Decision-makers' perceptions in the formulation of prequalification criteria

Abstract

Contractor prequalification involves the establishment of a standard for measuring and assessing the capabilities of potential tenderers. The required standard is based on a set of PreQualification Criteria (PQC) that is intended to reflect the objectives of the client and the requirements of the project. However, many prequalifiers compile a set of PQC according to their own idiosyncratic perceptions of the importance of individual PQC. As a result, sets of PQC, and hence prequalification standards, vary between prequalifiers. This paper reports on an investigation of the nature of the divergencies of the perceived importance of individual PQC by different groups of prequalifiers via a large-scale empirical survey conducted in the United Kingdom. The results support the conclusion that there are significant systematic differences between groups of prequalifiers, with the individual PQC that contribute most to the differences being the method of procurement, size of project, standard of quality, financial stability, project complexity, claim and contractual dispute and length of time in business.