IMPACT OF LOWEST BID AWARD SYSTEM ON PUBLIC CONSTRUCTION PROJECTS IN ABUJA

Usman Muhammad Danjuma & Ahmed Mohammed

ABSTRACT

The lowest bid award system widely used in public construction projects, has raised concerns about its impact on project outcomes. This system prioritizes cost savings over other factors, potentially compromising project quality, timely completion and overall value. The study aimed to investigate the impact of lowest bid award system on public construction projects in Abuja.Research design used is the survey method, population comprises of Architects, Quantity Surveyors, Builders and Engineers and instrument used in collection of data is Questionnaire.A probability sampling method (simple random sampling technique) was adopted. 120 Questionnaires were administered and 82 were correctly filled and returned (68.33% response rate). Data collected were represented in tables and analysed using statistical method which includes Frequencies, Percentiles, Mean Item Scores (M.I.S) and Rankings. Regression analysis was also used to assess the impact of lowest bid award system on public construction projects delivery. The results revealed that, Simplified bid evaluation process, Faster project award and commencement, and Incentivizes contractors to optimize their pricing strategies are topmost benefits of lowest bid award system. Project budget and cost management, Quality of work and materials, and Safety performance and incident rates are topmost impacts of lowest bid award system on public construction projects delivery. In conclusion, Strong positive simple correlation exists between impacts of lowest bid award system and public construction projects delivery with (the value of R= 0.723) and finally, Two-Stage Tendering method, Qualifications-Based Selection method and Cost-Benefit Analysis method are topmost alternative bid evaluation methods that could provide better outcomes for public construction projects. It was recommended that, Built environment professionals and project owners should intensify efforts aimed at mitigating the negative impacts of the lowest bid award system on public construction projects delivery by adopting a risk-based approach to bid evaluation, i.e. identifying potential risks associated with each bid.

Keywords: Award system, Bid evaluation methods, Lowest bid, Public construction, Projects.