The reliability and effectiveness of department estimate in tender evaluation

Abstract

The selection of tender is a very significant process during the pre-contract stage and need to assess meticulously. Hence, Public Works Department (PWD) has introduced a statistical method called as cut-off system to guide the selection of tender. Department estimate as one of the data need to be incorporated in the system and also become as a basis to guide the selection of tender. However, the department estimate used is considered unreasonable by certain parties when there is a high divergence with the cut-off level. Today, most of the tender also awarded based on the cut-off level and ignoring the level of department estimate. Therefore this study will be conducted to investigate the function of department estimate, the reliability of department estimate and the effectiveness of department estimate in cut-off system. The objectives of the research are to study the process of evaluating the tender in PWD, to review the process and procedures in the preparation of department estimate in PWD and to assess the effectiveness of department estimate in the tender evaluation. Expectantly, the study will assist the estimator to enhance the reasonableness of the department estimate and often take into consideration the department estimate as a basis to select the most qualified contractor.