Contractor’s Perception of the Use of Statistical Approach in the Tender Process at the Public Works Department, Malaysia

Contractor selection is one of the main activities of clients. Without a proper and accurate method for selecting the most appropriate contractor, the performance of the project will be affected. The usage of statistical method is implemented by Public Works Department as a better tool for the selection of suitable contractor. This method would avoid a personal preference during selection of contractor for government project. Furthermore, this method will ensure the price submitted by the tenderer is reflective of the current market conditions. The statistical method uses mean, standard deviation and coefficient variation and this has been applied via a computer programme based on Microsoft Excel for ease of calculation. Previously the contractor selection process is based on the lowest price or as compared to the Quantity Surveyor’s estimate and this method exhibit an inherent weakness. Result from the survey questionnaire shows that the contractors agreed that the government has implemented a systematic approach using statistical method. One sample t-test was conducted to further validate the perception of the contractors to the new practice of tender selection using statistical method and the results from the respondents show that on the average, all the contractors agreed to the new practice of tender selection using statistical method.

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