A case study on project competition intensity (PCI) in the construction market

Competitive status in a market to a certain degree can be reflected by competition intensity. This intensity has been used to describe simultaneously the degree of both single product competition and overall market competition in those markets full of homogenous products. However, this is not the case in the context of the construction market, as most of the products of the market refer to numerous unique construction projects. The research study presented in this paper, argues that competition intensity in the construction market consists of project competition intensity (PCI) and market competition intensity (MCI). Little attention to PCI in previous research studies can result in inefficient MCI measurement in the construction industry. By using a road project in China, the study investigates competitors' behaviour and the process of PCI caused. The study finds out that PCI can be dominated by a few project competitors. Two factors, namely competitor number and competitors' behaviour are further attributed to PCI determinants. These findings can support the promotion of MCI measurement in the future research.