Contractors' competition strategies in bidding: Hong Kong study

Yongtao Tan, Liyin Shen, Craig Langston

Research output: Contribution to journalArticleResearchpeer-review

20 Citations (Scopus)

Abstract

Selecting an appropriate competition strategy in bidding is the ambition of most contractors. The multiple requirements of clients encourage contractors to consider other strategies to deliver additional benefits besides offering a low-price bid. Offering low bids will reduce contractors' profits and potentially make development less attractive. Contractors need to understand their specific resources that generate competitive advantage and accordingly develop strategies to win contracts. This paper reports the findings from a recent survey on competition strategies in the Hong Kong construction industry. Thirteen typical bidding strategies, their used frequency in bidding, and their effectiveness for winning contracts of different types and between different groups of contractors are studied. The analysis of findings is explored to provide local contractors and clients with new insights into competition strategies in bidding.

Original languageEnglish
Pages (from-to)1069-1077
Number of pages9
JournalJournal of Construction Engineering and Management - ASCE
Volume136
Issue number10
DOIs
Publication statusPublished - Oct 2010

Fingerprint

Contractors
Construction industry
Hong Kong
Bidding
Competition strategy
Profitability
Bid

Cite this

@article{fe11e541843e43948666eb53aee100b5,
title = "Contractors' competition strategies in bidding: Hong Kong study",
abstract = "Selecting an appropriate competition strategy in bidding is the ambition of most contractors. The multiple requirements of clients encourage contractors to consider other strategies to deliver additional benefits besides offering a low-price bid. Offering low bids will reduce contractors' profits and potentially make development less attractive. Contractors need to understand their specific resources that generate competitive advantage and accordingly develop strategies to win contracts. This paper reports the findings from a recent survey on competition strategies in the Hong Kong construction industry. Thirteen typical bidding strategies, their used frequency in bidding, and their effectiveness for winning contracts of different types and between different groups of contractors are studied. The analysis of findings is explored to provide local contractors and clients with new insights into competition strategies in bidding.",
author = "Yongtao Tan and Liyin Shen and Craig Langston",
year = "2010",
month = "10",
doi = "10.1061/(ASCE)CO.1943-7862.0000219",
language = "English",
volume = "136",
pages = "1069--1077",
journal = "Journal of Construction Engineering and Management - ASCE",
issn = "0733-9364",
publisher = "American Society of Civil Engineers",
number = "10",

}

Contractors' competition strategies in bidding : Hong Kong study. / Tan, Yongtao; Shen, Liyin; Langston, Craig.

In: Journal of Construction Engineering and Management - ASCE, Vol. 136, No. 10, 10.2010, p. 1069-1077.

Research output: Contribution to journalArticleResearchpeer-review

TY - JOUR

T1 - Contractors' competition strategies in bidding

T2 - Hong Kong study

AU - Tan, Yongtao

AU - Shen, Liyin

AU - Langston, Craig

PY - 2010/10

Y1 - 2010/10

N2 - Selecting an appropriate competition strategy in bidding is the ambition of most contractors. The multiple requirements of clients encourage contractors to consider other strategies to deliver additional benefits besides offering a low-price bid. Offering low bids will reduce contractors' profits and potentially make development less attractive. Contractors need to understand their specific resources that generate competitive advantage and accordingly develop strategies to win contracts. This paper reports the findings from a recent survey on competition strategies in the Hong Kong construction industry. Thirteen typical bidding strategies, their used frequency in bidding, and their effectiveness for winning contracts of different types and between different groups of contractors are studied. The analysis of findings is explored to provide local contractors and clients with new insights into competition strategies in bidding.

AB - Selecting an appropriate competition strategy in bidding is the ambition of most contractors. The multiple requirements of clients encourage contractors to consider other strategies to deliver additional benefits besides offering a low-price bid. Offering low bids will reduce contractors' profits and potentially make development less attractive. Contractors need to understand their specific resources that generate competitive advantage and accordingly develop strategies to win contracts. This paper reports the findings from a recent survey on competition strategies in the Hong Kong construction industry. Thirteen typical bidding strategies, their used frequency in bidding, and their effectiveness for winning contracts of different types and between different groups of contractors are studied. The analysis of findings is explored to provide local contractors and clients with new insights into competition strategies in bidding.

UR - http://www.scopus.com/inward/record.url?scp=77956870053&partnerID=8YFLogxK

U2 - 10.1061/(ASCE)CO.1943-7862.0000219

DO - 10.1061/(ASCE)CO.1943-7862.0000219

M3 - Article

VL - 136

SP - 1069

EP - 1077

JO - Journal of Construction Engineering and Management - ASCE

JF - Journal of Construction Engineering and Management - ASCE

SN - 0733-9364

IS - 10

ER -