Abstract
This paper examines the effects of different factors on the success or failure of bids for infrastructure projects in Australia. Logistic regression analysis was used to empirically determine which factors have the largest effect on bidding success. Data was collected from 123 bids submitted by several infrastructure companies with subsidiaries in Australia. The analysis found that having a competitive advantage and a local partner, and also not competing against a local company were the most important factors; as they significantly increase the chances of success. However, four other factors, having relevant expertise, resource availability, a previous relationship with the client, and a previous relationship with consortium members, are ‘essential’ to be able to compete; as the absence of any of these four factors results in bid failure, although having them is not a guarantee of success. Results of this paper provide valuable information for any company considering the opportunity of entering into Australia’s infrastructure market as well as for companies that are already present in that country and are considering whether to bid for a specific project.
Highlights
One the most important and recurring decisions made by contractors in the construction industry is whether to bid or not to bid for a new project (Dzeng, Wang 2016)
Shash (1993) performed a similar study mailing a questionnaire to 300 top contractors in the United Kingdom, identifying the need for work, the number of competitors in the auction, the experience of the bidder, and the difficulty and risk of the project as the four factors that affect the contractors decision to bid for a project
With a list of potentially influential factors identified, data was collected from the internal database of 20 companies with subsidiaries in Australia that had been bidding on projects in Australia for up to ten years
Summary
One the most important and recurring decisions made by contractors in the construction industry is whether to bid or not to bid for a new project (Dzeng, Wang 2016). The need for weighting and scoring economic criteria or price-related factors (e.g., life-cycle costs, cost of maintenance, or decommission costs) along with technical criteria (e.g., compliance, time, availability, or quality) is because they are part of a mathematical expression that determines (theoretically) the best return on investment of the procurement of goods, works or services for the owner (Asker, Cantillon 2010) Within this context, this research aims to determine empirically which factors affect contractors’ bidding outcomes (success or failure) in a situation where foreign companies bid for jobs in another country. Some relevant contributions, limitations and recommendations will be drawn
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
