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Topics: Construction
criteria for award of construction contract
What is the criteria for award of construction contract followed in various countries 1) Lowest bid or 2) Qualification/competency to deliver on time ?
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It depends upon the project's requirements. For example, if the project must meet a completion date of February 15, 2017, but the lowest bidder can't start until that date, the bidder lowest bidder who can meet the date could be awarded the project. Alternatively, if that bidder has been known to over-promise and under-deliver, therefore increasing the risk that you won't make the required date, perhaps, more analysis is needed in making choices.
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1 reply by Chandrashekhar Thatte
Jan 31, 2017 5:39 AM
Chandrashekhar Thatte
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It is a much greater risk to award the project to the lowest bidder than to award it to the bidder with proven performance credentials on similar/identical project. The success rate is higher in the later case.
Jan 30, 2017 11:35 AM
Replying to William Lewis
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It depends upon the project's requirements. For example, if the project must meet a completion date of February 15, 2017, but the lowest bidder can't start until that date, the bidder lowest bidder who can meet the date could be awarded the project. Alternatively, if that bidder has been known to over-promise and under-deliver, therefore increasing the risk that you won't make the required date, perhaps, more analysis is needed in making choices.
It is a much greater risk to award the project to the lowest bidder than to award it to the bidder with proven performance credentials on similar/identical project. The success rate is higher in the later case.
Depending on the country, unfortunately it depends on who pays the largest bribery.

Luckily a PM captures the criteria to be followed in in Procurement Management Plan, which is approved and reviewed by relevant stakeholders.
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1 reply by Chandrashekhar Thatte
Feb 01, 2017 3:37 AM
Chandrashekhar Thatte
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I agree with your views.But the reply does not throw light on the criteria being followed in your country and the basis of selection of bidder.Corruption,by and large, has become an internationally acceptable business practice barring a few nations.Bribery may serve the short term interest of both the parties to the act however what matters is whether it serves the business interest of the final beneficiary and the stakeholders which,albeit,depends on a successful delivery of the project .
Jan 31, 2017 10:43 AM
Replying to Eduard Hernandez
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Depending on the country, unfortunately it depends on who pays the largest bribery.

Luckily a PM captures the criteria to be followed in in Procurement Management Plan, which is approved and reviewed by relevant stakeholders.
I agree with your views.But the reply does not throw light on the criteria being followed in your country and the basis of selection of bidder.Corruption,by and large, has become an internationally acceptable business practice barring a few nations.Bribery may serve the short term interest of both the parties to the act however what matters is whether it serves the business interest of the final beneficiary and the stakeholders which,albeit,depends on a successful delivery of the project .

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