An examination of the importance of resource considerations when contractors make project selection decisions

Odusote, O O and Fellows, R F (1992) An examination of the importance of resource considerations when contractors make project selection decisions. Construction Management and Economics, 10(2), pp. 137-151. ISSN 01446193

Abstract

This research investigates the factors which building contractors consider when making project selection decisions and the processes they follow when making such decisions. The research is based on the premise that resource consideration is the most important factor for contractors when making project selection decisions. Literature was used to identify those factors thought to be most influential. The extent of the diversity of opinion disclosed indicated the necessity to obtain further information which was gathered from contractors by use of postal questionnaires and interviews. The information was analysed by ranking techniques and the results compared by Spearman rank correlations coefficient. The results obtained indicated the strengths of the factors identified. Spearman rank correlation coefficient showed a positive correlation for the results obtained from the findings of the literature study and those obtained from the survey. A non-weighted model of contractors' tendering decision process was developed. The model shows the inter-relationship that exists between client and contractor decisions. The model also illustrates the effect of such decisions on the actions of both clients (their representatives) and contractors. The results obtained from the survey shows that, 'the ability of the client to pay for the cost of work' is the most important factor contractors consider when making project selection decisions.

Item Type: Article
Uncontrolled Keywords: clients; contractors; project selection decisions; resources; tendering
Index terms: building contractor, project selection, survey, interview, tendering decision, questionnaire
Subjects: tendering, data collection methods, practitioner, value management
Topics: Research Practice, Project Management, Roles and Professions, Procurement
Descriptive scope: 3 PEA

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