Influence of the New Tender Law on Construction Project Bid Prices and Durations in Kuwait

Construction Industry; Tendering; Construction Law

Abstract

The public construction industry is a complex industry that mandates many restrictions, consists of different prolonged phases, and involves various approvals, a great number of authorities and party associations. The tender stage is crucial in any construction project; it sets the basis of the second party selection to a contract, which is essential for the success of the project. The State of Kuwait issued The New Tender Law (No. 49 of 2016) in align with the rapid development of laws and regulations. The New Tender Law has introduced twenty modifications, which were included in a survey distributed to a number of participants with experience in the public construction industry in Kuwait. Ninety-three completed surveys were gathered and included in the research's analysis. Box plot and weighted average along with the standard deviation, were used to sort the twenty tender law modifications according to their influence on bid price and overall project duration. Encouragement of foreign investing, changing contractor classifications, lengthy award processes, and prequalification and the possibility of rebidding are common tender law modifications that have significant impacts on both attributes.