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The application of merit-point system for selecting contractors in Indonesia
a School of Civil and Environmental Engineering, Institut Teknologi Bandung, Indonesia
[vc_row][vc_column][vc_row_inner][vc_column_inner][vc_separator css=”.vc_custom_1624529070653{padding-top: 30px !important;padding-bottom: 30px !important;}”][/vc_column_inner][/vc_row_inner][vc_row_inner layout=”boxed”][vc_column_inner width=”3/4″ css=”.vc_custom_1624695412187{border-right-width: 1px !important;border-right-color: #dddddd !important;border-right-style: solid !important;border-radius: 1px !important;}”][vc_empty_space][megatron_heading title=”Abstract” size=”size-sm” text_align=”text-left”][vc_column_text]Procurement is considered as the most important phase of a construction project life cycle since the process is the first transaction between the owner and the contractor. The criteria for evaluation in a competitive bidding have to be determined objectively and fairly for both the owner and the contractors. The “lowest bidder” is the most commonly used criterion in public project procurement. While it is a valid factor, in some cases it is insufficient as the only factor, i.e., in projects where technical aspects are as important as costs. An alternative method of evaluation is the merit-point system (MPS). In an MPS, the determining factor is the combination of the scores awarded for the cost and the technical proposal with predetermined weights. The set of evaluation criteria (including the weights and the scores) should be objective, quantitative, and verifiable. In this paper, a survey on the implementation of the MPS by the owners for evaluation and selection of contractors in Indonesian public projects is discussed. The results of the survey were used as inputs for developing an MPS evaluation model that can accommodate the practices, the challenges, and the competency of the owners. The model also includes an evaluation on the aptness of a cost proposal on a lump sum contract scenario, in which a cost proposal is compared to both the owner’s estimate and the competitors’ cost proposals. Furthermore, the MPS evaluation model was implemented in an application program, i.e., an add-in spreadsheet, which can assist owners in conducting an effective competitive bidding for public building construction projects. © 2006 by School of Engineering and Technology, Asian Institute of Technology.[/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”Author keywords” size=”size-sm” text_align=”text-left”][vc_column_text]Competitive bidding,Criteria,Evaluation,Merit points,Owner’s estimate,Proposal[/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”Indexed keywords” size=”size-sm” text_align=”text-left”][vc_column_text]Competitive bidding,Contractor,Criteria,Evaluation,Merit-point system,Owner’s estimate,Proposal[/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”Funding details” size=”size-sm” text_align=”text-left”][vc_column_text][/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”DOI” size=”size-sm” text_align=”text-left”][vc_column_text][/vc_column_text][/vc_column_inner][vc_column_inner width=”1/4″][vc_column_text]Widget Plumx[/vc_column_text][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row][vc_row][vc_column][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][/vc_column][/vc_row]