Bid evaluation plays a critical role in public procurement by influencing contractor selection in public projects. In Sri Lanka, the lowest bid method (LBM) remains the predominant evaluation approach, despite concerns regarding its ability to consistently achieve value for money and successful project outcomes. This study aims to examine the applicability of the average bid method (ABM) as an alternative bid evaluation approach within the Sri Lankan public sector construction context.
Ten factors affecting price-based bid evaluation were identified through a comprehensive literature review. A questionnaire survey was conducted among architects, engineers and quantity surveyors involved in public construction procurement using purposive sampling, yielding 122 valid responses. Relative importance index and Pareto analyses were applied to identify critical factors influencing bid evaluation. A fuzzy evaluation approach was then used as a decision-support method to compare the effectiveness of LBM and ABM in addressing the identified critical factors.
The results indicate that ABM performs more effectively than LBM in addressing key price-based bid evaluation factors. The findings suggest that ABM demonstrates improved alignment with evaluation criteria related to project performance and risk considerations when compared to the conventional lowest bid approach.
The findings support procurement policy reform and informed decision-making.
Use of effective bid evaluation can promote better public resource utilization and project outcomes.
This study contributes context-specific empirical evidence on the applicability of the ABM as an alternative to the LBM in Sri Lankan public sector construction procurement.
