An assessment of the prediction of the procurement evaluation criteria on performance of contractors on public building projects

Abstract

The public construction works in Uganda are procured basing on the evaluation methodology and criteria in the Standard Bidding Documents (SBD) issued by the Public Procurement and Disposal of Public Assets Authority. The expectation from the use of these criteria is the selection of the most qualified and competent contractors to successfully execute the construction works. However, there are concerns about the Procurement Evaluation Criteria (PEC) as most of these construction projects are not delivered to the clients’ expectations. This study investigates the predictive power of the procurement evaluation criteria on the performance of contractors on public building projects in Uganda. The study combines both quantitative survey data from questionnaires administered to construction consultants, and qualitative interview discussions with procurement officers. A combination of stratified sampling and simple random sampling techniques were employed in selecting respondents. A total of 193 consultants answered questionnaires, and 5 procurement officers participated in the interview discussions. Mean scores, standard deviations, percentages, frequencies and thematic analyses were used to analyse the data. The study findings reveal that procurement evaluation criteria used to assess contractors on public building projects are financial soundness, technical ability, health and safety, reputation and legal requirements and play a crucial role in predicting contractor performance. The findings indicate that the PEC, to a notable extent, effectively predict contractor performance. However, there are evident areas where enhancement is needed to further optimize the effectiveness of these criteria. The study also found out that corruption and political interference are the most prominent concerns that affect the PEC in predicting contractor performance. Based on the findings, several recommendations are proposed to enhance the procurement evaluation criteria. These include development of an online document verification system, standardising consistency in application of PEC, reviewing and adjusting the weighting systems, broadening the scope of professionals involved in the procurement evaluation process and enhancing the transparency of evaluation criteria. By doing so, the procurement process can be strengthened, leading to improved prediction of contractor performance.