use several specialized BIM models stored separately on the BIM server (Fig.
54). Development of an integrated model may be considered, but only for
coordination purposes, and it should be used with adequate software to create
the integrated model. Concerning permission management instruments, it is
worth noting that they should be present in the system, envisioning a more
flexible use of BIM models. For example, if a determined user wanted to share
part of his model with another user, he could do so by selecting information and
objects to share.

Fig. 54 Defragmented BIM management approach
BIM server (IFC)
Architecture
BIM models
infrastructures
BIM models
structures
BIM models
construction
BIM models
as-built
BIM models
architecture
Software BIM
architecture
Software BIM
infrastructures
Software BIM
structures
Software BIM
construction
Software BIM
as-built
Facilities manager Constructor
Structural engineer Civil engineer Architect
Software BIM
Coordination
Coordinator
BIM models
MEP
Software BIM
MEP
Specialist
BIM objects
BIM models
3D Visualization
Software BIM
modelling
Manufacturers
Software BIM
viewer
Promoters
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3.2.2. BIM-BASED E-PROCUREMENT
In this sub-section, another innovative solution involving BIM is proposed,
envisioning the upgrade of existing e-procurement solutions. As already argued,
the construction industry is much dependent on procurement; thus, any
efficiency gain or performance improvement in procurement has a very positive
impact on construction efficiency.
A BIM-based e-procurement solution not only potentiates more advanced and
intelligent approaches to procurement systems, also promotes progressive
generation of large electronic and interoperable networks interacting
dynamically. The rich information-based environment created not only
strengthens the automation of many operational tasks (particularly related to
document automation), but also enhances information and knowledge
management. This supports more accurate decisions and strategic approaches to
the procurement cycle. Within the e-procurement perspective, several major
dimensions exist as potential advantages of using BIM throughout the
procurement cycle, which are presented in Fig. 55.

Fig. 55 BIM in e-procurement
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The proposed solution allows any user to initiate an e-tendering process using a
BIM model. For instance, if a contractor wants to purchase windows for a
building, he can select those windows in the BIM model of the building and
launch the tendering process using Social e-business platform; all the necessary
information should be obtained directly from the model in an automatic way
(contract documentation, list of materials and quantities, etc.).
It is important to note that use of BIM for procurement purposes obliges having
a very detailed model, including all necessary information to launch the
tendering process. Each BIM element must include several relevant information
sets such as work results related to that element or product identification (or
types of product). The association of this information to BIM elements can be
made using a support tool implementing the method presented in Fig. 56; after
selecting a specific BIM element, it recommends a list of organized information
related to relevant types of information (work results, products or other) for the
user to select the most adequate to the selected element. The links must be
created manually, using taxonomies available; though, information must be
automatically included in the BIM model. To automate this operation Social e-
business platform should be connected to a BIM server, which should allow
creating a new property set in the IFC file in which it includes the information
previously associated to BIM elements. Afterwards, it is possible to initiate the e-
procurement process in a simple way (Fig. 57).

Fig. 56 Method to include in the BIM model additional information (such as work
results)

Fig. 57 Method to initiate procurement process using BIM model
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Tenderers may also submit tenders using the BIM model. In this sense they must
attach specific information about the products, the costs and the resources to the
model. The process is similar to the one presented previously (Fig. 58). In this
sense the solution proposed in 3.2.1 can also be used.

Fig. 58 Method to make a proposal using the BIM model
3.2.3. THE ROLE OF TAXONOMIES IN COLLABORATIVE ENVIRONMENTS
The solutions presented are dependent on the dissemination of standardized
taxonomies, that is standardized collections of terms organized into hierarchical
structures. It is inevitable to use information classifications for BIM elements,
work results, products, resources, etc. because these classifications should be
common to different actors to guarantee that the same codification will be used
for a specific piece of information. For example, when including a specific
codification regarding a product in a BIM model (e.g., Omniclass 23-15 13 19 17),
any user should be capable of identifying composite wall panels as the product.
In collaborative and technologically advanced environments such as promoted
by Social e-business, a set of integrated taxonomies to support projects lifecycle
is crucial. In Portugal, there is an important initiative which aims to classify
information respecting work results, materials specifications, costs, resources,
and safety rules (FEUP, 2011), though there are relevant types of construction
projects information that are not taken into account, particularly relevant when
working with BIM. In order to overcome this, international standards can be
adapted easily to the Portuguese context, such as Uniclass and Omniclass, from
the U.K. and U.S., respectively. The Uniclass (Unified Classification for the
Construction Industry) was designed within the parameters of ISO 12006-2 and
ISO/PAS 12006-3, and published in 1997 in the U.K. by the Construction Project
124
Information Committee (CPIC). The Uniclass contains 15 tables, each related to
particular taxonomies. The Omniclass was first published in 2006, and has been
much influenced by Uniclass; according to Table 10, it is possible to verify that
there are many similarities between both.
Table 10 Comparison between Uniclass and Omniclass
UNICLASS OMNICLASS
Table A - Form of information Table 36 Information
Table B - Subject disciplines Table 32 Services
Table 33 Disciplines
Table C - Management Table 31 Phases
Table 34 Organizational roles
Table D - Facilities Table 11 Construction entities by
function
Table E - Construction entities Table 12 Construction entities by form
Table F - Spaces Table 13 Spaces by function
Table 14 Spaces by form
Table G - Elements for buildings Table 21 Elements
Table H - Elements for civil engineering
works
Table J - Work sections for buildings Table 22 Work results
Table K - Work sections for civil engineering
jobs
Table L - Construction products Table 23 Products
Table M - Construction aids Table 35 - Tools
Table N - Properties and characteristics Table 49 - Properties
Table P - Materials Table 41 - Materials
Table Q - Universal decimal classification
125
The Omniclass Construction Classification System (known as Omniclass or
OCCS) includes 15 tables and integrates extant systems such as Masterformat
(for work results), Uniformat (for elements) and EPIC Electronic Product
Information Cooperation (for products) (Table 10 shows all the Omniclass tables
and respective first-level classes). According to the Construction Specifications
Institute (CSI, 2006), Omniclass was designed to classify and organize
information used by the construction industry throughout project lifecycles,
encompassing all types of construction. Omniclass has become an important
requirement within the growing area of product search and comparison,
supporting the demand for highly articulated product information in BIM
format. It categorizes and normalizes elements, products, work results,
properties, etc.
The application of Omniclass to BIM is a major challenge. It organizes
information in models, reports, and object libraries. By combining tables, one
can develop BIM-based project execution guides with standardized information,
reducing the mapping activities and common ad-hoc nature of information
management (Davis, 2010). Existing BIM software such as Revit already
considers Omniclass codification a parameter of BIM elements. With respect to
BIM, the most important Omniclass tables are:
Table 21 Elements
This table breaks a facility into elements and assemblies that perform a
predominating function such as substructures, shells and interiors
without defining the technical solutions to provide these functions. It is
important to note this classification is used most often during early
project phases for identifying a projects physical, operational, or
aesthetic characteristic without regard to a material or technical solution
of the function. For each element, there may be several technical
solutions capable of accomplishing the elemental function, and more
than one may be selected for a project;
Table 22 Work results
This table organizes all information related to work results. Commonly,
the particular skill or trade, construction resources used, part of the
126
construction entity constructed or results from temporary work and other
preparatory or completion work (ISO 12006-2) identifies work results.
Table 23 Products
Products are the basic building blocks of construction. A product may be
a single manufactured item, a manufactured assembly consisting of many
parts or a manufactured operational stand-alone system; depending on
the application of a specific product, multiple work results can occur;
Table 36 Information
Organizes the existing types of information needed by many participants
in a project such as owner requirements, site and facilities data; it was
expanded recently to support the growing understanding of BIM data;
Table 49 Properties
Properties are characteristics of construction entities, useful for defining
requirements for proposed or potential construction objects, to describe
the characteristics of products and to compare the characteristics of any
two similar objects.
These tables can be integrated and should be implemented in Social e-business
to support information management and BIM-based e-procurement. The latter
case requires special attention since to be effective, the system must connect BIM
components (identified by standard codifications) with activities and products to
procure; this is a significant challenge.

127
3.3. PLAGE PLATFORM PROTOTYPE
3.3.1. BACKGROUND
Public e-procurement in Portugal was made mandatory in November 2009.
Since then, it has been demonstrated that significant improvements are
achievable by using e-procurement platforms, and a considerable reduction in
operational efforts is possible (Tavares et al., 2009, Tavares et al., 2011). The
mandatory use of this type of electronic platforms in public sector is pushing the
generation of a large online network of business and governmental actors that is
helping to break down some of the barriers to Internet use in business (Engsbo,
2003) and is maximizing electronic services potential.
Stimulated by this dematerialized environment, several e-procurement platforms
have emerged in the Portuguese market providing public e-procurement
solutions. Each of the service providers strives for innovation and service
excellence according to its specific history, potential, mission and strategy. Some
were created as e-marketplaces for important sectors (e.g. construction); others
were based on ICT consultancy, and still others were a spin-off of the largest
Portuguese industrial services group. They adopted aggressive competitive
models, understood the high value of cooperation and became an excellent
example of the new management paradigm of co-opetition (Brandenburguer and
Nalebuff, 1996), used to create interoperability.
Inevitably, this competitive environment has been stimulating development of
more advanced e-procurement solutions, which integrate not only the entire e-
procurement cycle, but also project lifecycles, and provide support for innovative
procurement and working models. It was within this context that new
perspectives on e-procurement have been proposed and Social e-business
emerged. Furthermore, it was this dynamic environment that pushed the
development of an innovative platform prototype inspired by Social e-business
vision. This prototype named PLAGE platform and respective application to a
pilot case is presented in the following sub-sections.
128
Originally in the PLAGE platform prototype, the PLAGE R&D project began 2
February 2009 and ended 4 February 2011, led by three private companies:
Vortal S.A., Microfil S.A. and Primavera BSS S.A, in partnership with two
research centers, CESUR from Instituto Superior Tcnico Technical University
of Lisbon, and UNIDEMI from Faculty of Science and Technology New
University of Lisbon. QREN National Strategic Reference Framework co-
funded the project using national and European Commission resources, further
co-funded by the three companies above.
The author of this thesis was a member of the PLAGE team and was actively
involved in the research and results presented herein; he played a major role on
project preparation, processes mapping, functional architecture development,
use-cases definitions, pilot case development, prototype tests and final report
elaboration and coordination.
3.3.2. METHODOLOGY
PLAGE platform prototype was developed as part of an experimental research
conceived within a controllable environment, which had the objectives of
developing and testing innovative e-procurement solutions, and implementing
the most recent perspectives on e-procurement and e-business. The research
developed in chapter 2 and the Social e-business approach presented earlier in
this chapter played a central role in PLAGE platform development, which
emerged as the proof of concept of the innovative e-business vision proposed.
The methodology supporting PLAGE prototype development was structured in
five major phases (a complete list of PLAGE project activities is presented in
Appendix B):
preliminary study and knowledge acquisition;
prototype specification, design and development;
exploratory phase focused on a pilot case;
explanatory analysis of pilot case results;
prototype improvement.
129
This combined approach, oscillating between exploratory and explanatory
analyses, produced an improvement process presented in Fig. 59, which
permitted construction of the prototype considering not only the most recent
knowledge on the subject, but also results achieved in the pilot case.

Fig. 59 Research strategy
The pilot case it focused on a school-remodelling project, provided by Parque
Escolar E.P.E.
8
. Throughout the pilot case, several issues were addressed
regarding collaboration and trust development, integration and
dematerialization of the supply chain, implementation of innovative e-
procurement solutions (multicriteria evaluation tools, e-catalogues, e-
procurement using 3D models, etc.), and improvement of contract and
performance management (mainly based on a KPI system). In the following sub-
sections, the most relevant outcomes achieved during research are presented.
Special emphasis is placed on prototype development, PLAGE platforms major
features and the pilot case.

8
Parque Escolar E.P.E., established by Decree-Law no. 41/2007 on 21 February, is a
corporation governed by public law with administrative and financial independence and
its own assets. Its purpose is the planning, management, development and execution of
the modernisation programme for the public network of secondary and other schools
under the responsibility of the Ministry of Education (source: www.parque-escolar.pt).
130
3.3.3. PROTOTYPE DEVELOPMENT
As emphasized in chapter 1, this thesis reflects work developed throughout action
research. This type of research has a cyclical and participatory nature that
influences research work progress and respective findings. Final results are the
consequence of consecutive interactions between several parties with
interdisciplinary competencies; intermediate activities and results exist, some
less significant to the purpose of the present thesis. Therefore, taking into
account the purpose of this thesis, only the most relevant activities related to the
development of the PLAGE prototype are discussed.
3.3.3.1. BUSINESS PROCESS MODELLING
Research to develop the PLAGE platform had a holistic approach to construction
projects, clearly identifying the interdependence between actors, objects and
properties, and considering a hierarchical perspective about subsystems
integration. In this sense, the first step toward prototype development was to
model traditional workflow for the entire lifecycle of a construction project,
which included the identification of the various players and respective value-
added activities, information flows mapping, determination of major deliverables
and decision points.
Providing a standard visualization mechanism for business processes defined in
an execution-optimized business processing language (OMG, 2009), Business
Process Modelling Notation (BPMN) (Fig. 60) was used to model all traditional
processes inherent to construction lifecycle phases (PLAGE, 2009). Special
attention was paid to actors, major decisions taken and information flows; the
principal deliverables generated in each phase were also identified and
described. Afterwards, BPMN diagrams were analysed in detail and several
modifications were introduced into the workflow to optimize information flows
and enhance collaborative work recurring to existing technologies such as BIM.
131

Fig. 60 BMPN map example
132
3.3.3.2. USE CASES AND FRONT-END DEVELOPMENT
The resulting BPMN diagrams supported the development of a functional matrix
in which the functionalities of the platform for each phase and each type of user
were identified that considered information requirements identified previously.
Several ICT, BIM technologies and other available advanced models such as
SIAP (Multicriteria analysis software), were integrated in to the workflow;
various innovative collaboration and social networking technologies were also
included.
Considering the functional matrix and the BPMN diagrams, PLAGE platform use
cases were defined and, in accordance to use cases specifications, front-ends
were constructed. Microsoft SharePoint was used to implement them based on a
form metaphor structure consisting of a series of forms (pages) with which the
user interacts.
Each form contained a number of fields (Fig. 61) that display output from lower
layers, and collect user input. The final appearance of PLAGE front-ends are
shown in Fig. 62, Fig. 63, Fig. 64 and Fig. 65.

Fig. 61 PLAGE front-end structure
133

Fig. 62 - Main Page (after login)

Fig. 63 - Projects page

Fig. 64 - Project Wall

Fig. 65 - General information of the project
3.3.3.3. TECHNOLOGICAL SOLUTION
One of the major challenges inherent to prototype development was to find the
most adequate technological solution for PLAGE platform. Any solution should
permit implementation of collaborative and social networking instruments
without excessive programming, and should provide a fully interoperable
environment capable of communicating with external solutions. Use of a Service-
oriented Architecture (SOA) (Papazoglou and van den Heuvel, 2007) emerged as
an inevitable approach (Grilo and Jardim-Goncalves, 2010), and Microsoft
SharePoint appeared as a pertinent framework to support implementation of
web applications, particularly those associated with content management,
134
collaboration and document management. Envisioning the implementation of
BIM-based features in PLAGE platform such as storing and manipulating IFC
models, the EDM model server appeared as the most adequate IFC management
server to be integrated in the final technological solution.
So, after a deeper analysis of several existing solutions and possible scenarios, a
PLAGE platform prototype was built combining three platforms (Grilo and
Jardim-Goncalves, 2011):
Microsoft SharePoint 2007
9
, used as the business collaboration platform
system and front-end;
EDM Model server from Jotne EPM technology
10
, used for BIM
management and IFC model server;
e-procurement platform from Vortal
11
, used for e-tendering, e-awarding
and e-ordering.
Connection between the platforms was assured by Web services, also used to link
PLAGE to other specialized software such as the Primavera Construction Suite
12

and SIAP Multicriteria evaluation web application. To structure the development
of the platform, the service-oriented approach was organized into 4 layers
(PLAGE, 2010) (Fig.26):
presentation layer, providing the application user interface and involving
forms for smart client interaction and ASP.NET technologies for browser-
based interaction;
application services layer, implementing the business functionality of the
application, composed of a number of components implemented using
one or more .NET programming languages;

9
http://sharepoint.microsoft.com/

10
http:// www.jotne.com
11
http:// www.vortal.pt
12
http://www.primaverabss.com
135
Business services layer, supporting business services connected with
external services using SOAP;
and data layer, providing access to external systems such as databases.

Fig. 66 - PLAGE platform architecture (PLAGE, 2010)
The technological solutions adopted were conceived based on cloud computing, a
new computing paradigm that refers to both the applications delivered as
services over the Internet and the hardware and systems software in the data
centres that provide the services (Armbrust et al., 2009). The services themselves
have long been referred to as Software as a Service (SaaS), while the data centre
hardware and software represent the cloud. Thus, cloud computing provides
computation, software, data access and storage services that do not require end-
user knowledge of the physical location and configuration of the system that
delivers the services.
3.3.4. MAJOR RESULTS
The PLAGE platform prototype was constructed successfully and interesting
partial results were observed: use cases were implemented as planned, front-
ends prove adaptable and usable, and technological solutions permit pre-defined
136
goals. Moreover, several collaborative and social networking tools were provided,
external solutions were integrated in an effective and completely interoperable
way, and a dynamic and flexible collaborative network based on satellite network
model was implemented. In this sub-section, some of the results observed are
given particular emphasis:
Social e-business environment generated to support collaboration, social
networking and stimulate network growth;
BIM-based interface provided to potentiate collaboration and increase
PLAGE platform capabilities to manage information and automate e-
procurement processes;
E-procurement and SCM instruments provided, such as the multicriteria
evaluation tool and KPI management system, to support decisions,
management and potentiate e-procurement networks dynamics.
Other features are discussed in sub-section 3.3.5, which presents the pilot case
conduced to test the prototype. A complete list of PLAGE features is shown in
Appendix C.
3.3.4.1. SOCIAL E-BUSINESS ENVIRONMENT
Microsoft SharePoint was used to implement the workflow, the collaboration and
social networking tools, and the project-oriented collaborative network structure
integrating multiple network levels as proposed by the Satellite network model,
which are the following (Fig. 67):
level 0, the entering page of the PLAGE platform;
level , the users main page (requires login);
level 2, the project page where each user may have a specific role,
accessed through the users main page;
levels 3 and above, the satellite networks pages that can be created and
accessed through the project pages.
137

Fig. 67 - PLAGE Platform Functional Architecture
LEVEL 2
LEVEL 1
LEVEL 0
User
Create Project My Projects
My Satellite
Networks
Company
Companys
Projects
Companys
Wall
Value-added
services
e-Catalogue e-Procurement
Application
Store
Login
Project Site
PLAGE
Home
Login Register
Newsletter
Subsctiption
General
Information
Gallery Project Wall Documents
Project
Phases
Phases
Collaborative
Network
Collaborative
Network Wall
Messages
Value-added
services
e-Catalogue e-Procurement
Application
Store
Network
management
Satellite
Networks
Contract
management
Satellite
Network Sites
General
My Messages My Contacts
Projects using
PLAGE
Companies
using PLAGE
Risk Analysis
LEVEL 3 TO N
General
Information
Gallery Project Wall Documents
Project
Phases
Phases
Collaborative
Network
Collaborative
Network Wall
Messages
Value-added
services
e-Catalogue e-Procurement
Application
Store
Network
management
Satellite
Networks
Contract
management
Risk Analysis
138
This multi-level collaborative network structure enables any user to create a
work network (satellite network), maintaining the link to the main projects
network and guaranteeing a project-based logic. This inter-organizational, web-
based approach potentiates interaction between users and stimulates generation
of integrated online supply chain networks in which all actors in the supply chain
participate.
The Satellite network model was implemented using SharePoint API, having
developed a procedure to enable the creation of new project pages according to a
predefined template linked to the main projects page and identified as satellite
networks of a specific project. A list of permissions is created automatically,
identifying the user who has initiated the process as the administrator, who will
be able to invite other users and manage all the respective permissions on the
satellite network. All information on a specific project and related to a specific
satellite network is saved on the database under the main project umbrella.
The information shared in each network (main project network or satellite
networks) is accessible only by the members of the respective network by default,
but there is the possibility of sharing files or BIM models with other registered
users or with other networks. In these cases, users sharing information must
have permission to do so (possess the role of administrator or editor; other levels
include reader, limited access and viewer).
All the networks provide several Social e-business instruments that improve
trust between companies and potentiate social capital:
the companys wall (Fig. 68), which stimulates interaction between the
users of a specific company and updates users with the most relevant
news regarding the company;
the projects wall (Fig. 69), which allows users participating in a specific
project to interact and share relevant information;
the collaborative networks wall, which is geared toward interaction
between the members of a specific satellite network;
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the document and multimedia sharing space (Fig. 70), which allows easy
and simple file sharing in a user-to-public, user-to-user and user-to-
network basis;
the collaborative space to manage meetings and events and share reports
and minutes of meetings (Fig. 71);
the KPI system for project performance and relationship management;
the messaging tool connected to the BIM viewer, which enables the
sending of messages and files linked to specific BIM elements, making it
possible to map information over time using the BIM model;
the multicriteria evaluation tool, which is provided to support group
decisions and proposals and products evaluation, improving SC
coordination and promoting more integrated, rigorous, transparent and
collaborative approaches to procurement and project decisions.

Fig. 68 Companys Wall

Fig. 69 Example of projects Wall

Fig. 70 Document and model
management

Fig. 71 - Meetings management
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All the collaborative networks supported by the PLAGE platform enable use of
two main levels of information, public and private (Fig. 72). This capability
allows, for example, the sharing of public information on a specific project with
an external user, using the projects wall; private information is shared only with
members of the project and in accordance with permissions.

Fig. 72 Private and Public Project Information
The Social e-business approach to PLAGE platform influences the dynamics of
the platform by not only providing common social networking tools, but also
creating a more collaboration-oriented environment where common tools such
as e-catalogues and the decision support systems are more collaborative,
potentiating social capital and community-based approaches.
For example, the e-catalogue and the application store (presented in Fig. 113 and
Fig. 114, ahead in sub-section 3.4.2) were designed to allow any user to share
products or services with any registered user, and also allow linking of products
even if they are from different companies, creating groups of suppliers with any
affinity. This link may be by recommendation (e.g., a wood flooring supplier
recommending a brand of glue) or by spatial affinity (e.g., several suppliers
linking products to equip a complete hospital room).
Users private
projects
Project A
Organizations
projects
Users private
projects
Users private
projects
All registered
users
User A
User B
User C
Public
Wall
Project B
Public
Wall
Project C
Public
Wall
Project D
Public
Wall
Project E
Public
Wall
Project F
Public
Wall
Organizations
Public Wall
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3.3.4.2. BIM-BASED INTERFACE
A BIM-based interface (Fig. 73) was created in PLAGE platform according to the
proposed solutions presented in section 3.2. and implemented using IFC Engine
viewer
13
and SharePoint, which connects to EDMserver. This interface supports
three major advanced features:
view and manipulate IFC models, and access to all the information
contained in the models;
attach external information to the model such as the messages exchanged
among actors or external documents;
manage tasks related to each BIM element, from which it is possible to
initiate the e-procurement process using the connection implemented
with Vortal e-procurement platform (Fig. 74).

Fig. 73 - BIM viewer (IFC-based)

13
IFC Engine Viewer is a free IFC 3D viewer provided by TNO (www.tno.nl).
Tasks
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Fig. 74 E-procurement interface
3.3.4.3. SCM SERVICES
Various tools have been implemented to enhance contract and risk management,
potentiate multicriteria evaluation, and encouraged strategic procurement.
Beyond simple cost management tools (including construction costs controlling,
payments management, and bonus-malus monitoring) and a failure mode,
effects and criticality analysis (FMECA) instrument (Fig. 75), a KPI system to
monitor projects and suppliers performance (Fig. 76) and a multicriteria
evaluation instrument (Fig. 77, Fig. 78 and Fig. 79) were implemented.
It is important to note that, above all, Social e-business represents a new
approach to e-procurement, which aims to stimulate e-procurement networks
growth through a collaborative and social networking approach. It maximizes e-
procurement networks potential achieved primarily by using multiple criteria
and past performance information in tenders and suppliers evaluation,
promoting qualified and trust-based environment; thus, any instrument to
support this purpose is pertinent.
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Fig. 75 Risk analysis form

Fig. 76 Contract management area
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The multicriteria evaluation tool was derived from SIAP (Sistema Interactivo
para Avaliao de Propostas - Interactive System for Tender Evaluation) (Fig.
77) (Tavares et al., 2010). This application was developed at CESUR (Center for
Urban and Regional Systems, Instituto Superior Tcnico), and supports
decision-making and multicriteria evaluation interactively and intuitively. Some
major features include:
a list of pre-defined evaluation models;
a criteria tree construction module;
scoring functions construction module;
criteria weights elicitation tool;
interoperable interface for alternatives data input;
alternatives evaluation results dashboard;
sensitivity analysis tools;
a negotiation support instrument.

Fig. 77 SIAP software
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To implement SIAP in PLAGE platform, a web version of this software was
developed in JAVA and embedded as a JAVA applet in SharePoint (Fig. 78). It
included an interface to manage SIAP files (Fig. 79), which allow PLAGE users to
create new evaluation models and manage existing ones in a project-based
perspective, ensuring that historic decisions and respective evaluation models
are maintained and accessible.

Fig. 78 Online SIAP embedded in PLAGE platform

Fig. 79 SIAP interface to create and manage evaluation models
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This web-based multicriteria evaluation tool allows users to create and manage
evaluation models, evaluate tenders and suppliers, and ensure that past
decisions and respective evaluation models can be organized and accessed easily.
It is important to emphasize that regular use of a decision support system such
as SIAP promotes gradual evaluation model improvement and emphasizes the
strategic importance of multicriteria approaches (this subject has been discussed
in detail in sub-section 2.2.2). Since SIAP provides a list of pre-defined
evaluation models that can be used and transformed and allows saving and
sharing evaluation models, users have means to improve their multicriteria
evaluation models, which increasingly reflect their perspective on what they
value in contracts and projects. This is especially true in cases of repeated
procurement in which buyers refine their evaluation models based on the results
of previous procedures. Consequently, suppliers improve their performance
according to buyers objectives and move toward closer and trust-based
relationships.
The KPI management system generates interesting synergies with SIAP since it
supports standardized KPIs that can be used as criteria in multicriteria
evaluation models, and allows managing and monitoring them, enhancing the
application of performance-based and integrated approaches to procurement
essential in Social e-business.

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3.4. PILOT CASE STUDY LICEU PASSOS MANUEL
The PLAGE platform prototype was tested using a pilot case study based on a
public sector project focusing on the renovation and expansion of a public
school, the Liceu Passos Manuel School (Fig. 80 and Fig. 81). Parque Escolar
E.P.E, including detailed design, specifications and contract, provided all
necessary documentation. Several interactions were made between Parque
Escolar E.P.E. and the research team to understand the most relevant aspects of
project design and construction. Several other entities also provided useful
insights to enrich research study.

Fig. 80 Physical model of Liceu Passos Manuel School

Fig. 81 Photos of Liceu Passos Manuel School
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The pilot case considered three main phases:
one phase regarding the simulation of the design process, including the
execution of several BIM models (the designs provided were in 2D),
which were essential to test PLAGE BIM-based interface. The models
were firstly created using Archicad software
14
and then IFC models were
generated from the BIM models originally created in Archicad
proprietary format (PLAGE platform only works with IFC format).
During this transformation IFC interoperability concerns were analysed
in detail to prevent major errors;
a second phase related to enrichment of BIM model with information of
the tasks related to each BIM model component. This activity was
supported by external software, Primavera Construction;
a third phase focusing on the simulation of several use cases, which
considered multiple actors and distinct project situations, designed to
test PLAGE platform prototype major features. Major attention was
paid to the e-procurement process, SCM and all collaborative and social
networking instruments.
In subsequent sub-sections, these phases are discussed in detail.
3.4.1. BIM MODELLING
Throughout the first phase of the pilot case, several BIM models were created
regarding multiple design phases. The design process was delivered in an
integrated way, stimulating maximum collaboration between intervening actors
and guaranteeing that all the information was distributed using the PLAGE
platform. The research team uploaded information about the project, companies,

14
www.graphisoft.com
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users, and products, and tested various collaborative, social networking and
management instruments, using Social e-business tools actively.
Several BIM models were developed, each related to a specific design phase. In
the Portuguese context, design phases are defined by Ordinance 701-H/2008,
which considers four main phases increasing in design detail. In this pilot, the
modelling process reflected these phases and followed the BIM directives
adopted in other countries, such as the US where American Institute of
Architects (AIA) identifies several levels of detail for models that correspond to
different project phases (Bedrick, 2008). AIA defines five Levels of Detail (LODs)
corresponding to models with increasing detail (presented in Appendix D) and
related to various stages of the building lifecycle. The first three levels apply to
the design phase (LOD100 to LOD300) and the last ones to construction
(LOD400) and building operation (LOD500).
In the pilot, particular attention was given to the design phase. A parallelism
between LODs and the phases proclaimed by Ordinance 701-H/2008 was
analysed and each BIM model, corresponding to LOD100, LOD200 and
LOD300, was developed, including information required by each phase. All
models were developed using Archicad software and, subsequently, were
transformed into IFC format to be uploaded to the PLAGE platform prototype:
LOD100 Program Base (Conceptual design phase)
LOD100 model is the simplest model, composed of zones and volumes and
enabling volumetric and space organization of architectural proposal. The
benefits associated with BIM use start to be potentiated at this stage. For
example, area and volume maps are calculated automatically and used as a basis
for cost calculations and spatial analysis. Downstream users may use it to
perform entire building analyses (volume, building orientation, cost per square
foot, etc.). The LOD100 model of Liceu Passos Manuel School considers 192
areas and volumes representing the spaces of the building (Fig. 82 and Fig. 83).

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Fig. 82 LOD100 visualization 3D

Fig. 83 Detail of spaces
organization in 2D
LOD200 Estudo Prvio/Anteprojecto (Schematic design/
Design development phases)
In the case of LOD200, it is important to note that this LOD is used in two
phases, the Schematic design and Design development, since these phases differ
mostly on the detail of the information included in the model (geometry is
mostly the same), which can be added to the same model in a progressive way.
LOD200 (Fig. 84) is a model that already includes generalized systems or
assemblies with approximate quantities, size, shape, location and orientation,
that already include relevant non-geometric information (AIA, 2008); it is
composed of all the constructive elements (walls, concrete slabs, beams, etc.) and
elements related to diverse specialties (structure, HVAC, etc.); though, only basic
information is included. In order to respond to Ordinance 701-H/2008
requirements, the model also includes approximate costs related to elements in
the model, enabling estimating of global project costs, and necessary information
to execute the thermal and acoustic simulations to verify building performance
and present respective reports.

151

Fig. 84 - 3D visualization of model LOD200
LOD 300 Projecto de Execuo (Detailed design phase)
LOD300 refers to the most complete model developed during project design.
This model supports construction contract awards and, therefore, must consider
higher details than previous models, notably concerning constructive elements
details (e.g., multiple layers of the walls should be specified), respective
specifications and materials. Mechanical, electrical and plumbing (MEP) systems
should be defined completely. In Fig. 85, Fig. 86, Fig. 87 and Fig. 88, several
perspectives of the LOD300 model of Liceu Passos Manuel School and 2D
designs automatically generated form the model are shown.


Fig. 85 LOD300 model (main building)
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Fig. 86 LOD300 model (interior and circulations)


Fig. 87 - HVAC system in LOD300


Fig. 88 - Section and plant automatically generated from BIM model
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3.4.1.1. IFC TESTS
The BIM-based interface provided by PLAGE platform is supported by an IFC
server; thus, the BIM models must be transformed into IFC format to be
operated by the platform. The BIM software used to create the model allows
transforming the model in IFC format; though, in some cases this transformation
raises considerable problems. Actually, during transformation some information
may be lost and several conflicts may emerge.
In order to prevent major problems in IFC transformation operations, simple
tests were carried out during the study to identify major problems raised by IFC
format. These tests were based on creating two simple models in proprietary
format, one developed in Archicad and the other in Revit Architecture
15
, which,
subsequently, were transformed into IFC format. Afterwards, IFC models were
imported by the other software, as shown in Fig. 89 and Fig. 90.

Fig. 89 IFC test 1

Fig. 90 IFC test 2

15
www.autodesk.com
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Several errors were found during tests. Due to the lack of standardization
between modelling operations and materials libraries, IFC was not capable of
incorporate all the characteristics of the original model, which led to some errors.
One of the BIM elements raising major concerns was the ground element.
Renders were also lost during the operation, as can be verified in Fig. 91 and Fig.
92, which refer to IFC test 1. Throughout IFC test 2, some problems related to
wall element joint details were identified, which means that functional
relationships between elements may also be lost during the operation (Fig. 93
and Fig. 94).

Fig. 91 - BIM model created in
ArchiCAD

Fig. 92 - IFC model imported into Revit

Fig. 93 - Wall created in Revit

Fig. 94 - IFC model imported into
ArchiCAD
In summary, using BIM in an interoperable environment requires understanding
software and IFC format. Modelling should reflect this understanding and
models should be developed taking into consideration interoperability concerns.
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Furthermore, after importing IFC models into BIM software, a careful analysis
should be conducted to assess eventual errors. Special attention should be given
to ground, materials, tailor-made objects (e.g., windows, doors, etc.) and specific
elements subject to any advanced operation conducted by other BIM software
(e.g., union of walls or solid construction operations).
So, as it is possible to understand from the simple examples presented,
additional effort on IFC format development is necessary to improve BIM
interoperability. However, careful modelling already permits acceptable results.
Despite these interoperability issues IFC is crucial to empowers collaborative
work, facilitate a multi-software approach to projects and drive performance of
construction supply chains to higher levels of interoperability. Therefore, PLAGE
includes IFC format as the basis for all BIM web-based operations.
3.4.1.2. LINKING TASKS TO BIM MODEL
BIM-based e-procurement raises a major challenge. As discussed in sub-section
3.2.2, to initiate procurement procedures automatically from the BIM model, it is
necessary to include the work results or tasks related to each BIM component in
the model. The principal difficulties related to this have to do with the use of
adequate information standards (capable of identifying elements and work
results in a structured way) and the process related to association of work results
to BIM components.
To face this challenge, a connection between the PLAGE IFC server and
Primavera Construction software was created. The former lists all components of
a specific IFC model uploaded to PLAGE platform and sends it to Primavera
Construction; the latter receives the list of elements from IFC server and allows
users to associate work results to each element. After this process, the IFC server
updates the IFC model, including in each BIM element the information of work
results defined previously. The information standards implemented were table
21 and table 22 of Omniclass (see sub-section 3.2.3).
156
For success, this process requires careful modelling (e.g., avoiding overlap
between components of the model) to guarantee the model is close to reality.
Each component must be identified with the respective construction elements
codification, which allows the IFC server to generate the list of model elements
automatically.
3.4.2. SIMULATION ENVIRONMENT
To test the prototype, the design and procurement process inherent to Liceu
Passos Manuel School project were simulated and PLAGE platform was used to
support all activities. The BIM modelling process presented in previous sub-
section was fully supported by PLAGE platform and various scenarios were
tested involving social networking, collaboration, information management,
BIM-based operations, KPI management and contract management. The most
relevant stages of the simulation process are presented below.
3.4.2.1. STARTING NEW PROJECT
The first step of the simulation was to create a new project page in PLAGE
platform specifically for the Liceu Passos Manuel School project. In this sense, it
was defined a project leader (usually the owner) who created a new project page
and provided relevant information about the project, particularly regarding
project typology, localization, estimated price, estimated duration, contract
model, type of use and estimated dimensions/capacity. Most of the information
is requested by the platform but extra information or files can also be added.
The requested information must be introduced carefully since it will be used by
the platform to parameterize workflows and improve business intelligence
analysis. After this introductory stage, the projects main page is created
automatically incorporating the information uploaded (Fig. 95 and Fig. 96).
157

Fig. 95 Projects main page
Legend:
1 Projects avatar;
2 Left menu column, allowing users access to various PLAGE services;
3 General calendar of the project;
4 Latest Actions; this area provided information on the latest actions of all users participating in the project
(e.g, the latest documents uploaded);
5 Access to personal information;

Fig. 96 Projects general information (1 General information link)
158
A multimedia gallery (Fig. 97) is created automatically with photos and videos
that user uploaded during creation of the new project PLAGE page. This gallery
is available during the entire project lifecycle, allowing users to manage and see
pictures and videos uploaded by users.
After creating the PLAGE projects page, a link to the projects page is added
automatically to PLAGE users main page top menus (Fig. 98). This link appears
only for PLAGE users with access to the project.

Fig. 97 - Multimedia gallery (1 "Multimedia Gallery" menu; 2 List of multimedia files available)

Fig. 98 - PLAGE user's main page (1-Link to Liceu Passos Manuel School project)
159
After the projects network is constructed, several pre-defined profiles are
available so the project network administrator (usually the one who created the
project page) will be able to invite users according to their specific role, and
create and manage the network in simply using the network management area
(Fig. 99).
The following users were created and considered throughout the simulation:
PeVasconcelos (Owner)
VFerraz (Owner)
ToLima (Project coordinator)
AnFerraz (Consultant)
RiCidras (Consultantt)
FiSilva (Engineer)

Fig. 99 Network management page
Legend:
1 Network management menu;
2 User management;
3 Satellite network management area; this area allows creation and management of satellite networks.
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3.4.2.2. PHASES MANAGEMENT
Phases management page (Fig. 100) plays a central role in project lifecycle
management; it enables users to view the list of compulsory and optional
documents for each phase and other relevant information about project phases
(e.g., document types produced in each phase, phase status, beginning date,
execution percentage and final date) and to manage project phases. From this
page, it is possible to access project phases pages (Fig. 101), which provide a
specific collaborative document and model management space.

Fig. 100 Phases management page (1 Phases management menu; 2 - Phases list)

Fig. 101 Collaborative space for document and model management (for each phase)
161
Legend:
1 Phase identification and progress;
2 Document management area (organized by area of expertise); users can upload, download and access
documents and consult information on who uploaded and approved the document;
3 BIM models management area; users can upload, download and access BIM models, and consult
information on who uploaded and approved the document;
3.4.2.3. SATELLITE NETWORKS MANAGEMENT
Satellite networks (which were developed according to 3.1.2) allow users to
create a new network within the main project network (or other satellite
networks); these sub-networks are especially pertinent to users wishing to work
privately with their own sub-group of users, and are important to promote
gradual supply chain dematerialization and integration. Although they are linked
to a specific project, PLAGE platforms satellite networks are autonomous and
work independently from the main project network.
During the simulation, the owner created a satellite network to work with
consultants exclusively during design review (Fig. 102). After being created, the
satellite network was added automatically to the main projects page top menu of
the members of the satellite network (Fig. 103).

Fig. 102 Satellite networks page (1 Project and satellite network identification)
162

Fig. 103 - Project's main page (1 Satellite networks available for user within the project)
3.4.2.4. COMMUNICATION AND SOCIAL NETWORKING
During the pilot, several communication channels were tested. Some of them
such as the messages tool (Fig. 104) or the BIM-based messages (presented
ahead in Fig. 110) allow users to send and receive messages. Others such as
meeting and task management tools (Fig. 105 and Fig. 106) allow users to send
and receive alerts on meetings and tasks (including text messages or files).
Finally, communication channels such as project and company walls (Fig. 107
and Fig. 108) allow users to share information and comments with other users
dynamically and actively (from the same project or the same company,
respectively).

Fig. 104 Messages page (1 Messages menu; 2 Inbox and outbox)
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Fig. 105 - Meetings management page (1 Objectives, agenda, attendees and document library)

Fig. 106 Task management page (1 Task Management menu; 2 To do list and task
management)

Fig. 107 Company wall
164

Fig. 108 Project wall
3.4.2.5. BIM-BASED INTERFACE
During the pilot, the BIM-based interface provided by PLAGE platform
prototype was tested in various ways, including:
the BIM viewer (Fig. 109) was used to view and manipulate BIM models
created throughout the pilot case, and access inherent information
regarding the tasks attached to the elements of the models while
modelling;
BIM-based interface was used to map messages and external
information using the model (Fig. 110) (this solution was implemented
according to section 3.2.1);
BIM-based interface was used to launch RFQ (requests for quotes) and
RFI (requests for information). By selecting the elements of BIM model,
it was possible to initiate the e-procurement/consulting process (Fig.
111) (this solution was implemented according to section 3.2.2).
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Fig. 109 IFC model viewer (1 IFC Viewer menu; 2 Tasks related to the model)

Fig. 110 BIM-based messages
166

Fig. 111 BIM e-procurement (1 BIM procurement menu)
3.4.2.6. CONTRACT MANAGEMENT
On the contract management page, various performance management
procedures were simulated and several KPIs calculated (Fig. 112); illustratively,
this module needs further development to be completely operational (i.e., a
standardized KPI system must be implemented to allow more advanced
monitoring and management and provide additional support to procurement
procedures).

Fig. 112 Contract management page (1 Contract management menu)
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3.4.2.7. E-CATALOGUE AND APPLICATION STORE
Concerning e-catalogue simulation, several products were uploaded by various
users to test the general e-catalogue area and the my products area (Fig. 113).
The latter allows users to access a private page where they can manage their own
products, provide relevant information about them and upload respective BIM
models. On the other hand, the Application store provides uniquely a general
area where several applications are available. During simulation, SIAP and
Multimpact have been virtually bought and tested.

Fig. 113 PLAGE e-catalogue (1 e-catalogue menu; 2 e-catalogue area; 3 Link to my products)

Fig. 114 PLAGE application store (1 Application store menu; 2 Application store area)
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3.5. DISCUSSION OF RESULTS
PLAGE Platform prototype demonstrated successful results. Positive feedbacks
from academia and industry were obtained from several seminars and
conferences in which the author participated. Various publications also
originated insightful comments (the most relevant seminars, conferences and
publications are presented in Appendix E). Specific meetings with large
construction players, such as Parque Escolar E.P.E., Mota-Engil and EDP, were
also positive and encouraging.
The parties involved considered the instruments provided by the PLAGE
platform opportune and useful, and reported the importance of stimulating
increasingly collaborative and relational approaches to projects where
communication and transparency are leveraged. The social approach to e-
business showed good acceptance and stimulated increased interaction between
users regarding not only the quantity of information shared, but also sharing
frequency. The satellite networks were viewed as an interesting feature that
permits bringing the entire supply chain online and stimulates development of a
large network of online users. The KPI management tool was highlighted as a
useful tool in managing the network of suppliers and stimulating the delivery of
better performances.
The development of additional KPIs based on BIM was proposed, particularly
regarding the monitoring of costs based on BIM, and the real-time calculation of
time and cost impact due to model changes. During simulation some problems
were identified on the platform, particularly regarding the interoperability of the
IFC models, which lost some information included on the original proprietary
format models. The BIM viewer and the BIM-based message tool have shown to
be extremely useful, though regarding the latter it was pointed out that when a
new model was uploaded, the information remained in the old model, an
undesirable solution; the system should enable a comparison between both
models and consecutive information transposition. Concerning the e-catalogue it
is worth to say that although it worked correctly, allowing users to upload their
own list of products and establish links to other products, the predefined forms
that asked users for specific information about the products uploaded were not
169
standardized sufficiently to ensure uploading of relevant and comparable
information about the products.
Despite the positive results demonstrated by PLAGE platform prototype and the
pilot case study developed it is relevant refer that further tests should be
conducted to validate the innovative model proposed; multiple case studies in
real world situations and deeper investigation on Social e-business
implementation should be developed, particularly to analyse in detail the effect
of Social e-business in e-procurement networks growth.

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Chapter 4

Social e-Business: The public
sector case



173
4. SOCIAL E-BUSINESS: THE PUBLIC SECTOR CASE
In the previous chapter, an innovative vision for e-procurement is proposed and
a platform prototype, developed according to this vision, is presented.
Subsequently, the prototype was tested in a pilot case used to simulate various
use cases in construction and support the analysis of Social e-business
contribution to improve construction performance. The primary objective of the
pilot case was to validate the innovative working environment provided by the
platform developed independently from the type of sector, private or public. It
offers an answer to the second research sub-question identified in chapter 1 that
asks, how can an e-procurement platform be enhanced to be used as a social
and collaborative space for development of construction projects?.
Considering the idiosyncrasies of the public sector that must respect several
principles and legal frameworks, it is pertinent to discuss more deeply the
application of Social e-business vision to the public domain. It is important to
note that relational perspectives raise controversial debates within the public
sector, particularly concerning potential conflict with public administration
principles. The third research sub-question presented in chapter 1 that
originated the third research cycle of this study, reflects this concern, revealing
the most problematic issues raised by the application of Social e-business to the
public sector.
This research sub-question ask, how can multicriteria evaluation and past
performance be considered in an e-procurement platform for public
procurement? Although these are inevitable instruments to promote successful,
collaborative and relationship-based approaches to e-procurement, some
obstacles to their application may arise in the public domain. For instance,
multicriteria evaluation may induce rank reversal situations, which are
incompatible with public procurement, and past performance may induce
discriminatory decisions.
So, considering the Portuguese context and incorporating clarification of this
debate, it is pertinent to analyse use of multicriteria evaluation instruments and
174
past performance criteria in public sector, concretely in public procurement,
both considered in chapter 2 as effective tools to potentiate e-procurement
network growth and improve collaboration and buyer-supplier relationships
(Fig. 115).

Fig. 115 Social e-business and the public sector

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4.1. MULTICRITERIA EVALUATION IN PUBLIC PROCUREMENT
4.1.1. MULTIPLE CRITERIA DECISION ANALYSIS
To understand how public procurement deals with multicriteria evaluation, it is
important to dig in-depth into multicriteria criteria decision analysis (MCDA).
These techniques were developed under decision theory to support resolution of
problems concerning the choice of one among several available options. It can be
used for various purposes including best alternative identification, ranking of
various alternatives, definition of a limited list of solutions for deeper analysis or
simply distinguishing acceptable or not acceptable options. As the European
Commission (2010a) evidences, multicriteria techniques can be used to produce
a single conclusion at the end of the assessment or present conclusions according
to participant preferences and priorities.
The field of MCDA involves a wide set of different methods (Gamper and
Turcanu, 2007), which, in a simplified way, can be distinguished by the
techniques used to define preferences of decision-makers, importance given to
each criteria and type of aggregator or optimization model used to combine
results obtained for different considered criteria (Peacock et al., 2009). Despite
the differences between the various multicriteria methods, a similar
methodological approach can be identified, which by itself already represents an
important added value, and is constituted by the following major steps (Belton
and Stewart, 2003):
problem identification;
criteria definition;
weights determination to be applied to each criteria;
alternatives identification;
information aggregation and synthesis ;
evaluation of alternatives;
decision.
176
The various multicriteria methods can be classified into three broad categories
(Belton and Stewart, 2003):
Value-measurement models
These methods consider that a numerical score (or value) (S) is assigned to each
alternative, producing a preference order for the alternatives such that a is
preferred to b if S(a)>S(b). To calculate S, several criteria are given weights
that represent partial contribution to the overall score and reflect tradeoff among
different criteria (Keeney and Raiffa, 1976).
The most common approach in this category is the multiattribute value theory
(MAVT) (Lken, 2007), which is an additive value function based on the
weighted sum of partial normalized scores reflecting the alternatives
performance on a specific criterion. MAVT is a simple approach that is in the
origin of the multiattribute utility theory (MAUT), first proposed by Keeney and
Raifa (Keeney and Raiffa, 1976); it is a more advanced value measurement model
that allows incorporating risk preferences and uncertainty into multicriteria
decision support.
According to Belton and Stewart (2003) the analytical hierarchy process (AHP),
developed by Saaty (1980), is also a part of this category of multicriteria models.
Though, despite similarities to value function methods (e.g., both MAUT and
AHP present results as cardinal rankings), proponents of AHP claim it is not a
value function method. It includes additional features for obtaining weights and
scoring rules for each criterion using a set of comparisons made between pairs of
criteria and pairs of alternatives.
Despite gaining practitioner acceptance, mainly due to the helpfulness of
hierarchical representations and the appeal of pair-wise comparisons in
preference elicitation (Salo and Hmlinen, 1997), AHP has been subject to
several criticisms. One of the most relevant criticisms has to do with rank
reversal; adding additional alternatives to the list under evaluation may lead to a
change in old alternatives rank, phenomenon considered by early developers of
multicriteria theory to be avoided in multicriteria analysis (Holder, 1990).
177
Goal or reference-level models
Goal programming and its variants provide support to multicriteria decision
problems, helping to determine alternatives closest to a goal. They are especially
suited to problems with very large or infinite numbers of decision alternatives,
used often as a preliminary stage of the decision-making process to produce a
short list of options. This method is attributed to Charnes and Cooper (1961),
developed within the context of linear programming problems. According to
Belton and Stewart (2003), the inherent principles carry through to nonlinear
and non-convex problems.
These methods require that the decision maker (DM) is able to express
judgements in terms of goals for each criterion. If goals are modest or defined
poorly, the goal-programming application may not give the desired result. In
fact, all solutions may satisfy all goals simultaneously and the DM will not know
which solution to choose. The reference point approach (Wierzbicki, 1999)
answers this problem by proposing the term reference level, which has to do with
achievement viewed as good starting points for further exploration.
Outranking models
Outranking models emerged in France (Roy, 1991) and its use is limited to
European countries. It provides comparisons between pairs of alternatives for
each criterion, allowing defining binary relations that rank alternatives according
to relative importance. Thus, alternative A outranks alternative B if there is
enough evidence to conclude that A is at least as good as B when considering all
criteria and respective weights. Several models use this method such as
PROMETHEE or ELECTRE models (Figueira et al., 2005). These methods may
also suffer from rank reversal problems (Wang and Triantaphyllou, 2008).
It is worth noting that methods from different categories can be combined.
According to Belton and Stewart, the AHP model is often combined with other
methods; various examples exist in combinations of AHP and PROMETHEE
(Macharis et al., 2004), TOPSIS (Yang and Chen, 1989, Lin et al., 2008), and GP
(Badri, 1999)
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4.1.2. MULTICRITERIA EVALUATION UNDER THE EUROPEAN
DIRECTIVES AND PORTUGUESE PUBLIC CONTRACTS CODE
It is now important to understand if multicriteria evaluation methods can be
applied to public procurement, naturally preventing rank reversal phenomenon.
As it has been referred, rank reversal is incompatible with public procurement,
as the final ranking should not depend on comparisons between alternatives.
In this sense, concerning evaluation of tenders in public procurement and
focusing on the European Union and Portugal, it is important to note, first of all,
that European Directive 2004/18/EC is clear about the importance of respecting
the principles of transparency, non-discrimination and equal treatment in
contract awarding, stating that:
Contracts should be awarded on the basis of objective criteria which
ensure compliance with the principles of transparency, non-
discrimination and equal treatment and which guarantee that
tenders are assessed in conditions of effective competition.
Focusing on award criteria, Directive 2004/18/EC adds that:
As a result, it is appropriate to allow the application of two award
criteria only: the lowest price and the most economically
advantageous tender.
The award criterion designated the most economically advantageous tender is
particularly pertinent within the present discussion since it allows considering
more evaluation criteria than price. As evident in the following Directive
statement, this award criterion opens the possibility of applying multicriteria
evaluation methods to public procurement procedures:
Where the contracting authorities choose to award a contract to the most
economically advantageous tender, they shall assess the tenders in order
to determine which one offers the best value for money. In order to
do this, they shall determine the economic and quality criteria
which, taken as a whole, must make it possible to determine the most
economically advantageous tender for the contracting authority. The
determination of these criteria depends on the object of the contract
since they must allow the level of performance offered by each tender to
179
be assessed in the light of the object of the contract, as defined in the
technical specifications and the value for money of each tender to be
measured.
In Portugal, the PCC, which transposed the European directives
recommendations to the Portuguese context, also considers both award criteria
lowest price and most economically advantageous tender. Regarding the
latter, the contracting authority may consider various criteria. For example,
quality, price, technical merit, aesthetic and functional characteristics,
environmental characteristics, running costs, cost effectiveness, after-sales
service and technical assistance, delivery date and delivery period or period of
completion are all possible to consider, but always respecting the principles of
transparency, non-discrimination and equal treatment.
Concerning the most economically advantageous tender, it must be pointed out
that the PCC is more rigorous than the European Directives in defining the
evaluation methodology; it mandates not only determination of criteria and
respective weights, but also inherent scoring rules. The evaluation model to
support contract awarding should enable tenders to be compared and assessed
objectively; the criteria, respective weights, scoring rules and the mathematical
formula for the calculation of the overall score must be presented in the notice
and specifications, providing competitors with all the information related to their
evaluations.
Considering the full explanation of the evaluation method provided by the PCC,
it is possible to say that the statutory regulation proposes the application of the
MAVT, which is an interesting conclusion. The proposed method is adequate for
public procurement since it is simple to use, enhances transparency, increases
rigour and systematization of the process, does not introduce excessive
complexity to the evaluation process and, above all, it prevents rank reversal.
Within the context of Social e-business, it is possible to say that the vision
proclaimed throughout this thesis regarding the role of multicriteria evaluation
is compatible with European Union and Portuguese procurement legal
frameworks, concretely because the multicriteria evaluation instrument
implemented in PLAGE platform prototype is based on MAVT, which is the
multicriteria method recommended by the legal frameworks in cause.
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4.1.2.1. MULTIATTRIBUTE VALUE THEORY
Considering the role of MAVT within the context of public procurement in
Portugal, it is now pertinent to examine closely how this evaluation method is
applied. First, the application of this method requires identifying criteria and
sub-criteria that support the decision, which should be organized as a tree
structure (Fig. 116); this facilitates an integrated overview of criteria and sub-
criteria, and simplifies the analysis of independence between them.

Fig. 116 Example of criteria tree
Scoring functions should be defined for each criterion or sub-criterion to allow
calculating the partial score for each tender in a normalized way, respecting each
one of the criteria. Fig. 117 presents an example of a scoring function, where P(i)
is the price of a project proposed by tender i and Sj(i) is a scoring function that
converts the price units (alternative j) into a score (partial score). In the case of
the scoring function proposed, p is the minimal credible price
16
(which scores
10) and p is the maximal accepted price (which scores 0).

16
European Directive 2004/18/EC (and by consequence the PCC) introduced the concept
of abnormally low tender (2004/18/EC - Article 55), which suggests that if, for a given
contract, tenders appear to be abnormally low in relation to the goods, works or services,
the contracting authority shall, before it may reject those tenders, request in writing
details of the constituent elements of the tender which it considers relevant. It is an
interesting solution in public procurement to consider scoring rules with minimum price
(equal to abnormally low tender price) from which the score does not increase (Fig. 117);
this helps prevent abnormally low tenders.
Award
criteria
Price Duration
1st phase 2nd phase
Quality
Innovation Sustainability
181

Fig. 117 Example of scoring function
In the MAVT, the weighting coefficients relate criteria among themselves and
allow transforming partial scores into an overall score. So, to obtain a global
score, a weighted sum is used represented mathematically as:
() () ( )

where S(i) is the overall score for tender i, w(j) is the weight of criterion j and
s(i,j) is the partial score of the tender i respecting criterion j. Finally, all
alternatives are ranked according to overall scores.
p p
Sj(i)
Price
Score
P(i)
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4.2. PAST PERFORMANCE IN PUBLIC PROCUREMENT
4.2.1. ON THE PATH OF RELATIONSHIP-BASED PROCUREMENT IN
PUBLIC SECTOR
The relevance of using past performance criteria in procurement procedures is
related closely to the growing importance of relationship-based approaches to
construction. Traditional contracts that involve separation of construction and
design are usually based on a strong adversarial environment (Murdoch and
Hughes, 2008) and face supply chains with a fragmented and dispersed
perspective where designers, engineers, constructors, consultants and
manufacturers do not work collaboratively (Walker and Hampson, 2003a),
which influences knowledge transference and degrades overall performance
(Naoum, 2003).
In traditional approaches to contracts, parties enter the project focused on
achieving their own objectives and maximizing their own gains, demonstrating
little or no concern with the impact of their actions on others, which prejudice all
the parties (Thompson and Sanders, 1998). For example, it is common to see
construction companies obtaining profit through the execution of additional
work, more than by the accomplishment of construction projects. This is a
generalized practice that often harms the client and, in case of public works,
society.
Recognizing the need for change, some initiatives are combating the inertia of
the construction industry and challenging traditional approaches. Recently, the
UK published a report on construction industry strategies (Government, 2011)
that emphasizes a new approach to construction and values the role of
relationships in the industry. The recent experience of Office of Government
Commerce (OGC) is also an example of this new paradigm in which relationships
assume strategic importance. As OGC (2009) states, use of partnering in
construction fosters a climate of mutual trust, allowing parties to be more
confident about revealing confidential information and improving the
opportunity to innovate. Similarly, the USA Army Corps of Engineers reports
183
that partnering allows it to achieve significant improvements; in both large and
small contracts, cost slippages reduced by 80% to 100%, time overruns were
eliminated, paperwork was reduced by 75%, and significant improvements in site
safety and morale were achieved (Greenhalgh and Squires, 2011). Other benefits
of partnering and other relationship-based approaches to procurement can be
found in Winch (2002) and Walker and Hampson (2003b).
Despite the advantages of relational procurement strategies, effective change
toward broader use of relational approaches to contracts requires a substantial
transformation in the construction industrys culture, profoundly based on
competitive relationships. As Gadde and Dubois (2010) suggest, the adversarial
culture among stakeholders and the lack of strong institutional norms promoting
new procurement systems make difficult any change toward relational
approaches.
To overcome these barriers, a broader and more consistent notion of the benefits
achieved by effective relationship management must be disseminated within the
industry (e.g., recurring demonstration projects), and a strong institutional
determination to encourage change, such as recently demonstrated by the UK
Government (Government, 2011), must be unequivocal. Stakeholders must
understand that benefits that can be achieved with closer and trust-based
relationships can only exist with a win-win mentality and a broad consensus on
basic principles behind these approaches (Greenhalgh and Squires, 2011) that
emphasize the importance of :
existing mutually agreed on objectives and goals;
improving inter-organizational trust;
implementing inter-organizational mechanisms for problem resolution ;
promoting continuous improvement related to benchmarking
processes.
To achieve this win-win mentality, implementation of relationship-based
approaches should rely on informality and social aspects (Bresnen and Marshall,
2000). In fact, several formal mechanisms and procurement choices are
available capable of supporting integrated and relationship-based approaches to
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projects such as design-build procurement procedures; though, this does not
mean that the industry is changing. For instance, the case of Portugal
demonstrates that traditional contracts continue to be preferred.
Social e-business emerges as the adequate relational and social environment
capable of generating interesting synergies among parties and disseminating
relational approaches to construction; it provides several communication
channels, collaboration and social networking tools, various e-procurement
services, SCM instruments and a multicriteria evaluation tool.
In this context, the use of past performance criteria in procurement procedures
assumes extreme relevance, gradually promoting the generation of closer and
trustful buyer-supplier relationships over time. Though, despite its pertinence
under the scope of relationship-based approaches to procurement and Social e-
business, use of past performance is not consensual in the public sector (Albano
et al., 2011). Therefore, a closer analysis to this subject is presented in the
following sub-sections.
4.2.2. THE CASE OF EUROPE AND USA
In the European Union, using past performance as a criterion in contract
awarding is viewed as a potential discriminatory approach that prejudices
suppliers with no past performance information. Though, the United States are
known by having a completely different perspective; past performance is
recommended as a valid and pertinent instrument to improve contract
performance and promote stable buyer-supplier relationships. This distinct
approach to past performance within the public sector reveals the complexity of
this subject and suggests deeper analysis of these two visions.
Looking closely at European Directive 2004/18/EC, especially Article 53, it is
possible to verify that according to this regulation, the criteria on which the
contracting authorities base the award of public contracts shall be linked
exclusively to the subject matter of the public contract, which precludes past
performance. The same Directive considers using a selection phase before
185
contract awarding in some procedures, which allows selection of a restricted
group of suppliers invited to submit tenders. However, the list of criteria
proposed for such selection (Article 47 and 48) is limited and does not explicitly
consider performance of past experiences. According to Article 48, no.2 (a), it is
pertinent to consider the following criteria proposed by the Directive for the
selection phase, which demonstrates the generic nature of the criteria and the
absence of performance consideration:
i) a list of the works carried out over the past five years, accompanied by
certificates of satisfactory execution for the most important works. These
certificates shall indicate the value, date and site of the works and shall
specify whether they were carried out according to the rules of the trade
and properly completed. Where appropriate, the competent authority
shall submit these certificates to the contracting authority direct;
(ii) a list of the principal deliveries effected or the main services provided
in the past three years, with the sums, dates and recipients, whether
public or private, involved. Evidence of delivery and services provided
shall be given:
where the recipient was a contracting authority, in the
form of certificates issued or countersigned by the
competent authority;
where the recipient was a private purchaser, by the
purchaser's certification or, failing this, simply by a
declaration by the economic operator;
PCC is very similar to European Directive 2004/18/EC; it considers the same
evaluation phases (selection phase and contract awarding) and includes the same
restrictions on past performance as a criterion. The list of criteria is also very
limited, and past performance is unmentioned throughout the statutory
document. Selection phase may consider suppliers experience, though no
reference is made to their performance. Regarding the contract awarding phase,
which is the decisive one, it is evidenced that it must focus exclusively on subject
matter of the contract; it cannot consider past performance.
In opposition, the Federal Acquisition Regulation (FAR) from the US allows a
contracting authority to evaluate proposals and suppliers past performance.
Thus, respecting source selection and proposal evaluation, it is interesting to
note some of the sub-paragraphs of this statutory regulation (Subpart 15.3):
186
The quality of the product or service shall be addressed in every source
selection through consideration of one or more non-cost evaluation
factors such as past performance, compliance with solicitation
requirements, technical excellence, management capability, personnel
qualifications, and prior experience;
Past performance information is one indicator of an offerors ability to
perform the contract successfully. The currency and relevance of the
information, source of the information, context of the data, and general
trends in contractors performance shall be considered;
The evaluation should take into account past performance information
regarding predecessor companies, key personnel who have relevant
experience, or subcontractors that will perform major or critical aspects
of the requirement when such information is relevant to the instant
acquisition;
In the case of an offeror without a record of relevant past performance or
for whom information on past performance is not available, the offeror
may not be evaluated favorably or unfavorably on past performance.
Concerning past performance information, Subpart 42.15 states:
Past performance information is relevant information, for future source
selection purposes, regarding a contractors actions under previously
awarded contracts. It includes, for example, the contractors record of
conforming to contract requirements and to standards of good
workmanship; the contractors record of forecasting and controlling
costs; the contractors adherence to contract schedules, including the
administrative aspects of performance; the contractors history of
reasonable and cooperative behavior and commitment to customer
satisfaction; the contractors record of integrity and business ethics, and
generally, the contractors business-like concern for the interest of the
customer;
Regarding contractor performance information management, it is prudent to
note the perspective of FAR, which emphasizes the importance of continuous
performance monitoring, parties discussions on performance results and
implementation of information systems to support past performance
management.
187
As it is evident, there are contradictory opinions between the EU and the US,
demonstrating that past performance is a complex issue that does not have a
simple solution. The EU has a more defensive approach to the subject,
considering that potential negative consequences of using past performance
criteria do not justify expected benefits.
However, the use of past performance information in public procurement in
Europe is under active discussion. Confirming this, nearly 623 replies to the
European Commission Green Paper on the modernisation of the EU public
procurement policy (Commission, 2011b) originating from organization and
contracting authorities established within the European Union were submitted
to the European Commission defending past performance as a criterion in
contract awarding. As a result of this survey, the European Commission states
that (Commission, 2011a):
A broad majority of respondents from all stakeholder groups consider
that the Directive should explicitly allow contracting authorities
to take into account their previous experience with one or
several bidders. Again, respondents are aware of the risks and
drawbacks of such a suggestion: some critical answers are cautioning
against the danger of favouritism and discrimination while others
are proposing safeguards to ensure a fair and objective assessment, such
as the requirement of a measurable and objective performance
control system (to avoid subjective blacklisting), judicial protection and
possibly a cap for the weighting of the relevant criterion, to keep the
market open for newcomers.
While the principle of non-discrimination is cited to be the major reason to avoid
reputational mechanisms, there are several other arguments to defend their
broader use, some already discussed in this thesis. It is important to note that
there is not consensus on this subject. Though, there has been a growing number
of entities in the European Union proposing a change in the Directive to allow
past performance in procurement procedures, which may signify that the
industry is aware of the need for new procurement systems and working models.
Considering previous discussion, it can be said that Social e-business
implementation in the public sector cannot be exploited fully in the European
Union or Portugal since past performance information cannot be used to
188
promote relationship-based procurement. Though, an alternative approach to
past performance is proposed in the following sub-section, aiming to overcome
the barriers raised by public procurement legislation and potentiate the
relational vision enhanced in previous chapters.
4.2.3. AN ALTERNATIVE APPROACH TO PAST PERFORMANCE
Considering that multiple criteria can be used to evaluate tenders within the
public domain, and these must focus the subject matter of the contract, an
alternative evaluation model is proposed considering future performance reward
as a criterion, instead of past performance (Fig. 118). This criterion is based on
the reward proposed by suppliers tender, which depend on final contract
performance, which is assessed at the end of contract execution and may be
focused on both quantitative and qualitative dimensions of contract.

Fig. 118 Award criteria
This way it is possible to value suppliers that invest the most in non-contractibles
(innovation, processes efficiency, client support, etc.), promote the development
of trustful relationships and, consequently, are more confident in their future
performance, always taking into account the principles of transparency, non-
discrimination and equal treatment. All interested suppliers are able to submit
winning tenders and to achieve maximum final reward, without facing any
discriminatory situations or equal treatment obstacles.
Award criteria
Common criteria:
cost, duration, quality,
etc.
Future performance
reward
189
In the following sub-section, the proposed model is explained in detail and a
simple example is presented.
4.2.3.1. ALTERNATIVE APPROACH EXAMPLE
To explain the alternative approach, a simple example focusing on an evaluation
model for a public works procurement procedure is presented. The evaluation
method considered will be the MAVT, adequate to PCC. The model incorporates
three elementary criteria: cost, duration and future performance reward (Fig.
119).

Fig. 119 Criteria tree
Cost criterion:
Description: cost of the construction works;
Unit: price in 10
3
Euros;
Scoring function:

Fig. 120 Cost scoring function
Award criteria
Cost Duration
Future
performance
reward
190
Duration criterion:
Description: duration of the construction works;
Unit: weeks;
Scoring function:

Fig. 121 Duration scoring function
Future performance reward criterion
Description: reward to be achieved considering maximum contract final
performance (in the present case, maximum reward is 20%);
Unit: percentage of the total cost of contract;
Scoring function:

Fig. 122 Reward percentage scoring function
After identification of criteria and respective scoring functions, criteria weights
must be determined. They should be defined with the support of advanced
elicitation tools and considering uncertainty inherent to each case. In this
191
(1)
example, these have been determined simply. It was considered that the
contracting authority prefers a tender with lower construction cost but
considering a higher reward, than a tender with a higher construction cost but no
reward, although the final cost of both is equal.
Thus, considering wc the cost criterion weight, wt the duration criterion weight,
and wr the reward criterion weight, we have that global score of each tender as:
()

with

and

the partial scores for each criterion.

If we consider two tenders, A and B, the former with the higher reward possible
(which according to the scoring function for reward criterion obtains a partial
score equal to 0) and the latter with no reward (partial score equal to 10), we
have (considering the contracting authority prefers A):

If we consider that both cases propose the same duration (

), we have:

)

According to the cost criterion scoring function, partial score for price criterion is
given by the expression

(considering prices above

abnormally low tender, i.e. higher than 120). So we can argue that:

) (

).
If we consider that final costs in an optimistic scenario (i.e., maximum reward
proposed will be achieved) are equal then:
192
(

)
so, considering

and

, then:

) (

)
and finally,

.
Combining (1) and (2), we get:

In the present example and considering the previous analysis, if we consider that
tender A will be higher than 120 (10
3
euros), which corresponds to the limit of
abnormally lower tenders, and lower than 200 (10
3
euros), which is the
maximum price possible, then we have that

. In accord with the

present example, the following criteria weights are considered:
Cost: wc=60%
Duration: wt=30%
Reward: wr=10%
To exemplify the application of the model, subsequent tenders are considered
(Table 11).
Table 11 Evaluation matrix

Tender 1 Tender 2 Tender 3
Cost criterion (10
3
Euros) 120 136 144
Duration criterion (weeks) 12 12 12
Reward criterion (%) 20 10 0
(2)
193
After applying scoring functions to each respective criterion and calculating the
global score for each tender using the aggregation additive model, the following
matrix is constructed:
Table 12 Scores matrix

Partial scores

Weights Tender 1 Tender 2 Tender 3
Cost criterion 0,6 10 8 7
Duration criterion 0,3 5 5 5
Reward criterion 0,1 0 5 10

Final scores 7,5 6,8 6,7
According to Table 12, the winning tender will be tender 1. It is interesting to
verify that when considering an optimistic scenario, the final cost of tender 1 is
similar to the cost of other tenders (Table 13), which means that the supplier
submitting tender 1 was rewarded for being more confident in its future
performance and the contracting authority have preferred a tender in which he
does not assume the risk for future performance.
Table 13 Final cost of tenders including reward

Final cost (10
3
euros)
Tender 1 Tender 2 Tender 3
Scenarios
Pessimistic (0% predefined reward ) 120,0 136,0 144,0
Neutral (50% of predefined reward) 132,0 142,8 144,0
Optimistic (100% of predefined
reward)
144,0 149,6 144,0
Finally, it is important to note that the final reward may depend on various
criteria, which will determine the percentage of the proposed reward paid to the
contractor. Although the proposed reward by tender 1 was 20% of the tender
cost, in reality this percentage must be multiplied by a coefficient final, which
depends on various criteria, to define final reward (rfinal):
194
rfinal= Cost of tender proposed reward final
As an example, final can be determined using a multicriteria approach, as
follows:
final = wcost cost + wduration duration+ wclient satisfaction client satisfaction
where wcost, wduration and wclient satisfaction are the weights for each criterion.
If we consider wcost = 0,30, wduration= 0,30 and wclient satisfaction= 0,40 we have:
final = 0,30 price + 0,30 duration+ 0,40 client satisfaction.
To obtain cost, duration and client satisfaction, scoring rules such as presented in
Table 14, Table 15 and Table 16 assess contract performance and find the most
adequate coefficient (these tables should be presented in the contract
specifications, providing competitors with all the information related to their
evaluations).
Table 14 cost scoring rule
cost
Description
100% Planned cost is respected.
50 % Cost varies less that 5%.
10% Cost varies more than 5% but less than 10%.
0% Cost varies more than 10%.
Table 15 duration scoring rule
duration
Description
100% Planned duration is respected.
50 % Duration varies less that 5%.
10% Duration varies more than 5% but less than 10%.
0% Duration varies more than 10%.
195
Table 16 - client satisfaction scoring rule
client satisfaction
Description
100% Client is fully satisfied. The contract was performed without any
problem and buyer-supplier relationship and communication was
extremely positive.
50 % Client is satisfied. There were no relevant problems throughout the
execution of the contract. Buyer-supplier relationship and
communication was positive, though supplier has shown low
responsiveness.
10% There were several problems during the contract execution but
supplier has provided adequate solutions to the problems.
0% Client is dissatisfied. Critical problems have emerged and buyer-
supplier relationship was negative.
The scoring rule presented to evaluate satisfaction (Table 16) could be improved
using SERVQUAL (Parasuraman et al., 1988), one of the most widely known
models for assessing customer satisfaction (McCabe, 2001). According to this
model five dimensions assess consumer perceptions of service quality:
Tangibles - physical facilities, equipment and appearance of personnel;
Reliability- the ability to perform the service dependably and accurately;
Responsiveness the willingness to help customers and provide prompt
service;
Assurance- knowledge and courtesy of employees and their ability to
inspire trust and confidence;
Empathy- caring, individualized attention the firm provides its
customers.

196
4.2.3.2. DISCUSSION ON FUTURE PERFORMANCE APPROACH
Regarding the proposed evaluation model, it is worth emphasizing that:
the model allows contracting authorities to transfer part of the risk
related to uncertainty of contract performance to suppliers;
suppliers may assume this risk by proposing a reward based on future
performance, which means they will only be rewarded if the contract
succeeds; however, suppliers are not obligated to assume this risk;
suppliers who propose a higher final reward should propose a lower
tender price (as they expect to be rewarded at the end of the contract),
which would allow them to achieve higher scores regarding cost
criterion;
criteria weights should be determined to value tenders that assume
higher risk (i.e., tenders that for the same final cost (tender price +
reward) in an optimistic scenario, propose higher final reward,
considering that other criteria are similar);
weights determination and maximum reward determination should
receive additional attention in further developments because they
should consider risk and uncertainty inherent to each project. In more
uncertain situations, tenderers proposing higher rewards may assume
additional risk, so those who assume this risk should be valued. A
coefficient should reflect the tradeoff between proposals that assume
risk (A) and the ones that do not (B):

)
suppliers more confident in future performance and suppliers with
positive past experiences and better buyer-supplier relationships may
be able to propose higher rewards and, consequently, lower tender
prices, which allow them to achieve better final scores; so it is possible
to say that the model encourages buyer-supplier relationships and
incentivizes performance;
197
only rewards are considered in the proposed evaluation model,
penalties are not; suppliers are invited to compete based on expected
positive performance and confidence in achieving it, instead of
competing based on performance they expect to fulfil at the end of the
project and the cost for not achieving it, which happens when penalties
are considered;
when only rewards are considered, contracting authorities assume part
of the risk because if a bad project performance induces significant
losses, they will not be able to penalize suppliers more than the value of
reward. In cases of good performance, suppliers enjoy lower final cost
than in procurement procedures considering penalties (Fig. 123), which
transfer to suppliers all existing risk on future performance and define
penalties independently on the supplier;
although contracting authorities assume part of the risk, this risk
diminishes in repeated procurement since suppliers more confident in
their performance and with good past performance have higher chances
to win contracts, and trust-based buyer-supplier relationships emerge;
the model assumes that over time, performance increases and eventual
losses tend to be smaller than the proposed rewards;
risk assessment gains additional importance in preliminary phases of
projects since suppliers have to determine reward based on existing
risks; since rewards must be calculated by suppliers, risk assessment is
on their side, which makes sense because they know more about project
execution than contracting authorities;
since future performance may depend on buyer-supplier relationships,
suppliers who have a better relationship with a contracting authority
assume lower risk as they already know the client and respective
characteristics;
the model and future performance reward criteria in particular cannot
be considered discriminatory since any supplier may be confident in
198
future performance despite having or not having any past experience,
and may propose a winning tender.
the model proposed encourage trust development and performance
focusing exclusively on the subject matter of the contract. Thus, it is an
appropriate alternative to past performance in the public sector, capable
of potentiating Social e-business implementation.

Fig. 123 Reward and penalties in procurement

199
4.3. PERSPECTIVES ON SOCIAL E-BUSINESS IN PUBLIC SECTOR
Throughout the present chapter, application of Social e-business to the public
sector has been discussed in depth. Major attention is given to multicriteria
evaluation and past performance use within the context of public procurement
legal frameworks, which raise some barriers to Social e-business full
implementation.
As presented in chapter 3, Social e-business approaches supply chains with a
collaborative and social networking perspective that values trust-based and
closer relationships, and potentiates e-procurement networks development. It
does this not only by promoting growth, but also by incentivizing performance.
Multicriteria evaluation methods and past performance criteria play a major
role, contributing to more integrated and consistent decisions on contract
awards, gradual generation of more qualified groups of suppliers and progressive
improvement of buyer-supplier relationships.
If the European Directive and PCC accept multicriteria evaluation (if rank
reversal is prevented), use of past performance criteria faces significant
obstacles. Regulations suggest that to preserve the principles proclaimed by the
Treaty, such as the principle of equal treatment, principle of non-discrimination,
and the principle of transparency, past performance may not be used as criteria
in contract awarding since it can be discriminatory.
The European Union Directive and PCC consider using a previous selection
phase in some procurement procedures, which allow selecting a restricted group
of suppliers asked to submit tenders based on information related to their past
experience, technical, economic and financial capability. However, there is not
an explicit reference in legal documents to the possibility of using past
performance criteria focused on a specific buyer-supplier relationship. Other
countries hold a different opinion; the US clearly recommends use of past
performance in public procurement, stimulating the implementation of
information systems for past performance information management.
Consequently, an alternative approach to past performance is proposed based on
future performance reward, which should be considered in construction
200
procurement procedures and potentiated in Social e-business environments such
as PLAGE platform.










Chapter 5

Conclusion




203
5. CONCLUSION
Throughout this thesis, a new approach to e-procurement platforms is proposed,
demonstrating that traditional e-procurement has several fragilities and should
be potentiated to improve procurement processes and working and management
systems in construction. This new approach to e-procurement emerged as a new
e-business platform capable of promoting new perspectives on projects lifecycles
and supply chains. Therefore, the proposition stated initially has shown to be
pertinent:

The research sub-questions posed at the beginning of the research have also
shown to be relevant, contributing positively to focus the research on the most
significant phenomena and promote development of an innovative approach to
e-procurement capable of responding to the most recent construction challenges.
To respond to sub-question A, which asks, how can growth dynamics of e-
procurement platforms be potentiated and managed?, e-procurement impacts,
respective challenges and opportunities have been investigated and e-
procurement networks and their behaviour have been studied and simulated.
Strategic approaches to e-procurement were identified and an innovative vision
for e-procurement platforms proposed to potentiate e-procurement platform
growth and management.
This innovative vision supports the answer to sub-question B, which asks, how
can an e-procurement platform be enhanced to be used as a social and
collaborative space for development of construction projects?. To answer this
question, new perspectives proposed on e-procurement were discussed and a
The existing model of e-procurement platform for the construction
industry needs to improve to promote e-procurement network
growth and adapt to new, more collaborative and relationship-based
procurement and working models.


204
new approach to e-business drawn based on social networking, collaboration and
advanced value-added services such as e-procurement, SCM instruments and
BIM.
Sub-question C, which asks, how can multicriteria evaluation and past
performance be considered in an e-procurement platform for public
procurement? focuses the most critical points in terms of the application of
Social e-business to the particular case of public sector, which have to do with
the use of multicriteria evaluation and past performance in public procurement
procedures; it contributed to clarify these issues within the public domain and
the development of an alternative approach to past performance criteria.
Regarding the hypotheses proposed for the research, it is important to note that
all of them have been confirmed, and all assumed a relevant role in guiding the
research toward the most relevant research issues. Concerning the first
hypothesis, which suggests that if managed incorrectly, e-procurement networks
may stop growing, it is important to understand that:
if contract awards are based uniquely on price-based criteria, suppliers
may abandon e-procurement platforms and buyers may create
restricted groups of suppliers, which limit e-procurement networks
growth;
even if adequate evaluation and SCM instruments are used to potentiate
e-procurement networks dynamics, such as multicriteria evaluation
instruments or KPI systems including past performance information,
these networks stop growing if there is a significant disequilibrium
between the number of suppliers and buyers.
The second hypothesis was discussed in parallel; it argues that use of
multicriteria evaluation models and past performance criteria leverage
procurement performance and promote more relational approaches to e-
procurement platforms. Concerning this, it is important to note that:
multicriteria approaches to tenders and suppliers evaluation help
incentivize suppliers investment in non-contractibles and encourage
205
development of closer and more stable buyer-supplier relationships,
especially when past performance is considered as a criterion;
these instruments have strategic influence on e-procurement though its
use is not enough to guarantee e-procurement networks growth.
Considering the third hypothesis, which argues that an e-business platform
providing collaborative work and social networking tools and integrating e-
procurement as a value-added service prompts e-procurement network growth
more than a traditional e-procurement platform, it is possible to infer that:
since e-procurement networks do not grow like a viral network, it is
favourable to promote the generation of online collaborative networks
supported by an open and interoperable collaboration and social
networking space, which will be more effective in attracting new
members and incentivizing them to enter e-procurement networks than
traditional approaches (Fig. 124);
in B2B environments, social networking approaches should focus
collaborative processes, win-win relationships and supply chain
integration instead of competition-based situations. Thus, Social e-
business platforms will be more effective implementing and
potentiating social networking approaches than e-procurement
platforms.

Fig. 124 Social e-business networks
206
Focusing on the last hypothesis, which states that an e-business platform
providing a collaborative space and several value-added services such as e-
procurement, BIM-based instruments, multicriteria evaluation tools and other
SCM instruments improves project performance and emphasizes the role of
relationships in construction, it is important to note that:
a prototype e-business platform based on Social e-business has been
developed and tested in a pilot case, and several interesting results were
found, confirming the hypothesis raised. Though, it is important
emphasize that further tests should be conducted, especially in real-
world situations, to assess Social e-business platforms dissemination.
In sum, throughout this study Social e-business emerged as a new vision for e-
procurement and e-business envisioning to:
promote e-procurement networks growth, mostly by supporting
collaborative networks capable of growing more effectively (providing
social networking and collaboration instruments, and implementing the
Satellite network model), which may help attract new members for e-
procurement networks. These collaborative networks encourage supply
chains to dematerialize and incentivize users to use value-added
services such as e-procurement, returning to the strong Internet
marketing potential generated;
provide a dynamic and collaborative environment, interoperable and
standardized, in which supply chains interact actively and information
management may be potentiated. Over time, as Social e-business
platforms collect cumulative user information and support advanced
knowledge management (for instance recurring to KPIs and historic
information), barriers to exit increase and users abandon rate will tend
to reduce;
emphasize the role of relationships in procurement and working
systems, not only by providing a social networking and collaborative
environment, which potentiates social capital and improves trust
development, but also several instruments to enhance multicriteria,
207
performance-based and integrated approaches to projects, contracts
and relationships;
automate processes and accelerate workflows by providing an
integrated space and a set of adequate instruments necessary to make
projects and relationships work. For instance, in order to guide parties
along partnerships it is crucial to implement a collaborative and
performance-based environment, which should allow players to interact
in a dynamic, transparent, trustful and informed way.
Finally, it is inevitable refer that the true benefits of a networked organization or
a network of collaborative organizations are achieved when players recognize the
managerial and economic benefits of having an interdependent, trust-based,
flexible and win-win vision (Achrol, 1997). So, organizations should see Social e-
business platforms as an effective instrument to enhance relationships and
generate social and economic capital, more than an e-procurement or web-based
collaborative platform.

208
5.1. FURTHER DEVELOPMENTS
The present research has provided a new perspective on e-procurement and e-
business and has given in-depth understanding on e-procurement networks
behaviour. Although interesting results have been found, several further
developments can be identified.
5.1.1. E-PROCUREMENT NETWORKS DYNAMICS
It is relevant to consider that interesting results have been found using the
mathematical model proposed, but there are several other simulations that could
be conducted to get in-depth knowledge on e-procurement networks dynamics.
The proposed model represents a good basis for further developments such as:
analysing existing e-procurement networks to obtain the ratios between

that allow understanding of the different perspective of buyers

and suppliers toward existing e-procurement platforms;
comparing the dynamics of large e-procurement networks with the
dynamics of a group of smaller e-procurement networks;
constructing a monitoring system based on the model to support e-
procurement platforms management.
5.1.2. SOCIAL E-BUSINESS CASE STUDIES
PLAGE platform prototype has been tested in a pilot case, which focused on the
design and procurement simulation of a school project. Though, in order to
assess the real impacts of Social e-business, multiple case studies should be
conducted.
Firstly, the case studies should allow assessing the real impact of Social e-
business in e-procurement networks growth, verifying if there is an effective
209
increase in the number of members. Secondly, case studies should allow
assessing the real influence of Social e-business in construction projects
performance. Regarding this, it should important to focus various phases of
project lifecycles and involve the entire supply chain. Social e-business was
conceived, envisioning this integrated environment and aiming to get different
actors closer. Consequently, it is important to test the gains achieved with a more
integrated approach to projects.
For example, if facilities management is considered in the design phase, it is
possible to find the most adequate construction solution considering buildings
operation and maintenance, which allow reducing lifecycle costs and optimizing
overall projects performance. Called to participate in project specifications,
facilities managers will be able to contribute to defining optimal construction
solutions, establishing the most adequate maintenance plans and defining the
most appropriate operational reliability and availability objectives. Besides
collaborating on design, facility managers are able to use Social e-business
platforms to manage operation and maintenance activities, using information
from previous phases when possible, but also improving activities management
and information management, progressively creating a rich knowledge base
capable of enriching future projects.
5.1.3. PRICING POLICY
Effective implementation of Social e-business pricing policies should be closely
analysed. Pricing models play a relevant role since they function as a market
regulator (Galbreth et al., 2003). Thus, it is pertinent to ask what should be the
most suitable pricing strategy to apply to a Social e-business platform. Several
sources of revenue may be considered in an independent or combined way such
as (Sampaio, 2009):
transaction fees, applied to each transaction according to the respective
volume;
membership or subscription fees, charged based on periodic use;
210
advertising, based on selling spaces on the site for promotional banners,
links, etc.;
professional service fees, relying on selling consultant services,
particularly at implementation and training phases;
value-added services fees, charges for supplementary services.
These revenue sources may be applied isolated or combined to maximize profits
and business sustainability. In Portugal, the existing e-procurement platforms
combine several pricing solutions according to the type of user (buyer or seller).
In most cases, there is a membership fee, which can be complemented with
transaction fees and value-added services fees.
Depending on e-procurement network dynamics, pricing policy may change over
time, and several price discrimination techniques may be applied to improve
revenue. In the case of Social e-business, several considerations must be taken
into account:
in an initial phase, users may need to invest in software and training,
which, together with the membership fees, may act as a barrier to entry.
Thus, membership fees should be avoided when possible;
among sources of revenue, two online-based revenue sources that
should be underlined since they depend on user desire: advertising and
value-added services fees. In these cases, the user is responsible for
triggering the revenue mechanism by clicking on advertisements and
subscribing to value-added services;
a revenue model based on value-added service fees obliges each service
provider to make additional investments in development, though the
services should act as a barrier to exit since most users information
would be collected gradually and could be lost in the case of user
dropout;
211
advertisement is a relevant revenue source, especially if connected to
procurement value-added services (e.g., aggregated procurement
advertisement);
several price discrimination strategies (first degree, second degree,
third degree, price skimming, combination, etc.) may be applied to
adapt prices to network dynamics and to the distinct actors involved;
Concerning Social e-business, the ideal situation is to choose a pricing policy
capable of diminishing entry barriers, stimulating value-added services use and
raising barriers to exit.
5.1.4. AUTOMATED LEARNING USING BIM
As shown in chapter 3, multiple taxonomies may exist in the construction
industry. This complex semantic environment, involving several types of
information, raises considerable challenges for the construction industry.
One of the solutions to simplify this complex information structure is gradually
creating associations among the various taxonomies (Cheng et al., 2008). Thus,
over time, once the user reaches a determined taxonomy concept, related
concepts and entities from other taxonomies can be suggested and the user can
shift focus from one taxonomy to another.
In this sense it is pertinent to develop a collaborative filtering (CF)
recommendation system (Sarwar et al., 2001, Alton-Scheidl et al., 1999,
Herlocker et al., 2004) to uphold the link between taxonomies (work results,
products, etc.) and BIM. This recommendation system emerges within the social
web (Hill et al., 1995) and is used in online stores. According to Sarwar et al., the
goal of a CF algorithm is to suggest new items or to predict the utility of a certain
item for a particular user based on the users previous choices and the opinions
of other like-minded users. Existing models may use explicit or implicit data;
explicit data collection includes the following examples:
212
ask a user to rate an item;
ask a user to rank a collection of items;
ask a user to choose between two or more items;
ask a user to create lists of items that he/she likes.
For an implicit data collection:
analyse items a user views in an e-catalogue;
analyse item/user viewing times;
keep a record of the items that a user purchases online;
obtain a list of items that a user viewed on his/her computer;
analyse the users social network and discover similar likes and dislikes.
To analyse data and produce recommendations, there are several CF algorithms
available (Herlocker et al., 2004, Su and Khoshgoftaar, 2009) that can be
divided into three major categories: memory-based CF, model-based CF and
hybrid recommenders CF. The first is the recommended category for the present
case. Memory-based CF algorithms analyse the user database and taking into
account the preferences of the users nearest neighbours (similar users) or past
preferences, it generates a prediction. It is the simplest to implement and can be
applied using one of the following techniques: neighbourhood-based CF and
item-based/user-based top-N recommendations. The neighbourhood-based CF
calculates similarity between two users or two items and produces a prediction
considering the weighted average of all the ratings of the most similar user or
item. In top-N recommendation algorithms, the objective is to find the k most
similar users or items (nearest neighbours) and aggregate respective data to get
the top-N most frequent items. Between the two techniques, the most suitable to
the present case is the user-based top-N technique.
This social web instrument can be extremely useful within a Social e-business
environment where many users share experiences and knowledge, and gradually
receive more accurate recommendations for the most adequate connections
between different taxonomies. In the case of BIM-based e-procurement, the
BIM-based interface should be used to select a BIM element and then the
213
recommendation system to implement should recommend the work results
related to that element considering:
identification of the user (who should be identified by a unique ID
(UID)) and respective characteristics;
characteristics of the construction project;
UID of the element;
nearest neighbours of the user and respective ratings (or preferred
entities).
Shown in Fig. 125, this instrument can be used on a restricted basis, where, for
example, only the users of a specific company can share information, but should
be truly potentiated in an open basis where the entire network can use the
collaborative filtering instrument. Preferably, the proposed system to support
BIM models improvement should be used systematically (Fig. 126).

Fig. 125 Recommendation system architecture
214

Fig. 126 Continuous recommendation process
5.1.5. E-CATALOGUE IN SOCIAL E-BUSINESS
E-catalogues are experiencing new developments (Commission, 2007), and new
e-catalogue services are emerging fostering supply chain integration and
improved business performance. E-catalogues are becoming dynamic,
interactive, intelligent, interoperable, open to users contribution (as a wiki page
that can be constructed by an interested community), integrative and
collaboration-oriented. E-catalogues are not just a transaction service; they are
connected closely with strategic services, improving lean SCM (Ross, 2011) and
optimizing SC performance.
Considering this, Social e-business platforms should provide adequate support
for modern e-catalogues, which should be focused strategically on collaboration
and SCM (Fig. 127).

Fig. 127 Major Social e-business e-catalogue dimensions
215

Concerning the dimensions proposed in Fig.127, major developments should be
conducted:
both types of collaboration in purchasing should be implemented:
vertical and horizontal (Huber et al., 2001). The former focusing on
buyer-seller cooperation and strategic collaboration; the latter focusing
on purchasing consortia (Essig, 2000, Tella and Virolainen, 2005,
Nollet and Beaulieu, 2003) and group design and selling;
tools for collaboration in purchasing should be implemented in parallel
with other collaboration tools to enable sharing information on
products specifications, inventory, customer demand, and transactions;
several standard taxonomies should be implemented to allow
organizing information, simplifying search, comparing products and
services, and helping buyers with choices;
BIM objects (Fig. 128) should be supported by the e-catalogue, which
should include relevant product information structured according to
existing information standards (Fig. 129). This way, it is possible to
improve interoperability within the supply chain and improve user BIM
experiences;
multicriteria evaluation should be implemented to support product and
supplier search and comparison;
specific KPIs should be implemented to support e-catalogue operations
management;
modular construction should receive special attention since it may
beneficiate from the integrated, informed and interoperable
environment created by Social e-business, particularly important in
more automated and industrialized contexts;
finally, taking into account that Social e-business looks to e-catalogues
as a collaboration space where users interact to create value, improve
trust and support the generation of win-win relationships, an e-
216
catalogue for equipment rental should emerge as an interesting solution
able to create a community-based environment where users manage
their own equipment and rent it if available (Fig.130).

Fig. 128 BIM object (LG HVAC equipment)

Fig. 129 Information on BIM object
217

Fig. 130 Equipment rental e-catalogue model
5.2. FINAL STATEMENT
Throughout this thesis, several emerging issues are discussed and investigated,
and a new vision for e-procurement is proposed. Furthermore, an effective
contribution to improving the state of the art is offered and new research
opportunities on the construction industry are raised.
Construction is changing and ICT plays a relevant role in this change. This was
the major belief supporting the research work conducted, which provided several
innovative solutions to foster change and improve construction performance.
Though, above all, this thesis represents the beginning of future work that will
reflect strongly the vision generated throughout this journey.
What we call the beginning is often the end. And to make an end is to make a
beginning. The end is where we start from.
T. S. Eliot
















Appendices




221
APPENDIX A
To calculate the confidence intervals of the surveys presented in chapter 2, it was
assumed most of the answers were yes or no, so the binomial distribution is
appropriate (Fowler, 2009).
Let:
() () ( )

( )

()

where,
population probability of yes

fraction of sampled results with yes
sample size

Gaussian variable for the significance level

mean
SE standard error of a mean
Var variance (sum of the squared deviations from the sample mean over n)
n size of the sample
For the 2009 survey, the confidence interval () for confidence level (90%) is
given by:
()

0.09 or 0. for the most unfavourable case (

) and

( ) for or respectively.
The most unfavourable case correspond to because ( ) with
is maximal for as
()

.
222
For the 2010 survey, the confidence interval () for confidence level (90%) is
given by:
()

0.0 or 0.06 for the most unfavourable case (

) and

( ) for or respectively.


223
APPENDIX B
The PLAGE R&D project consisted of 7 major parts:
Phase 1 - Preliminary study
Activity 1.1 Project management;
Activity 1.2 Preliminary design of BIM module;
Activity 1.3 Preliminary design of technological architecture;
Activity 1.4 Preliminary design of collaboration module;
Activity 1.5 Preliminary design of e-procurement module;
Activity 1.6 Preliminary design of decision support system;
Activity 1.7 Preliminary design of project management module;
Activity 1.8 Focus groups for preliminary study assessment;
Activity 1.9 Phase 1 report;

Phase 2 - Technical specifications
Activity 2.1 Project management (transversal activity);
Activity 2.2 Construction lifecycle process mapping;
Activity 2.3 Procurement lifecycle process mapping;
Activity 2.4 Report on construction processes and information flows;
Activity 2.5 Technological architecture definition;
Activity 2.6 Application architecture definition;
Activity 2.7 Interoperability architecture definition;
Activity 2.8 Report on platform architecture;

Phase 3 - Knowledge acquisition and innovative approach development
Activity 3.1 Project management (transversal activity);
Activity 3.2 Detailed design of new processes;
Activity 3.3 Detailed design of technological architecture;
Activity 3.4 Focus group to discuss platform design;
Activity 3.5 Final report;
224
Phase 4 - Development
Activity 4.1 Project management (transversal activity);
Activity 4.2 Preliminary development of platform;
Activity 4.3 Platform preliminary test;
Activity 4.4 Focus group on preliminary results;
Activity 4.5 Report on preliminary results and improvement recommendations;
Activity 4.5 BIM server and technological architecture implementation;
Activity 4.6 BIM module development;
Activity 4.7 Collaboration and social networking module development;
Activity 4.8 Project management module development;
Activity 4.9 E-procurement module development;
Activity 4.10 Decision support systems development;

Phase 5 - Prototype development
Activity 5.1 Project management (transversal activity);
Activity 5.2 Prototype development;
Activity 5.3 Focus group to analyze prototype and discuss simulation scenarios;
Activity 5.4 Simulation scenarios development;

Phase 6 - Simulation tests
Activity 6.1 Project Management (transversal activity);
Activity 6.2 Interoperability analysis;
Activity 6.3 Platform tests;
Activity 6.4 Corrective and improvement actions;
Activity 6.5 Pilot cases planning;
Activity 6.6 Pilot case 1 (Liceu Passos Manuel);
Activity 6.7 Pilot case 2 (Mota-Engil);
Activity 6.8 Report development;

Phase 7 Project results dissemination
Activity 7.1 PLAGE site development and maintenance;
Activity 7.2 National workshop 1
225
Activity 7.3 National workshop 2
Activity 7.4 International workshop 1
Activity 7.5 International workshop 2
Activity 7.6 Publications


226

227
APPENDIX C
PLAGE features
PLAGE platform prototype includes a large list of features:
PLAGE information services (general information)
- List of companies using PLAGE list
o Companies presentation pages
o Companies public information
- List of PLAGE projects
o Projects public information
o Geo-referenced locations (using Google Maps API)
Project-based information services
- List of project members
- List of users project satellite networks
- Private project information
Company-based information services
- List of companys members contacts
- List of companys projects
- Private companys information
User-based informational services
- List of users projects and satellite networks
Communication and collaboration services
- General messages (project-independent)
- Project-based messages
- Projects wall
- Companys wall
- Satellite networks wall
- BIM-based messages (messages linked to a specific BIM model or one of its
objects)
228
Profile management service
- Companys identification
- Companys presentation
- Users identification
- Users experience and projects presentation
Network management service
- Project network management (members, roles, permissions, etc.)
- Satellite network management (members, roles, permissions, etc.)
Contacts management service
- Users list of contacts
- Companys contacts shared list (list shared by company members)
Calendar service
- Users calendar
- Projects calendar
- Alert management system
Task information and management services
- Last actions panel (displays last actions in projects where the user participates)
- Tasks management tool
o Tasks and alerts management
o Task forwarding to other users
o List of users tasks
o List of projects tasks list
Meetings management services
- Meeting scheduling
- Participant management
- Meeting information management
- Meeting historic search
Phases management services
- Phases configuration
o Construction lifecycle parameterization
229
o Documents parameterization (definition of documents needed in each
phase)
- Document management
o Document upload
o Permissions management
- Multimedia gallery
o Images and videos upload and view
- BIM models management
o BIM models list
o BIM model upload
o BIM model download
o BIM viewer
o Attach files to BIM models or objects
E-Procurement and BIM e-procurement services
- Request for quotes
- Private and public e-procurement procedures
- BIM-based e-procurement
o IFC viewer linked to VortalGOV
o IFC server connection with Primavera Construct
Contract and SC management
- KPI Management panel
- Risk analysis tool
Search service
- Keyword search tool
- BIM-based messages search instrument
e-Catalogue
- Users catalogue
- Public e-catalogue
- IFC model upload
Application store
- SIAP
o Multicriteria evaluation
230
o Evaluation models management
- Multimpact
o Cost and time overrun risk
- NormaBIM
o Design standardization


231
APPENDIX D
Table 17 LODs versus model content and use (adapted from Bedrick, 2008)
Models content and
use
LOD100 LOD200 LOD300 LOD400 LOD500
Design & Coordination Non-geometric data or line
work:
- areas
- volumes zones, etc.
Generic elements
shown in three
dimensions:
- maximum size;
- purpose
Specific elements and
confirmed 3D object
geometry:
- dimensions;
- capacities;
- connections
Shop drawing/
fabrication information:
- purchase;
- manufacture;
- install;
- specified
As-built:
- actual information
4D Scheduling Total project construction
duration, including phasing of
major elements
Time-scaled,
ordered appearance
of major activities
Time-scaled, ordered
appearance of detailed
assemblies
Fabrication and assembly
detail including construction
means and methods (cranes,
man-lifts, shoring, etc.)

Cost Estimating Conceptual cost allowance
(cost per square floor area, cost
per hospital bed, cost per
parking stall, etc.)

Assumptions of future content
Estimated cost
based on
measurement of
generic element
(e.g., generic interior
wall)
Estimated cost based on
measurement of specific
assembly (e.g., specific
wall type)
Committed purchase price of
specific assembly at Buyout.
Record costs
Program Compliance Gross departmental areas Specific room
requirements
Equipment, casework,
utility connections
- -
Sustainable Materials LEED strategies Approximate
quantities of
materials by LEED
categories
Precise quantities of
materials with percentages
of recycled/locally
purchased materials
Specific manufacturer
selections
Purchase documentation
Environmental (lighting,
energy use, air movement
analysis/simulation)
Strategy and performance
criteria based on volumes and
areas
Conceptual design
based on geometry
and assumed system
types
Approximate simulation
based on specific building
assemblies and engineered
systems
Precise simulation based on
specific manufacturer and
detailed system components
Commissioning and
recording of measured
performance
Other uses may be identified and developed : Exiting and circulation, code compliance, e-procurement, etc.

233
APPENDIX E
Regarding PLAGE platform, much of the feedback from academia and industry
was obtained from several seminars and conferences in which the author
participated. The most relevant events were:
COSTA, A. A. & TAVARES, L.V. 2008. E-procurement cycle and
PLAGE, PEPPOL meeting, 11 December 2008, Copenhagen.
COSTA, A. A. 2009. Cross-border e-government: The Portuguese
experience, ORG PEPPOL meeting, 11 March 2009, Brussels.
COSTA, A. A. 2010. A viso do projecto PLAGE e a Rede Colaborativa
PLAGE/IST (PLAGE vision and the Collaborative Network
PLAGE/IST), 1st meeting of Collaborative Network PLAGE/IST, 12
January 2010, Lisbon.
COSTA, A. A. 2010. O projecto PLAGE e o caso do Liceu Passos Manuel
(PLAGE R&D project and the case of Liceu Passos Manuel), 2nd
meeting of Collaborative Network PLAGE/IST, 16 March 2010, Lisbon.
COSTA, A. A & FLOR, A. 2010. A Plataforma PLAGE e a Geotecnia
(PLAGE platform and contributes to Geotechnics), 12th National
Congress f Geotechnics, 26 to 29 April 2010, Guimares.
COSTA, A. A. 2010. PLAGE: Uma nova viso para a contratao
electrnica (PLAGE: A new vision for e-procurement), 4th National
Conference on Public e-procurement, 16 December 2010, Lisbon.
COSTA, A. A. 2010. PLAGE e Social e-Business na construo (PLAGE
and Social e-business in construction), 2nd National Conference on
New Hospitals, 26 May 2010, Lisbon.
COSTA, A. A. 2010. PLAGE platform prototype presentation, BIMnet -
Networking Workshop, 17 November 2010, Lisbon.
COSTA, A. A. 2011. Integrated taxonomies and BIM, Gescon 2011
Information Technologies in Construction, 27 October 2011, Oporto.
234
Several publications also allowed disseminating PLAGE vision and results,
contributing to insightful comments. The most relevant publications are:
COSTA, A. A. & TAVARES, L.V. 2011. Social e-business and the Satellite
Network model: Innovative concepts to improve collaboration in
construction. Automation in Construction, in press.
COSTA, A. A. 2010. Projecto PLAGE: Apresentao (PLAGE R&D
project presentation). Technical Digital Magazine eUAU, number 9,
Maio de 2010.
COSTA, A. A. 2010. Rede Colaborativa PLAGE/IST (Collaborative
Network PLAGE-IST). Technical Digital Magazine eUAU, number 10,
Julho 2010.
COSTA, A. A. 2010. A importncia das taxonomias na indstria da
construo (The role of taxonomies in construction industry). Technical
Digital Magazine eUAU, number 11, September 2010.
COSTA, A. A., 2010. BIM na contratao pblica (BIM and public
procurement). Technical Digital Magazine eUAU, number 12,
November 2010.
COSTA, A. A, 2011. Inovao e gesto da informao na construo
(Innovation and information management in construction). Technical
Digital Magazine eUAU, number 13, January 2011
COSTA, A. A. 2011. Interface BIM interactivo para gesto da informao
(BIM-based interface to improve information management). Technical
Digital Magazine eUAU, number 14, March 2011
COSTA, A. A. 2011. E-marketplaces na construo: Quais os desafios?
E-marketplaces for construction: Major challenges. Technical Digital
Magazine eUAU!, number 15, May 2011
COSTA, A. A. 2011. Catlogo de produtos sustentveis Sustainable e-
catalogue. Technical Digital Magazine eUAU!, number 16, July 2011

235
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