Factors affecting the main contractor’s bid/ no bid decision making process in Tamale Metropolis
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Date
2021-07-07
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Abstract
Ghana is one country that has prioritised public procurement as a means to reducing
corruption in the country. However, the success of competitive bidding depends on a
bid/no bid decisions of contractors. Bid/no bid decision call for in deep knowledge of a
company’s consideration in connection with many factors affecting this decision. When
a company does not assess the right factors before bidding can lead to failure in the bid
and its subsequence effects on the bidder. Knowing the above challenge, the research
aimed to unearth factors affecting the main contractors’ bid /no bid decision making
process, causes of failures in tendering of works and effects of the failures on tenderers
in the Tamale Metropolis. A questionnaire survey, consisted of 50 factors and further
grouped into 13 major factors affecting bid / no bid decision, was distributed to the
works contractors. Through a survey, 111 contractors and 20 procurement officers were
sampled for the study. Data collected was analysed using Relevant Important Index
(RII) and means score ranking with the help of the Statistical Package for the Social
Sciences (SPSS). The study discovered that need for work, strength of the firm, risk
creating job and contract conditions, project conditions contributing to profitability and
job uncertainty were the major critical factors affecting contractors’ bid/no bid decision
in the Tamale Metropolis. In order to ensure competitive bidding, the study
recommends that the Public Procurement Authority (PPA) through the various
procurement units of procurement agencies should work to ensure that tendering
procedure becomes less cumbersome with understandable specification conditions and
less expensive process. However, the results provided will make contractors more
informed about the factors affecting the bidding decision process. Contractors been
aware of these factors will make an informed decisions relating to bidding process.
Description
A thesis submitted to the Department of Construction Technology and Management, Kwame Nkrumah University of Science and Technology, Kumasi in partial fulfillment of the requirements for the Award Degree of Master of Science in Procurement Management.
Keywords
affecting the main contractor’s bid/ no bidFactors, Decision making process, Tamale Metropolis