Client and contractor attitudes to prequalification and selection processes for construction work

Pre-qualification is a process of screening contractors prior to tender using a predetermined set of criteria. The criteria should be such that the decision maker can reduce risk factors in the choice and have a high probability that the firm will complete the project within time and cost, and meet the appropriate quality standards. Pre-qualification criteria are intended to provide clients with a framework, understanding and methodology for pre-qualifying and selecting only those firms most suitable for future projects. Pre-qualification in some form has become almost standard practice within government procurement processes. The primary objective of this research is to examine the pre-qualification processes used by public sector clients to examine the effectiveness of their procedures. The justification for pre-qualification has been that it improves the quality and certainty of the construction process. The objective of this research is to determine the attitudes of contractors and clients to pre-qualification. The issue is to examine if the perceived advantages of pre-qualification outweigh the perceived disadvantages and thus provide some indication of its worth. This research identified two significant research questions. The first question relates to the effectiveness of existing pre-qualification criteria. Many past researchers have suggested criteria that clients consider to be important, however very little research has considered the perceptions of contractors. The success of pre-qualification is partially dependant on the attitudes of contractors because they are stakeholders in the process. This research shows that clients and contractors often hold very different opinions on the importance of pre-qualification decision criteria; this is likely to undermine the effectiveness of the pre-qualification process. This represents a gap in past research that needs to be investigated. This research used a questionnaire to elicit the views of both clients and contractors to commonly used pre-qualification criteria. The second research question examines the effectiveness of the selection decision-making process. Once a project has been identified pre-qualified contractors are shortlisted down to a small group that are latter invited to tender. Past research established that the selection decision is highly subjective, and possibly ad hoc. This research used semi-structure interviews and a series of case studies to investigate selection decision-making processes of public sector clients. The results show that a number of decision factors can be identified, and that their influence is dependent on the circumstances in which the decisions are made. The main conclusion is that stakeholders have different attitudes to the value of pre-qualification, and that this may have affected its success in the past. This research suggests that pre-qualification and selection decisions should be managed using a quality management process. All stakeholders must work more closely together in order to resolve their differences and use benchmarking practices to more effectively manage the pre-qualification and selection environment. This research has important implications for clients that are seeking to reduce their dependence on low-bid selection procedures and increase the use of partnering and alliance arrangements.