Assessment of Competitive Bidding Strategy Scenarios in the Construction Industry of India

Abstract

Construction companies must have the ability to deal with various bidding situations successfully in today's highly competitive construction market. The contractors' strategy is affected by various factors and influences. The low-cost mentality dominates in the competitive business of the construction industry. Previous various study have been devoted to finding solutions for helping contractor's bidding strategy. This paper presents the analysis of factors affecting contractor's bid or not to bid decision, markup percentage of 17 respondents from top five contractors in highway sector across India, relationship between successful bid ratio with firm's net profit margin (NPM) & total revenue, relationship between markup size with successful bid ratio in different construction business sector & markup size variations in different construction sector by applying various research methods like RII method, descriptive statistics, Chi-square test of independence, Spearman's rank order correlation coefficient method. This paper also suggests some recommendations as lots of scope of future research is present in this field.