Impact of Tender Price Variability on Economic Sustainability of Construction Sector in Developing Countries (Published)
Economic sustainability in the construction sector is increasingly important in developing countries, and threats from construction tender price variability and inflation require immediate action. While global trends emphasize sustainable construction practices triggered by rapid economic growth and augmented environmental impact considerations, this paper underscores the significance of adopting tender-price practices that focus on attaining economic sustainability for enhancing sustainable development in developing countries. The study predicates how construction tender price variability accentuates sustainable construction practices. The study identified respondents through purposive sampling for better insights and a more thorough investigation of the construction tender-price phenomena. The adopted method presented the study with information-rich participants and cases regarding issues of central significance to the inquiry. In addition, the study utilized snowball sampling in which existing respondents recruited or referred other respondents from among their professional acquaintances. The study findings 13 factors requiring immediate consideration to address construction tender price variability and inflation. These include material costs; interest rates; equipment costs; labor costs; delayed payments; exchange rates; and the nature and type of project. The results categorize four specific areas significantly affected by high construction tender prices. The harmful impacts were immediate and more severe to stakeholders like the government (client). The effect on projects is equally devastating; however, contractors appear to experience more positive-impact though in the short term. The long-term effects of high construction tender-price variability inflation were detrimental to all stakeholders by observation. Thus, the article recommends strategies that address tender price sustainability challenges faced in the construction sector.
Keywords: Economic Sustainability, developing countries, tender-price, the construction sector