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

Bageis, A S and Fortune, C (2009) Factors affecting the bid/no bid decision in the Saudi Arabian construction contractors. Construction Management and Economics, 27(1), pp. 53-71. ISSN 1466433X

Abstract

The bid/no bid decision requires an understanding of a company's assessment in relation to factors affecting the decision. Different companies might have different assessment values. The aim is to investigate how bid/no bid decisions are influenced by different characteristics of contractors. Various factors are identified and then analysed in order to investigate their influence and relative significance. A questionnaire survey was used to identify and rank the factors affecting the bidding decision and then analyse them in terms of differences between the returned responses with respect to the differing respondent characteristics. The findings have established the ranking order of the factors affecting the bid/no bid decision and identified their weights of importance. In addition, the influence of these characteristics upon the different weights of importance given by the survey respondents is found to be statistically significant. The most influential characteristics that affected their assessment of the weight of importance are contractor size, classification status of the contractor and the main client type. Different contractors' characteristics should be reflected in the way that the bid/no bid decisions are modelled. Also, the data collected should be categorized with regards to contractors' characteristics before starting the data analysis and modelling processes.

Item Type: Article
Uncontrolled Keywords: bid/no bid decision; decision making; project selection
Index terms: modelling, project selection, construction contractor, bidding, bid/no-bid, decision-making, questionnaire, survey, data analysis
Subjects: data collection methods, value management, practitioner, analytical methods, bidding, data analysis and analytics, decision analysis
Topics: Research Practice, Project Management, Engineering Principles, Risk Management, Roles and Professions, Procurement
Descriptive scope: 4 PCEA

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