The Key Criteria in Deciding to Tender for Construction Projects

Abstract

Planning for a construction project is a formidable task which involves a huge investment with multiple stakeholders such as clients, consultants, and contractors. A tender is a submission of a technical, administrative, and contractual material made by a potential contractor in response to an invitation to tender by the project client. Established contractors normally realise the importance of doing initial research before committing themselves to enter the tender. Normally, tender pre-qualification is a strict process. A low-quality tender submitted due to problems such as insufficient time and incomplete tender documents normally lead to tender rejection by the client. Thus, this research aimed to provide a strategy to help the contractors in deciding whether they should or should not submit a tender at the initial tendering decision phase. The literature review was focused on the key factors identified in influencing the decision-making process and in the final part, the initial conceptual model was established

Balanced Approach for Tendering Practice at the Pre-Contract Stage: The Uk Practitioner’s Perspective

“…Bidding is a practice in which each project stakeholders try to minimize risk based on limited and incomplete tendering information (Adafin et al, 2016;Asgari et al, 2016;Bohari et al, 2021). Therefore, bidding strategy of each stakeholder is commercially sensitive, making it difficult to conduct honest and in-depth study.…”

“…They argued that the inadequate quality of tender documents made it even more challenging for them to price projects appropriately. In the same vein, various studies (Laryea, 2011;Urquhart et al, 2017;Cheaitou et al, 2019;Bohari et al, 2021) have stated that major issues associated with tender documents are normally inappropriate or inadequate information. Zhou et al (2021) revealed different causes leading poor quality of tender documents including missing information, insufficient detail, impracticable design details, large blocks of provisional information that lacked detail.…”

Assessment of Factors Affecting Contractors Tendering Success for Construction Projects in North-Central Nigeria

“…'Detailed tendering document' is seen as having the highest significance level with a score of 4.84 and ranked 1 st . This corresponds to Bohari et al (2021), as they emphasize the need for detailed and high profile tender submission as low quality tender hampers contractor's chances. This is followed by submission of tender having the 2 nd most significant level which indicates that detailed tendering document and its submission is vital to contractor's chances of winning tenders.…”

“…Tendering provides a competitive way of getting contract award (Kog & Yaman, 2016). Open tendering system is the most used tendering system while carrying out construction procurement tendering (Bohari et al, 2021). According to Kog and Yaman (2016), there are fundamental tendering procedures which are open, negotiation and selective tendering.…”

“…However, tenders are mostly awarded to the lowest bidder (Loosemore & Richard, 2015). Instances are that an accurate decision made by the contractor to tender make his chances of success to be higher based on the maximum use of his financial capabilities as well as his administrative and technical expertise (Bohari et al, 2021). Contractors decision to tender are affected by several factors which are considered to be tendering skills and devising buyer engagement strategies as well as pricing strategies, as typified by the study of Urquhart et al (2017), are integral to contractors decision to tender.…”