Analysis of Request for Proposals in Construction Industry

Michal Tkáč, Radoslav Delina, Martina Sabolová

Abstract

Purpose: The purpose of this paper is to identify and determine reasons why construction companies reject some of the request for proposals (RFPS) suitable for them.
Methodology/Approach: The research has several parts. Within the first part the list of reasons which lead to rejection of RFPS and thus potential client are identified. Then the comparison of differences between groups of rejected RFPS with different configuration is made. The last part of research use Pareto analysis to determine most obvious and most costly reasons of rejection of RFPS.
Findings: The paper identifies 12 reasons, why construction companies decline to prepare proposal for their potential clients. It also doesn’t confirm that configuration of RFPS has significant impact on the rejection of RFPS. Moreover the results on the other hand showed that insufficient trust represent the main barrier which influences the rejection of RFPS in selected company.
Research Limitation/implication: The main limitation of the research is that it is based on single case study. Although, the quantitative results have to be generalised very carefully, on the other hand paper provide list of the possible reasons why construction companies decline to compete for an offer.
Originality/Value of paper: The paper provides unique perspective because apart from traditional attitude, where only the submitted RFPS are evaluated, this paper analyses rejected RFPS and tries to identify and determine reasons why construction companies decide not to prepare proposal and thus reduce the possibility to acquire new contract.

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Authors

Michal Tkáč
michal.tkac1@euke.sk (Primary Contact)
Radoslav Delina
Martina Sabolová
Author Biographies

Michal Tkáč, University of Economics in Bratislava

Faculty of Business Economics with seat in Košice, Department of Financial Management

Radoslav Delina, Technical University of Kosice

Department of Banking and Investment at Faculty of Economics

Martina Sabolová, University of Economics in Bratislava

Faculty of Business Economics with seat in Košice, Department of Financial Management
Tkáč, M., Delina, R., & Sabolová, M. (2016). Analysis of Request for Proposals in Construction Industry. Quality Innovation Prosperity, 20(1), 104–117. https://doi.org/10.12776/qip.v20i1.686
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