Examining factors affecting bidding decisions of construction firms in Ghana a study of construction firms in South Tongu District

Abstract

Designing and executing an effective bid is a huge challenge for most contractors who seek construction contracts. The aim of this study was to examine factors affecting bid/no bid decision of construction companies in the South Tonqu District in Ghana. The specific objectives of the study include; to ascertain factors affecting the bid/no bid decisions of construction firms in the South Tongu District in Ghana, to determine challenges facing contractors when submitting bids in the South Tongu District in Ghana, and to determine strategies for overcoming challenges to bid submission in the South Tongu District in Ghana. The study adopted a cross sectional descriptive survey design. The target population of construction professionals with a population made up managers, quantity surveyors, site supervisors, and site engineers of some selected construction firms in the South Tongu District. The study adopted convenience sampling technique to select seventy-five respondents. The findings of the study showed that the most significant factors affecting the bid/no bid decisions of construction firms are; financial capability of the client, profitability, risk involved in investment and degree of hazard/safety, and availability of labour/equipment and materials. The study further revealed that inadequate knowledge of practitioners on bidding methods, corruption, insecure economic environment, political influence, project uncertainties and communication problems are the key challenges faced by contractors when submitting bids for contracts. Finally, the study found that the challenges face by contractors in their quest to bid can be minimized when contractors acquire training on bidding process and use their past performance data and technology during bidding. Based on the findings, the study recommends that contractors should spend time acquainting themselves with the bidding process and equipping themselves with the right knowledge to help them improve their chances of winning bids.