The relative importance of tender evaluation and contractor selection criteria

Research in identifying the relative importance of criteria used to select a preferred supplier has, for the most part, relied on subjective lists of criteria being presented to respondents. The research reported here uses an experimental design approach to quantify the importance of nine common criteria used in an actual evaluation and selection of a contractor/supplier. Unique choice sets were constructed, each comprising three tender evaluation outcomes (alternatives) described in terms of all criteria, but with varying levels. Respondents simultaneously evaluated all three alternatives within each choice set and selected the most preferred. Utility estimates for each criterion level were determined as was the overall contribution made by the individual criterion. Results indicate Past Project Performance, Technical Expertise and Cost are the most important criteria in an actual choice of contractor with Organisational Experience, Workload, and Reputation being the least important.