The effect of contractor size on mark-up size decision in Saudi Arabia

Shash, Ali A.; Abdul-Hadi, Nader Husni

doi:10.1080/01446199300000048

Cited by 40 publications

(23 citation statements)

References 9 publications

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“…X = n/N, with n the frequency of the response and N the total number of responses. This index helps in ranking the factors in accordance with their importance to the contractors, and also determines any similarities or differences between the medium and the large contractors (Shash and Abdul-Hadi, 1993). The SPSS package was used in the analysis of variation between the two groups of contractors in their attitude towards the factors in uencing their bid markup decision.…”

Section: Discussionmentioning

confidence: 99%

The factors influencing bid mark-up decisions of large- and medium-size contractors in Singapore

Dulaimi¹,

Shan²

2002

Construction Management and Economics

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The construction industry in Singapore is dominated by a competitive business environment that is being driven by a lowest cost mentality. The pressure on contractors' profit margins has further increased after a prolonged recession in this sector, which has seen construction demand and output shrinking significantly. This paper examines the factors that contractors perceive to be important when they are considering the size of their bid mark-up. The research hypothesis is that contractor size would have a significant bearing on the factors that would influence the bid mark-up decision. Forty factors were identified and a survey was conducted. The results showed that contractor size has a significant impact on their attitude towards bid mark-up decision-making. The analysis also showed that when deciding the size of a bid mark-up large contractors tend to be more concerned with the nature of the construction work while medium-size contractors are more concerned about the state of their own companies finance.Mark-UP, Tendering, Singapore, Contractor Size, Procurement,

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Section: Discussionmentioning

confidence: 99%

The factors influencing bid mark-up decisions of large- and medium-size contractors in Singapore

Dulaimi¹,

Shan²

2002

Construction Management and Economics

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“…Moselhi et al [12] developed a decision support system, which was for correct bid mark-up estimation. Studies were also conducted for Saudi Arabia contractors [13,14]. Shash [15] identified 55 factors that characterize bidding decision in the UK.…”

Section: Literature Surveymentioning

confidence: 99%

A framework for contractors to reach strategically correct bid/no bid and mark-up size decisions

Egemen

Mohamed

2007

Building and Environment

107

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“…Size of contract, availability of required cash and type of contract were found to be the most important factors affecting margin-size in Saudi Arabia. In a followup study, Shash and Abdul-Hadi (1993) compared the margin-size decision of small, medium and large contractors. They found that contractors of different sizes viewed the importance of the factors differently.…”

Section: Review Of Studies Relating To Margin-sizementioning

confidence: 99%

Global Factors Affecting Margin-Size of Construction Projects

Ling¹

2005

J. Construct. Res.

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Identifying the optimum margin-size for a project is very important in order for contractors to win a tender. The aim of this study is to investigate the "global" factors that must be considered by contractors when deciding on the margin-size, irrespective of which country the project is located. The research design is based on a meta-analysis of six disparate works undertaken in Australia, Canada, Saudi Arabia, Singapore, the UK and the USA. Cross-country comparisons are made, so as to identify factors that are considered by the majority of the contractors.One factor that affects margin-size in all the countries being investigated is the "need for work". Other "global" factors are: the risk involved owing to the nature of the work; current workload; reliability of company pricing; and competitiveness of other bids. It is recommended that contractors who are entering new geographical locations consider these factors when deciding on the margin-size of their bids.There are also factors considered in margin-size estimation that are country specific. In addition, contractors in some countries do not consider certain factors that are deemed important by their counterparts in other countries. Non-indigenous contractors who want to bid for projects in foreign countries are urged to use the findings of this study to find out the factors they need to consider when deciding on the margin-size.

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The effect of contractor size on mark-up size decision in Saudi Arabia

Cited by 40 publications

References 9 publications

The factors influencing bid mark-up decisions of large- and medium-size contractors in Singapore

The factors influencing bid mark-up decisions of large- and medium-size contractors in Singapore

A framework for contractors to reach strategically correct bid/no bid and mark-up size decisions

Global Factors Affecting Margin-Size of Construction Projects

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