Factors affecting the main contractor’s bid/ no bid decision making process in Tamale Metropolis

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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.
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.
affecting the main contractor’s bid/ no bidFactors, Decision making process, Tamale Metropolis