Suitability of government bid evaluation procedure for building projects in Sri Lanka

Abstract

In Sri Lanka, a Contractor is selected through a bid evaluation procedure in construction projects and this is be a crucial step in the implementation of the project. The most frequently used bid evaluation procedure in Sri Lanka is the Government Bid Evaluation Procedure (GBEP), the Government being the client in most of the projects. Although GBEP is referred to in government publications, it has so far not been analysed in detail. This study therefore was conducted to identify the suitability of GBEP to local building projects. Firstly, a literature synthesis and a desk study were carried out. The degree of use of GBEP identified from the literature synthesis was validated through semi structured interviews which also identified the advantages, disadvantages and limitations of GBEP. The analysis reveals that a well-defined procedure, proper documentation, possibility of selecting the lowest evaluated bid are the major advantages of GBEP while the absence of a minimum eligibility criteria for preliminary bid evaluation, adjustments done by the evaluator, low accuracy of the Engineer’s Estimate and non-consideration of the optimum bid are its major disadvantages and/or limitations. Suggestions are made to overcome the disadvantages and limitations. Flexibility on ICTAD registration, making allowance for discounts for variations, introduction of standard formats for reporting and prohibition of adjustments by the evaluator will enhance the transparency and accountability of GBEP.