Performance Evaluation of Contractors under Government Financed
Tenders.
In works contracts of government financed projects, one of the major qualification criteria is
performance assessment of bidders on ongoing projects. For bidders having ongoing projects
with ERA, the performance assessment will be carried out following the below indicated
procedure (formula).If bidders do not have projects with ERA, the performance assessment shall
be carried out following qualitative assessment of bidder’s performance based on written
feedback from their employers. The performance assessment is carried out every calendar month.
Under each evaluation, the performance of the bidder in the immediate previous month (from the
date/month of deadline for submission of the tender in reference) is used for evaluation.
1. Performance Evaluation Formula for Local Contractors
The total contract duration is divided into three equal periods in such a way that:
At the end of the first one third period, the minimum expected progress is 9%.
At the end of the second one third period, the minimum expected progress is 38%
At the end of the last one third period or at the end of the contract period, the minimum
expected progress is 70% and
Beyond contract period but only up to a period of one fourth of the contract period, the
project is expected to be completed 100%.
Contractors, who fail to complete projects after elapse of one fourth period of the
contract duration, will be disqualified.
For the intermediate months, the following formulae will be used:
I.
For the first one third duration of contract, the formula for determination of expected
minimum performance is, 9t1
Where t1 = (Elapsed time in months minus mobilization time in months)/(One third of the
contract period in months minus mobilization time in months)
II.
III.
For the second one third duration of contract, , the formula for determination of expected
minimum performance is, 9+29t2
Where t2 = (Elapsed time in months minus One third of the contract period in
months)/(One third of the contract period in months)
For the last one third duration of contract , the formula for performance evaluation is,
38+32t3
Where t3 = (Elapsed time in months minus 2 X One third of the contract period in
months)/(One third of the contract period in months)
IV.
Beyond contract period but only up to a period of one fourth of the contract period, the
formula for determination of expected minimum performance is, 70+30t4
Where t4 = (Elapsed time in months minus contract period in months)/(One fourth of the
contract period in months)
2. Performance Evaluation Formula for Foreign Contractors
The total contract duration is divided into three equal periods in such a way that:
At the end of the first one third period, the minimum expected progress is 11%.
At the end of the second one third period, the minimum expected progress is 42%
At the end of the last one third period or at the end of the contract period, the minimum
expected progress is 80% and
Beyond contract period but only up to a period of one ninth of the contract period, the
project is expected to be completed 100%.
Contractors, who fail to complete projects after elapse of one ninth period of the
contract duration, will be disqualified.
For the intermediate months, the following formulae will be used:
I.
For the first one third duration of contract, the formula for determination of expected
minimum performance is, 11t1
Where t1 = (Elapsed time in months minus mobilization time in months)/(One third of the
contract period in months minus mobilization time in months)
II.
For the second one third duration of contract, , the formula for determination of expected
minimum performance is, 11+31t2
Where t2 = (Elapsed time in months minus One third of the contract period in
months)/(One third of the contract period in months)
III.
For the last one third duration of contract , the formula for performance evaluation is,
42+38t3
Where t3 = (Elapsed time in months minus two third of the contract period in
months)/(One third of the contract period in months)
IV.
Beyond contract period but only up to a period of one ninth of the contract period, the
formula for determination of expected minimum performance is, 80+20t4
Where t4 = (Elapsed time in months minus contract period in months)/(One ninth of the
contract period in months)
3.
Expected Performance for Three or More Projects
It is clear that as the number of projects that a given contractor can handle at a time increases, it
does have an impact on the technical and managerial efficiency of the contractor unless and
otherwise the contractor take some positive measures to reduce the negative impact resulted from
the increase in number of new projects. On the other hand, employers would take risks in giving
more number of new projects the contractor; in so doing contributes to the contractor’s
inefficiency. Hence, in order to manage the risk of inefficiency due to increase in number of
projects, it is suggested to raise the expected performance of a given contractor by a certain
percentage if he has three or more contracts at his hand. Hence the formula developed to
determine the additional percentage of expected performance is:
= 2 ∗ (1.5)௡ିଷ
No. Of
Projects
3
4
5
6
7
8
9
10
Percentage
Increase
2
3
4.5
6.8
10.1
15.2
22.8
34.2
11
n
2 ∗ (1.5)௡ିଷ
The above table indicates additional percentage of the expected performance due to additional
projects. For example, if a bidder is required to have expected performance of 50% and has five
projects at hand, his expected performance will be revised as 54.5% which is calculated as [50%
+ 4.5%].