A Review of Factors Causing Contractor Failure in the Tender Process on Government Construction Projects

Authors

  • Rusdi Usman Latief Department of Civil Engineering, Faculty of Engineering, Universitas Hasanuddin, Gowa, Indonesia https://orcid.org/0009-0009-0870-0742
  • Ismira Justy Ohorella Department of Civil Engineering, Faculty of Engineering, Universitas Hasanuddin, Gowa, Indonesia https://orcid.org/0009-0006-8649-9819
  • Rosmariani Arifuddin Department of Civil Engineering, Faculty of Engineering, Universitas Hasanuddin, Gowa, Indonesia https://orcid.org/0009-0002-9034-5848
  • Muh Rifan Fadlillah Department of Civil Engineering, Faculty of Engineering, Universitas Hasanuddin, Gowa, Indonesia https://orcid.org/0009-0005-4541-6522

DOI:

https://doi.org/10.31272/jeasd.3089

Keywords:

Bidding document, Contractor company, Contractor failure, Government project, Tender

Abstract

The implementation of e-tenders in the construction industry in the era of globalization faces several challenges in many countries, including Indonesia. Maluku Island, one of Indonesia's main islands, is experiencing growth in the construction sector. However, it faces challenges, especially in improving the quality of contractor companies in implementing tenders. This research attempts to examine the issue of tender failure more comprehensively. This study aims to identify and analyze the dominant factors that can affect contractor failure in the tender process. The research methodology includes a literature study developed through relative importance index analysis to determine the dominant factors. The results showed that 36 factors affected contractor failure in the tender process for government construction projects in Maluku province. Factors affecting contractor failure in tendering for government projects are divided into four main categories: administrative document evaluation with an RII value of 0.65, qualification with an RII value of 0.71, technical with an RII value of 0.73, and price with an RII value of 0.73. Technical and price evaluation are the most crucial factors. This research is expected to help contractors prepare better strategies in the tender process, especially in terms of technical and price documents.

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Key Dates

Received

2024-10-15

Revised

2025-07-22

Accepted

2025-08-29

Published Online First

2025-10-26

Published

2025-11-01

Issue

Vol. 29 No. 6 (2025): Journal of Engineering and Sustainable Development

Section

Articles

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Copyright (c) 2025 Rusdi Usman Latief, Ismira Justy Ohorella, Rosmariani Arifuddin, Muh Rifan Fadlillah (Author)

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How to Cite

Latief, R. U., Ohorella, I. J., Arifuddin, R., & Fadlillah, M. R. (2025). A Review of Factors Causing Contractor Failure in the Tender Process on Government Construction Projects. Journal of Engineering and Sustainable Development, 29(6), 691-699. https://doi.org/10.31272/jeasd.3089

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