Adaptation of a Contractor’s Risk Behavior in a Competitive Bidding Environment
Publication: Construction Research Congress 2022
ABSTRACT
In the construction sector, contractors deal with many uncertainties during their projects such as cost overruns, schedule delays, and safety issues. To overcome such complications, contractors pursue diverse risk management approaches which reflect their risk behavior and attitude toward expected risks as well as bidding decisions. Risk attitude is influenced by various factors that include individual characteristics, demographics, social and cultural influences. This paper conducted a thorough literature review to identify the different internal and external factors that influence contractors’ risk behavior adaptation to varying bidding situations. It also ranked the said factors by order of importance based on a survey administered to construction professionals. Survey findings showed that the most influential factors are the completeness of project information and the contractor’s need for work. Then, the paper presented a bidding framework that aims to mimic the competitive construction bidding process and to study the long-term impact of a contractor’s adaptive risk attitude on his financial performance and growth in the market.
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Construction Research Congress 2022
Pages: 1223 - 1232
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Published online: Mar 7, 2022
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