Contractor selection using the multiattribute utility theory

Literature and past research suggests that one of the reasons for the poor performance ofthe construction industry is due to the inappropriateness of the awarded contractor. Inorder to ensure a successful completion of a project, a comprehensive and carefulassessment of contractors data in a prequalification stage is required. Appointing anappropriate contractor to carry out the construction work, therefore, becomes one of themost important tasks to ensure the success of a project.In this thesis the author has made a preliminary survey to investigate the bidding processcurrently used in the construction industry through literature survey, extensive interviewswith the construction professionals and an industry wide questionnaire. The investigationhas focused on the procedures of prequalification and bids evaluation, it also covers thelist of criteria considered for selecting contractors in prequalification and bid evaluationstages.The thesis investigated the perceived relationship between contractor selection criteria(CSC) currently in use and predominant project success factors (PSF) in terms of time,cost and quality involving a sample of experienced construction professionals. This research is based on the premise that selection should concentrate on determiningcontractor potential for achieving project goals in terms of time, cost and quality. Thestudy presented a quantitative technique to combine the contractor data in terms of thesegoals. The study also presented an evaluation strategy that involves the consideration bothof the client goals as ends and contractor data as the means, the strategy based on thernultiattribute utility theory for the frnal selection or rank ordering of the contractors. Theselection is ultimately based on the preferences and the attitude of the decision makertoward risk.A real case study was used to validate the proposed methodology for contractorprequalification.The benefit of this work is that it provides a means using the PERT methodology toincorporate uncertainty andlor imprecision associated with the assessment of contractorsdata, this all in terms of the ultimate project success factors of time, cost, and quality.The utility technique proposed should help clients in selecting contractors and thecontractors themselves for selecting sub-contractors in offering a means of broadeningtheir analysis of tenderers beyond that of simply relying on tender values. It also alertscontractors to the importance of increasing their ability to satisfy the needs of the clients interms of their ultimate project goals