ABSTRACT
Companies must have the capability to deal with various tendering situations successfully in today‟s highly competitive construction market. The first step that the companies need to consider is whether to tender or not to tender when they received a tender invitation. The contractors‟ decision is affected by various factors and influences. This decision is highly reliant to the specific project and the macro environment. It is difficult to make this crucial decision in a short time frame by the management team.
This research is looked at the factors affecting the tender/ no tender decision making and the focus group was on the to d contractors in Lagos region. Data were collected for by carrying out a face to face structured interview format, incorporating a questionnaire with eight participants. Through the course of the interview, both quantitative and qualitative questions were asked. “Experience and familiarity of your firm with this specific type of work”, “Possible contribution in building long-term relationships with other key parties” and “Current financial capability of the client” were the top 3 most important factors identified by the participants.
There are many differences between the contractors‟ opinion for the tender/ no tender decision. d contractors have very similar responses about important factors affecting tender/ no tender decision. By contrast, every d contractor has nearly every different individual comment on most important factors. It is seen that d contractors have stronger individual business strategy. In comparison to the literature, it was apparent that the tender/ no tender decision making is very dependent on the location the contractors are. The Marco environment is a very big influence driver for contractors‟ decisions. So, it is important that the different construction contractors should not use one standard to make the tender/ no tender decision for projects in different countries
INTRODUCTION
1.0 BACKGROUND OF THE STUDY
The growing need for construction of all types coupled with a tight monetary supply has provided the construction industry with a big challenge to cut cost.
According to Mendelson and Greenfield (1996) the remaining part of the twentieth century would involve corporations, institutions and government in a race to survive. The attendant dwindling economic fortune of nations economies around the World have geared up the participant in these sectors (the client in particular) to take up the challenge of ensuring efficient use of their resources to obtain value for money in terms of performance.
The total cost of construction in normal circumstances is expected to be the sum of the following cost: Materials, Labour, Site Overheads, Equipment/Plant, Head office Cost and Profit but in many parts of the world particularly in Nigeria, there are other costs to be allowed for.
These costs according to Mbachu and Nkado (2004) have obvious negative implications for the key stakeholders in particular, and the industry in general. To the client, high cost implies added costs over and above those initially agreed upon at the onset, resulting in less returns on investment. To the end user, the added costs are passed on as higher rental / lease costs or prices. To the consultants, it means inability to deliver value – for – money and could tarnish their reputation and result in loss of confidence reposed in them by clients. To the contractor, it implies loss of profit through penalties for non- completion, and negative word of mouth that could jeopardize his/her chances of winning further jobs, if at fault.
