Article navigation
Purpose

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.

Design/methodology/approach

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.

Findings

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.

Practical implications

The findings support procurement policy reform and informed decision-making.

Social implications

Use of effective bid evaluation can promote better public resource utilization and project outcomes.

Originality/value

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.

Licensed re-use rights only
You do not currently have access to this content.
Don't already have an account? Register

Purchased this content as a guest? Enter your email address to restore access.

Pay-Per-View Access
$39.00
Rental

or Create an Account

Close subscription notice
Close access options