Factors Affecting Contractors' Bidding Decisions for Construction Projects in Nigeria
Bidding is the most common means by which contractors obtain work. The construction industry accounts for approximately three quarters of the Gross Domestic Product (GDP) in the country. It is generally believed that wrong bidding practice is a major contributor to the construction industry'...
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| Format: | Article |
| Language: | English |
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Penerbit Universiti Sains Malaysia
2016
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| Online Access: | http://eprints.usm.my/41450/ http://eprints.usm.my/41450/1/JCDC_21%282%29_Art_2%2821-35%29.pdf |
| _version_ | 1848879292766748672 |
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| author | Oyeyipo, Opeyemi Olanrewaju Odusam, Koleola Tunwase Ojelabi, Rapheal Abiodun Afolabi, Adedeji Olushola |
| author_facet | Oyeyipo, Opeyemi Olanrewaju Odusam, Koleola Tunwase Ojelabi, Rapheal Abiodun Afolabi, Adedeji Olushola |
| author_sort | Oyeyipo, Opeyemi Olanrewaju |
| building | USM Institutional Repository |
| collection | Online Access |
| description | Bidding is the most common means by which contractors obtain work. The
construction industry accounts for approximately three quarters of the Gross Domestic
Product (GDP) in the country. It is generally believed that wrong bidding practice is a major
contributor to the construction industry's inefficiency. This means that any improvement in
bidding has the potential to enhance the industry's performance, improve the quality of the
decision-making process and assist in achieving the strategic objective of contracting
organisations. In an effort to uncover the main factors that characterise the bid/no bid
decision of contracting organisations, a study to evaluate the factors that affect contractors'
decisions to bid for a project and to evaluate the importance of the identified factors to
decision makers was conducted. A structured questionnaire was used as the principal
instrument for collecting data from respondents. A total sample of 100 was drawn from these
collections of construction contractors from Lagos state. Fifty were completed and returned,
representing a 50% response rate. Frequency, percentage, mean score and Spearman's
correlation were used in analysing data collected for the study. The results indicate that the
financial capability of clients, availability of capital and availability of material are the most
important factors that contractors consider when making a bid/no bid decision. The study
also reveals that competition (number and identity of competitors) does not have significant
influence on contractors' bidding decisions. The study recommends that contractors should
also build their reputations in the construction industry by acquiring technical competencies
and capabilities as these qualities have become important considerations in assessing
contractors' competiveness, as well as being key indicators of successful tendering in
construction projects |
| first_indexed | 2025-11-15T17:44:55Z |
| format | Article |
| id | usm-41450 |
| institution | Universiti Sains Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T17:44:55Z |
| publishDate | 2016 |
| publisher | Penerbit Universiti Sains Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | usm-414502018-08-21T01:36:48Z http://eprints.usm.my/41450/ Factors Affecting Contractors' Bidding Decisions for Construction Projects in Nigeria Oyeyipo, Opeyemi Olanrewaju Odusam, Koleola Tunwase Ojelabi, Rapheal Abiodun Afolabi, Adedeji Olushola TH1-9745 Building construction Bidding is the most common means by which contractors obtain work. The construction industry accounts for approximately three quarters of the Gross Domestic Product (GDP) in the country. It is generally believed that wrong bidding practice is a major contributor to the construction industry's inefficiency. This means that any improvement in bidding has the potential to enhance the industry's performance, improve the quality of the decision-making process and assist in achieving the strategic objective of contracting organisations. In an effort to uncover the main factors that characterise the bid/no bid decision of contracting organisations, a study to evaluate the factors that affect contractors' decisions to bid for a project and to evaluate the importance of the identified factors to decision makers was conducted. A structured questionnaire was used as the principal instrument for collecting data from respondents. A total sample of 100 was drawn from these collections of construction contractors from Lagos state. Fifty were completed and returned, representing a 50% response rate. Frequency, percentage, mean score and Spearman's correlation were used in analysing data collected for the study. The results indicate that the financial capability of clients, availability of capital and availability of material are the most important factors that contractors consider when making a bid/no bid decision. The study also reveals that competition (number and identity of competitors) does not have significant influence on contractors' bidding decisions. The study recommends that contractors should also build their reputations in the construction industry by acquiring technical competencies and capabilities as these qualities have become important considerations in assessing contractors' competiveness, as well as being key indicators of successful tendering in construction projects Penerbit Universiti Sains Malaysia 2016 Article PeerReviewed application/pdf en http://eprints.usm.my/41450/1/JCDC_21%282%29_Art_2%2821-35%29.pdf Oyeyipo, Opeyemi Olanrewaju and Odusam, Koleola Tunwase and Ojelabi, Rapheal Abiodun and Afolabi, Adedeji Olushola (2016) Factors Affecting Contractors' Bidding Decisions for Construction Projects in Nigeria. Journal of Construction in Developing Countries , 21 (2). pp. 21-35. ISSN 1823-6499 http://web.usm.my/jcdc/vol21_2_2016/JCDC%2021(2)_Art%202(21-35).pdf |
| spellingShingle | TH1-9745 Building construction Oyeyipo, Opeyemi Olanrewaju Odusam, Koleola Tunwase Ojelabi, Rapheal Abiodun Afolabi, Adedeji Olushola Factors Affecting Contractors' Bidding Decisions for Construction Projects in Nigeria |
| title | Factors Affecting Contractors' Bidding Decisions for Construction
Projects in Nigeria |
| title_full | Factors Affecting Contractors' Bidding Decisions for Construction
Projects in Nigeria |
| title_fullStr | Factors Affecting Contractors' Bidding Decisions for Construction
Projects in Nigeria |
| title_full_unstemmed | Factors Affecting Contractors' Bidding Decisions for Construction
Projects in Nigeria |
| title_short | Factors Affecting Contractors' Bidding Decisions for Construction
Projects in Nigeria |
| title_sort | factors affecting contractors' bidding decisions for construction
projects in nigeria |
| topic | TH1-9745 Building construction |
| url | http://eprints.usm.my/41450/ http://eprints.usm.my/41450/ http://eprints.usm.my/41450/1/JCDC_21%282%29_Art_2%2821-35%29.pdf |