An analysis of preliminary bid evaluation process in the construction industry in Sri Lanka

Abstract

Selecting an appropriate construction contractor is a major decision that influences the success and/or failure of any construction project in Sri Lanka and the selection of a contractor depends on the bidding process adopted. There are evidences that the most of the construction projects were not completed on time. This study analyses the preliminary bid evaluation process which is the first step followed to qualify a selected contractor for further analysis during the bid evaluation. Adopting a snowball sampling method, 150 questionnaires were distributed among employers/clients, consultants and contractors in the Eastern Province of Sri Lanka. The result reveals that the evaluators select the contractors with the lowest price bid ignoring the qualified one. The process of selecting the unqualified low price bidders creates havoc while implementing the project. Consequently, it creates delay and cost overrun and leads for litigation by client. This is due to the lack of evaluator knowledge with regard to contractor selection criteria. This study also suggests to improve the weight of the criteria for preliminary bid evaluation of contractors.