Abstract:
Bidding is the formal proposal by contractor to perform a particular work according to the stated terms and conditions. There are some aspects which influence the decision to bid such as high complexity and internal and external uncertainty associated with project. It is common that there are always opportunities for contractors in bidding such as in increasing business, good position in industry and to establish good relationship with employers. Conversely, the inappropriate bid decision may lead to contractor’s markup loss, wastage of time & resources and increase of project cost. After literature review while developing the bid decision model some researchers have focused on contractors’ strength and weakness while, others considered threats and opportunities of projects. These internal factors and external factors were project management capability, previous experience in execution of similar project, skilled labor work force, financial capability to execute project, relationship with owner, adequate experience in complex projects and Inadequate skilled labors, competition among bidders, government incentives to the construction industry, relationship between stakeholder, profitability, economic growth opportunity, technological advances, project/ contract type etc. respectively. The objective study is to develop a bid decision model by linking the contractor’s strength and weakness to the project’s threats and opportunities at one platform. The proposed bid decision model will assist the contractor’s in identifying the critical factors that will ultimately guide the contractor to decide whether to bid/no bid for any specific project. The questionnaire surveys were distributed among the building, engineering, and industrial contractors. Ranked and weighted means of the factors were calculated from their responses. Finally, the model was tested by six case studies of building projects, which then assist in calculation the project selection strength, weakness index and opportunity and threat index of each project. On the basis of its highest index value among the project assist contractor to whether bid/no bid for any specific project.
