PREQUALIFICATION OF CONTRACTOR IN THE CONSTRUCTION INDUSTRY USING MULTI-ATTRIBUTE UTILITY THEORY: A MULTIPLICATIVE APPROACH

Abstract

The construction industry is commented for its ineffectiveness in delivering outcomes such as time and cost overruns, low quality and productivity, and subsequent poor customer satisfaction. To improve the probability of success in construction projects, choosing a suitable contractor is one of the major decisions to be taken by the clients. The choice of a suitable contractor is a multi-criteria decision making (MCDM) process. This paper employs Multi Attribute Utility Theory (MAUT), considering the multiplicative form of utility function, for ranking the prequalified construction contractors. In the present work, fifteen performance assessment criteria covering contracting company attributes, experience record, past performance, performance potential, financial stability and project specific criteria are considered for contractor evaluation. A case study of multi-storeyed building construction for which four contractors submitted bids is considered to illustrate the applicability and effectiveness of multiplicative approach of MAUT to rank the prequalified contractors. The proposed MAUT decision making methodology can be extended to decision making in other sectors also.