The effect of contract type and contract size on competitiveness in construction contract bidding

Drew, Derek & Skitmore, Martin (1997) The effect of contract type and contract size on competitiveness in construction contract bidding. Construction Management and Economics, 15(5), pp. 469-489.

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Although competitiveness relationships can be considered within a bid or by examining bid distributions, construction contract bidding is essentially concerned with competitiveness relationships between contractors and the contracts for which they are bidding. This paper offers a model which measures the effect of contract type and contract size on competitiveness in construction contract bidding. Multiple regression is used to construct a prediction equation relating bidder competitiveness (the dependent variable) to the independent variables of bidder, contract type and contract size.

The regression model shows that, in terms of competitiveness, contract size is more important than contract type. The most competitive contractors seem to be those with a preferred contract size range. Contractors' competitiveness towards a contract type is affected by the degree of contract type standardisation and sizes of contract contained within a contract type. The greater the degree of contract type standardisation and the larger the sizes of contract within a contract type, the greater the likely competitiveness of bidders.

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ID Code: 9439
Item Type: Journal Article
Refereed: Yes
Keywords: Competitiveness, bidding, regression analysis, construction, contract type, contract size
DOI: 10.1080/014461997372836
ISSN: 1466-433X
Subjects: Australian and New Zealand Standard Research Classification > BUILT ENVIRONMENT AND DESIGN (120000) > BUILDING (120200) > Quantity Surveying (120203)
Divisions: Past > QUT Faculties & Divisions > Faculty of Built Environment and Engineering
Copyright Owner: Copyright 1997 Taylor & Francis
Copyright Statement: First published in Construction Management and Economics 15(5):pp. 469-489.
Deposited On: 13 Sep 2007 00:00
Last Modified: 10 Aug 2011 13:55

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