QUALIFICATION-BASED SELECTION OF CONSULTANTS AND CONTRACTORS: BREAKING THE LOWEST TENDER PRICE CULTURE

Abstract

Qualification-Based Selection (QBS) is designed to focus on the abilities of consultants and contractors that will undertake an infrastructure project and, more importantly, on their past performance working with and for the client on previous projects. This paper presents a review of QBS procurement in the US and in New Zealand and details the advantages and disadvantages from the client’s perspective on major public infrastructure projects. The study involved a survey of 26 public agencies, seven case studies, and a content analysis of 81 QBS project procurement documents. The study then triangulated the three independent sources of information to draw conclusions. The paper finds that QBS awards have been used successfully in a variety of procurement methods, and clients expect to increase the likelihood of project success by decreasing the chance that a marginally qualified contractor would win a major project. Additionally, respondents received tangible benefits associated with selecting contractors that were well-qualified and had a record of satisfactory performance. The paper’s primary contribution is to demonstrate the value for money to the client when changing focus from lowest tendering cost to contractor qualifications and past performance.