Extrinsic factors influencing the bid/no-bid decision of construction contracting firms: Impact of firm size and experience

Abstract

Construction contracting firms (CCFs) are functioning in a highly volatile and competitive industrial environment making it imperative to bid for the projects that can produce the most return and market share. The decision making process to bid or not is based on various factors that vary from project to project and firm to firm. The aim of this work is to analyze the impact of firm size and experience on extrinsic factors influencing the bid/no-bid decision for construction projects. The questionnaire was pilot tested and designed in three parts. The final questionnaire was sent to 300 CCFs registered with Pakistan Engineering Council (PEC) and respondents were asked to rate the factors on a Likert scale. Out of 300 questionnaires, 167 completed responses are returned representing a response rate of 56%. The collected data are then analyzed using Mann-Whitney U test through Statistical Package for Social Sciences (SPSS). Findings show the various degrees of differences between small and large, and young and mature CCFs with regard to factors influencing the bid/no-bid decision. Small firms need to overcome increasing market value and number of competitors in the market. They need to develop relationship with government officials in order to secure their bids. Mature firms need to review the payment practices of clients, politician pressure and business level of the client before entering into the bid. Availability of required material and skilled labor are of prime importance for the mature firms' success.

Factors Affecting the Bidding Decision in Sustainable Construction

“…Having financial concerns at the top of the factors list comes as no surprise, as previous studies have highlighted the fact that cost is the most significant barrier to sustainable development [55]. Moreover, the fact that project risks is among the top five factors indicates that construction professionals in the UAE are becoming more aware of the unique risks that sustainable construction encounters as compared to the risks in traditional construction, such as the need for special materials as well as governmental approvals and certifications [46]. That is why it is very significant to study the risks associated with the project and come up with risk allocation structure and response plans before submitting a bid proposal.…”

A Systematic Review on Supply Chain Management in Prefabricated House-Building Research

“…supply or distribution base integration [integration (2)]; collaboration [collaboration (5)]; relationships development [relationship (3), cooperation (25), value chain (43)]; relationships management [relationship (3), decision making (39)]; commitment [commitment (10)]; partnering [commitment (10), partnering (46)]; supplier management [procurement (12), decision making (39)]; supplier development [procurement (12), competency (22), outsourcing (26)]; supply chain efficiency [strategy (14), competency (22); flow (35); value chain (43), profitability (44)]; merger [positioning (19), decision making (39)]; acquisition [positioning (19), decision making (39)]; outsourcing [outsourcing (26), manufacturing (37)]; trust [trust (34)]; and alliance [decision making (39); value chain (43); alignment (45)].…”

“…integration of material and information flow [integration (2), network (17), communication (20), segmentation (24), flow (35)]; knowledge base [knowledge (7), communication (20)]; pre-assembly [logistic (9), customization (11), modularity ( 16)]; modularization [logistic (9), modularity (16)]; planning and control of material flow [logistic (9), flow (35); decision making (39)]; postponement [logistic (9), decision making (39)]; inventory control and management [logistic (9), decision making (39), inventory (49)]; reposition [logistic (9), positioning (19), alignment (45)]; order policies [customization (11), decision making (39)]; demand management [procurement (12), purchasing (13), marketing (29), sales (33)]; capacity planning [strategy (14), competency (22), innovation (36), decision making (39)]; distribution channel management [network (17), just in time (40), value chain (43)]; information sharing [communication (20), building information modeling (27), visibility (48)]; quality [continuous improvement (38), waste (41)]; production scheduling [manufacturing (37), decision making …”

“…SC maturity is referred to as supplier management maturity from the buyer's perspective in prefabricated construction [32] to manage delivery time, cost, and quality [33]. Innovation for organisational performance [34] requires competition from small and medium enterprises (SMEs) in the PHB industry [35].…”

Intrinsic Workforce Diversity and Construction Worker Productivity in Pakistan: Impact of Employee Age and Industry Experience

“…A few contributions were made by previous studies to the understanding of the effect of workforce diversity factors on employee performance; however, these studies are inconclusive in various dimensions [15][16][17]. Ibrahim and Brobbey [18] found out that younger workers need more motivation to do an assigned task than older workers; hence, motivation is the most influential factor for employee performance.…”