Optimizing contractor’s selection and bid evaluation process in construction industry: Client’s perspective

Abstract

Construction in developing countries is often encountered with multifarious challenges including contractor's performance due to lack of qualification and resources. The lowest bid criterion is binding in public procurements. However, contractors exploit the loopholes in the bid process management system. This paper scrutinizes the prevalent rules for the bid evaluation and investigates the criterion used by both clients and consultants in selecting the contractors during the bids evaluation phase of construction projects in Pakistan. The current research uses the relative importance index and severity index approach to analyze the data. It was discovered that proper planning, credit worthiness, transition plans, plant and equipment holding, financial stability, past performance, and quality, are the most imperative factors, influencing the contractor's selection procedures used by clients and consultants. Likewise, a high probability of success is presaged if the contractors are selected using the multi-criteria method. The study contributes to the body of knowledge by revealing the significant factors impacting the contractor's selection and bid evaluation process, especially in a developing country. Its results and methodology can also be generalized with caution in other developing countries having similar work environment.

Extrinsic factors influencing the bid/no-bid decision of construction contracting firms: Impact of firm size and experience

“…There are different classifications for firm size and experience worldwide, which can vary by country, sector or region. For example, large firms are characterized as having more than 250 or 300 employees; similarly, mature firms are seen as having experience more than 5 or 10 years (Abdul-Aziz et al, 2013;Maqsoom & Charoenngam, 2014;Maqsoom et al, 2019). In this research large firms are classified as having more than 250 employees and mature firms having experience 10 or more years in the construction industry (Abdul-Aziz et al, 2013).…”

“…Large firms rated 'stability of the political situation in the region' is more important than that of small firms. They are well aware of the fact that if the political situations in the region of project are not favorable then taking the whole crew there and work would be highly risky, which can lead to severe losses in terms of both man-power and resources they are going to use on site (Maqsoom et al, 2019). As large firms move with more crew and equipment as compared to smaller firms, they face the chance of a higher degree of loss and hence, give this factor more importance than that of small firms.…”

Investigation of Innovation during Bid Evaluation Process in the Road Construction Industry

“…It is widely accepted that projects related to road construction should be managed effectively. The literature indicates that demands from customers in terms of value for expenditure have been increasing rapidly [1,2]. Therefore, a rigorous evaluation of tenders to ensure an effective return on investment is essential.…”

“…A failure to accurately assess tenders can lead to complications for the whole project and the road construction company. The selection of a suitable construction contractor increases the likelihood of the successful completion of a road construction project [1,3]. This may also ensure the customer/ owner goals are achieved and the project is completed on time, within budget and delivers high quality project outputs.…”

“…The quality of roads also suffers badly due to global warming resulting in changes in the earth and environment [1,[4][5][6]. Therefore, in this context, previously used methods of road construction are not suitable and cannot be applied in this rapidly changing environment.…”