Response to International and Local Bids
Several stakeholders in the Pakistan construction industry have expressed concern about the apparent poor response to recent international and local bids. The objectives of the study were to evaluate the level of response to recent international an...
| Main Authors: | , , |
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| Format: | Policy Note |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2007/11/9367843/response-international-local-bids http://hdl.handle.net/10986/19542 |
| Summary: | Several stakeholders in the Pakistan
construction industry have expressed concern about the
apparent poor response to recent international and local
bids. The objectives of the study were to evaluate the level
of response to recent international and local tenders and to
assess the level of interest of international firms to bid
on projects in Pakistan. The response to recent invitations
to bid on projects across Pakistan has been poor from both
international and local firms. Although, tendering was open
to both international and local contractors, most firms that
submitted bids have been local. Generally, the same set of
four or so contractors repeatedly bid for projects across
the country, and the lowest bidder always won the contract.
There was apparently minimum weight-age given to an
evaluation of the technical capability of the lowest bidder.
The lack of response in bids and the high prices being
quoted can be considered as indicators of supply and demand
gaps. There seem to be abundant opportunities for work, and
limitations in the contractor ' s capacity to do work
are being tested by the current market situation, where
there is ample work and the contractors are in a position to
choose the works which interest them. In such circumstances,
the short-term implications are clear-contractors will
demand high premiums for less attractive work and response
to bids for work in difficult remote areas with higher risks
shall remain especially poor. In a market driven economy, it
will take some time until the supply demand situation
achieves stability, while for the short term, the clients
will be faced with accepting higher bid rates in order to
deliver upon their development goals and also accept the
risk that the limited pool of contractors may not be able to deliver. |
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