Subcontractors' Bidding Decisions

Abstract

Bid decisions by subcontractors are complex due to the uncertainty about many factors affecting their outcomes. This study was able to identify, through a questionnaire survey, many factors characterizing the bid decision-making process. The questionnaire was mailed in August 1995 to 320 subcontractors in Colorado. The results indicate that the contractor's credit history, habit in the issuance of periodical payments, and leadership and capability in planning and managing the project are identified as the top factors that affect a subcontractor's decision to bid for a project. The subcontractor's previous relationship with the contractor, the contractor's capabilities, financial capacity, current work load, and specialty, and the prospect of future business relationships are the highest ranked factors affecting quotation decision. Suggestions are advanced to subcontractors for improving their bidding decisions.