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Do Greater Qualifications Imply Higher Bid Costs?

10 pagesPublished: May 26, 2024


This study examines the conventional assumption that higher qualifications in A/E consultants or contractors correspond to higher bid costs in the procurement process in construction. By analyzing data from 327 projects across the United States and Canada, encompassing architectural/engineering design and construction projects, including both design-bid-build and alternative delivery methods, the research focused on bid costs and three key qualification-based evaluation criteria: technical proposals, past performance, and interviews. Contrary to common perceptions, the findings, assessed using Spearman's rank correlation and frequency analysis, revealed no significant correlation between higher qualifications and higher bid costs. This finding carries implications for project owners, contractors, and policymakers, suggesting a reconsideration of the emphasis on bid costs alone in the selection process. The study advocates a more detailed approach, considering qualifications alongside bid costs for enhanced project outcomes and collaboration in the construction industry.

Keyphrases: Alternative Project Delivery, best value, Bid Cost, Procurement, Qualification-Based Selection

In: Tom Leathem, Wesley Collins and Anthony J. Perrenoud (editors). Proceedings of 60th Annual Associated Schools of Construction International Conference, vol 5, pages 621--630

BibTeX entry
  author    = {Ibilola Ogundare and Rebecca Kassa and Nneka Ubi and Juliana Somuah and Hemanth Ummadisetti and Brian Lines},
  title     = {Do Greater Qualifications Imply Higher Bid Costs?},
  booktitle = {Proceedings of 60th Annual Associated Schools of Construction International Conference},
  editor    = {Tom Leathem and Wes Collins and Anthony Perrenoud},
  series    = {EPiC Series in Built Environment},
  volume    = {5},
  pages     = {621--630},
  year      = {2024},
  publisher = {EasyChair},
  bibsource = {EasyChair,},
  issn      = {2632-881X},
  url       = {},
  doi       = {10.29007/kf4x}}
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