Assessment of Factors Affecting Contractors Tender for Constructions Projects in Nigeria

The highly competitive construction market requires companies to possess the ability to handle diverse tendering situations efficiently. When tender invitations are received, the first step for companies is to consider whether or not to participate. This study aims to examine the significant factors that influence contractors' decision-making regarding tendering, factors affecting cost estimates, and necessary management strategies for achieving responsive tenders. Using a structured questionnaire, data was collected from professionals in the construction industry such as contractors, architects, engineers, and quantity surveyors, resulting in 97 responses. The data was analyzed using a relative importance index. This study revealed from the four (4) categories stated, which are competitions, risks, the company’s position in tendering, and the need for work, that the most significant factors influencing a contractor's decision to tender are confidence in their work, competition, overall economic conditions (availability of work), project cash flow, previous experience with the owner, designer/design quality, and labor environment. While the factors affecting cost estimates included project location, supplier manipulation, inflation pressure, high machinery cost/maintenance, and poor financial control on-site, among others. In conclusion, a joint venture was found to be the most significant management strategy required to achieve responsive tenders. And contractors must frequently engage in bid decisions, and the preparation of bid packages requires substantial time and resources.