Selection of contractors for minor works by quotation

Abstract

The maintenance of building is important to ensure that the life span of the buildings is lengthened. Most of the building maintenance works are carried out by contractors through quotation works. The selection of good contractors is important to ensure the successful completion of the project. The evaluation and selection of the contractors are usually carried out in three stages. The first stage is to check all relevant documents submitted by the contractors, the second stage is to evaluate the technical and financial capabilities of the contractors and the final stage is to evaluate the tender price. However, the tender price is evaluated either by the comparison of price quoted to the department estimate method or the evaluation of the price quoted by cut-off method. The aim of this study is to evaluate the performance of the contractors selected through the ‘cut-off’ method and the ‘comparison against office estimate’ method and to identify the method preferred by the contractors. The objectives of the study are to study the quotation evaluation process in the selection of contractors for building maintenance work, to evaluate the performance of contractor selected through comparison of quoted price to the department estimate method, to assess the performance of contractor selected through the evaluation of the quoted price by cut-off method and to identify the method preferred by the contractor in evaluating the tender price. The scope of this study is conducted at JKR Daerah Johor Bahru. The study is carried out by interviews, questionnaires and through records checking at the JKR’s office. A total of 100 questionnaires were distributed and 50 questionnaires were returned duly answered. The data is analyzed using Average Index. From the study, the evaluation process for contractors executing minor works comprises of 3 stages namely; Stage 1, checking all documents submitted by the contractors, Stage 2: analyzing the technical and financial status of contractors and stage 3: analyzing the contractors’ tender amount. The performance of contractor selected through comparison of price quoted to the department estimate method are the contractor is able to complete the job as stated in the contract and there is an increase in construction cost. The performance of contractor selected through the evaluation of the quoted price by cut-off method are increase in construction cost and the contractors applied for extension of time. Only 68% of the contractors preferred the evaluation of the quoted price by cut-off method. Among the reasons given are it gives more confidence to the contractors and the selection criteria is clear and transparent.