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B.E.D.M. Gündel
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To Bid or not to Bid: that is the Question
Relating Contractor Bid Decisions to Tender Design Related Attributes
Master thesis
(2019)
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Anouk Slockers, Hans Wamelink, Bart Suijkerbuijk, Leon Hombergen, Inigo Cleton, Menno Meulebeek
The construction industry has always been an important driver of the economy. An important part of the projects in this industry is commissioned by public entities. However, recently a trend can be observed in which the procurement process fails more often than before. Due to the current times of economic expansion in the Netherlands contractors are more selective in project selection. Failed procurement processes are however undesirable since the transaction costs and time invested in such a process can mount up. Many scholars have investigated the bid decision of contractors (Bagies & Fortune, 2006; Shokri-Ghasabeh & Chileshe, 2016). Yet, in order to contribute to solving the issue mentioned above not all considerations of contractors are relevant. Therefore, this research specifically focused on those considerations, or decision attributes, that a client can influence during the tender design phase. Resulting in the following research question: “What tender design related attributes are key decision drivers in the contractor’s bid decision and how do these key decision drivers influence the bid decision in economic times of expansion for publicly procured non-residential construction projects in the Netherlands?”
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The construction industry has always been an important driver of the economy. An important part of the projects in this industry is commissioned by public entities. However, recently a trend can be observed in which the procurement process fails more often than before. Due to the current times of economic expansion in the Netherlands contractors are more selective in project selection. Failed procurement processes are however undesirable since the transaction costs and time invested in such a process can mount up. Many scholars have investigated the bid decision of contractors (Bagies & Fortune, 2006; Shokri-Ghasabeh & Chileshe, 2016). Yet, in order to contribute to solving the issue mentioned above not all considerations of contractors are relevant. Therefore, this research specifically focused on those considerations, or decision attributes, that a client can influence during the tender design phase. Resulting in the following research question: “What tender design related attributes are key decision drivers in the contractor’s bid decision and how do these key decision drivers influence the bid decision in economic times of expansion for publicly procured non-residential construction projects in the Netherlands?”