2.4 Contractor Selection Criteria

The selection criteria for the winning tender is also an important part of the public tendering process and can have significant effects on the project. Now that the Alliance model has been included in the mix of project delivery methods, there is a 100% quality element (other criteria than price) to the selection criteria for capital investment projects. Based upon the countries involved in the study they range from 100% price to 100% quality and is usually different for each type of model chosen and also dependent upon historical and local practices. This is demonstrated by the use of Design-Build model in the USA tendered via the "Best Value" selection process (US DOTs' in study), which means basically 50% price and 50% quality, while in Australia the Design-Build model is typically tendered at the lowest price based upon "Net Present Value" (NPV). Table 9 shows the typical variations in "Contractor Selection Criteria" based upon the delivery model used.

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