Factors influencing the probability of winning a bid in the Sri Lankan construction tendering process

Abstract

Winning construction bids is essential for construction organizations to maintain business continuity, profitability and market competitiveness, particularly in developing economies where competitive bidding is the primary procurement method. In Sri Lanka, contractors operate in a highly competitive environment characterised by cost volatility, resource constraints and market uncertainty. This study aims to identify the critical factors influencing bid winning probability in the Sri Lankan construction industry. A structured two stage quantitative methodology was adopted. Initially, factors identified from the literature were validated through a preliminary survey involving 12 highly experienced industry professionals. Subsequently, a questionnaire survey was conducted among 100 construction practitioners, including quantity surveyors, engineers and architects, to evaluate the relative importance of the validated factors. The collected data were screened using an outlier test and mean score analysis was performed. A cut-off mean value of 4.0 on a five-point Likert scale was used to identify critical factors. The results revealed seven critical factors: financial stability, past performance, availability of resources, technical proposal quality, bidding strategy, expected profitability and market conditions. The findings provide practical guidance for contractors to make informed bid decisions and improve competitiveness, while offering a systematic methodology that can be applied in other developing construction markets.