Abstract
The purpose of this research is to analyze the relation between the number of bidders versus the minimum bid ratio (AEr)/percentage below the initial engineer’s estimate to type and size of project within Road Divisions Butwal and Shivapur. Bidding data of four consecutive fiscal years starting from 072/73 of two Road Divisions which are already completed its procurement stage were analyzed. The percentage below/contract awarded cost is directly proportional or a significant correlation was found with the number of the participated bidder in any project s of both divisions during the data study period. Bidders have to bid below 20% of the initial estimate that was found to get a project in hand by contractors and they are willing to bid low for the utilization of resources, types of equipment, manpower, and also to get experiences. This research revealed correlation coefficients between the number of bidders and percentage below engineers' estimates are 0.61 for the Butwal division and 0.67 for the Shivapur division. Correlation coefficients 0.82 and 0.83 was found in Nepalgunj and Mahendranagar. Percentage below engineers' estimate depends on 67 and 69% on the number of bidders in Nepalgunj and Mahendranagar respectively. E-bidding helped to promote competition along with low bidding. As there is 17% below with only hardcopy bidding but with e-bid the below percentages rises to 28% with more number of bidder per project. Improvement in existing offer granting framework with additional capability rules ought to be engaged by doling out the weight in the monitory term, soliciting a technique from the proclamation, upgraded e-offering framework, and affirmation for venture exhibitions of the undertaking before execution. This research would be useful for those who are involving in policy making and governing agencies like Public Procurement Monitoring Office and for making necessary amendments in existing rules.
Highlights
Infrastructure development, operation, and maintenance of physical infrastructure are the basic criteria for the development of the nation and the national economy to prosper
The pattern of a low offer with bidders rivalry exists in all classifications of works fluctuating from rock street works, upkeep venture works to bituminous street works including auxiliary segments works yet ranges to get offered close by differs concerning details required and extends in the hand of contractors (Bista & Mishra, 2019) [5]
RESEARCH OBJECTIVES : The objective of this research is to study and analyze to detect and minimize bid-rigging, determine the right level of competition during bidding to achieve better performance in implementing the construction projects, to estimate the bidding amount based on several bidders with types (General Road Construction Works, Structural works like bridges and culvert construction works and maintenance works for road and bridges) and sizes of works in roads/bridges projects under road divisions and analyze the relation between numbers of bidder, lowest responsive bidding cost, estimated amount with type and size of projects
Summary
Infrastructure development, operation, and maintenance of physical infrastructure are the basic criteria for the development of the nation and the national economy to prosper. Mishra and Malik (2017) [4] set up the danger the board practice of Building development of Nepal should be improved which may expand cost while Contractors are not picking up benefits according to desires their business is gainful. Poor, and ineffective public procurement practices in Nepal are challenges for the country, where the contractor's motive of profit-making is the root cause of bidding to be ineffective. Collusive practices, abnormal profit-making behavior of contractors, and less manpower to technical supervision from employer leads the contract works to be effected on timely completion within the stated cost, desired quality is not achieved, and affect on other contract performances
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