Question

Describe the one-step design-build procurement or Lowest Price Technically Acceptable (LPTA) selection procedure for Design-Build projects. What are the advantages and disadvantages of this procurement method?

Answer 1

The design build procurement or the lowest price technically acceptable (LPTA) is selected when the best output is expected to be obtained by selecting a proposal which is technically acceptable which has the lowest estimated cost`.

Advantages of LPTA

• In case where there is no appreciable involvements from other departments for not having the minimum technical quality requirements, the use of LPTA can result in profit.
• In some cases, LPTA may offer simplified approach for obtaining certain goods and services.
• Awarding projects require little subjective analysis, which reduces time required for decision making.
• Awarding contract according to LPTA are easier to defend when there is a case of protest against selection method.

Disadvantages of LPTA

• Proposals are simply awarded on the basis of lowest price so there is a decrease in the discretional powers.
• There is a lack of innovative ideas
• There is a huge risk that the construction may not have the required quality
• Since the proposals are awarded on the basis of a single criteria there is a lack of competance between the proposals.

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