Mechanisms for enhancing responsiveness of bids in public construction procurement

Abstract

The development of the socio-economic growth of a country is greatly impacted by the local construction industry. Compared to private sector investments in construction such as apartments, luxury hotels, shopping complex, etc. public sector investments such as the development of infrastructures, public utilities are playing a major role in the socio-economic development of a country. Timely completion of a public construction project as per given criteria mostly depends on the contractor and the contractor is selected by evaluating the bids which received through a process called “Bidding Process”. To select a responsible contractor, the level of responsiveness of the submitted bids shall be high. Yet the problem is whether there are any mechanisms within the Sri Lankan public procurement system to enhance the responsiveness of bids receiving in order to select a responsible contractor. Developed countries in the world do have specific mechanisms to increase the effectiveness of their public procurement system which enhances the responsiveness of bids received leading to select a responsible contractor. Improving the legal framework for public procurement, using different market approaches, practicing alternative awarding criteria such as Most Economical Advantageous Tender (MEAT) instead of lowest bid price criteria, introducing innovative awarding methods, negotiation, adopting technological developments, etc. are some of advance steps taken by the developed countries to enhance the responsiveness of receiving bids. This study is discussing how these advance mechanisms can be utilised within the Sri Lankan public procurement system to enhance the responsiveness of bids receiving for a public construction project. A research framework was built by collecting information from books, journals, dissertations, conference papers etc. The outcomes of this research depict the impact of a research framework on the factors impacting the responsiveness of bids and areas of development to the selected mechanisms which suit the local context. Finally, the outcome of this research was recommended to implement within the Sri Lankan public procurement system.