Bagies, A and Fortune, C (2006) Bid/no-bid decision modelling for construction projects. In: Boyd, D (ed.) Proceedings of 22nd Annual ARCOM Conference, 4-6 September 2006, Birmingham, UK.
Abstract
Not bidding for a project could result in losing a good opportunity to make substantial profit, improve the contractor's strength in the industry, gain relationship with the client, and more. However, bidding for inappropriate projects may result in large losses or the consumption of time and resources that could be invested in more profitable projects, ultimately even financial failure of the contractor. This dilemma expresses the importance of the bid / no bid decision till it become one of the most critical decisions that have to be made by construction companies. The high complex process is a major characteristic of the bidding decision, which involves a large quantity of objectives and reflection of several internal and external factors. Smart contractors realise the importance of doing initial research and project evaluation before committing themselves to a construction project. This paper reports on-going research aims to develop a framework that can be used as a decision aid for project evaluations at the initial project selection decision phase. The results from a review of the literature concerning the bid / no bid decision are presented, and a conceptual model is developed. The work aims to contribute to the body of knowledge available on project evaluation processes and the research agenda related to enterprise project management in the construction industry.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | bid/no bid decision; decision making; project evaluation |
| Index terms: | bid/no-bid, bidding, project evaluation, project management, construction industry, body of knowledge, modelling, consumption, decision-making, project selection, reflection, construction project, construction company, profit, financial failure, research agenda |
| Subjects: | production management, project management theory and practice, professional development, industry analysis, research management, decision analysis, consumer economics, value management, organization, knowledge management, business management, bidding, economic analysis, analytical methods |
| Topics: | Risk Management, Stakeholder Management, Procurement, Business Strategy, Research Practice, Project Management, Information Management, Engineering Principles |
| Descriptive scope: | 3 PCT |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here