A study on the impact of contractor selection method and contractors’ pre-qualifications on delays in Jordanian public construction projects

Abstract

The construction sector significantly contributes to Jordan's economy; delivering projects on time stands as a paramount success factor. Contractors play a pivotal role in project timelines, aiming to minimize delays and failures. Consequently, the pre-qualifications of contractors hold critical importance. Unfortunately, the pre-qualifications of contractors are often disregarded in the process of awarding construction projects in Jordan. Excessive emphasis is placed on selecting the lowest bidding price. This research contends that a systematic investigation into contractor pre-qualification is imperative to enhance the likelihood of project success and prevent potential delays. As a final point, a practicable framework is proposed to aid decision-makers in selecting appropriate contractors and refining decision-making to bolster success rates. The research employed a dual-method approach to data collection. Quantitatively, a questionnaire was distributed to 800 participants, yielding 250 responses. Qualitatively, case studies were conducted in two school building construction projects, supplemented by researcher-conducted interviews within these educational institutions. The findings were categorized into four main sections. The first section reveals that the construction industry in Jordan is predominantly perceived as male-dominated. Notably, school projects emerge as the most common type of government project in Jordan, typically characterized by medium-sized scope and executed by contractors classified as first-class. Regarding success factors, the outcomes indicate that contractors tend to perceive their projects as more successful compared to the viewpoints of owners and consultants. The utmost success factor across all parties is project quality. Among the challenges faced by all stakeholders, project delays stand out prominently. In terms of contractor selection, the impact index of the contractor selection method on success is notably high at 80.6%. The significance attributed to contractor qualifications varies among stakeholders. Owners prioritize the contractor's financial standing; consultants underscore the importance of technical staff skills; for contractors, proficient project planning takes precedence. A majority of respondents (71.6%) believe that enhancements can be made to the contractor selection method. Reasons for delays diverge based on stakeholders. For owners, the financial circumstances of the contractor are a primary cause. Consultants attribute delays primarily to inadequate project planning by contractors. Contractors cite government payment delays as their main concern, followed by government decision-making delays and their own financial situations. Delays primarily lead to cost overruns for all parties, followed by disputes. From the owner's standpoint, delays predominantly result in disputes. All parties unanimously agree that communication is the most commonly utilized and effective solution to address delays. Comparative analyses were conducted and are presented in tables on specified page numbers 184, 188, and 191 for success factors, contractor pre-qualifications, and reasons for delays in different countries. Concerning theoretical underpinnings, this study integrated two core theories, the multi-attribute theory and the analytical hierarchy process theory, to develop the final framework. Given their foundational status within the selection process, these theories informed the framework's development. Notably, the most crucial pre-qualification aspects for selecting qualified contractors were identified as follows (in percentages): technical staff skills (27%), project planning (22%), financial considerations (20%), experience and capability (15%), contract management (8%), risk management plans (5%), and technology (3%). This framework aims to facilitate decision-makers, particularly the Ministry of Public Works and Housing, in streamlining the contractor selection process and simplifying decision-making.