Strategy of small contractors in bidding - A case study

The successfulness of a contracting firm depends on several factors. One of the major elements among them is work continuity, which in turn obtained by winning the bid. The survival of small contracting firms is governed by the continuity of financial flow. Contractors costing and pricing strategy used for competing and winning a bid varies from project to project. The main reason for this is the characteristics of the proposed work like size, diversity, complexity, type and type of the client. The analysis of such parameters in small contracting firms facilitates identification of weak areas of contractors in bidding and the necessary actions that can be taken by them to improve the same. Hence, a study has been conducted by considering small contracting firms. The paper focuses on identifying the various independent variables which influences the costing and pricing strategy and establishing relationship between them. Also, the effect of these variables on small contracting firms in deciding the appropriate strategy for winning a bid is studied with case study method.