The Sibilike Optimized Project Cost Index (SOPCI)

Abstract Construction projects face enormous challenges due to cost overruns and delays arising from cost estimates which may be underestimated or lack of finances to finance the project elements in accordance with the work plans. This paper presents an index based on parameter optimization to determine the minimal and technically feasible solutions for project execution. The Sibilike Optimal Project Cost Index (SOPCI) is based on the contract clause that allows award of a project in whole or parts to prospective bidders. A number of methods have been developed for determination of Construction Cost Index (Mao and Xiao, 2024). The SOPCI is an innovative computation algorithm that combines the Technical Evaluation and Financial Evaluation in minimized deviation factor from the average value determined by considering the market rates and responsiveness of bidders. The optimized index determines the bidder who is both technically and financially competitive. It combines the technical evaluation and financial evaluation at the stage of project award. It thus gives the minimal cost for undertaking of an engineering project. The paper presents a step by step computation of SOPCI and presents comparative case studies based on real experience in project execution in Kenya. The SOPCI is useful to project planners and project managers in project evaluation and project award.