CONTRACTOR’S SELECTION AND BID EVALUATION IN THE CONSTRUCTION INDUSTRY OF PAKISTAN

Abstract

Procurement of construction work involves the selection of contractor through effective evaluation of bid, a very important aspect of contract administration which; if not carefully undertaken could adversely affect contract execution. Hence it is important that contractor selection be carried out with careful thought and consideration. In Pakistan contractor’s selection and bid evaluation process have many flaws and short comings that need to be improved to make the process of procurement better. The inefficient sources selection criteria being adopted by the employers all over the Pakistan for procurement of civil work results in frequent cost and time overruns and imminent quality issues. Government of Pakistan developed Public Procurement Regulatory Authority rules 2004 and the same were enforced for the procurement of works by public entities. This research scrutinizes these rules and it was inferred that the Construction Industry accepts the efficiency of these rules but also recognizes the room for improvement. According to PPRA rules “lowest bid” criteria is enforced in public procurements and guideline factors to be considered in selection of contractor are experience, past performance, personnel, financial position, plant and equipment, and management capability.