An examination of the importance of resource considerations when contractors make project selection decisions

Abstract

This research investigates the factors which building contractors consider when making project selection decisions and the processes they follow when making such decisions. The research is based on the premise that resource consideration is the most important factor for contractors when making project selection decisions. Literature was used to identify those factors thought to be most influential. The extent of the diversity of opinion disclosed indicated the necessity to obtain further information which was gathered from contractors by use of postal questionnaires and interviews. The information was analysed by ranking techniques and the results compared by Spearman rank correlations coefficient. The results obtained indicated the strengths of the factors identified. Spearman rank correlation coefficient showed a positive correlation for the results obtained from the findings of the literature study and those obtained from the survey. A non-weighted model of contractors' tendering decision process was developed. The model shows the inter-relationship that exists between client and contractor decisions. The model also illustrates the effect of such decisions on the actions of both clients (their representatives) and contractors. The results obtained from the survey shows that, ‘the ability of the client to pay for the cost of work’ is the most important factor contractors consider when making project selection decisions.

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