Bidding Trends of Contracts Based on Types and Sizes of Projects under Road Divisions Butwal and Shivapur

Authors

  • Megh Bahadur KC Research Scholar, Pokhara University, Nepal & Engineer, Department of Roads, Government of Nepal.
  • Anjay Kumar Mishra Associate Professor, School of Engineering, Madan Bhandari Memorial Academy Nepal & Pokhara University, Nepal. https://orcid.org/0000-0003-2803-4918

Keywords:

Bidding Trend, Low Bidding, Competitive Bidding, Average Bidding, Best Value method

Abstract

The Purpose of the research is to analyze the existing bidding trends & relation between number of bidders, estimated amount with three types and three sizes of projects at Road Division Butwal and Shivapur. Bidding data of four consecutive fiscal years starting from 072/73 of two Road Divisions were analyzed. Low bidding trend was identified in overall using average percentage below as threshold and analysis was also done using average number of bidders for competitive bids. Research revealed that 34.58, 19.81 & 29.53 % below engineer’s estimate in Butwal and 25.71, 26.67 & 23.50 % below were found in Shivapur Division respectively for general road works, structural works & maintenance works and also the threshold for low bids. Similarly, average number of bidders only 40%, 36% bids was found as competitive bids, whereas 60% & 53.44% bids were low bids respectively in Butwal and Shivapur Divisions.Likewise 24.17, 34.77 & 31 % below and 25.15, 24.72, 27.5% below were found for Size 1, Size 2, Size 3 of Butwal & Shivapur respectively. Maximum number of contracts was found at 20-35% below for both divisions. Significant effect of number of bidder is seen in low bidding. Improvement in existing bid awarding system with extra qualification criteria should be focused by assigning weight in monitory term, asking method of statement and assurancefor project performances of project before implementation. This research would be useful for those who are involving in policy making and governing agencies like Public Procurement Monitoring Office and for making necessary amendment in existing rules.

How to cite this article: Bahadur KCM, Mishra AK. Bidding Trends of Contracts based on Types and Sizes of Projects under Road Divisions Butwal and Shivapur. J Adv Res Const Urban Arch 2019; 4(3&4): 7-16.

DOI: https://doi.org/10.24321/2456.9925.201905

References

1. Asian Development Bank. ADB Procurement Guidelines for Evaluation and Comparison of Bids. 2013. ISBN 978-92-9254-138-5.
2. Bhatta I. Issues Related to Selection of Contractors in Public Construction Procurement. Rural Infrastructure 2014; 5(5): 184-189.
3. Bista DB, Mishra AK. Bidding Trend and its Effects in Implementation on Road Projects of Division Road Offices of Department of Roads, Nepal. Int J Adv Res Civil Stru Engr 2019; 2(1): 1-9.
4. Disti RK. Review of Bidding Trend in Construction Tenders for the purpose of amendment in Public Procurement Legislation of Nepal. 2011. Available at www.ppmo.gov.np. Accessed date Junuary 10, 2014.
5. FCAN. Federation of Contractor’s Associations of Nepal (FCAN). 2012. [Online] available athttp:// nepalconstructions.com/challenges-and-prospectsof-nepalese-construction-industry/
6. GoN, The Public Procurement Act first ammendment, 2063. Kathmandu: Law Books Management Board of Nepal. 2007; 2073 B.S.
7. GoN, Eighth Amendment of Public Procurement Regulation, 2076. Kathmandu. 2019; 2076B.S.
8. Huan M. Factors Affecting the Bid/ No Bid Decision Making Process of Small To Medium Size Contractors in Auckland. Unitech, New Zealand. 2011.
9. Ioannou PG, Awwad RE. Below-Average Bidding Method. Construction Engineering and Management 2010; 136(9): 143-148.
10. Mishra AK, Bhandari S, Jha T. Factors Affecting Performance and Time Extension of ongoing Construction Projects under Town Development Fund, Nepal. J Adv Res Const Urban Arch 2018; 3(4).
11. Mishra AK, Bhandari S. Performance Assessment of Ongoing Construction Projects under Town Development Fund, Nepal. Int J Adv Res Civil Stru Engr 2018; 1(1&2).
12. Mishra AK, Regmi U. Effects of Price Fluctuation on the Financial Capacity of “Class A” Contractors. International Journal of Creative Research Thoughts 2017; 5 (4): 1920-1937.
13. Mishra AK. Assessment of Human Resource Capacity of Construction Companies in Nepal. J Adv Res Jour Mass Comm 2018; 5(4).
14. Mishra AK. Implementation Status of Value Management in Project Management Practice in Nepal. International Journal of Management Studies 2019; 6(1).
15. Singha Bahadur Bista and Khet Raj Dahal. “Assessment of Low Bidding In Bridge Construction With Special Reference To Nepal. International Journal of ResearchGranthaalayah 2018; 6(10): 71-80. https://doi. org/10.5281/zenodo.1475391.

Published

2020-01-07

Most read articles by the same author(s)