<abstract xmlns="http://www.w3.org/1999/xhtml"><p>Purpose: Recent studies show that lowest bidder tech­nique is mainly used in developing countries such as India to award a contract. It has been demonstrated that the lowest bid is not always the accurate one and can lead to cost overruns and time extensions amongst other prob­lems. The aim of this study was to investigate the critical factors impacting contractor’s efficiency in Indian con­struction projects. Research approach: A survey was sent to participants of construction projects awarded by the government with the lowest bidder technique in Uttar Pradesh, India. For further research, snowball sampling was used, and struc­tured interviews were conducted amongst experienced managers and engineers of these projects on both client’s and contractor’s side.Findings: It was observed that, to a greater extent, the delays were caused due to contractor’s opportunistic behaviour. The main findings are that new bidding meth­odologies are to be tested as they can lead to the choice of a more accurate and realistic bidder. In addition, subjec­tive evaluation components, such as schedule and work­force, should be reflected in contract award methods in addition to the cost criteria. Further studies should be per­formed on the choice of contract awarding methodology based on the project size and type. Originality value: The researcher’s focus was to analyze the influence of contracting methodologies and factors affecting contractor’s performance in lowest bid award project, where this is an area of least focus amongst researchers in the Indian subcontinent.</p></abstract>

Purpose: Recent studies show that lowest bidder tech­nique is mainly used in developing countries such as India to award a contract. It has been demonstrated that the lowest bid is not always the accurate one and can lead to cost overruns and time extensions amongst other prob­lems. The aim of this study was to investigate the critical factors impacting contractor’s efficiency in Indian con­struction projects. Research approach: A survey was sent to participants of construction projects awarded by the government with the lowest bidder technique in Uttar Pradesh, India. For further research, snowball sampling was used, and struc­tured interviews were conducted amongst experienced managers and engineers of these projects on both client’s and contractor’s side.Findings: It was observed that, to a greater extent, the delays were caused due to contractor’s opportunistic behaviour. The main findings are that new bidding meth­odologies are to be tested as they can lead to the choice of a more accurate and realistic bidder. In addition, subjec­tive evaluation components, such as schedule and work­force, should be reflected in contract award methods in addition to the cost criteria. Further studies should be per­formed on the choice of contract awarding methodology based on the project size and type. Originality value: The researcher’s focus was to analyze the influence of contracting methodologies and factors affecting contractor’s performance in lowest bid award project, where this is an area of least focus amongst researchers in the Indian subcontinent.

An Analytical Study of Critical Factors Affecting Contractor Efficiency in Construction Projects in Indian Scenario

Organization, Technology and Management in Construction: an International Journal

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Purpose: Recent studies show that lowest bidder tech­nique is mainly used in developing countries such as India to award a contract. It has been demonstrated...

An Analytical Study of Critical Factors Affecting Contractor Efficiency in Construction Projects in Indian Scenario

Published Online: Oct 30, 2018

Page range: 1794 - 1802

Received: Mar 31, 2018

Accepted: Jul 23, 2018

DOI: https://doi.org/10.2478/otmcj-2018-0010

Keywords
project management, construction industry, contractor performance, construction management

© 2018 Shumank Deep et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

An Analytical Study of Critical Factors Affecting Contractor Efficiency in Construction Projects in Indian Scenario

Published Online: Oct 30, 2018

Page range: 1794 - 1802

Received: Mar 31, 2018

Accepted: Jul 23, 2018

DOI: https://doi.org/10.2478/otmcj-2018-0010

Keywordsproject management, construction industry, contractor performance, construction management

© 2018 Shumank Deep et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
project management, construction industry, contractor performance, construction management