Critical factors influencing the bid/no bid decision in the Australian construction industry

2016 ◽  
Vol 16 (2) ◽  
pp. 127-157 ◽  
Author(s):  
Morteza Shokri-Ghasabeh ◽  
Nicholas Chileshe
Keyword(s):  
Decision Making ◽  
Literature Review ◽  
Construction Industry ◽  
Research Study ◽  
Critical Factors ◽  
Financial Capability ◽  
Project Risk ◽  
Content Type ◽  
Construction Companies ◽  
Factors Influencing

Purpose The purpose of this study is to investigate and rank the critical factors influencing the bid/no bid criteria and their importance in the Australian construction industry. Design/methodology/approach The research study has been undertaken by conducting an extensive literature review on bid/no bid decision-making criteria. As a result, the researchers identified 26 most common bid/no bid decision-making criteria that are accordingly grouped into five distinct categories, namely, “project”, “market”,“contractor”, “client” and “contract”. The literature review was followed by a national survey that was designed and utilised by the researchers to collect data for this purpose. The survey was sent to potential 450 Australian construction companies in various locations and responses were received from 81 Australian construction companies. Response data were subjected to descriptive and inferential statistics. Kruskal Wallis one-way analysis of variance (ANOVA) was applied to detect significant differences between the mean score grouped according to the organisation size (contract value). Findings The descriptive and empirical analysis demonstrated a disparity of ranking of the 26 bid/no bid criteria factors among the groups; however no statistically significant differences among the 26 bid/no criteria factors despite the absolute differences in the rankings and mean scores in the following four factors: (1) “bidding condition”, (2) “strength/weaknesses”, (3) “contract payment terms” and (4) “number of competitors/bidders”. Based on the overall sample, the highly ranked four factors were “client financial capability”, “project risk”, “project future benefits and profitability” and “number of competitors/bidders”. The following were the least ranked: “contractors’ financial situation”, “project duration” and “contractors’ material availability”. “Client financial capability”and “project risk” were jointly ranked as the most important by large, whereas “client financial capability” was also rated highly for smaller Australian construction contractors (ACCs). The medium ACCs had “project risk”as highly ranked. Research limitations The majority of the participants were small construction contractors in Australia. The reason is that the researchers were not aware of the contractors’ size prior to inviting them for participation in the research study. Second, the findings may not generalise to other industries or to organisations operating in other countries. Practical implications The identified “bid/no bid criteria” increase the awareness of existing decision-making practices and play a critical role in the future decisions of the construction companies, where decision makers need to evaluate the next opportunities encountered. Furthermore, knowledge and possession of these identified “bid/no bid” criteria would enable contractors to select a project with a higher probability of success in the future, which will accordingly result in long-term financial benefits and higher performance. Finally, the awareness of these factors could contribute to changing the contractor’s behaviours when bidding in a competitive environment or market conditions. Originality/value The study contributes to the body of knowledge on tendering and bidding practices among contractors in Australia, an area previously under explored. Second, this study provides some insights on the factors influencing the bid/no bid decisions among the ACCs.

Benchmarking enablers to achieve growth performance: a conceptual framework

2020 ◽  
Vol 27 (4) ◽  
pp. 1475-1501 ◽  
Author(s):  
Sanjay Bhattacharya ◽  
Kirankumar S. Momaya ◽  
K. Chandrasekhar Iyer
Keyword(s):  
Literature Review ◽  
Conceptual Framework ◽  
Growth Performance ◽  
Construction Industry ◽  
Sustainable Growth ◽  
List Type ◽  
Positive Outcomes ◽  
Content Type ◽  
Construction Companies ◽  
Economic Context

PurposeTo suggest a conceptual framework to benchmark enablers of growth and link them to performance metrics, duly supported theoretically with definitions and literature review. The sub-objectives of the study are the following:To identify enablers based on theories and antecedents of growthTo establish key leads on how the identified enablers have been deployed by leading construction companies, basis their stages of growth and economic contextTo identify which enablers have higher potential to contribute to competitiveness and growth in an effort to benchmark performanceTo establish if the enablers deployed is dependent on the market maturity and economic contextDesign/methodology/approachThe enabler-mix-based approach is evolved through literature review, inputs from industry practitioners, and subsequent empirical analysis. To explore relationships, the primary methodology suggested is building theory from practice, justified in specific industry and regional economic context. Content analysis has been used for validation of the framework.FindingsTraditional strategy literature suffers from the limitations in terms of applicability and specific contextual settings. In a rapidly changing and varied environment coupled with the context of emerging countries, there is a need for a benchmarked framework for strategy and growth. The evidence toward utility of the framework has been established through a quick analysis of leading construction companies. Capabilities for “operational and process excellence,” “unique products and services,” and “visionary leadership” emerged to be the higher ranked core growth enablers. However, the deployment of these enablers is dependent on the maturity of the company and its economic context.Research limitations/implicationsThis simpler and generic framework analyzes the relative impact on performance, as well as the inter-enabler interaction and substitution effects, in the context of construction companies.Practical implicationsIn the context of industries that are volatile in nature (like the construction industry), strategy tools need to be simple and generic towards practical and uncomplicated application for the managers, to achieve positive outcomes.Originality/valueThis paper offers fresh perspectives to benchmarking literature in terms of enablers to deliver growth performance, in the context of construction companies. It attempts to fill the gap in evolving simple strategy tools to ensure sustainable growth performance in industries having nascent research support and less availability of data so far. In the context of industries that are volatile in nature (like the construction industry), strategy tools need to be simple and generic toward practical and uncomplicated application for the managers to achieve positive outcomes.

Digital technology utilisation decisions for facilitating the implementation of Industry 4.0 technologies

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Samad M.E. Sepasgozar
Keyword(s):  
Decision Making ◽  
Technology Adoption ◽  
Construction Industry ◽  
Industry 4.0 ◽  
Active Role ◽  
Final Decision ◽  
Content Type ◽  
Adoption Decision ◽  
Construction Companies ◽  
Multi Stage

Purpose Emerging Construction Industry 4.0 technologies raise serious questions for construction companies when deciding whether to adopt or reject emerging technologies. Vendors seek to understand what factors are involved in how construction companies make these decisions and how they might vary across different companies. This paper aims to present a systematic, technology adoption decision-making framework for the construction industry which includes the key steps required for the final decision being made by companies up to the commencement of the operation of the technology. Design/methodology/approach A total of 123 experienced practitioners were interviewed to identify a broad range of tasks relevant to decision-making. Participants known as customers or vendors were chosen to validate the findings of each group by using data triangulation methods. A systematic thematic analysis method was applied in the NVivo environment to analyse the data. Findings This study identifies the active role of vendors who need to understand how their customers arrive at decisions to increase the rate of technology adoption. This paper also provides insights to new companies and late adopters (reported greater than 50%) about how others arrived at their decisions. Originality/value Unlike other technology adoption models, this paper investigates vendors’ corresponding interactions during the decision-making process. This paper also goes beyond previous studies, which focussed on the individual customer’s intention to use a specific technology at a single-stage by developing a multi-stage framework to enable understanding the details of the decision process at the organisational level.

Factors influencing the implementation of off-site manufacturing in commercial projects in Western Australia

2020 ◽  
Vol 18 (6) ◽  
pp. 1449-1468 ◽  
Author(s):  
Jordan Mark Correia ◽  
Monty Sutrisna ◽  
Atiq U. Zaman
Keyword(s):  
Decision Making ◽  
Construction Industry ◽  
Research Agenda ◽  
Successful Implementation ◽  
Commercial Sector ◽  
Structured Interviews ◽  
Construction Technique ◽  
Content Type ◽  
Factors Influencing ◽  
Traditional Sector

Purpose Off-site manufacturing (OSM) application in vertically higher and spatially larger projects within Western Australian (WA) commercial sector has demonstrated the potential of benefitting from such a construction technique, but introducing a new methodology to a traditional sector such as commercial sector is not always straightforward. The acceptance of the new methodology, level of awareness of the stakeholders involved and the readiness of the supply chain to deliver, for instance, may influence the success of its implementation. Given the infancy of such methodology in the WA construction industry, this research project aims to analyse factors influencing the implementation of OSM construction method in WA. Design/methodology/approach Following a thorough literature review, an existing research agenda in OSM was used to inform the direction of this research, i.e. focussing on external macro aspects of the decision making to implement OSM. Three projects in WA were studied, and the data collection was facilitated through archival study and semi-structured interviews with construction practitioners who were the stakeholders of the three projects. Data analysis was conducted through content analysis to draw the findings and conclusion of this research. Findings The analysis of the studied cases revealed relevant economic/financial, technological and regulatory factors, as well as social factors influencing the implementation of OSM, particularly in WA commercial projects. These findings were then used to develop an overall understanding of the external macro factors influencing decision making in implementing OSM that forms a formal research agenda aimed at enabling successful implementation of OSM in WA construction industry, particularly in its commercial sector. Originality/value The research findings presented in this paper identified factors that significantly influence the implementation of such alternative technology in a traditional sector. These factors were then structured to form the subsequent research agenda to continuously pursue the implementation of OSM in the sector. While the research agenda takes into account the unique characteristics of the WA construction industry, it contributes to the global and the Australian national research agenda, and the research methodology reported in this paper can be used to develop similar research agenda elsewhere.

scholarly journals Critical factors influencing the bid or no-bid decision of the indigenous small building contractors in Tanzania

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nicholas Chileshe ◽  
Neema Kavishe ◽  
David John Edwards
Keyword(s):  
Decision Making ◽  
Business Environment ◽  
Dar Es Salaam ◽  
Specific Aspect ◽  
Critical Factors ◽  
Content Type ◽  
Financial Capacity ◽  
Factors Influencing ◽  
Small Building ◽  
Decision Making Criteria

Purpose This study aims to investigate and ranks the critical factors influencing the bid or no-bid decision and their importance for the indigenous small building contractors within the Tanzanian construction industry. Design/methodology/approach An interpretivist epistemological design was adopted to extensively manually review and search extant literature on bid or no-bid decision-making criteria. A total of 30 most common bid or no-bid decision-making criteria were identified. These were included in a questionnaire survey data collection instrument. The survey was distributed to 40 small indigenous (local) building contractors in Dar es Salaam, Tanzania. In total, 33 responses were received. Response data was subjected to both descriptive and inferential statistics. Findings The results show a disparity of ranking of the 30 bid/no-bid criteria factors among the two grades of small contractors, with 11 factors having statistically significant differences (p = < 0.05). Based on the overall sample, the most highly ranked seven factors in ascending order were: availability of capital; financial capacity of the client; project size; profitability; project type; need of work; and current workload. The following were the least ranked: tax liability; the degree of safety; availability of other projects; availability of labor; bidding document price; and uncertainty because of weather conditions. Availability of capital and financial capacity of the client were jointly ranked as the most important by Class VI contractors. In comparison, availability of capital and need of study were rated highly for Class VII contractors. Research limitations/implications The sample consisted of indigenous small building contractors in one industry operating in Tanzania only and did not include the perceptions of the foreign contractors based in Dar es Salaam. Future studies are required to expand the current research and investigate this specific aspect further. Practical implications The identified “bid/no-bid criteria” information will allow indigenous small building contractors to enhance the efficiency and effectiveness of their bidding decision-making process. Emergent findings will enable said contractors to: better fit into the competitive construction business environment; increase their awareness of existing decision-making practices; and develop appropriate strategies for evaluation of opportunities encountered. Cumulatively, these findings benefit small indigenous building contractors by increasing their understanding of the factors influencing bid decision. Originality/value The study represents the first empirical study in Tanzania on the critical factors influencing the bid or no-bid decision among the indigenous small building contractors, which face fierce competition from foreign contractors.

Identifying critical factors influencing the safety of Chinese subway construction projects

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shang Zhang ◽  
Riza Yosia Sunindijo ◽  
Martin Loosemore ◽  
Shejiang Wang ◽  
Yajun Gu ◽  
...  
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Safety Management ◽  
Hazard Identification ◽  
Critical Factors ◽  
Content Type ◽  
Factors Influencing ◽  
Safety Risks ◽  
Subway Construction ◽  
Accident Rates

PurposeThe image of the construction industry in China, as in many other countries, is tarnished by its poor safety record. With the rapid development of subway systems in Chinese urban areas, construction workers are being exposed to new risks which are poorly understood and managed. Subway construction projects are large scale and scattered over many construction sites, and involve numerous stakeholders and sophisticated technologies in challenging underground environments. Accident rates are high and have significant economic and social consequences for the firms and people involved. Addressing the gap in research about the safety risk in these projects, the purpose of this paper is to advance understanding of the factors influencing the safety of Chinese subway construction projects with the overall objective of reducing accident rates.Design/methodology/approachA survey was conducted with 399 subway construction professionals across five stakeholder groups. Follow-up interviews were also conducted with five experienced experts in safety management on subway projects to validate the results.FindingsIt was found that the eight most critical factors perceived by stakeholders to influence safety risks on Chinese subway projects are: project management team; contractor-related factors; site underground environment; safety protection during the use of machines; safety management investment; site construction monitoring and measurement; hazard identification and communication; and use of machines in all stages. This indicates that in allocating limited project resources to improve the safety of subway projects, managers should focus on: developing safety knowledge and positive attitudes in leadership teams; formulating effective risk management systems to identify, assess, mitigate, measure and monitor safety risks on site; improving communications with stakeholders about these risks and effectively managing plant, equipment and machinery.Originality/valueThis research contributes a new multi-stakeholder perspective to the lack of safety research in Chinese subway construction projects. The research findings provide important new insights for policymakers and managers in improving safety outcomes on these major projects, producing potentially significant social and economic benefits for society and the construction industry.

Identification and prioritization of factors affecting venture capitalists’ investment decision-making process

2016 ◽  
Vol 23 (4) ◽  
pp. 964-983 ◽  
Author(s):  
Monika Dhochak ◽  
Anil Kumar Sharma
Keyword(s):  
Decision Making ◽  
Investment Decisions ◽  
Economic Environment ◽  
Regulatory Environment ◽  
Venture Capitalists ◽  
Critical Factors ◽  
Content Type ◽  
Factors Affecting ◽  
Factors Influencing ◽  
Financial Consideration

Purpose The purpose of this paper is to identify and rank critical factors influencing investment decisions of venture capitalists. Design/methodology/approach To identify and prioritize factors affecting investment decisions of venture capitalists, a two-phase methodology was adopted: in the first phase, critical factors influencing venture capitalists’ investment decisions were identified using exploratory factor analysis; the second phase entailed the use of a multi-criteria decision-making technique – analytical hierarchal process (AHP) which involved assigning weights to, and prioritizing the identified criteria and sub-criteria. Findings Seven factors were found to significantly influence investment decisions of venture capitalists: entrepreneur’s characteristics, product or services, market characteristics, management skills, financial consideration, economic environment and institutional and regulatory environment. Findings revealed that entrepreneur’s characteristics, financial consideration and product or services were prime influencers of venture capitalists’ investment decisions. Research limitations/implications As for limitations, first, the study considers limited number of factors influencing investment decisions of venture capitalists; there may be other influencers not considered in this study. Second, the AHP methodology assumes that the various decision-making criteria and sub-criteria are independent of each other; in real life, there may be inter-dependency among criteria. Third, the hierarchal model has been tested in the Indian venture capital industry only, and generalizability of results with respect to other industries is questionable. Practical implications The present study identifies and ranks seven factors found to significantly influence investment decisions of venture capitalists. Venture capitalists could use this list of factors as a guideline before making investment decisions, and if considering all factors is not possible, take into account the factors given top rank so that they arrive at informed and intelligent decisions. Originality/value This study is the first to identify economic factors (economic environment and institutional & regulatory environment) as influencers of venture capitalists’ investment decisions. Further, no study in the past has attempted to rank or prioritize factors influencing venture capitalists’ investment decisions; this is the first attempt of the kind.

An empirically verified project risk maturity model

2014 ◽  
Vol 7 (2) ◽  
pp. 263-284 ◽  
Author(s):  
Budi Hartono ◽  
Deo F.N. Wijaya ◽  
Hilya M. Arini
Keyword(s):  
Construction Industry ◽  
Convergent Validity ◽  
Discriminant Validity ◽  
Face Validity ◽  
Maturity Model ◽  
Maturity Level ◽  
Cross Sectional Survey ◽  
Project Risk ◽  
Content Type ◽  
Risk Maturity

Purpose – The purpose of this paper is to develop and to empirically verify a model of project risk management maturity (PRMM). Design/methodology/approach – Theoretical work to develop the initial model of risk maturity. Empirical study by a cross-sectional survey to the Indonesian construction industry. Findings – A new model of PRMM is developed and empirically tested. The model is valid (face validity, content validity, discriminant validity, convergent validity, and criterion validity) and reliable. Research limitations/implications – A more comprehensive, follow-up study is required to gain more insights on the actual maturity level of Indonesian construction industry. Practical implications – The model is applicable to assess the organizational maturity level which in turn could be used for improving organization performance. Originality/value – The work demonstrates a novel approach in developing models by emphasizing on the empirical verification.

scholarly journals Evaluating Critical Factors Influencing the Reliability of Emergency Logistics Systems Using Multiple-Attribute Decision Making

Symmetry ◽  
2020 ◽  
Vol 12 (7) ◽  
pp. 1115 ◽  
Author(s):  
Peng Jiang ◽  
Yixin Wang ◽  
Chao Liu ◽  
Yi-Chung Hu ◽  
Jingci Xie
Keyword(s):  
Decision Making ◽  
Distribution System ◽  
Multiple Attribute Decision Making ◽  
Supply System ◽  
Critical Factors ◽  
Logistics System ◽  
Factors Influencing ◽  
Emergency Logistics ◽  
Multiple Attribute ◽  
Coordination System

The infectious disease COVID-19 has swept across the world in 2020, and it continues to cause massive losses of life and severe economic problems in all countries. Providing emergency supplies such as protective medical equipment and materials required to secure people’s livelihood is thus currently prioritized by governments. Establishing a reliable emergency logistics system is critical in this regard. This paper used the Delphi method to design a formal decision structure to assess emergency logistics system reliability (ELSR) by obtaining a consensus from a panel of experts. Assessing ELSR is a typical multiple-attribute decision making (MADM) problem, and the related MADM methods are usually on the basis of symmetry principles. A hybrid MADM model, called the Decision Making Trial and Evaluation Laboratory (DEMATEL)-based Analytical Network Process (D-ANP), was developed to identify the critical factors influencing ELSR. An analysis of empirical evidence showed that the emergency logistics command and coordination system and the emergency material supply system play important roles in ELSR, while the emergency logistics transportation and distribution system and the emergency information system are not so important. This conclusion is different from previous research about traditional disaster emergency logistics. Moreover, the cause–effect relationships among the key factors indicated that the system of command and coordination for emergency logistics and the supply system for emergency materials should be improved. Accordingly, effective suggestions for emergency logistics services for epidemic prevention are provided in this paper. The main contributions of this paper are (1) establishing a comprehensive and systematic evaluating index of ELSR for epidemic prevention; (2) employing a kind of structured, namely D-ANP, to identify the critical factors with non-commensurable and conflicting (competing) characteristics; and (3) comparing the differences of reliable criteria between the emergency logistics of epidemic prevention and the traditional disaster emergency logistics.

scholarly journals Examining the implementation of ISO 9001 in Indonesian construction companies

2015 ◽  
Vol 27 (1) ◽  
pp. 94-107 ◽  
Author(s):  
Debby Willar ◽  
Vaughan Coffey ◽  
Bambang Trigunarsyah
Keyword(s):  
Quality Management ◽  
Construction Industry ◽  
Current Practice ◽  
Iso 9001 ◽  
Quality Management Systems ◽  
Content Type ◽  
Construction Companies ◽  
Main Motive ◽  
Research Findings ◽  
Management Attitude

Purpose – The purpose of this paper is to examine the implementation of quality management systems (QMSs) of Grade 7 (G-7) Indonesian construction companies. This includes the initial motives that have driven the development of QMSs, barriers to effective QMS implementation, the current practice and integration of QMS-ISO 9001 principles and elements, and the performance of contractors implementing such QMSs. Design/methodology/approach – A survey was conducted involving 403 respondents (Quality Management Representatives, Managers, and Project and Site Engineers) from 77 G-7 as well as ISO 9001 certified Indonesian construction companies. Findings – The main motive for G-7 contractors in establishing and implementing ISO 9001 based QMSs are identified as being to effectively and efficiently control project activities. Respondents apparently do not often experience problems related to QMS implementation. However, issues of management attitude and purpose are identified as barriers that may affect effective QMS implementation. The study highlights the ISO 9001 principles and elements that still require to be more critically applied by G-7 contractors in order to fully implement and improve their current QMS effectiveness. The findings also suggest that, although certified, many G-7 contractors have not yet achieved a satisfactory level of performance to be truly competitive in global markets outside Indonesia. Originality/value – To date, only limited research has been conducted into the application of ISO 9001 in the Indonesian construction industry. The research findings reinforced the value of pursuing more effective QMS implementation. They also support current attempts to introduce ISO 9001 QMSs to a much wider base of Indonesian construction companies, particularly small and medium sized contractors and builders.

Operational process stages of brand alliances

2015 ◽  
Vol 27 (4) ◽  
pp. 389-408
Author(s):  
Chung-Ju Tsai ◽  
Tzong-Ru (Jiun-Shen) Lee ◽  
Szu-Wei Yen ◽  
Per Hilletofth
Keyword(s):  
Construction Industry ◽  
Brand Alliances ◽  
Content Type ◽  
Operational Process ◽  
Construction Companies ◽  
Reinforcing Bar ◽  
Brand Alliance ◽  
Interview Survey ◽  
Alliance Partners ◽  
Development And Management

Purpose – The purpose of this research is to investigate how companies in the reinforcing bar industry and the construction industry operate and implement brand alliances. Design/methodology/approach – This research uses a qualitative interview survey and the grounded theory method to extract key factors of brand alliance development and management in the targeted industries. The interview survey included six managers from different construction companies in Taiwan. Findings – This research identifies four common firm-level operational process stages (core categories) of brand alliances including different multidimensional factors, and proposes a conceptual model based on these identified core process stages. The four common core process stages include selection of brand alliance partners, communication with brand alliance partners, enforcement of brand alliances and assessment of brand alliances. Originality/value – The proposed model offers a tentative explanation of the development and management of brand alliances between the reinforcing bar industry and the construction industry. This study represents an initial research attempt in this field and explains how reinforcing bar and construction companies operate and implement brand alliances.

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