Critical Factors Influencing the Contract Award Criteria in Public Construction Projects: A Confirmatory Factor Analysis Approach

The award criteria serve as the cornerstone for procuring authorities to select the optimal bid and award contracts. Award criteria in public construction procurement are twofold which are the bid price criteria and the most economically advantageous tender criteria. The right selection of awarding criteria for a project produces more benefits including increasing the chances of project success. However, a notable gap persists in the literature regarding how to select the most suitable award criteria for specific projects. Addressing this gap, this study examines critical factors influencing the selection of contract award criteria for public construction projects in Sri Lanka, addressing a gap in literature, particularly for developing countries. Adopting a positivist stance and quantitative approach, the research analyzes data using descriptive statistics, ANOVA, and factor analysis. Findings identify 15 out of 19 factors as critical, grouped into 4 main constructs using the factor analysis known as bid competitiveness and reliability, tendering risk governance, value-driven project quality, and evaluation process integrity. These constructs develop a measurement model to determine the appropriate contract award criteria. The study also provides a solid theoretical foundation for selecting contract award criteria for developing countries, especially for Sri Lanka. By providing empirical insights, the research aids procurement professionals in enhancing transparency and efficiency during contract award processes in Sri Lanka’s public construction sector. The findings may also be applicable to other developing countries with similar procurement challenges.