American Society of Civil Engineers


Questionnaire Survey on Bidding in Construction


by Irtishad Ahmad, S.M.ASCE, (Ph.D. Candidate, Dept. of Civ. Engrg., Mail Location  71, Univ. of Cincinnati, Cincinnati, OH 45221) and Issam Minkarah, M.ASCE, (Prof., Dept. of Civ. Engrg., Mail Location  71, Univ. of Cincinnati, Cincinnati, OH 45221)

Journal of Management in Engineering, Vol. 4, No. 3, July 1988, pp. 229-243, (doi:  http://dx.doi.org/10.1061/(ASCE)9742-597X(1988)4:3(229))

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Document type: Journal Paper
Abstract: Bid decisions are heuristic in nature as they are made on the basis of experience, judgment and perception. In an attempt to uncover the underlying factors that characterize the bidding decision-making process, a questionnaire survey is conducted among general contractors. This paper contains results based on the response obtained from 400 of the top general contractors in the United States. Characteristics of the group, factors affecting bid/no-bid and percent-markup decisions, and policies and practices of the contractors are reported. The study reveals that bidding decisions are greatly influenced by subjectively evaluated criteria, such as type of job, location, size of job, need for work, owner, subcontractors, degree of hazard, and degree of difficulty. Competition and profitability, although significant, are not the top-ranked factors.


ASCE Subject Headings:
Contractors
Questionnaires
Bids
Construction companies
Decision making