Proposal on Past Performance

Topics: Construction, Architect, Project management Pages: 5 (1225 words) Published: February 5, 2013
The last decade however exposed the declining level of client’s satisfaction from the built facilities as a result of poor quality performance in addition to the perennial problem of time and cost overrun ( Arazi and Sodangi). Xiaohang 2011 explained that construction contractors have big influence upon project and their success. There are many main contractors’ selection criteria that can be found in literatures, but in real practice, clients may have their different criteria (Arazi et al, 2011). (Olatunji, 2007) said most of the models of assessment used for the selection of contractors are not based on value and merits of bids, but on the tender price as well as the “initial” lowest bids. It was discovered that the continual award of contracts based on the lowest tender figure under the “Due process” policy as against the lowest realistic tender figure is the major factor causing time overrun and poor quality construction in Nigeria (Aje et al, 2008). Traditionally, the majority of construction contracts have been awarded using the low bid process (United State department of Transport, 2012). (William 1998) stated that Contracting agencies have long been required to consider past performance information concerning an offeror in determining whether he or she is qualified to perform the contract as a responsible contractor. Also, (Steyaert 1997) explained that the contractor’s past performance record is arguably the key indicator for predicting future performance. As such, it is to the government to make use of past performance in evaluating and selection of contractors for the award of contract. (AcQuipedia encyclopedia) defined past performance Information as a relevant information for source selection purposes regarding a contractor’s action under previously awarded contract. (Kashiwagi et al, 2008) explained that, in construction, the perception exist that, though performance information is collected, it is lacking substantial substance in its application and effect. There is an important distinction between contractor’s performance and a contractor’s experience. Experience reflects whether contractors have performed similar work before, while past performance describes how well contractors performed the work. Past performance information as an evaluation criterion is common; however, the optimal use, method, specific criteria, and collection techniques vary widely across clients and buyers (Keneth and Savicky, 2010). This research work hereby aims to study the usage of past performance information as an evaluation criterion in the selection of contractors.

“The challenge for many clients is how to select a contractor if they don’t use price as the criteria. The answer is a process that analyzes the various contractors and makes the selection based on performance instead of merely price. While a price is always a factor, price without performance factor is meaningless” (Ted 2011) “Performance of construction project will only increase when the contractor is motivated to maximize his or her profit by performing. If past performance is not considered in hiring a contractor, the contractor will not be motivated to perform” (Kashiwagi and parmer, 2004)

1. What is the current level of using past performance as a criteria for the selection of contractors? 2. What are the current parameters used in evaluating contractor’s past performance in Nigeria? 3. What are the significance of using past performance information as a criteria in the selection of contractors in Nigeria?

The aim of this project work is to carryout out a study on the use of past performance information as a tool in the selection of contractors for construction projects in Nigeria. The main objectives are:

1. To determine the current level of using past performance as a criteria for the selection of contractors in Nigeria. 2. To identify the current...
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