Analysis of contractors’ administrative characteristics in bid decision factors
Article
Article Title | Analysis of contractors’ administrative characteristics in bid decision factors |
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ERA Journal ID | 41005 |
Article Category | Article |
Authors | Olatunji, Oluwole Alfred (Author), Ramanayaka, Chamil Dilhan Erik (Author), Rotimi, Funmilayo Ebun (Author) and Rotimi, James Olabode Bamidele (Author) |
Journal Title | Engineering, Construction and Architectural Management |
Journal Citation | 30 (6), pp. 2420-2435 |
Number of Pages | 16 |
Year | 2023 |
Publisher | Emerald |
Place of Publication | United Kingdom |
ISSN | 0969-9988 |
1365-232X | |
Digital Object Identifier (DOI) | https://doi.org/10.1108/ECAM-12-2021-1063 |
Web Address (URL) | https://www.emerald.com/insight/content/doi/10.1108/ECAM-12-2021-1063/full/html |
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. |
Keywords | Bid decisions; Construction industry; Contractors; Unbundling |
ANZSRC Field of Research 2020 | 330299. Building not elsewhere classified |
330206. Building science, technologies and systems | |
330203. Building industry studies | |
Public Notes | Files associated with this item cannot be displayed due to copyright restrictions. |
Byline Affiliations | School of Surveying and Built Environment |
Curtin University | |
Auckland University of Technology, New Zealand | |
Massey University, New Zealand | |
Institution of Origin | University of Southern Queensland |
https://research.usq.edu.au/item/q73z0/analysis-of-contractors-administrative-characteristics-in-bid-decision-factors
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