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.