Enshassi, A; Mohamed, S and El Karriri, A (2010) Factors affecting the bid/no bid decision in the Palestinian construction industry. Journal of Financial Management of Property and Construction, 15(2), pp. 118-142. ISSN 1366-4387
Abstract
Purpose – The purpose of this paper is to identify and rank the factors that affect the bid/no bid decision according to their relative importance from the perspective of the contracting parties operating in the Gaza Strip, Palestine. Design/methodology/approach – The objectives of this research were investigated through a postal questionnaire, which covered a randomly selected sample of 63 contractors, 29 clients and 13 consultants operating in the construction industry in the Gaza strip. The questionnaire was structured based on related literature, the pilot study and actual factors affecting bidders' decisions to bid or not that arise from special conditions in the Gaza Strip. A total of 78 factors that affect the bid/no bid decision were identified. These factors were then ranked according to their relative importance to contracting parties operating in the Gaza Strip, Palestine. Findings – The results illustrate that the financial capability of the contractors, the financial capability of the clients, the financial values of the project, the due date of the payments, the availability of construction raw materials in local markets, and the stability of the construction industry were the most critical factors affecting the bid/no bid decision, as agreed by all respondents. Originality/value – The paper provides supportive practical solutions for contractors, clients and consultants to enhance and improve bidding decisions. It is recommended that clients and consultants consider the financial capabilities, technical capabilities and staff competencies of the contractors during the awarding stage, and not simply focus on the lowest bid.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | consultants; contracts; Palestine |
| Index terms: | methodology, questionnaire, bid/no-bid, bidding, relative importance, stability, bidder, construction industry, Gaza Strip, markets, Palestine, contracting party, critical factor |
| Subjects: | data collection methods, risk assessment, practitioner, bidding, economic analysis, physical geography and landforms, structural engineering, research methods, Geography, industry analysis |
| Topics: | Business Strategy, Engineering Principles, Research Practice, Geographical Context, Risk Management, Roles and Professions, Procurement |
| Descriptive scope: | 4 PCTA |
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