Analysis of contractors’ administrative characteristics in bid decision factors

Olatunji, Oluwole Alfred ORCID: https://orcid.org/0000-0002-9726-4218 and Ramanayaka, Chamil Dilhan Erik and Rotimi, Funmilayo Ebun and Rotimi, James Olabode Bamidele (2022) Analysis of contractors’ administrative characteristics in bid decision factors. Engineering, Construction and Architectural Management. pp. 1-16. ISSN 0969-9988


Abstract

Purpose: The normative literature suggests that there are more than seventy decision factors that contractors must consider if they intend to success in their bid and projects. In addition, such factors have been grouped in relation to project characteristics, client attributes, contractors' business administration and external factors. The extant literature suggests that the relationships between many of the bid decision factors are orthogonal and may not explain how bid-decisions shape project outcomes. Design/methodology/approach: This knowledge gap has stagnated research in this area. Building on findings of recent studies, this study unbundles bid decision themes by analysing key factors amongst contractors' administrative characteristics. In addition, the study determines intrinsic predictive correlation between the sub-themes. A total of 17 variables were listed in a structured questionnaire survey and presented to participants recruited through purposive snowballing. In total, 50 responses were received and formed the basis of descriptive and inferential statistical analyses. Findings: The study found that the 17 factors are significant in bid decisions and consequently in bid successes. However, the explanatory variables attached to the themes are most efficient if categorised into six sub-themes. These are contractor's administration depth, strategic direction, commercial intention and own market advantage, resources, experience as well as openness to technology imposed by new projects. Furthermore, four theoretical positions are significant. Contractors bid for projects strategically; they are less reliant on their resource capabilities in bid decisions; every bid decision aligns with a risk strategy, and financial stability enables them to establish appropriate risk mitigation arrangements that could ensure project success. Originality/value: These findings provide some support for the conceptual premise that bid decisions need to be rational, considered and strategically contribute to project outcomes.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Files associated with this item cannot be displayed due to copyright restrictions.
Faculty/School / Institute/Centre: Current – Faculty of Health, Engineering and Sciences - School of Surveying and Built Environment (1 Jan 2022 -)
Faculty/School / Institute/Centre: Current – Faculty of Health, Engineering and Sciences - School of Surveying and Built Environment (1 Jan 2022 -)
Date Deposited: 03 May 2022 23:57
Last Modified: 03 May 2022 23:57
Uncontrolled Keywords: Bid decisions; Construction industry; Contractors; Unbundling
Fields of Research (2020): 33 BUILT ENVIRONMENT AND DESIGN > 3302 Building > 330299 Building not elsewhere classified
33 BUILT ENVIRONMENT AND DESIGN > 3302 Building > 330206 Building science, technologies and systems
33 BUILT ENVIRONMENT AND DESIGN > 3302 Building > 330203 Building industry studies
Socio-Economic Objectives (2020): 12 CONSTRUCTION > 1299 Other construction > 129999 Other construction not elsewhere classified
Identification Number or DOI: https://doi.org/10.1108/ECAM-12-2021-1063
URI: http://eprints.usq.edu.au/id/eprint/48048

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