Factors affecting the bid/no bid decision in the Saudi Arabian construction contractors

Bageis, Abdulrahman S.; Fortune, Christopher Joseph

doi:10.1080/01446190802596220

Cited by 85 publications

(81 citation statements)

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“…They found that the importance of different factors varies greatly according to the contractor size. In a similar study developed in Saudi Arabia, Bageis and Fortune (2009) indicated that the most critical factors are the size and characteristics of the contractor and the type of owner. Enshassi et al (2010) discovered that financial capability (of contractor and owner), project value, resources availability and stability of the construction industry were the key factors in Palestine.…”

Section: Variables Identificationmentioning

confidence: 99%

“…Not bidding for a project that could be won results in losing an opportunity to make profit, improve market position, and strengthen relationships with other stakeholders . On the other hand, bidding for a project that is not likely to be won results in loss of time, money and effort, important resources that could have been used for a better option (Bageis, Fortune 2009). Moreover, continually losing bids could result in a bad reputation (Lin, Chen 2004).…”

Section: Introductionmentioning

confidence: 99%

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Factors Affecting Contractor’s Bidding Success for International Infrastructure Projects in Australia

Aznar

Pellicer

Davis

et al. 2017

Journal of Civil Engineering and Management

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Abstract. This paper examines the effects of different factors on the success or failure of bids for infrastructure projects in Australia. Logistic regression analysis was used to empirically determine which factors have the largest effect on bidding success. Data was collected from 123 bids submitted by several infrastructure companies with subsidiaries in Australia. The analysis found that having a competitive advantage and a local partner, and also not competing against a local company were the most important factors; as they significantly increase the chances of success. However, four other factors, having relevant expertise, resource availability, a previous relationship with the client, and a previous relationship with consortium members, are 'essential' to be able to compete; as the absence of any of these four factors results in bid failure, although having them is not a guarantee of success. Results of this paper provide valuable information for any company considering the opportunity of entering into Australia's infrastructure market as well as for companies that are already present in that country and are considering whether to bid for a specific project.

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Section: Variables Identificationmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Factors Affecting Contractor’s Bidding Success for International Infrastructure Projects in Australia

Aznar

Pellicer

Davis

et al. 2017

Journal of Civil Engineering and Management

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“…Early work mainly involved the bidding factors unique to countries and geographical regions, such as Ahmad and Minkarah [24] identified 31 key factors affecting the bidding decision process of contractors in the USA, which provided the foundation for follow-up studies [7]. Shash [25] identified 55 factors characterizing the bidding decision-making of contractors in the UK.…”

Section: Project Factors For Bidding Decisionsmentioning

confidence: 99%

“…Bidding decisions and factors influencing the processes involved have elicited wide attention in previous studies relating to construction management (CM) [6][7][8][9][10]. However, the focus of these studies is mainly on project characteristics, the construction companies' resources available, and economic environmental factors such as market conditions.…”

Section: Introductionmentioning

confidence: 99%

Individual, Group, and Organizational Factors Affecting Group Bidding Decisions for Construction Projects

Yan

Liu

Skitmore

2018

Advances in Civil Engineering

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Deciding whether bid for the construction project is classic risk-based decision-making that is crucial to the survival and prosperousness of construction companies. More contractors are adopting group bidding decision-making to reduce the number of incorrect decisions. However, previous related studies mainly focus on project factors that overlook the members of bidding groups and the interaction between bidding group members. e aim of this paper, therefore, is to investigate the potential factors that influence group bidding decision-making for construction projects. Twenty factors relating to individual, group, and organizational levels are identified through a literature review and interviews with experienced practitioners. A questionnaire survey of 203 Chinese international contractors is conducted to obtain the importance of the factors involved. e results of the ranking analysis indicate 14 critical factors, among which "risk perception" and "team decision preference" are regarded as the two most significant. Moreover, 20 factors can be classified into five groupings: (1) values and strategic goals, (2) collaboration and learning orientation, (3) consensus reaching, (4) risk awareness, and (5) empowerment and development, with risk awareness having an especially strong influence. is research deepens the understanding of factors belonging to different organizational levels that need to be highlighted during the group bidding decision-making process and provides strategies for bidding groups and their companies to improve their decision performance.

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“…Estimating and tendering handbooks provide guidelines on selection criteria based on the experience of their authors (among others, Brook, 2011, p. 96;Cartlidge, 2013, p. 3;Stevens, 2012, p. 93). Enquiries on factors affecting the bid/no bid decision were conducted in many countries: in Great Britain (Shash, 1993), Egypt (Hassanein, 1996), the United States (Ahmad & Minkarah, 1998), Syria (Wanous et al, 2000), Singapore (Chua & Li, 2000), Saudi Arabia (Bageis & Fortune, 2009), Poland (Leśniak & Plebankiewicz, 2015), Australia (Shokri-Ghasabeh &Chileshe, 2016), andNigeria (Oyeyipo et al, 2016). As the authors drew from each other, the lists of initial criteria were rather consistent regardless of the country of origin.…”

Section: Decision To Bidmentioning

confidence: 99%

Modelling contractor’s bidding decision

Biruk

Jaśkowski

Czarnigowska

2017

Engineering Management in Production and Services

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A B S T R A C TThe authors aim to provide a set of tools to facilitate the main stages of the competitive bidding process for construction contractors. These involve 1) deciding whether to bid, 2) calculating the total price, and 3) breaking down the total price into the items of the bill of quantities or the schedule of payments to optimise contractor cash flows. To define factors that affect the decision to bid, the authors rely upon literature on the subject and put forward that multi-criteria methods are applied to calculate a single measure of contract attractiveness (utility value). An attractive contract implies that the contractor is likely to offer a lower price to increase chances of winning the competition. The total bid price is thus to be interpolated between the lowest acceptable and the highest justifiable price based on the contract attractiveness. With the total bid price established, the next step is to split it between the items of the schedule of payments. A linear programming model is proposed for this purpose. The application of the models is illustrated with a numerical example. The model produces an economically justified bid price together with its breakdown, maintaining the logical proportion between unit prices of particular items of the schedule of payment. Contrary to most methods presented in the literature, the method does not focus on the trade-off between probability of winning and the price but is solely devoted to defining the most reasonable price under project-specific circumstances. The approach proposed in the paper promotes a systematic approach to real-life bidding problems. It integrates practices observed in operation of construction enterprises and uses directly available input. It may facilitate establishing the contractor's in-house procedures and managerial decision support systems for the pricing process. K E Y W O R D S decision support; decision to bid; pricing strategy, contractor cash flows, linear programming

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Factors affecting the bid/no bid decision in the Saudi Arabian construction contractors

Cited by 85 publications

References 10 publications

Factors Affecting Contractor’s Bidding Success for International Infrastructure Projects in Australia

Factors Affecting Contractor’s Bidding Success for International Infrastructure Projects in Australia

Individual, Group, and Organizational Factors Affecting Group Bidding Decisions for Construction Projects

Modelling contractor’s bidding decision

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