A Review of Factors Causing Contractor Failure in the Tender Process on Government Construction Projects

Abstract

The implementation of e-tenders in the construction industry in the era of globalization faces several challenges in many countries, including Indonesia. Maluku Island, one of Indonesia's main islands, is experiencing growth in the construction sector. However, it faces challenges, especially in improving the quality of contractor companies in implementing tenders. This research attempts to examine the issue of tender failure more comprehensively. This study aims to identify and analyze the dominant factors that can affect contractor failure in the tender process. The research methodology includes a literature study developed through relative importance index analysis to determine the dominant factors. The results showed that 36 factors affected contractor failure in the tender process for government construction projects in Maluku province. Factors affecting contractor failure in tendering for government projects are divided into four main categories: administrative document evaluation with an RII value of 0.65, qualification with an RII value of 0.71, technical with an RII value of 0.73, and price with an RII value of 0.73. Technical and price evaluation are the most crucial factors. This research is expected to help contractors prepare better strategies in the tender process, especially in terms of technical and price documents.

Access to Document

Other files and links

• Link to publication in Scopus
• Open Access Version Available

Fingerprint