Những nhân tố tác động đến quyết định tham dự đấu thầu gói thầu dịch vụ tư vấn giám sát thi công xây dựng công trình của nhà thầu tt tiếng anh

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INTRODUCTION
1. Rationale and objectives of the thesis
Implementing the Resolution of the 6th National Party Congress taking place in
Hanoi capital from December 15 to December 18, 1986, our State has developed and
implemented many new policies on socio-economic management. Those policies are
aimed at gradually eliminating the bureaucratic and subsidized centralized management
mechanism to replace it with a market-oriented economy management mechanism
under the State's management.
In that context, in the field of procurement of goods, services and construction of
works, our State has quickly absorbed and transformed the management mechanism
from the "planned allocation" to the implementation " Regulation on bidding "in order to
gradually eliminate the" asking for "mechanism to switch to the implementation of a
healthy competition mechanism, creating opportunities for capable bidders to participate
in the bidding.
Through observing biddings for consultancy service bidding packages from 2014 to
2016, the researcher knew that when the bid solicitors called capable bidders to
participate many consultancy service bidding packages, initially there have many
bidders registering to participate these bid packages. However, by the time of bid
closure, there had only a few contractors actually submitted their bid dossiers.
Moreover, according to the results of the researcher overview of research works
published in the world and in the country, there are currently research gap: there are no
research projects in basic and topical science “Factors affecting contractors' decision
making to participate in bidding for construction supervision packages in Vietnam” to
help contractors correctly assess the impact factors to make correct decision to attend the
project.
In addition, it is necessary to assess and identify the barriers to ongoing bidding
participation in Vietnam to recommend relevant State management agencies on bidding
to adjust and revise regulations, institutions to create favorable environment to support
having more bidders to participate in free biddings.
Therefore, the PhD candidate decides to complete the research work with the name

as “Factors affecting contractors’ decision making to participate in bidding for
construction supervision packages” in Hanoi, Vietnam.
The research aimed to get following objectives:
- Overview models, research works of affacting bid participation desision of
contractors in the world and in Vietnam as a basis for proposing a research model of the

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thesis.
- Propose research model, hypotheses, testing and evaluating model of factors
affecting the bidding contractors’ decision to participate in bidding for construction
supervision packages in Hanoi, Vietnam.
- Propose solutions and recommendations for the State Management Agencies on
bidding and for the investors, bidders, bid solicitors to prevent bad situations, to improve
biddings for construction supervision packages in order to encourage bidding
participation of bidders for construction supervision packages.
2. Research scopes
- Research object: Factors affecting bidding organizational contractors’ decision to
participate in bidding for construction supervision packages.
- Geographical scope: The thesis collected secondary data about biddings for
consultancy servive packages in general, biddings for construction supervision packages,
in particular in Vietnam as well as in Hanoi, Vietnam. The primary data included
organizational bidders’ surveys and the scientists’ and the specilaists’ in-depth
interviews were collected in Hanoi capital of Vietnam.
- Time scope: The secondary data about status of biddings for consultancy service
packages and biddings for construction supervision packages were collected from 2014
to 2017. The primary data collected from organizationa bidders’ surveys and the indepth interviws with the scientists, the specialists and the organizational bidders were
gathered from April 2017 to March 2019.
3. Research methodology
The study has applied a combination of qualitative research methods and quantitative
research methods, combining secondary data collection and primary data collection for

analysis and synthesis according to the research process. The detail research methods
were described in the introduction and chapter 3 of the thesis.
4. New contributions of the thesis
The thesis had new following contributions:
- Adding new idea in order to improve the difinition of “conttactors’ decision to
participate in bidding” for being more suitable to Vietnam bidding environment that are
different from previous research works. This is the basis for the study and for the 5 level
Likert’s appliance;
- Proposing, testing and establshing a model to evaluate “factors affecting bidding
contractors’ decision to participate in biddings for construction supervision packages in
Hanoi capital with statistical reliability accepted (including a new factor with 4 new
scales);


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- Analyzing and clearly describing the impact of these factors in the current practice
in bidding for bidding packages of construction supervision in Hanoi capital. Finding
limitations and defects that negatively affect the bidding participation in bidding
packages of construction supervision of organizational contractors;
- Proposing solutions and recomendations to promote the contractors’s decision to
participate in bidding for construction supervision packages in Hanoi capital in particular
and in nationawide in general.
5. The thesis structure
The thesis is structured in 5 chapters:
Chapter 1: Research overview
Chapter 2: Theoretical background on factors affecting contractors’ decision making
to participate in bidding for construction supervision packages
Chapter 3: Research design and research implementation
Chapter 4: Research results on factors affecting contractors’ decision making to
participate in bidding for construction supervision packages

Chapter 5: Research results discussion and recommendations
CHAPTER 1: RESEARCH OVERVIEW
1.1. Overview of research works
1.1.1 Previous research works in the world
1.1.1.1 Basic theories for the research
One of the most important theory is referred by the candidate is the texbook named
“Management and Organizational behaviour” of professor Laurie J. Mullins. This
texbook was published in 2017 by the Portsmouth Business School, England.
According to Professor Laurie J. Mullins, running an organization where there have
individuals and small groups working together, however they act as a unified unit in
which the head or authorized person plays the role center. They are responsible for the
decision making of the whole organization.
From the perspective of Professor Laurie J. Mullins, the decision of an organization
is the decision of the legal representative with two aspects (organization and individual).
They are not separated. The organization aspect of an organization’s decision are the
organizational attributes that the decision maker represents. The decisions they make are
based on the organization's impact as expectation of the organization, its capacity or its
policies and its management mechanisms. The individual aspect of an organization’s
decision are decision maker atributes such as the decision-maker’s chance of success or
failure as well as the benefits they can get from the decision they make.
Thoeries of factors affecting individual behavior and organization action are read and

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reffered for the research such as “Theory of Reasoned Action – TRA”, “Theory of
Planned Behavior – TPB”, “Technology Acceptance Model – TAM.”
1.1.1.2 Relevent previous research works closer to the thesis
Many research works about “factors affecting bid/ no bid decision of contractors” in
the world are reffered such as research work of Anna Zarkada-Fraser (2000); research
work of Adnan Enshassi, Sherif Mohamed và Ala’a El Karrit (2005); research work of
M. Ravanshadnia, H. Rajaire and H. R. Abbasian (2011).

The research work was implemented by Anna Zarkada Fraser (2000) identified 7
factors and 25 scales affecting the bid/ no bid decision of the contractors in Australia
including: (1) The attractiveness of the bidding packages; (2) Contractor's expectations;
(3) Laws; (4) Values and beliefs; (5) Perceptions of decision makers; (6) Regulations
and sanctions; (7) Ethical standards and professionalism.
The research work was published by Adnan Enshassi, Sherif Mohamed và Ala’a El
Karrit in 2005 with the topic “Factors affecting bid/no bid decision in Gaza Strip Constractors’ perspectives” identified 4 groups of factors including 72 scales/ variables
affecting bid/no bid decision of contractors for construction packages at Gaza Strip,
Palestine. Four groups of factors include: (group 1) Factors related to the contractor (18
impact variables); (Group 2) Factors related to the bid solicitor, the investor (21 impact
variables); (Group 3) Factors belonging to the bidding packages (18 impact variables)
and (Group 4) External business environment factors (15 impact variables).
The research work was published by M. Ravanshadnia, H. Rajaire and H. R.
Abbasian (2011) indentified 5 groups of factors with 25 scales/ variables affecting bid/no
bid decision for construction companies. These groups of factors include Group 1:
Organizational considerations in bidding; Group 2: Project Charasteristics; Group 3:
Risk; Group 4: Finalcial considerations; And group 5: Other considerations.
The relevant previous research works referred are close to the candidate research
topic. They have used contractor survey method with 5-level Likert scale. However, they
did not test variables to indentify reliability of factors. They also did not used regression
analysis method to find out relationships between factors (independent variables) and
dependent factor (bid/no bid decision of contractors to participate in bidding for goods,
constructions, consultancies. They used Relative Importance Index to identify important
impact orders of variables from the highest importance to the lowest importance
affecting contractor’s bid/no bid decision to participate in biddings for goods,
constructions, consultancies. These previous research works considered the decision
whether or not to participate in bidding for bidding package as a dependent variable and
they dit not verify the reliability of the dependent variable.

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The difference of the research work of Anna Zarkada-Fraser (2000) from other
previous research works is the seventh factor named “Ethical standards and
professionalism” used in the study of Anna Zarkada-Fraser.
However, in the study of Anna Zarkada-Fraser (2000), he did not consider the
factor “Contractor’ capacity and experience” as factor in his research model. This
factor used in the research model of almost researchers in the world.
In order to measure the factor "capacity, experience of the contractor” of the
research work of the authors M. Ravanshadnia, H. Rajaie and H. R. Abbasian
(2011) only mentioned 5 variables. The research work of the authors Adnan
Enshassi, Sherif Mohamed and Ala’a El Karrit (2005) introduced 8 variables. The
research work of the author Jaakko Lemberg (2013) presented 7 variables.
Followings are 5 variables drawn from previous studies used in the candidate
research: (1) Competitive advantages of contractors; (2) Finalcial capacity of
contractors; (3) Technical and professional competence of the contractors; (4)
experience in performing contracts/bidding packages; and (5) Idle capacity of the
contractors.
The relevent previous studies on factors affecting bid/no bid decision of
contractors to participate in bidding for bidding packages used evaluation tool to
analyze the difference between contractor’s groups indentified by charasteristics of
the contractor’s groups such as types of contractors and sizes of contractors. They
are basis for proposed model used to identify factors, variables for the candidate
thesis.
1.1.2 Relevent previous research works in Vietnam
Many legal documents of the State of the Socialist Republic of Vietnam on
bidding have been studied by the PhD student as the basis for grasping the nature
of bidding concepts and regulations.
Many scientific research projects, doctoral theses related to bidding in Vietnam
have referred by the researcher such as the PhD thesis of PhD student Nguyen Thi
Tiep (1999) with the topic "Completing the bidding regime in construction works"

of the National road traffic in Vietnam”; Doctoral thesis of PhD student Nguyen
Chi Thanh (2003) with the topic "A number of solutions to improve the
competitiveness in the transportation construction corporations"; Doctoral thesis of
PhD student Tran Van Hung with the topic "Improving the quality of bidding for
transportation construction works in Vietnam" completed in 2006.
The comon feature of the all the research works referred above is that: they
have studied about biddings, however they did not study bidding for bidding

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packages of construction supervision.
Many previous studies on the factors affecting the behavior of individuals and
organizations have been read and referred by the author such as the study named
"Evaluating factors affecting the success of Vietnamese entrepreneurs" by two
authors Nguyen Thanh Ha and Nguyen Thanh Hieu published in the Journal of
Economics and Development, The National Economics University, No. 227 (II),
May 2016; The study named "Some factors affecting the interest in voluntary
social insurance participation of small traders in Nghe An province" by Nguyen
Xuan Cuong, Nguyen Xuan Tho and Ho Huy Tuu published in the Economics and
Business Science magazine, Hanoi National University, Volume 30, No. 1 (2014),
pages 36 – 45. The above mentioned research works studied the factors affecting
the behavior of consumers or the organization, however they did study to other
activities rather than the decision to participate in bidding for service packages,
construction supervision of contractors.
1.2. The research gaps
This research indentified three research gaps as followings:
- The previous research works published in the world and in the country have
studied on bidding, however there have no research works has been studied to the
object of "deciding to participate in bidding for the construction supervision
package of contractors".
- The previous research works in the world and in the country have studied the

"factors affecting the bidders' decision to participate in bidding" such as in Europe,
Australia, Palestine, however there has not been any project. researching on
"factors affecting bidding contractors' decision to participate in bidding for
construction supervision consultancy services" in Vietnam and especially
organized in Hanoi capital.
- There have not been any previous studies in the world and in the country that
mentioned the factor "bidding information of competitive contractors" affecting
the decision of yes / no participation in bidding. This is a new factor and this new
point is usually mentioned by contractors in Vietnam when they have to consider
conditions to participate in bidding for construction supervision packages.
Theoretical background on factors affecting contractors’ decision making to
participate in bidding for construction supervision packages


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CHAPTER 2: THEORETICAL BACKGROUND OF FACTORS
AFFECTING CONTRACTOR’S DECISION MAKING TO PARTICIPATE
IN BIDDING FOR CONSTRUCTION SUPERVISION PACKAGES
2.1. Bidding and terms used in bidding and bidding for construction
supervision packages
2.1.1. Bidding and classification of biddings according to the objects of
bidding
According to researchers in the world, "Bidding" is a process of "open
competition" among suppliers, sellers (called contractors) of products, works,
services, projects to be undertaking works, services, projects or selling goods to
agencies and organizations (called investors or bid solicitors) on the basis of
ensuring and complying with the principles of competition and fairness,
transparency and economic efficiency (Abbulrahman Salem Bageis và Chris
Fortune, 2009).
Bidding, considered by the objects of bidding, there are following types of

bidding: bidding for goods procurement; bidding for construction and installation
of works (hereinafter referred to as construction bidding); bidding for consultancy
service bidding packages (including bidding packages of construction supervision
and consultancy services); bidding for non-advisory service bidding packages and
bidding for mixed bidding packages.
2.1.2. Characteristics of the construction supervision packages
Comparing to goods procurement and construction and installation bidding
packages, construction supervision and consultancy bidding packages have a
number of common characteristics of consultancy service bidding packages,
including:
Firstly, construction supervision and consultancy bidding packages are
intangible activities that includes providing knowledge and experience to perform
the assigned tasks.
Secondly, the package of construction supervision consultancy is a difficult
service to evaluate the results.
Comparing with other consultancy service bidding packages such as bidding
packages for making technical designs and construction drawings, bidding
packages for making bidding dossiers, ... bidding packages for construction
supervision also have their own characteristics that are:
Firstly, construction supervision activities are always associated with the

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construction process.
Secondly, the construction supervision activities must be based on the basis of
deep expertise and need specific skills.
2.1.3. Some terminology used in bidding, bidding for construction supervision
packages
When conducting bidding for a package of construction supervision and
consultancy services, common terms such as the bid solicitor, bidding package
price, bid price, winning bid price, etc. are commonly used. That term has been

specified by law.
Regarding to bidding for a construction supervision package, there are a few
specific terms such as "consultancy service bidding package" of construction
supervision, "consultancy contractor" in ỏder to controll and monitor construction.
The term "bidding service package" is used in the case of a bidding package
for consultancy on construction supervision or bidding packages for training
consultancy, consultancy for setting up new bidding dossiers, etc.
The term "consultancy contractor" is used when referring to contractors
participating in bidding packages of construction supervision and consultancy
services bidding packages and other consultancy service bidding packages such as
training consultancy, consultancy Consulting on bidding document preparation,
etc.
The term "Consultant" is the term used for individuals, professional officials
who perform the supervision consultancy of construction works assigned by
consultancy contractors in their bid dossiers.
2.1.4. General bidding process and the concept of “Contractor’s decision to
participate in bidding for bidding package”
2.1.4.1. General bidding process
The general bidding process includes the following steps: (1) Preparation for
bidding; (2) Organizing the bidding: In this step, on the bidder's side, they collect
information about the bidding package; purchase bidding documents / request
documents; prepare bid dossiers / bid proposals to meet the requirements of the
bidding documents / request for proposals; submit bid dossiers / bid proposals
before the time of bid closure to the bid solicitor; (3) Opening bids and evaluating
bid dossiers / bid proposals; (4) Contract negotiation; (5) Submit for evaluation,
approval and publicity of bidding results; and (6) Finalizing and signing
contracts.


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2.1.4.2. The concept of “Contractor’s decision to participate in bidding for bidding
package”
Different researchers have come up with different concepts about the
contractor’s decision to pảticipate in bid for bidding packages.
According to Anna Zarkada-Fraser (2000), the concept of “contractor’s
decision to pảticipate in bid for bidding packages” understood as a "yes" or "no"
decision to agree to enter into a closed contract of the contractor's representative
with partners such as the investor, bid solicitors or other contractors'
representatives to win bids. This author Anna Zarkada-Fraser did not provide any
evidence of the decision to participate in the decision to participate in bidding.
Three scientists Adnan Enshassi, Sherit Mohamed and Ala'a El Karriri (2005)
of The Islamic University of Gara (IUG), Palestin said that the contractor’s
decision to participate in bid is understood as a "yes" or "no” decision to
participate in bidding for construction package of contractor. These three authors
have justified the decision that bidders bought bidding documents, made bid
dossiers and submitted bid dossiers before the time of bid closure. The above
views of the three scientists on the decision to participate in the bidding include:
(1) the decision "yes" or "no" to participate in the bidding and (2) justify the
decision to participate in the bidding. The limitation of this group's concept is not
to mention who decides, however they only said that the contractors decide
generally.
Jaakko Lemberg, author of the University of Twente, The Netherlands (2013)
said that “A bidder's decision to participate in a bid is to answer "yes" or "no" to
bidding for a bidding package that has been notified by the head of the
organization's bidder (possibly an authorized person). With Jaakko Lemberg's
perspective, the contractor's decision to bid is to determine whether or not to
attend a bidding package. Jaakko Lemberg also said that the decision to bid or not
belongs to the head of the contractor (or the authorized person).
By analyzing the different perspectives of scientists with in-depth study of
bidding in the world, through the provisions of Vietnamese law, the author of the

dissertation supplements to complete the full concept of bidder's decision to attend
bidding as follows: "The decision to participate in biding for a bidding package
of contractor is the affirmation of "yes" or "no" to participate in bidding for
bidding package of the head of the contractor (or an authorized person). This
affirmation is expressed by the bid participation registration and the bidding
dossier has been submitted to the bid solicitor before the time of bid closure.”
Through the author proposed concept, we can see that the bid participation

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decision of the contractor is expressed through: (1) the confirmation of "yes" or
"no" to participate in bidding for bidding package; (2) the confirmation is issued
by the head (or authorized person) of the organizational bidder; and ensuring that
such decision is registered to participate in bidding for bidding packages and to
submit bid dossiers before the time of bidding closure.
2.2. Proposed model to the thesis “Factors affecting bidding contractors’
decision to participate in bidding for construction supervision packages
2.2.1. Proposed model to the thesis
The chart 2.1 represents the proposed model to the thesis.
The attractiveness of
bidding package
Expectations
of the contractor
Capacity and experience
of the contractor

Rules and bonuses

Contractors’s
decision to
participate in

bidding for
construction
supervision
packages

Laws

Values and beliefs

Intuition of the decision maker

Variables related to features
of organizational bidders and
of decision makers

Bidding participation
information of contractors

Chart 2.1: Proposed model to the thesis
Surce: The author’s proposal
2.2.2. Scales
To measure the impact of 8 factors, the author has analyzed, synthesized and
proposed the use of 32 measuring scales for 8 factors. Among them is the new
factor "Information of bid registration of contractors" with 5 scales proposed by
the thesis.


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For the dependent variable, the application of 01 scale was used by author
Jaakko Lemberg (2013) in hí research work.

In order to measure the control variables, the research work of the PhD student
has applied two groups of scales including the group of variables that reflect the
impact of the organization (size, type of business) and the group of variables that
reflect the characteristics of decision makers – the legal representatives of the
organizational bidders (gender, age).
2.2.3. Research hypotheses
The proposed model developed with 8 following hypotheses that they have to
be evaluated, tested:
Hypothesis H1: The "attractiveness of the bidding package" factor has a
positive impact on the contractor's decision to participate in bidding for a
construction supervision bidding package.
Hypothesis H2: The "contractor's expectation" factor has a positive impact on
the contractor's decision to participate in bidding for a bidding package of
construction supervision services.
Hypothesis H3: The factor "capability, experience of the contractor" has a
positive impact on the contractor's decision to participate in bidding for a
construction supervision bidding package.
Hypothesis H4: The factor "regulations and bonuses" has a positive impact on
the contractor's decision to participate in bidding for a construction supervision
service package.
Hypothesis H5: The factor "laws" has a positive impact on the contractor's
decision to participate in bidding for a project package of construction supervision
service.
Hypothesis H6: The factor "values and beliefs" has a positive impact on the
contractor's decision to participate in bidding for a project package of construction
supervision service.
Hypothesis H7: The factor "intuition of decision maker" has a positive impact
on the contractor's decision to participate in bidding for a project package of
construction supervision service.
Hypothesis H8: The factor "bidding participation information of contractors"

has a negative impact on the contractor's decision to participate in bidding for a
project package of construction supervision service.

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CHAPTE 3: RESEARCH DESIGN AND RESEARCH IMPLEMENTATION
3.1. Qualitative research methods
3.1.1. Objectives of qualitative research methods
The qualitative research methods used in this thesis aims to accomplish four
main goals: (1) getting agreement on factors and scales for each factor for the
entire research proposal; (2) Completing and improving the scales and completing
the questionnaire for quantitative research; (3) Getting and summarizing bidders’
opinions on the status of biddings, participating in the biddings of the bidders; and
(4) Gathering contractor's opinions about successes, limitations and causes of
successes and limitations in the past time when they participated in bidding for
construction supervision packages.
3.1.2. Qualitative research methods applied
Two qualitative research methods are appied in this thesis:
3.1.2.1. Study to get opinions of 50 contractors
50 contractors who participated and won bidds for construction supervision in
2017 were studied based on the designed questionnaires.
3.1.2.2. In-depth interviews scientists and bidding specialists
There had 5 scientists and 5 bidding specialists interviewed. They were
working as lecturers at the National Economics University, Foreign Trade
University and were working at some organizations. They participated in bidding
and winning bidding packages of consultancy serices in Hanoi. They are scientists
who have research works that is directly or indirectly related to the research area
of this thesis. Among them, there had a number of contractor representatives who
allowed the author of this thesis to directly participate in the preparation of bids to
participate in tendering from 2010 to 2017.
3.1.3. Qualitative research implementation and results

3.1.3.1. Inproving factors and scales from studies of 50 contractors
Firstly, about the impact factors, according to the results of interviews with 40
contractor representatives (80% expected), there are 5 factors in the research
model that have received absolute agreement (100% agree to work). There are two
factors with a relatively high consensus rate, the "Regulations and bonuses" factor
with a consensus rate of 87.5%, the factor "values and beliefs" with a consensus
rate of 85%. Particularly, the factor "Capacity and experience of the contractor"
with 27 contractors (accounting for 67.5%) agreed that it affects the bidders'


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decision to participate in bidding packages.
According to the above results, Phd student decided to put all 8 factors into the
model and questionnaires to do quantitative research in the next steps.
Secondly, about scales/indicators, followings are results:
- There are 22 scales/indicators associated with 5 factors with 100%
concurrence that they affect the decision to participate in the bidding package
mentioned. Among 22 scales/indicators above, contractors proposed:
(1) Combining the two scales 4 and 5 under the factor "Contractor's
expectation" into a scale with the common name "desire to promote and build
good relationships with the Investor/Bid solicitor and related individuals" with
22/40 contractors recommended.
(2) Remove the scale / indicator "Information about bidding lists" in factor 8
because it is considered that this is the content of factor 8. This second proposal
has 23/40 contractors recommended.
- With 10 scales/indicators corresponding to the remaining three factors
including 5 scales for the factor "capability, experience of the contractor"; 2 scales
for factor "rules and bonuses"; and 3 scales of factor "values and beliefs" with
consensus rates of 67.5%, 87.5% and 85%, respectively.
- There are 25/40 contractors proposed changing the scale "Having competitive

advantages compared to other contractors" under the factor "Capacity and
experience of the contractor" to "Satisfaction of specific requirements in the
dossier”.
3.1.3.2. Improving scales based on the scientists and bidding specialists in-depth
interview’s results
The following are the results of consultation of experts:
Firstly, they agree with the ideas: (1) Combinning 2 scales of 4 and 5 under the
factor "Contractor's expectation" into a scale. Therefore, the factor "Contractor's
expectation" has 7 remaining scales; (2) Eliminating scale 1 of factor 8 "Bidding
information of tender packages of contractors". Thus, the factor 8 has 4 remaining
scales; (3) Correctting the name of the scale / indicator No. 1 of the factor
"Capacity, experience of bidding participation of the contractor" closely to the
conditions of Vietnam.
Thus, after qualitative research, the shortened model of 8 factors with 30 scales
was completed to carry out the next quantitative study.
Secondly, bidding experts and scientists have provided many ideas to help PhD
students in shaping and corecting scientifically scales to complete the

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questionnaires to conduct extensive sociological surveys in Ha Noi capital.
3.2. Quantitative research design and gathering data
3.2.1. Ensuring objectives of quantitative research
Quantitative research was conducted for three objectives: (1) To collect data to
test and form an official research model; (2) To measure and explain the impact of
factors, the boundaries to the bidder's decision on participation in bidding
packages of construction supervision consultancy; (3) To analyze and measure the
relationship between the dependent variable (the contractor's decision to
participate in the bid for construction supervision packages) and the independent
variables are the impact factors.
3.2.2. Designing questionnaires for contractor’s survey

The completion of questionnaires used for sociological surveys was conducted
by PhD students in consultation with 5 scientists and 5 bidding experts.
3.2.3. Determining sample size of the survey
- The entire object of the study
The entire object of the study is the total of businesses, agencies and units that
have the legal representatives had participatted in the bidding for consultancy
services packages as well as for construction supervision packages and wish to
participate in these bidding package organized in Hanoi capital in the future.
- The sample size of the survey
Applying the formulas developed by scientists around the world and in the
country, two different sample scale levels are calculated: (1) Based on the formula
given by Assoc. Prof. Dr. Ngo Van Thu (2005) with 95% confidence, the sample
size of the study is 245 contractors or more; (2) Based on the formula published by
Hair, J. F and his colleagues mentioned in "Multivariate Data Analysis" published
in 1998, the minimum sample size is 200 contractors.
The PhD student aims to have a number of contractors studied with over 245
valid bidders.
3.2.4. Sellecting contractors to survey from the entire object of the study
The method of selecting the elements in the above-mentioned study is applied
based on the "systematic sampling method" mentioned by the authors Assoc. Prof.
Dr. Le Cong Hoa and Assoc. Prof. Dr.Nguyen Thanh Hieu (2012).
According to this sampling method, the list of 15,031 contractors registered to
participate in bidding in Hanoi capital with the Bidding Management Department
of the Ministry of Planning and Investment and has been reviewed and approved
for the legal entity status to participate in bidding from 17th November, 2010 to


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the 11th May, 2017 is the basis for the selection.
Elements belonging to the author's research sample are contractors in the list

with ordinal numbers: 10, 20, 30, 40, ..., 15,030. A total of 1,503 contractors were
selected to collect survey data for quantitative analysis.
3.2.5. Distributing and getting questionnaire survey
The completed questionnaire survey has been sent to 1,503 identified
contractors in various forms: mailing, appointment to see each other and courier
(one questionnaire survey per one contractor). The result has received 286
responses, of which 272 valid responses.
3.2.6. Data analyzing
The data collected from the questionnaire survey has been synthesized and
analyzed based on the software is a statistic tool SPSS 22 to make general points
and findings. The detailed tools applied on SPSS 22.0 software include: (1)
Implementing Exploring Factor Analysis (EFA) to eliminate random variables; (2)
Evaluating Chronbach’s Alpha reliability by applying Reliability Testing Scales;
(3) Implementing Confirmatory Factor Analysis CFA to confirm believable and
practical value of scales; (4) Testing Pearson correlation and testing research
hypothesis; (5) implementing multiple regression analysis MRA and (6) One-Way
ANOVA variance analysis.
CHAPTER 4: RESEARCH RESULTS FOR FACTORS AFFECTING
CONTRACTORS’ DECISION TO PARTICIPATE IN BIDDING FOR
CONSTRUCTION SUPERVISION PACKAGES
4.1. Overview of biddings for consutancy services packages, construction
supervision packages organized in Vietnam and in Hanoi
The study of this topic was conducted in the context of bidding activities for
consultancy service packages, for construction supervision packages organized in
the the country and in Hanoi recently, especially in 2015 to 2017. This status is
depicted in the picture below.
4.1.1. Bidding for consultancy service packages take place vibrantly and is
constantly increasing at a rapid speed over the years
4.1.2. Consulting service bidding packages are organized across the country
covering many different areas of consultancy services, in which bidding for

construction supervision accounts for a high proportion

16
4.1.3. Bidding packages on consultancy services, construction supervision
packages are not of high value, in which bidding packages worth from 200
million dong or less account for about 55% to 65% in quantity.
4.1.4. The competitiveness of the bidding for consultancy service packages is not
high, most of the bidding winning results are equal to the bidding prices, the
savings in bidding are still low.
4.1.5. Bidding structure of bidding packages of construction supervision in
Hanoi has changed with the appearance and increase of new fields associated
with the development of the technology era 4.0.
4.2. Research results for factors affecting contractors’ decision to participate
in bidding for construction supervision packages in Hanoi
4.2.1. Respondent profile
Of the 286 survey responses with a low response rate of only 19.03%, there
were 272 valid responses.
a). About the geographical location of the contractor: 68.8% are contractors
from 12 city districts, 29.7% from 18 province districts of Hanoi capital. 1.5% are
contractors from neighboring provinces of Hanoi such as Ha Nam province, Ha
Bac province, Bac Giang province.
b). Regarding the bidding participation: All 272 contractors who responded
to the valid questionnaires (100%) had participated in bidding for consultancy
service packages, of which 237 contractors had attended the bidding for
construction supervision packages (accounting for 87.1%). Only 35 contractors
have never participated in bidding for construction supervision packages
(accounting for 12.9%).
c). Regarding the "position" of the respondents: 40.8% of the respondents
are the "head" of the contractors, and the rest are "authorized persons" at the rate
of 59.2%.

d). About the gender of the survey respondents: Out of 272 representatives
of contractors who answered the questionnaire, 204 were male, accounting for
75%. 78 respondents of the survey were women, accounting for 25%.
e). About the age of respondents: The age structure of contractors
participating in the survey is: 60.7% of the middle-aged age group from 40 to 50
years old, the elderly group from over 50 years old accounted for 30.9%, the
younger group under 40 years old accounted for 8.5%.
4.2.2. Exploratory Factor Analysis EFA, Reliability Testing for scales and
Confirmatory Factor Analysis CFA


17
4.2.2.1. Exploratory Factor Analysis (EFA)
After two rounds for applying EFA analysis, the final results in a shortened
model consisting of 6 factors with 23 scales affecting the contractors’ decision to
participate in bidding for construction supervision packages with KMO coefficient
of 0.807 greater than 0.5, less than 1.0 with the significance level as Sig = 0.000
<0.05.

18

4.2.2.2. Reliability Testing for scales
After performing reliability testing for scales by using Chronbach's Alpha
reliability, all the 6 shortened factors with 23 scales in the research model
concluded by SPSS 22.0 software, resulting in all 6 factors with 23 scales being
retained with high reliability and being valuable for the model "Factors affecting
the contractor's decision to participate in bidding for construction supervision
package”.
4.2.3.3. Confirmatory Factor Analysis CFA
In order to confirm the value of the research model drawn from the practice in

Hanoi Vietnam, once again the study carried out the CFA analysis on the AMOS
software platform. Here are results: confirming the research model with 23
measurement scales of 6 independent variables MDCNT, NLKN, LP, TTDK,
SHDGT, QDVT and 1 scale measuring the dependent variable QDTDT are
consistent with market information. They are quality scales because all 5
conditions of CFA analysis are guaranteed, specifically as follows (1) The
significance level of Chi-square is 0.000 <0.05; (2) Chi-square/df = 1.815 <2; (3)
Tucker & Lewis index TLI = 0.927> 0.9; (4) Comparative Fit Index CFI = 0.937>
0.9; and (5) RMSEA index = 0.055 <0.08.
Chart 4.1: Results from CFA analysis
Source:The author’s survey results in 2018
4.2.3. Testing correlation among variables, multiple regression analysis and
testing hypotheses of the research model
4.2.3.1. Testing correlation among variables
Performing Pearson correlation analysis using SPSS 22.0 software, PhD
student obtained the results: confirming that the dependent variable and 6
independent variables have linear correlations with each other in the regression
model because all 6 levels of Sig. (2-tailed) of Pearson correlation coefficients are
less than 0.05; no multicollinearity phenomenon because all the VIPs of
Collinearity Statistics are less than 2 when performing multivariate regression.


19
Table 4.1: Extract the results of Pearson correlation analysis
QDTDTSHDGTMDCNT NLKN
QDTDT Pearson
Correlation

1

Sig. (2-tailed)
N

272

LP

20
Table 4.4: Coefficients of the regression Model

0.317

0.381

0.626

0.514

0.334 -0.329

0.000

0.000

0.000

0.000

0.000 0.000

272

272

272

272

272

4.2.3.2. Performing multiple regression analysis
The regression multiple regression model between 6 independent variables
TTDK, LP, QDVT, NLKN, MDCNT, and SHDGT, with the dependent variable
QDTDT is valuable because:
(1) the Sig. values of regression analysis model and of all 6 independent
variables with values <0.05. It is concluded that regression model and 6 variables
are significant;
Table 4.2: ANOVA testing results
Model

df

20.642

6

Residual

12.476

265

Total

33.118

271

B
1

Std.
Error

Collinearity Statistics
t

Sig.

Beta

Tolerance

VIF

(Constant)

1.836

0.175

10.480

0.000

SHDGT

0.069

0.021

0.127 3.244

0.001

0.930

1.075

MDCNT

0.109

0.024

0.178 4.528

0.000

0.915

1.093

NLKN

0.238

0.022

0.437 10.705

0.000

0.854

1.171

LP

0.180

0.027

0.279 6.738

0.000

0.832

1.202

QDVT

0.052

0.023

0.092 2.293

0.023

0.879

1.137

TTDK

-0.134

0.025

-0.206 -5.386

0.000

0.970

1.031

a. Dependent Variable: QDTDT

Mean Square

Regression

Model

272

Source:The author’s survey data analysis results in 2018

Sum of
Square

Sandardiz
Unstandardize
ed
d Coefficients Coefficient
s

QDVT TTDK

F

Sig.

3.440 73.074 0.000b

Source:The author’s survey data analysis results in 2018
Following is the equation to describle the relationship between variables of the

regression model:
QDTDT = 0.069 SHDGT + 0.109 MDCNT + 0.238 NLKN + 0.180 LP +

0.047

+ 0.052 QDVT – 0.134 TTDK + 1.836
Source:The author’s survey data analysis results in 2018
(2) R square result is 0.623> 0.5, showing that the regression model explains
the linear relationship between the variables of the model.
Table 4.3: Model Sumary
Model
1

R
0.789a

R Square
0.623

Adjusted R
Square
0.615

Std. Error of the
Estimate
0.217

Source:The author’s survey data analysis results in 2018

4.2.3.3. Testing hypotheses of the research model

Because the experimental model removed two factors corresponding to two
hypotheses H6 and H7 were rejected, the study only tested the remaining 6
hypotheses H1, H2, H3, H4, H5 and H8. The testing results show that all 6
hypotheses above were accepted because all 6 Sig. values ≤ 0.05.
4.2.5. Analyzing One-way ANOVA
The thesis has implemented the One-way ANOVA analysis to evaluate whether
there is a difference between contractor groups and contractor representative
groups in evaluating 6 independent factors and dependent variables.
Here are the results: there is no difference between contractor groups and
contractor representative groups in evaluating 6 independent factors and dependent
variables.


21
Figure 4.2 depicts the model of 6 factors with 23 scales affecting the decision
to participate in bidding for construction supervision packages of contractors in
Hanoi, Vietnam.
Beta = 0.437

Capacity and experience of
contractors (4 scales)
Beta = 0.279

Laws (3 scales)

Beta = 0.174

Contractor’s expectation (7 scales)

Beta = 0.127

Attractiveness of the packages
(3 scales)

Contractors
’ decision
to
participate
in bidding
for
constructio
n
supervision
packages

Beta = 0.052

Regulations and bonuses
(2 scales)

Information of bidding participation
registration of contractors (4 scales)

Beta = -0.206

Figure 4.2: Factors affecting contractors’ decision to participate in bidding
for construction supervision packages
Source:The author’s survey data analysis results in 2018

22

CHAPTER 5: RESEARCH RESULT DISCUSSION
AND RECOMMENDATIONS
5.1. Summary of findings and research result discussion
Followings are summary of findings and research result discussion:
Firstly, generalizing and proposing theoretically and more fully the concept of
"Bidder's participation decision".
Secondly, detecting research gaps and proposing the general research model
with 8 factors (independent variables) affecting the decision to participate in the
bidding for construction supervision package of contractors.
Thirdly, developping a "questionnaires" to get feedback on "factors affecting
the contractor's decision to participate in bidding for construction supervision
packages".
Fourthly, implementing statistical analysis and testing tools to draw
conclusions about the final model "6 factors with 23 scales affecting the
contractors’ decision to participate in bidding for package of construction
supervision”, eliminating 2 factors and eliminating 7 expected scales because they
are not suitable, have low reliability.
Fifthly, confirming the impact model of 6 factors with 23 scales to ensure high
reliability and in line with market information.
Sixthly, a new factor proposed by the PhD student for the model "Bid
registration information of contractors" with 4 scales accepted in the model with
high reliability.
Seventhly, the research results show the direction of the impact of 6 factors on
the contractor's decision to participate in bidding for construction supervision
package in accordance with the hypothesis stated.
Eighthly, the research results show the impact importance of each factor on the
contractor's decision on bidding participation in construction supervision
consultancy. Except for the factor "Bidding registration information of bidders"
that has a negative impact on the bidders' decision to participate in bidding for the
above package, among 5 factors that have positive impact, the orders of effect are

arranged as follow: (1) The most powerful factor among the five is the
"contractor's capacity and experience - NLKN"; (2) The factor with the second
highest impact level is the factor "Laws – LP”; (3) The third ranked impact factor
is the “contractor's expectation - MDCNT”; (4) The factor with the fourth rank of
impact is the "attractiveness of the bidding package - SHDGT"; And (5) the
"regulation and reward" factor has the lowest level of influence among the five


23
factors having the same directional impact.
Ninthly, Results of ANOVA analysis showed that there was no difference
between the representative groups of contractors who answered the questionnaire
in assessing the impact of the factors affecting contractor's decision to participate
in bidding for construction supervision packages.
Tenthly, to explain some phenomena that occurred during the contractor's
decision to participate in bidding packages of construction supervision in Hanoi.
5.2. Recommendations to enhance contractors’ decision making to participate in
bidding for construction supervision
5.2.1. Development orientation of State and Communist Party of Vietnam
The thesis recommendations are proposed to follow the development
orientation of State and Communist Party of Vietnam.
5.2.2. Recommendations to enhance contractors’ decision making to participate in
bidding for construction supervision.
Followings are PhD student recommendations to enahnce contractors’ decision
making to participate in bidding for construction supervision.
5.2.2.1. Proposal in addition to the regulations (laws or decrees) stipulates “The
prohibition of subdivision of bidding packages without proper grounds”
For many reasons, the PhD student proposed to include the content "prohibiting
the act of subdivision of bidding packages when planning bidding" for the entire
project or the whole construction work into regulations ( laws, decrees) tendering

to regulate investor behavior.
5.2.2.2. Proposal in addition to the regulations (laws or decrees) stipulates
“prohibiting the inclusion of specific requirements of a bidding package in
bidding documents/request for proposal”
In fact, many contractors are dissatisfied with the "special requirements of the
bidding package" included in the bidding documents / request for proposal "as a
challenge if the contractor wants to pass the selection rounds. This situation should
be stopped by adding to the regulations on content bidding that "prohibit" such
acts.
5.2.2.3. Strenthening inspection, control and supervision of bidding activities,
detecting and strickly handling acts of preventing bidders from participating in bidding
PhD student proposed: Firstly, it is necessary to further strengthen the work of
inspection, control and supervision of bidding activities, bidding activities of
construction supervision packages; Secondly, to strictly handle violations detected

24
in bidding; Thirdly, promptly reward organizations and individuals who have
courageously struggled to detect "sophisticated acts" that prevent contractors'
participation to ensure "fairness and equality" among contractors.
5.2.2.4. Companies, businesses, agencies (contractors) need to pay more attention
to the developement and publicity of the settlement and reward regime for the
activities of preparing for bid participation
In order to encourage bid participation, bidders should pay more attention to
having clear provisions on bid preparation in the spirit that "it is not considered
that failure to win a bid is the fault of the performers".
5.2.2.5. Strongly revise bidding training for bidding experts of the investors/ bid
solicitors
Three proposed solutions include: (1) Promulgating standard training programs
on bidding; (2) Assessment of training results must be substantive; (3) Change
training methods to create more interesting and interesting for learners.

5.2.2.6. Strickly and promptly handling violations of the bibbing law
It is necessary to strictly handle violating collectives and individuals, regardless
of who they are. In addition, the State management agencies on bidding need to
reward and protect the courageous and meritorious people in detecting and
denouncing violations in bidding.