Influence Of Bidding Strategy On Project Performance in Construction

Abstract

The success ofprojectis measuredfrom its performance. A performance measurement system is used as an information to assign strategy and to obtain feedback and part of an important process that quantifies the efficiency and effectiveness (Isik et al., 2010). According to Construction Industry Institute (CII) (2011) in Ali et al., (2013) the project performance indicators such as cost, schedule, changes, accident, rework, and productivity. Soemardi et al., (2006) state that the project performance indicators are cost, time, quality, productivity, safety, and environment. While bidding strategy in construction defines asskills of management to use all available resources related, in order to offer a comprehensive and competitive bidding through consider various aspects, including internal, external and environment, with aim to win the bidding competition, and provide maximum project performance.The study aims to find the influence of bidding strategy on project performance and to identify the most decesivefactor of each variable. Data were collected from questionnaire survey and interviews of 61 major contractorsin four major cities in Indonesia. The analysis used is Structural Equation Modeling Partial Least Squares(SEM PLS)with SmartPLS 2.0.M3. The results obtained that bidding strategies had an impact on project performance, and each factor provideitsweight influence which have to consider in construction bidding process.