CONTRACTING STRATEGIES IN LARGE CONSTRUCTION PROJECTS
SHUBHAM RAKIBE
(shubhamrak45@gmail.com)
Department of Civil Engineering, Dr. D. Y. Patil Institute of Technology, (India)
1. ABSTRACT
As project-driven businesses, the survival of construction companies is dependent on the way they invest in the future; thus, selecting suitable projects is paramount. Construction bidding is inviting different parties to bid on the job. Due to the uncertainty involved in the process, the decision to bid or not bid for the job becomes critical because the consequences of acceptance directly impact the contractor. In the increasingly competitive environment of the construction industry, investigating the bidding strategies and the influential factors on biddings decisions have become a topical research area since the mid-1950s. Based on the previous research, more than 100 factors have been identified. The main objectives of this research were to know the process of the contractor's decision-making and to study the key factors that influence bid/no-bid decisions. The research investigated previous literature, collected data, and conducted a questionnaire survey to achieve these goals. The literature review resulted in identifying 14 common potential factors affecting a contractor's bid/ no-bid decision. The top potential factors influencing contractors' bid decisions include the company's current financial situation, profits from similar past projects, and the market's direction, whether it is declining or expanding. It has also been observed that existing client-owner relationships and qualified material suppliers have a greater influence on bid decisions. This study would serve as a foundation for understanding the bidding process and guides contractors in selecting successful projects, keeping the construction sector healthy, and contributing to national and global economic growth.
2. KEYWORDS
Contracts, Large engineering projects, contracting strategies, Firm fixed price, bidding, project life cycle, contractor, project participants.
