Structural Equation Modeling (SEM) of Factors Affecting Financial Bid Evaluation Methods for Contract Award in Public Organization
DOI:
https://doi.org/10.5281/zenodo.16925225Keywords:
Evaluation, Financial Bids, Nigeria, Public Projects, Structural Equation ModelingAbstract
Financial bids evaluation criteria in used has their own limitations as well as challenges despite the facts of it wide applications. Researchers focus mainly on their advantages, adaptation, medium term solutions and lapses of the traditional price based method only. The aim of the study was to evaluate the limitation and challenges associated with the various approaches used in award criterion and the specific implications of those factors on the organizations. To attain this goal, quantitative approach design method was adopted. Questionnaires were administered to 56 respondents using simple random sampling techniques in six geo-political zones of Nigeria. Data were collected from the target respondent and analyzed using descriptive and partial least squares-structural equation modeling (PLS-SEM), resulting the various statistical output that were used to accept or reject the research hypotheses. The result from the measurement and structural models has shown five (5) major limitations (22.90%) and seven (7) challenges (24.90%) associated with the used of lowest-responsive based criteria method by organizations. Three (3) significant limitations (3.2%) and two (2) challenges (9.6%) were identified in the used of multi-criteria method in the various organization surveyed. The study concludes that there are about 77.1% to 96.8% of other limitations and challenges that were not being identified in the study that are related to the various criterions. Mitigating such factors by organization will enhance their procurement process and improve sustainability in the whole system and value for money will be achieve more than before in those public organizations.
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