Evaluation of Contractors’ Bidding Strategies for Rehabilitation Projects in Nigeria

Vollständiger Abstract

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Rehabilitation projects have become increasingly important in Nigeria due to the growing need to restore ageing infrastructure, improve public facilities, and enhance the service life of existing assets. The successful delivery of such projects depends largely on the effectiveness of contractors’ bidding strategies, which influence contractor selection, project performance, and overall value for money. This study evaluated contractors’ bidding strategies for rehabilitation projects in Nigeria by identifying the major bidding strategies adopted by contractors, examining the factors influencing bidding decisions, and assessing the effects of these strategies on rehabilitation project performance. A quantitative survey research design was adopted, and data were collected through structured questionnaires administered to construction professionals involved in rehabilitation projects in Owerri, Imo State. The retrieved data were analysed using descriptive statistics, including Mean Score (MS), Relative Importance Index (RII), percentages, and Pearson Product-Moment Correlation analysis. The findings revealed that competitive bidding remains the most widely adopted strategy, while expected profitability, project complexity, material price fluctuations, and contractors’ financial capability significantly influence bidding decisions. The study further established that risk-based pricing exhibits the strongest positive relationship with rehabilitation project performance, indicating that effective risk assessment enhances project success. The study concludes that while competitive pricing remains important, successful rehabilitation projects require bidding strategies that balance cost competitiveness with technical competence, financial capacity, and effective risk management. The study recommends that public procurement agencies should adopt best-value procurement approaches that integrate technical evaluation with financial assessment in order to improve project quality, minimise cost overruns, and enhance the sustainability of rehabilitation projects in Nigeria.