Impact of Contractors’ Bidding Strategies on Bid Success in the Nigeria Construction Industry (original) (raw)
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Factors Affecting Contractors' Bidding Decisions for Construction Projects in Nigeria
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The challenge of construction tendering process is a common theme in developing countries especially Nigeria. Tendering process is often tedious, multitasking and complex. Contractors have the responsibility of tendering appropriately for construction projects; and clients as well as consultants have a duty to create an enabling platform for a successful tendering process. This study examines the factors affecting contractors tendering success for construction projects in North-Central Nigeria with an aim to harmonizing the perception of the construction professionals. Semi-structured questionnaires comprising of fifty-five (55) questions retrieved from literature were categorized into six (6) groups which are project characteristics, business benefits, capabilities, bidding situation, client related factors and external environment related factors. The data were retrieved from 299 respondents out of 384 respondents requisite for this study. Frequency, Percentile and Mean Index Scor...
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Contractors play a major role in the successful delivery of construction projects. The performance of contractors in the execution of public sector building projects is crucial as these projects are capital-intensive. While several studies have explored project performance, there are limited studies on the factors that influence contractors' performance in the execution of public sector projects in northern Nigeria. Based on this notion, this study assessed the factors influencing contractors' performance in delivering public sector projects. The study adopted a quantitative approach with a structured questionnaire used to collect data from registered contractors in Kaduna State, Nigeria. Data collected were analysed using descriptive statistics. The findings revealed that delays in payment of contractors and difficulty in obtaining financial aid negatively influence contractors' performance the most, while management skills and planning of contractors and timely payment of contractors positively influence contractors' performance the most. The measures that improve the delivery of public sector building projects the most are sufficient funding for contractors to execute building projects and prompt payment by clients. The findings of the study will assist government agencies overseeing public sector building projects and financial institutions in effectively putting in place policies that will enhance the availability of funds for contractors to execute public sector projects.
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FACTORS AFFECTING CONTRACTORS’ PERFORMANCE IN CONSTRUCTION PROJECT DELIVERY IN NIGERIA
Factors Affecting Contractors’ Performance in Construction Project Delivery in Nigeria (A Case Study of Maiduguri Metropolis, Borno State), 2021
ABSTRACT The research project conducted on the “factors affecting contractors’ performance in construction project delivery in Maiduguri Borno state. Three (3) specific research objectives were formulated and three (3) research questions were raised in order to achieve the set out objectives. The literature were reviewed on conceptual framework, factors affecting contractors’ performance in construction projects delivery, evaluation of factors affecting contractors’ performance in construction projects delivery, ways to improve the contractors’ performance in construction projects delivery, and Summary of literature review and uniqueness of the study. Descriptive research design was used to obtain the required data, the instrument used for data collection was questionnaire, the population of the study area comprised Quantity Surveyors, Architects and Builders within the Maiduguri Metropolis, out of which a sample of 50 peoples were drown in order to represent entire people of Maiduguri metropolis. The method used for data analysis was simple percentage and frequency count. Based on the findings on the data analyzed reveals that 87.5% of the respondents are working in private organization sector. It was recommended that those Quantity Surveyors, Architects and Builders working with private organizations should collaborate with government or public sector in order to improve the standard of the contractors’ performance. Government should prioritize the contractor’s needs and efficiency based on their experience and qualifications in order to expand and reduce the factors affecting contractors’ performance.
The effect of client and type and size of construction work on a contractor’s bidding strategy
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This paper offers a bidding strategy model for use by contractors as part of a more informed approach in selecting which contracts to bid for, and as a basis for determining the most appropriate mark-up level for various types and sizes of construction work and client types. Regression analysis is used in measuring a contractor's competitiveness between bids (by using the lowest bid/own bid ratio) and within bids (by using the lowest bid/cost estimate ratio) according to type and size of construction work and client type.
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While contractors may experience financial failure if they bid on an inappropriate project, bidding on the right project may allow them to profit substantially. Therefore, understanding the various factors that influence the bid/no-bid decision is crucial for construction companies in determining whether to pursue a project. The present study aims to identify the critical factors influencing contractors’ bid/no-bid decisions. A total of 112 responses were collected from a questionnaire survey to rate the relative importance of 22 factors, and these factors were then analyzed based on the type of project and the contractor’s years of experience. The results indicate that the client’s ability to pay, clarity of the scope of work, project cash flow, the need for work, and availability of qualified labor are the most critical factors influencing contractors when making bid/no-bid decisions. The factor “previous experience in similar projects” was statistically significant among building and infrastructure projects, while “project location” was statistically significant among contractors with different years of experience. Finally, factor analysis identifies the six major underlying groups: client-related factors, bidding-related factors, contractor-related factors, market-related factors, economy-related factors, and project-related factors. The study’s findings can help contractors better understand the factors influencing their bidding-related decisions.
Influence of Procurement Methods on Cost Performance of Building Projects in North-Eastern Nigeria
Procurement methods described as systems of contractual arrangements used by the contractor in order to secure the design and construction services based on the stipulated cost and within the required time and quality. Despite that, major projects in the Nigerian construction industry failed because of wrong procurement methods with major consequences leads to cost overrun which needs to find lasting solution. The aim of the study is to evaluate the influence of procurement methods on cost performance of building projects in Nigeria. Study adopts descriptive and explorative design approach. Data were collected through administering of one hundred questionnaire using convenient sampling techniques. Data analyses using mean scored, regression and Anova analysis. Major finding show that more than fifty percent (50%) of procurement methods available are mainly utilized in the study area and the top procurement methods that have high impacts on cost performance are project management and direct labour procurement methods as they contribute to more than 38% in influencing the cost performance in building projects. The results of hypothesis' tests with pvalues greater than specified sig. (0.05) validated that there was no significant variation on the perception of stakeholders' on the level of usage of procurements methods. Therefore, the study concluded that projects management and direct labour are the most appropriate procurement methods that will ensure successful completion of project at stipulated cost in building projects of Nigeria
Most of the construction projects delivered in Akure, Ondo State for public use depict evidence that they were not successfully executed. These effects result in time and cost overruns, poor project execution and outright abandonment. These could be attributed to lack of technical know-how on specific project types and corruption tendencies amongst others. This study focuses on factors affecting contractors' performance in construction project delivery in Akure, Ondo State with a view to enhancing their performance in construction project delivery. It assesses the success criteria for project performance in the study area; the causes of non-performance of contractors in project delivery in the study area; and evaluates factors for improving contractors' performance in project delivery. A well-structured questionnaire was used to harness information from construction stakeholders. Data was analyzed using mean item score and single factor analysis of variance. The results indicated that the top three criteria for contractors' performance were completion to time, budget and required quality. The results also showed that quality related factors, project management related factors and procurement related factors were factors affecting contractor's performance the most. Furthermore, the study revealed that contractors' performance could be improved through