Bidding evaluation criteria for selection of contractor: a comparative study

Abstract

The cause of delays in Malaysian construction projects are, in some way or another, associated with contractor‘s improper planning, poor site management and inadequate experience. These suggest that the current system of awarding the contracts is inefficient in selecting the contractor capable of meeting the demands and challenges of present times and hence needs to be reviewed accordingly. Therefore, this paper aims at identifying problems and weaknesses with the current system of awarding the contracts for construction projects in Malaysia. The research method selected for this study comprised of both literature review and interview with experienced professionals. An extensive literature review and experienced professionals‘ opinion on current bid evaluation process being sought to identify the issues associated with the current system. The findings indicate that the most common criteria considered during bid evaluation process are financial soundness, technical ability, management capability and the health and safety of contractor. However, attributes that indicate contractors‘ performance such as past performance; quality of workmanship in past projects, success and failure rate of past projects, past relationship and performance potential; depth of experience on similar project, quality control programme/system, current workload and staff qualifications are rarely being considered. The study also highlights that there are significant difference in opinions regarding criteria considered by Malaysia construction industry with other countries. The findings from the study may act as an aid in improving Malaysia construction industry by highlighting improvements to be made to the current system of awarding the contracts for construction projects in Malaysia.