Bidding for Concessions

Klein, Maximilian Michael Johann

doi:10.1596/1813-9450-1957

Cited by 31 publications

(11 citation statements)

References 9 publications

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“…The responses indicate that clients with fair compensation and reimbursing policy will be more successful than others in attracting higher number of competitive bids. These results are in line with Klein (1999), and Noumba and Dinghem (2005) who explained that, the clients' policies to reimburse the bidders will contribute strongly towards enhancing the bidders' behaviors, 'The clients' policy to adopt advanced payment(s) for the contractors' was ranked in the fifth position with a relative importance index of (0.837).…”

Section: Factors Related To the Clients (Group 2)supporting

confidence: 83%

Factores que influyen en la decisión de licitar o no licitar en la Franja de Gaza - perspectivas de los contratistas

2011

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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.Keywords: Contractors, bid decision, construction, finance Resumen La decisión de licitar o no licitar un determinado proyecto es crucial para la sobrevivencia de los contratistas. El objetivo de este artículo es identificar y clasificar los factores que determinan la decisión de licitar o no licitar, de acuerdo a su importancia relativa desde la perspectiva de contratistas locales que operan en la Franja de Gaza, Palestina. Se identificaron un total de setenta y ocho factores, por medio de una revisión exhaustiva de la literatura, para evaluar los factores más importantes que afectan las decisiones de los contratistas por licitar no licitar en la Franja de Gaza. Se desarrolló una medición dentro de una muestra compuesta por setenta y tres contratistas clasificados bajo la categoría construcción, y sesenta y cinco de ellos respondieron a una razón de 89%. Los resultados ilustran que la reputación de los clientes, la capacidad financiera de éstos, el potencial financiero del proyecto y la disponibilidad constructiva de materias primas en los mercados locales, así como la estabilidad de la industria de la construcción, fueron los principales factores críticos que influyen en las decisiones de licitar o no licitar. Este estudio sugiere que los contratistas y clientes debieran mejorar sus sistemas financieros y aptitudes para poder mantenerse dentro del negocio.

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Section: Factors Related To the Clients (Group 2)supporting

confidence: 83%

Factores que influyen en la decisión de licitar o no licitar en la Franja de Gaza - perspectivas de los contratistas

2011

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“…For example, bribery and corruption in the granting of timber concessions has been discussed extensively (World Resources Institute, 2000;Gray, 2000;Amacher, 2006) and a competitive process, such as bidding, is recommended to minimize the problem (Klein, 1998;World Commission on Forests and Sustainable Development, 1999;Merry and Amacher, 2005). The advantages of auctions for the allocation of concessions are lower transaction costs (no need to previously select companies); the increase of the bid value; and the potential for revenue generation.…”

Section: Forest Concession Design and Implementationmentioning

confidence: 99%

The evolution of Brazilian forest concessions

Azevedo-Ramos

Silva

Merry

2015

Elementa: Science of the Anthropocene

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In 2006 Brazil passed legislation allowing concessions for industrial timber harvest in public forests. This decision was part of a broader effort to control deforestation, which had spiked to its second highest level, of about 25,000 km 2 , in 2004. Specifically, concessions were implemented as a means to control a rampaging timber industry while providing a source of accessible timber for sustainable harvest. Timber concessions, however, are not without their critics worldwide. Here we review the process undertaken to address international concerns over concessions in the policy design, we discuss the process of implementation in Brazil from 2007 to 2014 and then attempt to provide insight into the challenges that lie ahead. Our findings suggest that even though Brazil's policy designers had the full knowledge of the difficulties with timber concessions, and attempted to design a concession framework to address those concerns, deeper structural problems within the industry and within government itself have prevented the successful scaling up of the concession model. Key hurdles include: government overlap and duplication causing unbearable transaction costs and risks to investors; an industry ill prepared and unwilling to adapt to the stringent requirements set in the policy; and little success in curtailing illegal logging beyond concession borders. While concessions remain a potentially important tool for the management of public forests, additional resources and time will need to be invested to overcome these barriers.

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“…5 A crucial shortcoming of multidimensional auctions is that the award process would be less transparent and more vulnerable to corruption; authorities can easily exploit their excessive discretion (Klein, 1998;Ware et al, 2007;Estache et al, 2008). 6 One of the solutions to this resource constraint problem is joint bidding.…”

Section: Procurementmentioning

confidence: 99%

Bidders' Entry and Auctioneer's Rejection: Applying a Double Selection Model to Road Procurement Auctions

Estache

Iimi²

2011

Journal of Applied Economics

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Limited competition has been a serious concern in infrastructure procurement. Importantly, however, there are normally a number of potential bidders initially showing interest in proposed projects. This paper focuses on tackling the question why these initially interested bidders fade out. An empirical problem is that no bids of fading-out firms are observable. They could decide not to enter the process at the beginning of the tendering or may be technically disqualified at any point of the selection process. The paper applies the double selection model to procurement data from road development projects in developing countries and examines why competition ends up restricted. It shows that bidders are self-selective and auctioneers also tend to limit participation depending on the size of contracts. Then, limited competition would likely lead to high infrastructure procurement costs.

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Bidding for Concessions

Cited by 31 publications

References 9 publications

Factores que influyen en la decisión de licitar o no licitar en la Franja de Gaza - perspectivas de los contratistas

Factores que influyen en la decisión de licitar o no licitar en la Franja de Gaza - perspectivas de los contratistas

The evolution of Brazilian forest concessions

Bidders' Entry and Auctioneer's Rejection: Applying a Double Selection Model to Road Procurement Auctions

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