Assessment of Prevalent Practice for Detection and Prevention of Unbalanced Bids in Nepal

Abstract

There are various factors causing delay in developmental activities of the country, among which low bidding and unbalanced bid is the major one. Contractors tend to unbalance their bids in order to win contracts and maximize profits, causing disadvantage to the balanced least bidder and indirect economic loss to the client. The purpose of this study was to compare and analyze prevalent practice with theoretical developed models and develop the necessity of further study. Five projects of above 20 million (Single Stage – Two Envelope) from Road Division Surkhet and three models were considered to evaluate whether the bidder to whom the contract was awarded, is the most balanced bidder and also determine whether the prevalent practice is the most beneficial to the client. This study concluded that 3 out of 5 contracts were awarded to the unbalanced bidder, which caused systematic disadvantage to the balanced least bidder and In 4 projects, the use of rebalancing model could have been economic to the Client, saving the public fund