The purpose of this paper is to identify and rank the factors that affect the bid/no bid decision according to their relative importance from the perspective of the…
The purpose of this paper is to identify and rank the factors that affect the bid/no bid decision according to their relative importance from the perspective of the contracting parties operating in the Gaza Strip, Palestine.
The objectives of this research were investigated through a postal questionnaire, which covered a randomly selected sample of 63 contractors, 29 clients and 13 consultants operating in the construction industry in the Gaza strip. The questionnaire was structured based on related literature, the pilot study and actual factors affecting bidders' decisions to bid or not that arise from special conditions in the Gaza Strip. A total of 78 factors that affect the bid/no bid decision were identified. These factors were then ranked according to their relative importance to contracting parties operating in the Gaza Strip, Palestine.
The results illustrate that the financial capability of the contractors, the financial capability of the clients, the financial values of the project, the due date of the payments, the availability of construction raw materials in local markets, and the stability of the construction industry were the most critical factors affecting the bid/no bid decision, as agreed by all respondents.
The paper provides supportive practical solutions for contractors, clients and consultants to enhance and improve bidding decisions. It is recommended that clients and consultants consider the financial capabilities, technical capabilities and staff competencies of the contractors during the awarding stage, and not simply focus on the lowest bid.
This paper aims to investigate the overhead costs of construction contractors at the Gaza Strip, Palestine, specifically the level of contractors' awareness of the concept…
This paper aims to investigate the overhead costs of construction contractors at the Gaza Strip, Palestine, specifically the level of contractors' awareness of the concept of overhead cost, their perception of main components of overhead cost, percentage of overhead to total project cost, method used to manage and control overhead cost, and reasons for increasing overhead cost.
In the research 40 contractors classified under the Palestinian Contractors Union (PCU) and United Nation Relief Works Agency (UNRWA) list were surveyed.
The findings indicate that the majority of contractors are aware of overhead costs in construction projects. The staff wages are the highest overhead costs component. The currency exchange rates, inflation, increase in financial costs among others lead to increase in overhead costs. The findings illustrate that the overhead costs are on average 11.1 percent of the total project cost. Controlling and managing overhead costs are considered the main tools to improve the companies' financial situation.
The trend in most companies is to adopt techniques to manage and control their cost components. Using activity based costing (ABCs) is one of the main techniques which the companies should take into consideration. The contractors' knowledge and awareness of the research finding will increase their chances of winning bids within an acceptable profit margin. Applied training courses are recommended for contractors to improve their awareness regarding the importance of overhead costs.
This study will extend contractors' awareness and knowledge through guidance on how to gear their financial resources carefully, and how to bid correctly in order to remain competitive in the market place.