Effectiveness of Contractors’ Competitive Bidding Strategies in the UAE Construction Industry

Abstract

Contractors seek different competitive bidding strategies in order to increase their opportunity in winning projects. The United Arab Emirates (UAE) construction industry is competitive. Additionally, nowadays, UAE companies tend to expand globally, entering new international markets. Therefore, effective bidding strategies need to be implemented to compete profitably in the UAE and the international markets. The objective of this research is to identify the effective competitive bidding strategies for construction companies in the UAE and international markets. Common competitive bidding strategies were identified through review of related literature. A questionnaire was then prepared and distributed to construction companies in the UAE. Sixty-five surveys were completed and analysed. As a result, the top five effective strategies in the UAE market are lowest bid, value management, achieving a combination of price and performance, application of high technology, and public relations strategy. The top five effective strategies in international market are noted to be achieving a combination of price and performance, lowest bid, value management, application of high technology and public relationship. The results are particularly useful for international contractors who want to enter the UAE construction market.KeywordsBidding strategiesConstruction industryUAEInternational construction