Assessment of the Strategies for Minimising the Effects of Tender-Related Risks on Construction Projects Performance.

Abstract

The construction industry is still a high risks sector owing to the project complexity, unique nature, stakeholders involved, and procurement systems. Risks and uncertainties are associated with every stage of the construction project, although, most of the risks at the construction stage are incubated at the pre-contract stage. Tender-related risks impact the success of the contractors as well as the performance of the project. However, there has not been a dedicated study by researchers to curtail this. Therefore, this study assessed the strategies for minimising the effects of tender-related risks on construction project performance. The well-structured questionnaire was adopted for data collection from construction experts engaged by construction-based organisations in Abuja, Nigeria, using the purposive sampling method. With a response rate of 40.80% and a reliability index of 0.901, the gathered data were analysed using frequency, percentage and mean score. It was found that the major strategies for minimising the effects of tender-related risks on construction projects' performance are; top management understanding of modern techniques and principles needed for efficient and effective tendering is required by the management of contracting businesses, effective and efficient documentation preparations, studying the drawings by comparing the specifications and the real conditions in the project site where possible, reading/checking all documents issued, assigning experienced people in planning cost estimation, and calculating the volume of work accurately. It is recommended that a clear understanding of modern techniques and principles of tendering by management, as well as training and workshop on tendering and risks management are key to ensuring a sustainable reduction of tender-related risks in construction.