Systematic organization of multi-criteria for effective tender evaluation using balanced scorecard approach

The purpose of tender evaluation is to help an organization in identifying and selecting suitable contractor for a particular project. The effectiveness of tender evalution is influenced by several factors such as the relevancy and suitablity of criteria used, measurement weights for the criteria and experience of the evaluators. In general, for IT projects, lowest price is not the only criteria that had been used in tender evaluation.Quality of services offered has equal importance. Several criteria relating to contractors’ performance such as technical experience, structure of the organization, past performance and so on also need to be considered in selecting contractors. Currently, criteria for tender evaluation is not been standardized yet where different researchers propose different set of criteria. This paper presents a proposed framework for tender evaluation which consists of identified criteria for tender evaluation.The criteria has been organised in four different perspectives of Balanced Scorecard (BSC) approach.Experts from the financial and technical tender committee of UUM were consulted in constructing, validating and verifying the framework.