Contractor selection by the most advantageous tendering approach in Taiwan

Abstract

Construction clients usually tender their projects by either the lowest bid tendering method or the A-plus-B method to find a bidder that provides the lowest cost or highest profit. However, choosing a contractor that provides assured quality by examining his construction proposals along with his bid price and bid duration will compensate for the uncertainty in the lowest bid system, while retaining the advantages of the A-plus-B method. This paper presents a novel tendering method (the Most Advantageous Tendering approach) using a practical example in Taiwan. The rationales for contractor selection of the Government Procurement Law in Taiwan are reviewed herein. Several valuable issues regarding contractor selection in this case study are also presented.