AN ASSESSMENT OF KEY ECONOMIC FACTORS INFLUENCING CONTRACTORS' TENDER DECISIONS IN PUBLIC SECTOR PROJECTS IN ANAMBRA STATE

Abstract

This study critically analyzes key economic factors affecting contractors' tender decisions in an unstable economy, focusing specifically on public sector projects in Anambra State. The tendering process is pivotal in determining the success and efficiency of project delivery, particularly in the public sector where transparency and accountability are paramount. However, economic instability poses significant challenges to this process, influencing contractors' ability to submit competitive and realistic bids. The research utilizes a mixed-methods approach, combining quantitative surveys and qualitative interviews with contractors, project managers, and government officials involved in public sector projects. Key factors examined include inflation rates, currency fluctuations, availability of materials, and access to credit, regulatory changes, and political instability. Table A shows that 40% of the respondents have more than 15 years’ experience in the industry, 60% rate the economic stability in the state as unstable, and 40% rate inflation as the major challenge facing public sector projects in the state. The study concludes that for public sector projects in Anambra State to thrive amidst economic instability, there is a need for strategic intervention, inflation adjustment mechanisms in contracts, improving access to credit for contractors, and ensuring a more stable regulatory environment. These measures can enhance the resilience of the tendering process, ensuring that public sector projects are delivered efficiently and sustainably even in an unstable economy.