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Evaluating the Impact of Emerging Contractors’ Failure to Secure Tenders from the Tender Market

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The Construction Industry in the Fourth Industrial Revolution (CIDB 2019)

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Abstract

Purpose - The study evaluates the impact of emerging contractors’ failure to secure contracts from the tender market as part of the Western Cape’s Contractors Development programme (CDP). Design - The study adopted a quantitative research method, the study targeted emerging contractors in the Western Cape. The data was collected by using a questionnaire survey with closed-ended questions and was distributed to the population of 16 emerging contractors with CIDB grade 3 and 5. The descriptive and inferential statistics were used to analyse the study. Findings - The study has found that skills deficiency as the main reason for emerging contractors’ failure to secure contracts from the tender market. The findings have further revealed among others emerging contractors are unable to tender, interpret construction drawings, plan, estimate and enter into negotiations. Conclusion - Emerging contractors on the Western Cape’s CDP programme encounter difficulties to secure contracts from the tender market owing to their skills deficiency. This situation if further compounded by the fact that the Western Cape CDP has not set aside contracts for training purposes. Practical implications - The Western Cape CDP should review its policy with regards to training projects, contractors struggle to secure tenders from the tender market. The Western Cape CDP should not maintain the current status quo with regards to training projects otherwise it runs a risk of contractors not able to complete the mentorship programme.

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Authors and Affiliations

  1. Department of Construction Management and Quantity Surveying, Cape Peninsula University of Technology, P. O. Box 1906, Bellville, 7535, South Africa

    Sikhumbuzo Lufele

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  1. Sikhumbuzo Lufele
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Correspondence to Sikhumbuzo Lufele .

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Editors and Affiliations

  1. Construction management and Quantity Surveying, University of Johannesburg, Johannesburg, Gauteng, South Africa

    Clinton Aigbavboa

  2. Construction management and Quantity Surveying, University of Johannesburg, Johannesburg, Gauteng, South Africa

    Wellington Thwala

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Lufele, S. (2020). Evaluating the Impact of Emerging Contractors’ Failure to Secure Tenders from the Tender Market. In: Aigbavboa, C., Thwala, W. (eds) The Construction Industry in the Fourth Industrial Revolution. CIDB 2019. Springer, Cham. https://doi.org/10.1007/978-3-030-26528-1_26

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  • DOI: https://doi.org/10.1007/978-3-030-26528-1_26

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-26527-4

  • Online ISBN: 978-3-030-26528-1

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