Factors affecting bid/no bid decision in the Gaza Strip – contractors` perspectives

Abstract

To bid or not to bid for a certain project is considered to be a crucial decision for contractors' survival. The objective 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 local contractors operating in the Gaza Strip, Palestine. A total of seventy-eight factors were identified through a comprehensive literature review to evaluate the most important factors that affect the contractors' decisions to bid or not in the Gaza strip. A survey was conducted on a sample of seventy three contractors classified under the building category, and sixty five of them responded with response rate 89%. The results illustrate that, the financial capability of the contractors, the reputation of the clients, the financial capability of the clients, the financial values of the project, the availability of construction raw materials in the local markets, and the stability of the construction industry were the most critical factors affecting the contractors bid-no bid decisions. This study suggests that contractors and clients should improve their financial systems and capabilities in order to stay in business.