Understanding Key Bidding Factors Considered by Top Jordanian Contractors

Abstract

One of the most crucial decisions that is regularly exercised by construction contractors is to determine whether to bid or not to bid on a certain project. The purpose of this paper is to understand key factors that are considered by top Jordanian contractors in their bid/no-bid decision making. Previous research in the Jordanian construction market reported the importance weights of 53 bid/no-bid factors (El-Mashaleh, 2013). Based on that work, this paper discusses the top bidding factors and compares them with international related work. Additionally, the paper examines the reliability of El-Mashaleh’s (2013) study based on Cronbach's alpha reliability test. Furthermore, the paper tests the degree of consensus among the respondents of El-Mashaleh’s (2013) work regarding the ranking of the 53 bid/no-bid decision factors based on Kendall's coefficient of concordance. Finally, analysis of variance (ANOVA) is conducted to test statistical significant differences in the importance weights of the 53 bidding factors between public and private bidders. Cronbach's alpha reliability test proves that the adopted scale of measurement for the importance of the bid/no-bid factors has excellent internal consistency reliability. Kendall's coefficient of concordance reveals a significant degree of consensus among the respondents regarding the ranking of the bid/no-bid decision factors. Analysis of variance (ANOVA) indicates statistical significant differences in importance weights between public and private bidders for 6 factors out of the 53 factors considered.