Extrinsic factors influencing the bid/no-bid decision of construction contracting firms: Impact of firm size and experience

  • Ahsen Maqsoom COMSATS University (Pakistan). Islamabad, Wah Campus, Department of Civil Engineering
  • Hassan Ashraf COMSATS University (Pakistan). Islamabad, Wah Campus, Department of Civil Engineering
  • Rafiq Muhammad Choudhry Al Imam Mohammad Ibn Saud Islamic University (Saudi Arabia). Department of Civil Engineering
  • Sufian Younas Khan COMSATS University (Pakistan). Islamabad, Wah Campus, Department of Civil Engineering
  • Muhammad Dawood National University of Sciences and Technology (Pakistan). School of Civil Engineering
  • Adeel Tariq National University of Sciences and Technology (Pakistan). School of Civil Engineering

Abstract

Construction contracting firms (CCFs) are functioning in a highly volatile and competitive industrial environment making it imperative to bid for the projects that can produce the most return and market share. The decision making process to bid or not is based on various factors that vary from project to project and firm to firm. The aim of this work is to analyze the impact of firm size and experience on extrinsic factors influencing the bid/no-bid decision for construction projects. The questionnaire was pilot tested and designed in three parts. The final questionnaire was sent to 300 CCFs registered with Pakistan Engineering Council (PEC) and respondents were asked to rate the factors on a Likert scale. Out of 300 questionnaires, 167 completed responses are returned representing a response rate of 56%. The collected data are then analyzed using Mann-Whitney U test through Statistical Package for Social Sciences (SPSS). Findings show the various degrees of differences between small and large, and young and mature CCFs with regard to factors influencing the bid/no-bid decision. Small firms need to overcome increasing market value and number of competitors in the market. They need to develop relationship with government officials in order to secure their bids. Mature firms need to review the payment practices of clients, politician pressure and business level of the client before entering into the bid. Availability of required material and skilled labor are of prime importance for the mature firms’ success.


 


 

Author Biographies

Ahsen Maqsoom, COMSATS University (Pakistan). Islamabad, Wah Campus, Department of Civil Engineering

 

 

 

 

Hassan Ashraf, COMSATS University (Pakistan). Islamabad, Wah Campus, Department of Civil Engineering

 

 

 

Rafiq Muhammad Choudhry, Al Imam Mohammad Ibn Saud Islamic University (Saudi Arabia). Department of Civil Engineering

 

 

Sufian Younas Khan, COMSATS University (Pakistan). Islamabad, Wah Campus, Department of Civil Engineering

 

 

 

Muhammad Dawood, National University of Sciences and Technology (Pakistan). School of Civil Engineering

 

 

 

Adeel Tariq, National University of Sciences and Technology (Pakistan). School of Civil Engineering

 

 

 

Published
2020-04-30
How to Cite
MAQSOOM, Ahsen et al. Extrinsic factors influencing the bid/no-bid decision of construction contracting firms: Impact of firm size and experience. Journal of Construction, [S.l.], v. 19, n. 1, p. 146-158, apr. 2020. ISSN 0718-915X. Available at: <http://ojs.uc.cl/index.php/RDLC/article/view/12358>. Date accessed: 11 july 2020. doi: https://doi.org/10.7764/RDLC.19.1.146-158.