An Assessment Of Perception Of Contractor's Performance On Lowest Bid Award Systems:

Abstract

This research was undertaken to assess the performance of public owned construction projects awarded on a lowest bidder bid awarding system and based on the findings to propose improvements in the existing practices in Oromia construction industry. An extensive literature search was carried out to identify different practices; a questionnaire survey was conducted among the different groups that make up the construction industry in Oromia; a number of alternative bid evaluation and contract award procedures were presented and discussed in this research. Regional government regulations are reviewed to examine the objectives and intent of the law on this issue. The research showed that inappropriate contractor selection is a key contributory factor toward project non-performance, which is, as the result indicates, primarily a consequence of low-bid price selection criteria. Moreover, Results also showed that the bids evaluation and contractors selection based on lowest price are a major challenge. Competitive low bid method has been highly criticized for its negative impacts on disputes/claims, coordination, quality control and project duration. On the other hand, other alternative bidding procedures included in the study were highly appreciated by respondents for their positive effects on these attributes. Particularly, the researcher shared the idea of adopting the average bid method of awarding contracts among responsive bidders.