Department of Construction Management & Technology

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    EVALUATE THE EFFECTIVENESS OF LOWEST BIDDER BID AWARDING SYSTEM IN PUBLIC CONSTRUCTION PROJECTS IN CASE OF TIGRAY REGIONAL STATE
    (Mekelle University, 2025-09-04) TSEGAY GEBREMICHAEL
    The Ethiopian construction industry, particularly the public sector in Tigray regional state, faces persistent challenges stemming from a lowest-price bid award system. This approach often fails to deliver maximum value, leading to a high incidence of abnormally low tenders, inferior quality facilities, increased claims and litigation, and frequent cost and schedule overruns in public construction works contracts. To address these critical issues, this research evaluate the effectiveness of public construction projects awarded under the least-bidder system and gathered construction professionals' opinions on current traditional bidding procedures versus alternative evaluation and contract award systems. The methodology involved an extensive literature review to identify diverse practices, a questionnaire survey targeting key construction industry stakeholders in Tigray, and the collection of project data from selected Tigray regional state clients and consultants. This study also reviews Tigray regional state regulations to understand the objectives and intent of current procurement law. Anumber of alternative bid evaluation and contract award procedures, some currently in use globally and others emerging, are presented and discussed, offering potential pathways to improve procurement efficiency and value in the region. Hence, this study found that the construction organizations were evaluated based on lowest bid price awarding system but the contractors should be engaged based on bid price, responsiveness, and other factors. As the contractors didn’t satisfy with the lowest bid awarding evaluation procedure applied currently, the government should collect need assessment from the public building construction contractors so as to have varieties of project procurement awarding system in addition to the mentioned price awarding systems.