THE ROLE OF LEGAL ASSESSMENT ON TENDER OF CONTRACTS IN NIGERIA
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ABSTRACT
Companies must have the capability to deal with various tendering situations successfully in today’s highly competitive construction market. The first step that the companies need to consider is whether to tender or not to tender when they received a tender invitation. The contractors’ decision is affected by various factors and influences. This decision is highly reliant to the specific project and the macro environment. It is difficult to make this crucial decision in a short time frame by the management team. This research is looked at the factors affecting the tender/ no tender decision making and the focus group was on the contractors in Abuja region. Data were collected for by carrying out a face to face structured interview format, incorporating a questionnaire with eight participants. Through the course of the interview, both quantitative and qualitative questions were asked. “Experience and familiarity of your firm with this specific type of work”, “Possible contribution in building long-term relationships with other key parties” and “Current financial capability of the client” were the top 3 most important factors identified by the participants. There are many differences between the contractors’ opinion for the tender/ no tender decision. the contractors have very similar responses about important factors affecting tender/ no tender decision. By contrast, every d contractor has nearly every different individual comment on most important factors. It is seen that d contractors have stronger individual business strategy. In comparison to the literature, it was apparent that the tender/ no tender decision making is very dependent on the location the contractors are. The Marco environment is a very big influence driver for contractors’ decisions. So, it is important that the different construction contractors should not use one standard to make the tender/ no tender decision for projects in different countries.
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