Analyzing Practical Implications of Most Economically Advantageous Tender (MEAT)

Introduction

Contextual Background

MEAT (Most Economically Advantageous Tender) is referred to as an assessment method that is used for the selection procedure. In this procedure, the contracting party is awarded a contract based on all factors related to tender submission, not just price. MEAT was introduced in January 2014 by European Parliament. The European Union Procurement Directives proposed the public procurement rules to be applied to public purchases as these were the thresholds for The Public Contracts Regulations (Designingbuildings.co.uk, 2019). The characteristics included in the assessment of MEAT are quality, technical merit, price, accessibility, aesthetic and functional characteristics, after-sales service, delivery conditions, and environmental and social characteristics.

Some major factors include the social value of contracts to be considered while contracting authorities (Constructionprocurement.gov.ie, 2011). There is a Social Value Act, according to which contracting authorities prioritize well-being and social considerations over price, achievements in delivery are identified as sustainable only if the social value is considered in service contracts (Knowhow.ncvo.org.uk, 2019). Sustainability is a new buzz in the 21st century in the construction sector. The rise in zero carbon buildings and preference for sourcing labour and materials by considering considerate constructors scheme is in process, and that is why the question has emerged whether the contractor selection processes consider sustainability as an essential factor when awarding work to construction clients for construction procurement (Geach, 2016).

Research Aims and Objectives

Study Aim

The study aims to assess the importance of social value and sustainability by identifying the potential implications of MEAT in the construction procurement business and to assess the shift of lowest price tender to MEAT (Most Economically Advantageous Tender) award contractor selection.

Objectives

• To identify historical nuances of social value and the factors driving social value and sustainability. 
• To critically analyze MEAT and identify its positive and potential impact on the practices of contractors in the future for the construction industry.
• To assess the benefits of MEAT for industry practitioners through the procurement process for a more sustainable future.
• To identify the shift of lowest pricing awarding to MEAT awarding in the construction industry.
• To provide recommendations on how social value and sustainability can be increased in construction by potential implications of MEAT.

Research Problem

Contracting in general or in the MEAT (Most Economically Advantageous Tender) award mechanism has been applied in several projects, and many projects have been successful under this mechanism. But, many of the procurement procedures in the construction industry are still reluctant to apply the MEAT mechanism as they face some uncertainties and difficulties in the MEAT mechanism. Furthermore, the competition in price has created an environment that does not empower sustainable behavior (de Nooij, 2019). The scope of this study is to analyze the impact of potential implications of MEAT through the procurement process in construction by considering sustainability and social value.

Research Significance

The research will be significant for future researchers as a wide literature gap identifies the potential MEAT implications, specifically in the construction sector. It will also benefit the public and private construction industries to evaluate their social value and sustainability procurement processes.

Literature Review

The procurement of road infrastructure is required by the public authorities to be well-functioned. According to the author, the pressure has increased more and more for the infrastructure to be sustainable in recent years. For this reason, an award method of MEAT evaluation has been developed where, in contract awarding, the role of quality is also as essential as price. A shift has been observed in MEAT (Most Economically Advantageous Tender) awarding from lower price awarding, but sustainability enhancement needs to be significantly enhanced in infrastructure projects. The research has explored if the inclusion of LCA (Life Cycle Assessment) is feasible in tenders or not to influence sustainability and the interpretations of procurers in CO2 gas reductions for sustainability (de Nooij, 2019). 

Another study has identified the lack of implementation of the MEAT mechanism as it is identified complicated than a traditional process. It has evaluated the best suitable mechanisms of MEAT for the Dutch construction industry. An empirical approach has been implied to answer the research question by investigating several MEAT types and these all are evaluated based on the value price model, the results presented that a system based on a high-value price ratio is preferred for a suitable MEAT implication Dutch construction industry (Dreschler, 2009).