Factors considered in bidding decisions by small and medium size contractors

Abstract EN

The construction sector is one of the key economic sectors and is the main force motivating the Palestinian national economy.

Decision-making in construction industry is a very complex task due to uncertainty about many factors influencing the outcomes of the selected choice.

The aim of these papers to identify the attitude of small and medium size contractors regarding / bid no bid and mark up decision.

A total of 94 factors that are believed to have influence on the bidding decision making process were identified.

Questionnaire survey was used in this study and a total of 77 small to medium-sized contracting companies were included in this study.

The results indicated that, small contractors have to some extent different approach in deciding both bidding decisions especially in the markup decision which can involve high risk due to their limited resources and capacity of the company.

The current financial capacity of the client was the most important factor which affects bidding decision for both size contractors.

Project duration was the important factor for small size contractors regarding their markup size decision, whereas the political factor was the most important for medium size contractors.

Small contractors are advised to have joint venture with some success larger contractors to improve their managerial and experience and to reduce the financial risk in the project, which will help them to inter into a new market and to be involved and bid in larger and new types of projects in the future.

Local contractors are advised to define their objectives for long term especially these related to the strategic considerations with clients, consultants, and employees.