Evaluating the Factors Affecting Contractors Tender for Project Construction: An Empirical Study of Small Scale Indigenous Contractors in Awka, Nigeria

Abstract

In Nigeria and other countries’ economies, small scale indigenous contractors perform a vital role that significantly impacts economic stability. The small-scale indigenous contractors contribute prominently to the economy by creating more noteworthy work openings, making higher creation volumes, growing conveys, and introducing progression and business capacities in the construction industry. In this research study, a total sample of 250 was used out of 400 small-scale indigenous contractors and other professionals in the construction industry in Awka, Anambra State, Nigeria. Data for the study were generated using a questionnaire, and the collection instrument was validated and endorsed by different professionals in the construction industry before being administered to the respondents. In this study, primary data was generated to evaluate the factors affecting small-scale indigenous contractors in Awka, Anambra State, Nigeria. Different strategies were used to obtain the resulting outcome, which includes regression analysis, ANOVA (Analysis of variance), and descriptive statistics to analyze the relationship between the factors affecting the determinants of the construction project (Companys’ strength, project risk, and Competition) and the contractors’ decision to bid. The analysis showed that the company’s strength, project risk, and competition all positively affect the determination of the slight indigenous contraction’s willingness to bid for contracts in Awka, Anambra State, Nigeria. The study showed that the company’s strength, project risk, and competition positively impact the contactor’s decision to tender for construction projects. This research analyzed and ascertained enough data and information to prove the essential factors influencing small-scale indigenous contractors’ decision to tender for construction contracts. The researcher recommends that contractors should execute the projects or works being handled by them promptly and efficiently, within the required time frame to which can reduce competition from another contractor to use that as an advantage for competition.