Factors affecting bidding and markup decisions in Saudi Arabia

(1990) Factors affecting bidding and markup decisions in Saudi Arabia. Masters thesis, King Fahd University of Petroleum and Minerals.


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Arabic Abstract


English Abstract

In the construction industry, the contractor is faced with two critical decisions. He has to decide whetther to bid a project or not. If he decides to bid, the contractor must decide on the proper markup size in order to be the lowest bidder and realize a reasonable profit. The main objective of this study is to investigate the factors underlying both decisions, and to study their relative importance to contractors operating in Saudi Arabia. Many factors were identified as important. They were grouped into five categories: project characteristics, project documents, company characteristics, the bidding situation, and the economic situation. The importance of these factors was assessed by contractors via a mailed questionnaire. Descriptive statistics, importance index, and discriminant analysis were used to analyze the data. The results show that factors such as competition and profitability are not the most important factors. Project cash flow and availability of required cash are the top two factors in the decision to bid, while size of contract and availability of required cash are the top two factors in the markup decision. The importance of the different factors changes as the size of the contractor changes. Contractors were classified into "good" and "bad" bidders; their attitude towards the different factors was studied. Good bidders were found to be different from bad bidders. In order for contractors to enhance their chances of making the right decisions, they are advised to pay great attention to the factors affecting their bidding and markup decisions.

Item Type: Thesis (Masters)
Subjects: Architectural
Department: College of Design and Built Environment > Construction Engineering and Management
Committee Advisor: Shash, Ali Ali
Committee Members: Al-Faraj, Taqi and Al-Mohawis, Soliman and Raouf, Abdul
Depositing User: Mr. Admin Admin
Date Deposited: 22 Jun 2008 13:43
Last Modified: 01 Nov 2019 13:48
URI: https://eprints.kfupm.edu.sa/id/eprint/9558