Factors in the selection of contractors for engineering works

[Abstract]: This project is on the factors used in the selection of contractors for engineering works. Traditionally, the selection of contractors was based simply on price. The problem with this approach is that the lowest priced bid doesn’t necessarily represent the best value for money. The appropriate consideration of non-price factors together with price in the selection process can improve the probability that the project will be successful. Whilst many practitioners now also include non-price factors in considerations to select contractors, methodologies for this consideration and the factors used vary greatly. The author’s research was unable to locate industry-wide standards that would help practitioners to achieve best practice. This project identifies how this gap may be filled for a particular range of values of projects. The project work undertaken incorporates literature-based research and a questionnaire that was completed by 10 experienced industry professionals. It also includes two case studies where the full sets of tender documents were reviewed. One of these projects was current and the author was able to assess the submissions prior to the sitting of the tender evaluation panel. The other project was examined as the contract was let based on price and is a good example of the problems that can occur by using this method of selection. The results of the questionnaire was examined further and combined with the knowledge gained through this research to produce sample checklists of factors and weightings that could be applied to different types of projects. This gives an indication of what factors are important and how they might be assessed to achieve best value for money whilst minimising unnecessary cost to industry. Further such research may be beneficial to the construction industry in relation to projects of greater value and delivered through more innovative contracting approaches such as Public Private Partnerships