ASSESSMENT ON PROCUREMENT PROCESS AND EVALUATION CRITERIA SETTING PRACTICES IN BUILDING CONSTRUCTION: THE CASE OF SELECTED SNNPR BUILDING PROJECTS

Abstract

The procurement process for building construction work starts from procurement planning and then follows preparation of tender document, advertising the tender, submission of bids by the tenderers, evaluation of the submitting tender and award of the contract. This study assessed procurement process and tender evaluation criteria setting practices in selected SNNPR governmental building projects. The study were conducted on selected SNNPR governmental building projects by which their tender floated for grade BC-5/GC-5 and above contractors for building construction works for the last five fiscal years at selected level or “Ferji” (I) One 4 (four) zones. The result of the study indicates that 76.56% of participants agreed that technical qualifications, competence, and experience requirement of the bidder during bidding document were prepared by respective professionals but 60.94% participants agreed that there was no review of prepared technical requirements criteria’s and documents by second party professionals before tender floating. General & specific work experience and professional qualifications requirement with respect of minimum requirement from participants 60.93% for general & specific work experience and 62.5% for professional qualifications requirement of them agreed that the request was more than the projects minimum requirement stated at directives. Under financial criteria financial resource and annual turnover requirements did not aligned to the project demand. 67.19% of respondents agreed that equipment request was more than the projects minimum requirement and bidders were restricted not to propose leased or rented equipment for the project implementation. 54.69% of respondents agreed that current open NCB system in SNNPR governmental building project gives equal chance to participate at bid for all eligible bidders and 64.06% of them also agreed that contractors awarded as lowest responsive bid selected on this system are not effective at their project implementation. Procurement plan have been given lower attention at SNNPR governmental building projects during the overall procurement process. The study identifies that the most and common challenges and problems during procurement process and evaluation criteria setting at SNNPR governmental building projects for construction parties were unfair selective restriction and setting subjective criterions, inappropriate procurement plan in procurement processes and forgery document preparation and submission by contractors