Multi-Attribute Utility Theory for Contractor Pre-Qualification

International Journal of Civil Engineering

© 2016 by SSRG - IJCE Journal

Volume 3 Issue 7

Year of Publication : 2016

Authors : Shivraj Sarjerao Patil, Prof.Dr.D.N.Mudgal, Prof.S.B.Patil

10.14445/23488352/IJCE-V3I7P128

How to Cite?

Shivraj Sarjerao Patil, Prof.Dr.D.N.Mudgal, Prof.S.B.Patil, "Multi-Attribute Utility Theory for Contractor Pre-Qualification," SSRG International Journal of Civil Engineering, vol. 3,  no. 7, pp. 29-32, 2016. Crossref, https://doi.org/10.14445/23488352/IJCE-V3I7P128

Abstract:

Success of any construction project depends upon selecting capable and competent construction contractor, which is a major and crucial decision taken by construction clients. The present report analyses the criteria used to evaluate qualification of contractors. The bid price of construction works is the main criterion for evaluation of contractors. The lowest price often cannot guarantee commitments on quality and duration of a construction project. Therefore, when selecting a contractor, a client must not only compare bid prices but also set other criteria for evaluation of qualification and determine their weight. A contractor must be selected according to both quantitative and qualitative criteria, and bids should be compared. Only on the basis of quantitative and qualitative evaluation criteria and by comparing bids of contractors it is possible to select a qualified, competent and reliable contractor, to evaluate its qualification, economic and financial condition and technical capability and skills and to achieve relevant results in a construction project. The present report provides an investigation of Indian companies, which analyses issues related to evaluation of construction contractors' qualification. A systematic multi criteria decision analysis technique is described for contractor selection and bid evaluation based on utility theory and which permits different types of contractor capabilities to be evaluated.

Keywords:

 criteria, bid price, quantitative and qualitative, reliable, multi criteria.

References:

[1] Holt, G. D., Olomolaiye, P. 0. And Harris, F. C., Factors influencing UK construction clients’ choice of contractor. Building and Environment, 1994, 29(2), 241-248.
[2] Herbsman, Z. and Ellis, R., Multiparameter bidding systeminnovation in contract administration. Journal of Construction Engineering and Management, 1992, 118(l), 142150.
[3] Merna, A. and Smith, N. J., Bid evaluation for UK public sector construction contracts. Proceedings of the Institute of Civil Engineers, 1990, 1, 9lllOS.
[4] Moore, M. J., Selecting a contractor for fast-track projects, Pt II, Quantitative evaluation method. Plant Engineering, 1985, 39(18), 54-56.
[5] Russell, J. S. and Skibniewski, M. J., Decision criteria in contractor prequalification. Journal of Management in Engineering, 1988,4(2), 148-l 64.
[6] Nguyen, V. U., Tender evaluation by fuzzy sets. Journal of Construction Engineering andManagement, 1985, 111(3), 231-243.
[7] Ellis, R. D. and Herbsman, Z. J., Cost-time bidding concept: an innovative approach. Transportation Research Record 1282, Washington, D.C., 1991, pp. 89-94.
[8] Bower, D. M., Innovative contracting practice. Proceedings AXE Highway Conference, ASCE, New York, 1989.
[9] McCrimmon, K. R., An overview of multiple objective decision making. In Multiple Criteria Decision-making, Eds J. L. Cochrane and M. Zeleny. University of South Carolina Press, SC, 1973.
[10] Zavadskas, E., Peldschus, F. and Kaklauskas, A., Multiple Criteria Evaluation of Projects in Construction.Vilnuis Technika, 1994, ISBN 9986 05 046 4.
[11] Hardy, S. C., Bid evaluation study for the World Bank, 1. The University of Manchester Institute of Science and Technology, Manchester, 1978.