Factors influencing the difference between the comptroller general’s department’s construction focal price and winning bid price: Thai Government agencies’ e-bidding evidence

Abstract

This study examines the relationships between various economic, competitive, and procurement63 related factors and the difference between the construction focal price set by the Comptroller General's 64 Department and the winning bid price in road construction projects procured through e-bidding by Thai 65 government agencies, namely the Department of Highways and the Department of Rural Roads. Data were collected from the Thai government procurement system for projects with contracts signed between fiscal years 2022 and 2024 (B.E. 2565–2567), specifically those finalized by September 30, 2024. A total of 3,171 projects were included in the sample. Inferential statistical methods were applied to examine relationships among variables, using Pearson correlation coefficient and multiple regression analysis.

The results indicate that factors positively associated with the price differential, reflecting higher competition and potential public budget savings, include the number of bidding document purchasers, the number of bidders, and the bidder’s win rate, all of which reflect increased competition. In contrast, factors negatively associated with the price differential include market share of the winning contractor, characteristics of the winner, fuel prices project budget, procuring agency, and project location. Although lower awarded bid prices compared to reference prices may lead to cost savings, unrealistically low bids could result in compromised quality, project delays, or contract terminations, thereby affecting the efficiency and value of public procurement in the long term. This research also provides insights to support private contractors in formulating bidding strategies and assists government agencies in evaluating the appropriateness of reference pricing and procurement practices.