A platform for research: civil engineering, architecture and urbanism
A platform for research: civil engineering, architecture and urbanism
CHCHALLENGES OF LOCAL CONTRACTORS IN WINNING TENDER OF ROAD CONSTRUCTION PROJECTSALLENGES OF LOCAL CONTRACTORS IN WINNING TENDER OF ROAD CONSTRUCTION PROJECTS
Ethiopian Road Authority (ERA) representing the Government of Ethiopia (GOE) manages road construction projects and is the primary implementing agency for all donor financed road infrastructure projects in Ethiopia. With the advent of the liberalization of the economy and availability of funds from international financers, there have been a surge of large-scale road construction projects in Ethiopian construction industry. Foreign contractors are well experienced and able to meet the requirements for participation in donor financed projects; local contractors are less experienced as compared to foreign contractors. Therefore, local contractors are mostly involved in projects financed by the GOE. Great attention paid in road sector development program (RSDP) to develop the capacity of the domestic construction industry. Despite this improvement of the domestic industry capacity, local contractors remained marginally involved in large road construction contracts. So the main objective of this study was to explore the challenges facing local contractors when bidding for road projects in international competitive bidding process undertaken by Ethiopian Road Authority (ERA). The researcher applied survey research design by involving 17 respondents from Grade one contractors and 7 ERA staff. Through primary and secondary data, the study was able to reveal that local contractors faced many challenges when they bid for road works projects. These challenges were mainly due to stiff competition within contractors and presence of foreign bidders, inadequate approach and insufficient knowledge and experience required for the preparation of responsive bids, lack of experience, failure to meet the turnover requirements, inability to prepare the lowest bid price, and inadequate technical and managerial skills. Some of the proposed measures to address these challenges were splitting of large road projects in to many smaller projects, employment of skilled labour, training, formation of joint ventures, improving of preparation of responsive bids, etc. Basically the output of the research study entails the practical alleviation of all unsuccessful factors hindering local contractors from successful bidding process through training, modification of policies and laws, etc.
CHCHALLENGES OF LOCAL CONTRACTORS IN WINNING TENDER OF ROAD CONSTRUCTION PROJECTSALLENGES OF LOCAL CONTRACTORS IN WINNING TENDER OF ROAD CONSTRUCTION PROJECTS
Ethiopian Road Authority (ERA) representing the Government of Ethiopia (GOE) manages road construction projects and is the primary implementing agency for all donor financed road infrastructure projects in Ethiopia. With the advent of the liberalization of the economy and availability of funds from international financers, there have been a surge of large-scale road construction projects in Ethiopian construction industry. Foreign contractors are well experienced and able to meet the requirements for participation in donor financed projects; local contractors are less experienced as compared to foreign contractors. Therefore, local contractors are mostly involved in projects financed by the GOE. Great attention paid in road sector development program (RSDP) to develop the capacity of the domestic construction industry. Despite this improvement of the domestic industry capacity, local contractors remained marginally involved in large road construction contracts. So the main objective of this study was to explore the challenges facing local contractors when bidding for road projects in international competitive bidding process undertaken by Ethiopian Road Authority (ERA). The researcher applied survey research design by involving 17 respondents from Grade one contractors and 7 ERA staff. Through primary and secondary data, the study was able to reveal that local contractors faced many challenges when they bid for road works projects. These challenges were mainly due to stiff competition within contractors and presence of foreign bidders, inadequate approach and insufficient knowledge and experience required for the preparation of responsive bids, lack of experience, failure to meet the turnover requirements, inability to prepare the lowest bid price, and inadequate technical and managerial skills. Some of the proposed measures to address these challenges were splitting of large road projects in to many smaller projects, employment of skilled labour, training, formation of joint ventures, improving of preparation of responsive bids, etc. Basically the output of the research study entails the practical alleviation of all unsuccessful factors hindering local contractors from successful bidding process through training, modification of policies and laws, etc.
CHCHALLENGES OF LOCAL CONTRACTORS IN WINNING TENDER OF ROAD CONSTRUCTION PROJECTSALLENGES OF LOCAL CONTRACTORS IN WINNING TENDER OF ROAD CONSTRUCTION PROJECTS
ESHETU FANTA FANGO (author)
2019-06-04
doi:10.20372/nadre/3786
Theses
Electronic Resource
English
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