Awarding Construction Contracts on Multicriteria Basis in China

“…Holt et al 1994a;Latham 1994;Williams 2003), especially when there is little work around and bidders are shaving their bids (Hatush and Skitmore 1998;Ioannou and Leu 1993;Oviedo-Haito et al 2014). In fact, many previous studies point to the lowest bid often not being best bid in terms of final cost (Dawood 1994;Hatush and Skitmore 1998;Wong et al 2001), time (Lambropoulos 2007;Shen et al 2004;Shr and Chen 2003), quality (Asker and Cantillon 2008;Choi and Hartley 1996;Molenaar and Johnson 2003), or risk (Finch 2007).…”

Section: Introductionmentioning

confidence: 99%

Scoring Rules and Competitive Behavior in Best-Value Construction Auctions

Ballesteros‐Pérez

Skitmore

Pellicer

et al. 2016

J. Constr. Eng. Manage.

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“…This literature emphasizes that contract awards made to the lowest tenderer may lead to cost overruns and poor quality outcomes in construction projects. Thus, buyers tend to prefer scoring-based competitive tendering (multi-criteria contractor selection) rather than price-only competitive tendering (Wong et al, 2001;Shen et al, 2004;Singh and Tiong, 2006;Waara and Brö chner, 2006). The paper also relates to previous literature on transaction costs in the construction industry (Reve and Levitt, 1984;Winch, 1989;Lingard et al, 1998).…”

Section: Introductionmentioning

confidence: 78%

Mitigating contractual hazards in public procurement: a study of Swedish local authorities

Waara

2008

Construction Management and Economics

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Private sector buyers often award construction contracts through negotiation rather than through open competitive tendering. Negotiating with a reputable contractor is a way to mitigate contractual hazards. For many public sector buyers, however, open competitive tendering is required by law. The practices of procurement officers in local authorities are examined in regard to the selection of construction contractors, focusing particularly on their use of scoring-based competitive tendering and ex ante information exchange between procurement officers and the firms competing for contracts. Semi-structured interviews were carried out with 15 procurement officers in 10 local authorities in Sweden. Using the contractor's staffing of the project organization as a contract award criterion allows procurement officers to select reputable contractors. Arranging face-to-face meetings with contractors before the final award decision allows procurement officers to resolve at least some technical problems in complex construction projects. When negotiations are prohibited by law, these practices can be seen as combined responses to hazards of construction contracting.Contracting, procurement law, public sector, Sweden,

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Awarding Construction Contracts on Multicriteria Basis in China

Cited by 70 publications

References 13 publications

Scoring rules and abnormally low bids criteria in construction tenders: a taxonomic review

Scoring rules and abnormally low bids criteria in construction tenders: a taxonomic review

Scoring Rules and Competitive Behavior in Best-Value Construction Auctions

Mitigating contractual hazards in public procurement: a study of Swedish local authorities

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