Abstract

Selecting a suitable bidder to execute a construction project is not an easy task, especially for the short bidder list. The consequences of the selection might affect the project performance in terms of cost, money, and quality. The current research in this work deals with the selection of a contractor, who bids on a specific project. The historical data of contractors are a key of the selection based on three approaches: the quick selection approach (QSA), generic selection approach (GSA), and comprehensive selection approach (CSA). The QSA relies on the scoring system according to delay factors. The QSA is the weighted average of the delay factors using the analytical hierarchy process (AHP), the CSA is based on the integrated QSA and the bidding strategy using Friedman’s theory. The current three approaches can be utilized by public and private owners, who intend to select a general contractor to execute new construction projects. A hypothetical case study is implemented to demonstrate the developed models. Several experts in the field of construction management have confirmed the findings. The third strategy (CSA) is found to be the most appropriate for selecting construction bidders.

Highlights

  • The construction project market is one of the largest industrial markets in the world

  • When several bidders bid for a new project, the owner needs to store all necessary data to be utilized for the selection process in the new project

  • The markup of each bidder is shown in the last column

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Summary

Introduction

The construction project market is one of the largest industrial markets in the world. Billions of dollars have been pumped into this industry in Saudi Arabia to fulfill Saudi vision 2030. The value of the construction projects that began construction in Saudi Arabia is about USD 819 billion between and 2024 (Modor Intelligence, 2019). Numerous construction projects are operated by hundreds of national and international companies. For competitive bidding contracts, selecting a general contracting company is a key factor to achieve the vision. One bidder is selected to carry out the new project. What is the rationale behind the selection?” This question has many answers; most of these answers are related to the current and previous performances of the bidders. Historical data include previous performances and activities of the previous projects

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