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1 – 10 of over 3000Oluwaseyi Alabi Awodele, Douglas Omoregie Aghimien, Olutayo Gabriel Akinkunmi and Clinton Ohis Aigbavboa
Due to its cost savings nature and ability to ensure constant jobs for contractors, this study aims to assess the capability of the labour-only procurement system to serve as a…
Abstract
Purpose
Due to its cost savings nature and ability to ensure constant jobs for contractors, this study aims to assess the capability of the labour-only procurement system to serve as a surviving strategy for construction contractors in a challenging economy.
Design/methodology/approach
The study adopted a mixed-methods design. An interview and questionnaire were used to harness information from 98 construction participants who have been involved in labour-only procured projects. These respondents were identified through snowballing. Frequency, percentage, mean item score, Mann–Whitney u-test and content analysis were used in analysing the data gathered.
Findings
Result revealed that participants are willing to execute more projects through this system because it gives considerable cost savings for clients and provides reduction in contractor’s risk and allows them to maintain healthy cash flow. The main factors influencing its usage are the client’s decision to procure materials, need for job at hand for contractors and the need for referrals from clients for subsequent jobs.
Practical implications
Findings of this study will assist contractors to understand the potential of this procurement system as a surviving option in a harsh economy. Small and medium contractors can make use of this available opportunity of having projects at hand at reduced risk to ensure continuous cash flow to keep their organisations afloat.
Originality/value
The contribution of this study to the body of knowledge lies in its provision of a reasonable insight on the inherent nature of a procurement system as a surviving strategy for contractors unlike the usual assessment of the generic survival strategies adopted in other studies.
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This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Abstract
Purpose
This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Design/methodology/approach
This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.
Findings
This research paper concentrates on the reasons why the labor-only procurement of construction services is being commonly used in Nigeria. Adopting a survival strategy for hard economic times of accepting labor-only work benefits small- and medium-sized contractors by providing quick sources of cash flow and by allowing them to build more client relationships, while small private clients benefit from cost savings and from controlling material quality.
Originality/value
The briefing saves busy executives, strategists, and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.
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Innocent Chigozie Osuizugbo, Mazen M. Omer, Rahimi A. Rahman and Olalekan Shamsideen Oshodi
This study aims to review the current trends in early contractor involvement (ECI) in construction project development. The review consist of the following objectives: (1…
Abstract
Purpose
This study aims to review the current trends in early contractor involvement (ECI) in construction project development. The review consist of the following objectives: (1) identifying the benefits of ECI on construction project development; (2) identifying the challenges of ECI in construction project development; and (3) identifying the strategies of ECI in construction project development.
Design/methodology/approach
This study systematically reviews the literature on the application of ECI in construction project development. A total of 133 related articles were identified and analyzed using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) method.
Findings
This review identified “improved team work/collaboration working relationship” as the top benefits of ECI in construction project development. “Cultural barrier” was identified as the top challenge of ECI in construction project development, while “contributing value engineering” and “buildability evaluation input”, were the top two strategies of ECI in construction project development.
Originality/value
To the best of the authors’ knowledge, this study is the first to systematically review prior literature on ECI. As a result, the study provides a comprehensive understanding of the current state of the art and fills the literature gap. Researchers and industry professionals can use the study findings to increase the rate and benefits of implementing ECI in construction projects.
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Nicholas Chileshe, David John Edwards, Neema Kavishe and Theo C. Haupt
The acknowledged mode of securing work by contractors is through the bidding process. However, the bidding decisions undertaken by some indigenous contractors in developing…
Abstract
Purpose
The acknowledged mode of securing work by contractors is through the bidding process. However, the bidding decisions undertaken by some indigenous contractors in developing countries are fraught with challenges that often engender bidding practices (such as collusion through price fixing and intentional lower bidding) and threaten business survival. Therefore, in the quest to better understand these challenges and viable advocate solutions for overcoming them, this paper aims to identify the key challenges impacting the bid decision process by small indigenous building contractors in Dar es Salaam, Tanzania, and establish the strength of their relationship between the pairs of key challenges.
Design/methodology/approach
A comprehensive literature review was conducted to identify nine challenges impacting the bid decision of indigenous building contractors in Tanzania, which were used to design a questionnaire survey. Data collected were analysed using descriptive statistics, mean score, inferential statistics (One sample t-tests), Kendall’s concordance and correlation analysis.
Findings
Challenges identified from a literature review were empirically tested using survey responses accrued from 33 participating small indigenous building contractors in Dar es Salaam, Tanzania. The findings illustrate that lack of liquidity, profit returns, lack of equipment, lack of experience of several works and procurement procedures are perceived as being the five most critical challenges. Project location, site accessibility and lack of labour were least critical. The major finding from the correlation analysis was the existence of the strong and positive correlation between “project location” and “site accessibility”.
Research limitations/implications
The study is limited by its sample and geographical settings which focussed and confined the results on one country, Tanzania. However, the findings can be considered as important for other developing countries wishing to gain insights into the challenges impacting bid decisions.
Practical implications
Measures for addressing the identified challenges impacting the bidding decisions of the indigenous small building contractors would be undertaken. The findings will enable contractors to not only reconcile the challenges with the industry and in so doing benefit both themselves and the clients but also enable them to be better prepared to deliver contractual obligations and generate socio-economic wealth. Government and policymakers will also be able to appropriately develop macro interventions for managing these challenges, which could be custom-tailored to indigenous small contractors. Finally, improving the ability of local firms to compete in the construction industry has been recognised as having the potential of advancing socio-economic development within the comity of developing countries.
Originality/value
The study enhances government, client and practitioners’ understanding of the challenges affecting the bidding practices among the indigenous building contractors in Tanzania. This area of investigation has previously been under explored particularly sub-Saharan Africa.
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Analysis of organizational decline has become central to the study of economy and society. Further advances in this area may fail however, because two major literatures on the…
Abstract
Analysis of organizational decline has become central to the study of economy and society. Further advances in this area may fail however, because two major literatures on the topic remain disintegrated and because both lack a sophisticated account of how social structure and interdependencies among organizations affect decline. This paper develops a perspective which tries to overcome these problems. The perspective explains decline through an understanding of how social ties and resource dependencies among firms affect market structure and the resulting behavior of firms within it. Evidence is furnished that supports the assumptions of the perspective and provides a basis for specifying propositions about the effect of network structure on organizational survival. I conclude by discussing the perspective’s implications for organizational theory and economic sociology.
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Analysis of organizational decline has become central to the study of economy and society. Further advances in this area may fail however, because two major literatures on the…
Abstract
Analysis of organizational decline has become central to the study of economy and society. Further advances in this area may fail however, because two major literatures on the topic remain disintegrated and because both lack a sophisticated account of how social structure and interdependencies among organizations affect decline. This paper develops a perspective which tries to overcome these problems. The perspective explains decline through an understanding of how social ties and resource dependencies among firms affect market structure and the resulting behavior of firms within it. Evidence is furnished that supports the assumptions of the perspective and provides a basis for specifying propositions about the effect of network structure on organizational survival. I conclude by discussing the perspective's implications for organizational theory and economic sociology.
Adnan Enshassi, Sherif Mohamed and Ala'a El Karriri
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…
Abstract
Purpose
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.
Design/methodology/approach
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.
Findings
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.
Originality/value
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.
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Yixi Zhang, Bee Lan Oo and Benson Teck-Heng Lim
Contractors of different scales, operating in different construction industries of varying institutional and economic settings, have different considerations when making bid or…
Abstract
Purpose
Contractors of different scales, operating in different construction industries of varying institutional and economic settings, have different considerations when making bid or no-bid and mark-up decisions. Focusing on the large and medium-sized contractors in the Jilin province, China, the purpose of this study is to examine important factors affecting their decision to bid (d2b) and mark-up decisions and investigate differences between large and medium-sized contractors in evaluating the importance of the various factors affecting their d2b and mark-up decisions.
Design/methodology/approach
This study used a survey design for timely data collection from a large population. Contractors’ bidding attitudes was collected using an online survey questionnaire with a list of 40 key factors. Statistical analytical methods were applied for comparing the two groups of contractors.
Findings
The results of this study indicate that factors related to client conditions are most critical for both large and medium-sized contractors in their d2b and mark-up decisions. The results also show statistically significant differences between the two groups of contractors on a subset of factors affecting their d2b and mark-up decisions. The large contractors have placed more emphasis on projects' potential financial and strategic benefits. Another notable finding is that both groups of contractors have placed great emphasise on “government legislations” in their d2b and mark-up decisions.
Research limitations/implications
These findings should be interpreted in consideration of several limitations. Firstly, the sample size is relatively small, and the focus was on a single province in the China construction industry. Next, this study only explores differences between large and medium-sized contractors in evaluating the importance of the various factors affecting their d2b and mark-up decisions.
Practical implications
Contractors could refer list of critical factors in competing for jobs in Jilin province or other provinces of similar institutional and economic settings. Construction clients, on the other hand, should consider the list of critical factors in the formulation of their competitive tendering procedures, thus enhancing the efficiency in their procurement of construction services.
Originality/value
Research on contractors’ bidding decision-making in the context of Chinese construction industry remains scarce; the research findings have implications for the industry stakeholders.
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Yat Hung Chiang, Jing Li, Tracy N.Y. Choi and King Fai Man
The purpose of this paper is to investigate whether a few leading Hong Kong construction firms are also efficient contractors. Theoretically, market leaders can exploit the virtue…
Abstract
Purpose
The purpose of this paper is to investigate whether a few leading Hong Kong construction firms are also efficient contractors. Theoretically, market leaders can exploit the virtue of economy of scale, learning curve and cost leadership to consolidate their competitiveness. However, if market share is key success factor for firms to become and stay competitive, smaller contractors will be further marginalized if the construction market continues to shrink as Hong Kong's economy approaches maturity. Hence the research question is: Have a few leading contractors been taking advantage of their market size to be efficient in Hong Kong?
Design/methodology/approach
Based on the Data Envelopment Analysis Assurance Region (DEA_AR) model, the efficiency scores of 17 major Hong Kong contractors are compiled over the last ten years. DEA is a non‐parametric approach to examine the relative efficiency among different firms, in terms of output/input ratios. Unlike traditional I‐O analysis which relies on a static table of coefficients, DEA does not require any priori and usually subjective weights for inputs or outputs.
Findings
The results identify efficient contractors, among which the three leading ones (China State Construction, Shui On Construction and Yau Lee Holdings) have captured the majority of housing construction contract values. Nevertheless, only China State Construction has ranked consistently as most efficient over time. The efficiency scores of Shui On Construction have decreased successively from 2002 to 2009, and it has been the least efficient contractor from 2006 to 2009. Yau Lee Holdings has a V‐curve of efficiency scores.
Originality/value
This study represents the first attempt to adopt a DEA_AR model to evaluate construction contractors' efficiency, which reduces the number of zeroes and the variation in weights for estimation and enhances the adequacy for individual contractor's efficiency scores, compared to other types of DEA models such as the CCR model and the BCC model.
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The sustainable development of contractor organizations depends highly on bidding decision-making of projects. This current study, leveraging the risk decision-making theory…
Abstract
Purpose
The sustainable development of contractor organizations depends highly on bidding decision-making of projects. This current study, leveraging the risk decision-making theory, attempts to elucidate the process of contractors’ bid/no-bid decision-making and reveal how the process is influenced by their perception of risk. In particular, this study aims to explore the multiple mediating effects of contractors’ trust in owners and risk perception in explaining the relationship between contractual governance outlined in owners’ bidding documents and the bid/no-bid decisions.
Design/methodology/approach
A questionnaire survey was used to obtain data from the Chinese construction industry. The PLS-SEM technique was employed to analyze a dataset of 557 available questionnaires.
Findings
The findings indicate that (1) the contractual governance provided by owners’ bidding documents positively impacts contractors’ bid/no-bid decisions; (2) both risk perception and trust serve as multiple mediators in this relationship and (3) trust mediates the relationship between contractual governance and contractors’ risk perception.
Originality/value
Drawing upon the risk decision-making theory, this study proposes a multiple mediation model for understanding contractors’ bid/no-bid decision-making processes. It contributes to a better understanding of contractors’ bidding decision-making mechanisms, thereby offering theoretical guidance for contractors to make reasonable and informed risk decisions.
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