Objectives: The objective of this paper is to identify level of importance of performance-based tender evaluation indicators required to stimulate the effectiveness of current tendering practice in Malaysian Public Sector.

Methods/Statistical Analysis: This paper presents a case study conducted at Public Works Department (PWD) of Malaysia. The Quantity Surveyors are examined with a concern of the implementation of performance-based tender evaluation indicators. The research also questioned the level of importance of 11 past performance indicators and 11 potential performance indicators. The quantitative research method was adopted by developing a questionnaire survey and data collection in PWD.

Findings: Evaluating contractor based on performance has positively help to select the right contractor. This study aims at finding out drawbacks on current tender evaluation practice, developing the performancebased indicators, identify level of importance of each indicators and seeking opinions of PWD. Relatively, the setbacks have been observed in their criteria of tender evaluation with the lack of past performance and potential performance being measured. Ironically, the findings indicate that the quality of workmanship on past project and customers' satisfaction are the most important indicators but none of the indicators are considered in the current tender evaluation practiced by PWD. The result of this study provides an important contribution as a guide that helps the public sector to select a competent contractor based on performance indicators. Measuring performance based contractor selection is rather new and implementation is still limited.

Application/Improvements: Comprehensive contributing factors of performance indicators developed in this research may help the client to improve their contractor selection by using the performance indicators identified.