Practices in bidding process of contractors: a comparative study between China and Sweden

Paper in proceeding, 2013

Adopting formal and analytical models to assess and price project risk at the tender stage to practice is challenging due to the lack of improved understanding of the actual process on how contractors decide to bid or not. The aim of this paper is to investigate how the bidding process is organized and managed in large and medium-sized construction companies, with a focus on how risks are considered when deciding whether to bid or not as well as on deciding price level. The paper is further a benchmark between how the process is organized in Chinese and Swedish construction companies, since it is believed that there are significant differences based on, among others things, cultural issues. Interviews are made with managers within eight Chinese companies and four Swedish companies. Among issues covered in the interviews are who is involved, structure of meetings, how decisions are made and project preferences. The study is expected to increase the understanding of the context of decision-making in the bidding process. The further research may focus on factors influencing decision-making.