Um algoritmo para selecionar o melhor gerenciamento de reclamações de licitação e construção por abordagem de comportamento de licitação oportunista

Due to intense competition in tenders and increasing complexity of the documents, participants are looking to win the bidding and increase profits due to existing limitations. It is common solution among bidders to consider the price down in tender and retrieve profits during implementing projects in order to the weakness of the employer, ambiguities in the documents and administrative environment. Therefore, in this study due to lack of a complete solution, a new algorithm is provided with regard to profit maximization of contractor with three main stages that consist of pre-tender, tender and post-tender by providing a method based on Fuzzy Multi Criteria Decision Making and game theory. For evaluate the results, a case study in a construction project is used. The evaluation results showed that in the first stage the results of algorithm and case study was same, but in the second and third stages the algorithm had better results.Debido a la intensa competencia en las licitaciones y la complejidad cada vez mayor de los documentos, los participantes buscan ganar la licitación y aumentar las ganancias debido a las limitaciones existentes. Es una solución común entre los licitantes considerar el precio bajo en licitación y recuperar ganancias durante la implementación de proyectos con el fin de la debilidad del empleador, las ambigüedades en los documentos y el entorno administrativo. Por lo tanto, en este estudio debido a la falta de una solución completa, se proporciona un nuevo algoritmo con respecto a la maximización de ganancias del contratista con tres etapas principales que consisten en pre-licitación, licitación y post-licitación al proporcionar un método basado en Fuzzy Multi Criteria Toma de decisiones y teoría de juegos. Para evaluar los resultados, se utiliza un estudio de caso en un proyecto de construcción. Los resultados de la evaluación mostraron que en la primera etapa los resultados del algoritmo y el estudio de caso fueron los mismos, pero en la segunda y tercera etapas el algoritmo tuvo mejores resultados.Devido à intensa concorrência nas licitações e ao aumento da complexidade dos documentos, os participantes procuram ganhar a licitação e aumentar os lucros devido a limitações existentes. É comum a solução entre os licitantes considerar o preço baixo na licitação e recuperar os lucros durante a implementação de projetos, a fim de fraqueza do empregador, ambigüidades nos documentos e ambiente administrativo. Portanto, neste estudo devido à falta de uma solução completa, é fornecido um novo algoritmo com relação à maximização do lucro do contratado com três etapas principais que consistem em pré-concurso, licitação e pós-oferta, fornecendo um método baseado em Multi Critérios Fuzzy. Tomada de Decisão e teoria dos jogos. Para avaliar os resultados, é utilizado um estudo de caso em um projeto de construção. Os resultados da avaliação mostraram que no primeiro estágio os resultados do algoritmo e estudo de caso foram os mesmos, mas no segundo e terceiro estágios o algoritmo obteve melhores resultados

A framework for managing global risk factors affecting construction cost performance

Poor cost performance of construction projects has been a major concern for both contractors and clients. The effective management of risk is thus critical to the success of any construction project and the importance of risk management has grown as projects have become more complex and competition has increased. Contractors have traditionally used financial mark-ups to cover the risk associated with construction projects but as competition increases and margins have become tighter they can no longer rely on this strategy and must improve their ability to manage risk. Furthermore, the construction industry has witnessed significant changes particularly in procurement methods with clients allocating greater risks to contractors. Evidence shows that there is a gap between existing risk management techniques and tools, mainly built on normative statistical decision theory, and their practical application by construction contractors. The main reason behind the lack of use is that risk decision making within construction organisations is heavily based upon experience, intuition and judgement and not on mathematical models. This thesis presents a model for managing global risk factors affecting construction cost performance of construction projects. The model has been developed using behavioural decision approach, fuzzy logic technology, and Artificial Intelligence technology. The methodology adopted to conduct the research involved a thorough literature survey on risk management, informal and formal discussions with construction practitioners to assess the extent of the problem, a questionnaire survey to evaluate the importance of global risk factors and, finally, repertory grid interviews aimed at eliciting relevant knowledge. There are several approaches to categorising risks permeating construction projects. This research groups risks into three main categories, namely organisation-specific, global and Acts of God. It focuses on global risk factors because they are ill-defined, less understood by contractors and difficult to model, assess and manage although they have huge impact on cost performance. Generally, contractors, especially in developing countries, have insufficient experience and knowledge to manage them effectively. The research identified the following groups of global risk factors as having significant impact on cost performance: estimator related, project related, fraudulent practices related, competition related, construction related, economy related and political related factors. The model was tested for validity through a panel of validators (experts) and crosssectional cases studies, and the general conclusion was that it could provide valuable assistance in the management of global risk factors since it is effective, efficient, flexible and user-friendly. The findings stress the need to depart from traditional approaches and to explore new directions in order to equip contractors with effective risk management tools

Evaluating Delay Causes for Constructing Road Projects in Saudi Arabia

In this paper, we evaluate the causes of delays in road construction projects in Saudi Arabia. The research identifies four main groups of delay causes: external factors, contractor-related factors, project management factors, and environmental factors. External factors include changes in regulations and delays in obtaining permits and approvals. Contractor-related factors include inadequate resources and poor project planning. Project management factors encompass ineffective communication and poor coordination among stakeholders. Environmental factors include adverse weather conditions and unforeseen site conditions. The study recommends measures such as improved coordination, enhanced contract management, and advanced project management techniques to mitigate these delay causes. The findings provide valuable insights for stakeholders involved in road infrastructure development in Saudi Arabia, enabling them to implement strategies for timely project delivery and improved project performance

Scoring rules and abnormally low bids criteria in construction tenders: a taxonomic review

In the global construction context, the best value or most economically advantageous tender is becoming a widespread approach for contractor selection, as an alternative to other traditional awarding criteria such as the lowest price. In these multi-attribute tenders, the owner or auctioneer solicits proposals containing both a price bid and additional technical features. Once the proposals are received, each bidder’s price bid is given an economic score according to a scoring rule, generally called an economic scoring formula (ESF) and a technical score according to pre-specified criteria. Eventually, the contract is awarded to the bidder with the highest weighted overall score (economic + technical). However, economic scoring formula selection by auctioneers is invariably and paradoxically a highly intuitive process in practice, involving few theoretical or empirical considerations, despite having been considered traditionally and mistakenly as objective, due to its mathematical nature. This paper provides a taxonomic classification of a wide variety of ESFs and abnormally low bids criteria (ALBC) gathered in several countries with different tendering approaches. Practical implications concern the optimal design of price scoring rules in construction contract tenders, as well as future analyses of the effects of the ESF and ALBC on competitive bidding behaviour

Establishing relative weights for contractor prequalification criteria in a pre-qualification evaluation model

Pre-qualification criteria is a screening methodology to select contractors. Each contractor attribute has its own importance in relation to the others. It is an essential process that the relative importance'weights' of each selection criteria be identified. Several methodologies are used to identify such weights. A Delphic technique together with Analytical Hierarchy Process (AHP) utilizing pair-wise analysis was used to establish such weights through a structured questionnaire. The established weights will then be used to develop a contractor's pre-qualification model using a hybrid technique by combining a Neural Network and a Genetic Algorithm

Development of multi-criteria decision analysis models for bidding and contractor selection

Estimating and bidding a job is one of those essential processes at the heart of a contractor's business. Risk and uncertainty are major considerations in bidding decisions for construction projects. Numerous factors need to be taken into account when making bidding decisions which make them multi-criteria decisions. The present study focuses on developing multi-criteria decision making models to assist in bidding decisions. The Analytical Hierarchy Process (AHP), which is a multi-criteria decision making tool, is used to quantify risk encountered in bidding decisions. The AHP has been employed to model both the bid/no bid and mark-up decisions. The data required for this study was collected from thirty firms operating in Gaza Strip by way of a written structured questionnaire. The data was analysed using the Criterium Decision Plus Software based on the AHP. Ten factors were selected to affect bid/no bid decisions while eleven factors were chosen to influence mark-up decision. Results from the questionnaire survey supported previous studies that profit is not the most important factor in making bid/no bid and mark-up decisions. The results also indicate that the most important factors when making the bid/no bid decision are: the 'need for work' followed by the 'company strength in industry' and 'payment methods'. For the mark-up decision, the 'need for work', 'owner/client and consultant identity' and 'project size' are the most important factors. A real life case study was used to demonstrate the application of the two models. Twelve meetings were conducted with a contractor working in Gaza Strip construction industry in order to gather the required data for the validation. The case study consisted of three different projects, road works, electromechanical and building projects, and the contractor had to make a decision on which projects to bid for and then which of them will result in a higher mark-up. The validity of the two models was confirmed by applying a two-stage Linear Programming (LP) approach to the data obtained from the case study. The results from the LP approach agreed with the outcome from the AHP. The developed AHP models can be easily used by the contractors to assist in making bid/no bid and mark-up decisions. This study investigates the Fuzzy Sets Theory, which is a mathematical approach used to characterise and quantify uncertainty, as a bidding strategy. This study summarises the work that has been done to-date reviewing the fundamental concepts and applications of the Fuzzy Sets Theory in construction. Fuzzy Sets Theory was found to be used widely in construction research but most studies were found theoretical. The research also examines the challenges of using the reverse auction as an open bidding process. In construction industry, reverse auction is one such technique that uses secured Internet technology for tendering process. Advantages of on-line bidding include: the ability to submit more than one bid, time benefits, increasing competitiveness among contractors and attracting unknown bidders. The main drawback of reverse auctions is that the award of the product/service will be based on the price rather than on the quality of the product or service. Furthermore, security and legal issues need further considerations when forming e-contracts for the procurement of construction services. Selecting a suitable contractor to execute a particular project is an important decision for the client to take. Awarding construction contracts based on the price only is not always a successful strategy for contractor selection as it could result in construction delays and cost overruns. In addition to price, factors such as quality and safety need to be taken into account when making the contractor selection decision. In this study, two methods for contractor selection were compared: the points method and the Analytical Hierarchy Process. The two methods were applied to a real life case study for contractor selection. Financial and Quality factors were considered to affect the contractor selection decision. Both methods resulted in selecting the same contractor for executing the project under consderation. The Analytical Hierarchy process provides a flexible and computer based method for contractor selection decision.EThOS - Electronic Theses Online ServiceGBUnited Kingdo

DEVELOPMENT OF COMPETITIVENESS INDICES FOR INDIGENOUS CONSTRUCTION FIRMS IN NIGERIA

Competitiveness of indigenous construction firms plays a vital role in the economic development of any nation. The significance of competitiveness to economic development lies in the fact that it increases the level of profits earned by indigenous construction firms, thereby contributing to a nation‟s Gross Domestic Product (GDP). However, foreign construction firms dominate the Nigerian construction market on account of managerial and technological capabilities in which foreign construction firms have a significant comparative advantage. This research, therefore, aimed at developing a set of indices which can be used as a benchmark for evaluating the competitiveness of indigenous construction firms in Nigeria. The study adopted a quantitative research design. Questionnaire was used to elicit information from indigenous construction firms registered with the Nigerian Institute of Building (NIOB). Data obtained from the survey were analyzed using bar charts, tables, ranking analysis and correlation. Competitiveness indices were developed by means of the „weighted summation‟ a statistical tool for evaluating multi-criteria concepts. Forty significant competitiveness indices were developed in this research. The five most significant competitiveness indices for indigenous construction firms in Nigeria were: effectiveness of cost controlling methods, effectiveness of site management, method of procurement, effectiveness of time controlling methods and client relationship. Finally, this study recommended that indigenous construction firms should allocate sufficient resources to the competitiveness indices developed in this study in order to increase their chances of winning more jobs and ultimately significantly bridge the gap between them and their foreign counterparts

Applying the AHP to support the best-value contractor selection – lessons learned from two case studies in Taiwan

Lately the Best-Value (BV) method for contractor selection has been receiving considerable attention in the public sector in many countries. However, the operations used in performing the BV method often differ due to the various government procurement requirements. Consequently, some of the methods popular in the academic community are not easily incorporated in the BV method in some countries. To enhance the procurement process, this study aims to gain experience by applying the well-known analytical hierarchy process (AHP) to weight the decision criteria for selecting BV contractors of two construction projects in Taiwan. Through these two case studies, this work confirms that the AHP provides a significant benefit for considering the individual preferences of all decision-makers when weighting the criteria. However, this study finds two major potential obstacles, the legal requirements associated with using the AHP and the time it takes to implement the AHP. To overcome these obstacles, this work suggests guidelines to meet the legal requirements for implementing the AHP in the BV contractor selection, and proposes several strategies to shorten the AHP implementation time. The lessons learned here are relevant to those countries in which BV method must be performed in a transparent and strictly regulated environment

A quantifiable method of assessing the risk of selecting the lowest bidder in construction projects:A literature review

Contractor selection is an important step in ensuring the success of any construction project. Failing to adequately select the winning contractor may lead to problems in the project delivery phase such as bad quality and delay in the expected project duration; which ultimately results in cost overruns. This paper reviewed the strength of existing studies on the link between contractor selection strategy and project outcomes, with a view of proposing an approach on how one might try to examine this relationship moving forward. There are research that try to establish a direct relationship between contractor selection strategy and the outcome of the construction project. There are also decision support tools such as AHP or ANP that help clients prioritise various factors when selecting contractors. However the majority of these research and tools are informed by self-perception questionnaires and surveys that makes it difficult to gauge the strength of the relationship between contractor selection and project outcomes. In other words, there are hardly any empirical research that tries to establish this relationship. Literature review on the sources of cost overruns did not entirely reveal contractor selection as a main source of cost overrun; although from the explanations given for causes of cost overruns, one would be able to see how wrong contractor selection does play a part. Literature review on the various approaches to contractor selection on the other hand, did little to show the effect of contractor selection on the outcome of construction projects. Hence, the future direction of the research is to help clients see choosing a particular contractor selection strategy; whether lowest bid, or best value, affects the outcome of a construction project: cost and duration