Drivers of e-bidding implementation in the Saudi Arabian construction industry

The purpose of this paper is to identify the key drivers for adopting electronic bidding (e-bidding) systems in public construction projects located in Saudi Arabia.

Literature review was undertaken to identify the drivers of e-bidding practices. Nine drivers, classified under four categories, were identified. A questionnaire survey was developed to assess the significance of the identified drivers. Responses were obtained from 20 large contractors, classified as Grade I and II contractors in Saudi Arabia, and 12 governmental authorities, representing owners of construction projects. The drivers were ranked according to their respective significance index (SI) values. Finally, a Spearman’s rank correlation coefficient was employed to ascertain the extent to which the two parties agreed on the significance level of the drivers.

Analysis of the identified drivers revealed that the most significant driver was “reduction in the physical storage requirements of bidding paperwork.” Further, a consensus was observed with regards to the significance of the drivers. The findings of the present study highlight the strong potential of widespread e-bidding adoption in Saudi Arabia. It demonstrates the key drivers for the implementation of e-bidding through the perspective of professionals within the context of Saudi Arabia.

Prior to this study, no previous research has endeavored to assess the drivers of e-bidding adoption in Saudi Arabia. The adoption of e-bidding will benefit organizations through improved efficiencies, which could potentially lower construction costs, thereby contributing to economic growth and benefitting the society at large.