Multicriteria selection practices in public tender evaluation process: the case of Sri Lanka

Abstract

Purpose

Awarding contracts based solely on the lowest price is unsuitable for every project. Consequently, most procurement systems in developed countries have progressed to the multicriteria selection practices (MSPs) for tender evaluation. MSPs consider a range of quality measures, such as completion time, life cycle cost, functional characteristics, environmental impact and innovation, alongside bid price. This study examines the prevailing MSPs in Sri Lankan public tender evaluations to enhance the effectiveness of the local tender evaluation process.

Design/methodology/approach

A desk study approach was employed to collect bidding documents, resulting in the identification of 66 documents. A systematic screening process was then applied to identify those bidding documents that incorporated MSPs. Subsequently, content analysis was conducted to determine the common features of the functions used in MSPs.

Findings

The study identified six primary functions related to MSPs incorporated in the bidding documents to procure building and substation projects. Three functions follow the price-to-quality method, while the remaining three follow the quality-to-price method. Among these identified functions, four functions employ objective evaluation criteria, such as thickness, capacity and operational loss. The other two functions utilize subjective evaluation criteria, such as the project’s design and technical specifications. Contract awarding will be based on either the highest score or the lowest bid, depending on the function type.

Originality/value

This study’s originality lies in exploring MSPs in the Sri Lankan public tender evaluation process and in disclosing their characteristics to promote the MSPs in Sri Lanka and developing countries.

Citation

Uduwage Don, N.L.S., Panuwatwanich, K. and Waidyasekara, K.G.A.S. (2024), "Multicriteria selection practices in public tender evaluation process: the case of Sri Lanka", Built Environment Project and Asset Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/BEPAM-12-2023-0220