The impact of competitive advantages on the cost estimation process in the construction companies in the Gaza strip

Abstract

Construction industry is one of the main sectors in the Palestinian national economy; it plays a major role in developing and achieving the goals of society. To select contractor to implement any projects, there is multi-criteria determined by competition on tenders and then awarding. In order to win tenders, construction companies should have competitive advantages to compete others. The main aim of this research is to determine the impact of competitive advantages for construction companies on cost estimation process and its role in winning tenders. The questionnaire approach was used to achieve the objectives of the study in addition interviews. Eighty questionnaires were distributed on contracting companies, sixty questionnaires were collected. The questionnaire contained thirty-three questions grouped in five groups; each group considered a competitive advantage such as financial situation, administrative staff, technical staff, information technology and relationship with suppliers. The results showed that, the technical staff in the company has a major role in reducing cost and impact on winning tenders and the second competitive impacts on reducing cost is the financial situation. While information technology is considered not effective competitive advantage and has no impact on reducing cost. Interviews approaches were used to support and confirm the results of questionnaire; three interviews were conducted with company managers who have significant experience in contracting and tenders pricing. The three managers are worked in the major companies in the Gaza strip, Interviews confirmed the results of questionnaire, and there is consensus between the opinions the three companies. The research recommended contractors to interest in its technical staff and built the loyalty and fidelity among the employees. Also, the research recommended contractor to encourage its employees by continuous stimulation and following the clear financial and administrative strategies which increased the loyalty to the company. And continues training is serious to keeping skilled employees. Also interesting in financial situation which is considered strong support to company’s sustainability.