I have seen something similar to what you are describing and not just the lowest bidder (my experience in government contracts, but not related to construction)

I have seen something similar to what you are describing and not just the lowest bidder (my experience in government contracts, but not related to construction). They have proven past performance clauses (you have to show you successfully completed X number of similar projects to acceptable levels and budgets), feasibility clauses (you can’t just say you can do it, you have to provide details how you can do it with your stated time and budget and show you account for reasonable problems that come up), and capacity clauses (you have to show you actually have the equipment, personnel, experience, etc. to perform the job you are bidding for). Then all those criteria are given point values and bids are tallied up and awarded to the highest point bidder. So if you come in with a low bid but have poor past performance and inadequate equipment, you'll lose out to the higher bid from a proven performer.