Choice Of Contractor Research Articles

Reinvigorating the process of contractor selection in adaptive reuse projects: a novel decision-making and evaluation paradigm

Adaptive reuse projects reconfigure and revitalize existing buildings to enact an alternative purpose, diverging from the original design intent. The study introduces a novel decision-making framework that adopts the Ordinary Priority Approach (OPA) based on the integrated Relative Performance Index (RPI) for selecting and appraising contractors in adaptive reuse projects. Current methodologies lack criteria and assessment approaches tailored to the prototypical challenges of adaptive reuse projects, compelling special knowledge, skills, structural design considerations, sustainable methods, and prudent resource conservation. Accordingly, this research aims to 1) Identify and evaluate primary Contractor Selection Criteria (CSc) and their sub-criteria influencing contractor choice for adaptive reuse; 2) Rank sub-CSc using the Relative Importance Index (RII); 3) Assign weights to sub-CSc via the OPA, and 4) Examine the contractors’ performance using the RPI method. By offering this framework, this paper enhances and empowers decision-making processes to opt for contractors with the requisite expertise and competencies for successful adaptive reuse projects, filling a crucial knowledge gap. Six contractors were selected to assess the feasibility and validate the proposed framework. Among the chosen contractors, numbers 2, 4, and 5 exhibited significant performance concerning the top-ranked sub-CSc, registering RPI values of 1, 0.88, and 0.86, respectively.

Logistics processes in optimizing the financial results of transport companies

The article presents a method of evaluating the effectiveness of interaction between business entities, built on the analysis of the procurement and distribution logistics system stage, which allows to reasonably approach the choice of contractors to ensure optimal profit enterprise through the optimization of logistics processes and logistics costs. A model for improving the management of logistics processes at the enterprise in the interaction with counterparties is proposed. Practical value is manifested in the use of developed tools for managing logistics processes to optimize the financial results of transport companies.

Application of the Grey TOPSIS Method to Assess and Select a Contractor in Terms of Occupational Safety Management

Abstract The objective of the article is to analyze the possibility of using the gray TOPSIS method to evaluate and select a contractor due to specific criteria regarding occupational health and safety management (OHSM). The choice of contractor is a problem for the decision-maker to make decisions based on many criteria, and most often, these criteria are very diverse, both quantitative and qualitative. The gray TOPSIS method is based on the use of a measure of the relative distance from the best solution, constituting the pattern, and from the worst solution, constituting the anti-pattern, to sort the solutions, using the Grey System Theory. To evaluate and select the contractor, 12 different criteria were used, describing the key areas of OHSM for the decision-maker. The criteria and their weights were selected taking into account the nature of the work planned to be carried out by the company ordering the work. Z-10 annual reports on working conditions in a given year submitted by enterprises to the Central Statistical Office, expert assessments and occupational health and safety procedures provided by five potential contractors were used as sources of information. The research confirmed that the use of gray numbers as part of the TOPSIS method allows the ranking of potential contractors from the point of view of selected criteria and the selection of the company that best meets the assumed occupational health and safety management criteria.

A train reaction: the infrastructural politics and mobility injustices accompanying Hanoi's new urban railway Line 2A

In 2008, Vietnam's Prime Minister approved the construction of the ‘Hanoi Urban Railway System’, a major infrastructure project for the country's capital city. The construction of Line 2A, the first line of this 8‐line railway, took ten years to complete, and was finally inaugurated in November 2021. Spanning 13 km across the city centre, Line 2A encountered more than just construction setbacks, with its reputation tarnished by contractor choice, accidents, and public scepticism over safety and accessibility. Sowing further seeds of doubt in the minds of many Hanoi residents is the fact that two‐thirds of the original financing came from preferential loans from Vietnam's large northern neighbour, conditional on the contractor and key materials being sourced from Vietnam's large, northern neighbour. Moreover, the project is informally categorized as part of Vietnam's large northern neighbour's Belt and Road Initiative. Drawing from conceptual literature regarding infrastructural politics and mobility (in)justice, we analyse how Hanoi residents have experienced and negotiated the construction of this Chinese‐Vietnamese infrastructure project. In particular, we consider how the livelihoods of those directly affected by the railway's operations, namely motorbike taxi‐drivers, have been impacted to date.

Competitive Advantage among Indigenous Construction Firms in Competing with Expatriate Contractors in Nigeria

In recent times, the preference for expatriates in the contractual process in Nigeria has become an issue of controversy and general public interest. As a result, the high presence of these foreign expatriates has raised competitiveness in the construction sector, which is partly caused by indigenous enterprises' incapacity to meet the demands placed on them in terms of construction project delivery. This paper, therefore, investigates the factors influencing clients’ choice of contractor, examines the performance index of both expatriate and indigenous construction firms (ICFs), and analyzes the key performance indicators (KPI) for ICFs to increase their competitive advantage. The methodology involved the administration of structured questionnaires to a paper population of 384 construction experts comprising engineers, architects, quantity surveyors, builders, and project managers in Nigeria. With a response rate of 69%, frequencies/percentages, mean values, relative importance index (RII), and regression model were employed for the analysis. The findings revealed that the most important factors influencing clients’ choice are past performance and experience, equipment capabilities, and quality specification/standards. Additionally, this paper used six (6) KPIs (human resource management, financial management practices client-based strategy, organizational culture practices, smart work methods, and quality management practices) to model the performances of ICFs to increase their competitive advantage in Nigeria. This paper concluded that there is a higher performance of foreign expatriates in terms of time, cost, scope, quality, and satisfaction over their indigenous counterparts. This paper recommended that there is a need for ICFs to increase their equipment capacity and ability to undertake mega projects, develop an effective funding strategy to execute projects and collaborate with international partners to boost their level of competitiveness.

Ключевые стейкхолдеры рынка градостроительного проектирования и их предпочтения при выборе проектной организации

The article examines the interests and concerns of various groups of stakeholders in the urban planning design market influencing the choice of a contractor. The selected market is characterized by a significant decision magnitude, usually involves many groups of stakeholders, and often determines the long-term development of cities. The aim of the article is to identify the interests of key stakeholders in urban planning design market, factors that are significant for the selected groups of stakeholders when choosing a contractor, and to provide recommendations for promotional strategy for the considered groups of customers. The theoretical review identifies more than 150 factors that influence the choice of a contractor on b2b market, they are further divided according to the underlying principles of choosing a partner from decision-maker’s viewpoint. Based on the interviews conducted, we determine the main groups of stakeholders who influence or are influenced by the urban planning design decisions. The field study revealed significant differences in preferences among various groups of stakeholders of project organizations: developers, authorities, other project bureaus, real estate owners, management companies. The preferences also differ based on the size of the company. As a result, we have developed recommendations for dealing with different groups of stakeholders based on the identified preferences, decision-makers, as well as possible directions of a company’s differentiation. The structure of the article consists of the theoretical overview of previously conducted research of factors influencing the contractor choice in the industrial markets and finding ways to harmonize the interests of different stakeholders, after that the field research has been done of experts and decision-makers of choosing a proper partner in the planning design market. Finally, the authors offer recommendations that can focus the marketing strategy of project design companies in the urban planning industry. The article would be of interest not only for companies in the urban planning design market but also for all companies in the industrial market that face the contradictory interests of various groups of stakeholders.

Contractor selection for renovation of cultural heritage buildings by PROMETHEE method

Cultural heritage buildings have architectural, historical and cultural values creating one of the most dominant features, which is related to the local identity. Its preservation requires consideration, liability, know-how, know-why and experienced employee. Cultural heritage buildings’ performance is complicated work, therefore selecting a contractor for heritage buildings’ protection and restoration is a difficult assignment. The improper contractor's choice could activate cost overruns, lag, conflicts, declines, imperfect performance or added expenditure for project administration and accomplishment. This paper submits the quantitative and qualitative criteria setting for selecting heritage's contractor. The Analytic Hierarchy Process technique is applied to decide important criteria and to get the weighting for each criterion. The PROMETHEE (Preference Ranking Organisation Method for Enrichment Evaluation) technique is applied for the selection of the most efficient cultural heritage contractor's alternative.

A MODIFIED MCDM ALGORITHM WITH CUMULATIVE ENTROPY WEIGHTS FOR SELECTING THE WINNER OF THE TENDER

The aim of this research is to evaluate the proposed bids using impartial and entropy weights in a multi-criteria decision-making model. We use matrix data for hypothetical bidding involving nine criteria, with the presence of four domestic and two foreign contractors. Then, using cumulative entropy function, we estimate the entropy weights and use it in a multi-criteria decision-making model. The criteria of experience and knowledge in the field, good history and satisfaction in previous projects, financial and support capabilities, localization of the contractor, having the experience at the site of the project, availability and readiness of equipment and machines, the adequacy of technical staff, the work quality system, the efficient management and appropriate management system, creativity and innovation in similar tasks are the input variables of the decision model. After analyzing them, the proposals are prioritized through a multi-criteria decision-making model. The research findings include Shannon entropy and cumulative entropy-based weights for evaluation criteria and after applying the specific weight for the proposed quotation, the utility rate of each contractor is calculated. The results showed that the use of modified multi-dimensional decision-making method is more advantageous than traditional methods of evaluating bidding proposals in selecting the winner of a tender, and also using cumulative entropy weights in comparison with Shannon's leads to a more realistic choice of contractors.

Risk assessment related to the choice of contractors performing the job

Construction and investment projects inherent risks in an extremely wide range of human activity fields. An analysis of risks from the viewpoint of management and mitigation is conducted in this article. Particular attention is paid to the analysis of risk events related to the choice of an unqualified contractors performing the job. The compliance of duration implementation project, the budget amount, and the quality of performed work depend on this choice. The contractors risk assessment methods analysis showed that besides the overall criterion for all methods connected to the cost of work it is vital to take into account the qualifications, reputation, material and technical base of a contractor, the time and quality of the work performed previously. Existing methods with criteria of the choice of contractors performing the job are considered. The universal methodology with a set of criteria that satisfies all construction process participants, and based on publicly accessible information about companies and their experience is essential.

Analysis of Criteria Influencing Contractor Selection Using TOPSIS Method

Selection of the most suitable contractor is an important process in public construction projects. This process is a major decision which may influence the progress and success of a construction project. Improper selection of contractors may lead to problems such as bad quality of work and delay in project duration. Especially in the construction projects of public buildings, the proper choice of contractor is beneficial to the public institution. Public procurement processes have different characteristics in respect to dissimilarities in political, social and economic features of every country. In Turkey, Turkish Public Procurement Law PPL 4734 is the main regulatory law for the procurement of the public buildings. According to the PPL 4734, public construction administrators have to contract with the lowest bidder who has the minimum requirements according to the criteria in prequalification process. Public administrators are not sufficient for selection of the proper contractor because of the restrictive provisions of the PPL 4734. The lowest bid method does not enable public construction administrators to select the most qualified contractor and they have realised the fact that the selection of a contractor based on lowest bid alone is inadequate and may lead to the failure of the project in terms of time delay Eand poor quality standards. In order to evaluate the overall efficiency of a project, it is necessary to identify selection criteria. This study aims to focus on identify importance of other criteria besides lowest bid criterion in contractor selection process of PPL 4734. In this study, a survey was conducted to staff of Department of Construction Works of Eskisehir Osmangazi University. According to TOPSIS (Technique for Order Preference by Similarity to the Ideal Solution) for analysis results, termination of construction work in previous tenders is the most important criterion of 12 determined criteria. The lowest bid criterion is ranked in rank 5.

Managing the Room of Maneuver in Design Build Contracts – A Comparative Study of Norwegian Road Projects

Most public infrastructure projects in Norway are conducted with design-bid-build contract form. However, the traditional design-bid-build contract seems to be both time consuming and demand a lot of resources. And at the same time contribute to a high level of conflict between the project owner and the contractor. Because of this, and an increased amount of big and complex infrastructure projects, public project owners are boosting their use of design-build contracts. Use of design-build contracts can potentially shorten project time, and reduce cost. In addition, the use of this contract form can release the project owner's resources and make use of the contractor's competence. Within the design-build contract form and delivery method there is a certain room of maneuver. This can be utilized and potentially contribute to achieve the mentioned benefits. The problem occurs when the public project owner's laws and regulations limits this room of maneuver, and puts too many restrictions on the contractor's choice of technical solutions and ways of construction. To explore this a literature review and multiple case studies were conducted. Four public road projects were explored through semi-structured in depth interviews and document studies. This identified the room of maneuver in the studied projects, as well as the potential room of maneuver for the projects. The level of detail set in the contract by the project owner, through deployment of the laws and regulations, seems to be the most critical factor. This decides whether the contractor has a satisfying room of maneuver or is too restricted and not able to propose and execute alternative solutions.

Effects of IT-Enabled Monitoring on Labor Contracting in Online Platforms: Evidence from a Natural Experiment

Two-sided platforms are typically plagued with asymmetric information, limiting market efficiency. Situated in the context of the increasingly popular online platforms for labor contracting (herein referred to as “online labor markets”), this paper investigates whether the implementation of an IT-enabled monitoring system mitigates moral hazard in online platforms and the consequences thereof. Our identification hinges on a natural experiment at Freelancer when it introduced an IT-enabled monitoring system with enhanced offline tracking features in August 2015. Based on a unique dataset including 17,827 fixed-price projects and 8,563 time-based projects matched on observable characteristics, we employ a difference-in-differences (DID) approach to identify the treatment effect of the monitoring system implementation on various outcomes from both the employer (demand) side and the contractor (demand) side, including employer contractor choice, platform entry barrier and employer surplus. We found that the implementation of the monitoring system lowers the employers’ preference for high-reputation bidders in time-based projects, and thus reduces the reputation premiums and partially lowers the entry barrier for contractors who have not yet established a reputation on the platform. Specifically, using fixed-price projects as the baseline, on average, the implementation of the monitoring system increased the number of bids by 17.4% (primarily from bidders with no prior experience on the platform) and increased employer surplus in time-based projects by 21.5%. Our results testify the partial substitution relationship between reputation systems and monitoring systems, and suggest that IT-enabled monitoring systems have a significant effect on alleviating moral hazards, reducing agency costs, and intensifying supply-side platform competition.

Contractor management performance evaluation model at prequalification stage

The client’s choice of contractor at the project prequalification stage is critical as the selected contractor is responsible for the overall coordination of a project. Although a wide variety of criteria have been employed to develop models for contractor selection, one critical component of their capability – management performance – has historically been among the least addressed but, we argue, most critical elements in a useful selection model. Even in the cases when management performance is considered, it has typically focused only on objective outcome criteria of limited predictive power, such as contractor time and cost performance. This paper reports on the results of a study to develop a comprehensive contractor evaluation model that directly addresses the contractor management capabilities and practices as a critical additional element at the prequalification stage. Using a multi-step research process, including extensive literature review, analysis and synthesis of critical contractor management performance factors, development of an analytic network project (ANP) model, and subsequent case study and field validation, we identified a robust model that enhances the decision support tools for the client organization by creating databases for comparing multiple contractors with respect to management practices. In addition, the evaluation of this prequalification criterion permits the contractors to focus on their efforts to address the critical management practices to improve their project performance.

Contractor Selection for Construction Project, with the Use of Fuzzy Preference Relation

During the phase of investment planning, choice of contractor is one of the most important decisions. One of the methods for assessing competences of contractors applying for the contract is their pre-selection. In the article, author describes algorithm for choice (selection) of contractor. The algorithm is based on fuzzy preference relation. In mathematical point of view, it is based on ordering theory and fuzzy sets theory. The article provides an example of the algorithm used for selection of contractor for construction works. The choice was made basing on criteria such as: reputation, technical capabilities, financial situation and organizational skills.

Concealed Ownership of Contractors, Manipulation of Tenders and the Allocation of Public Procurement Contracts

This study provides evidence of a strong link between two channels facilitating rent-extraction in public procurement: between concealing the ultimate ownership of contractors and manipulation of the anticipated value of tenders. Using data on more than 15 300 tenders awarded to joint-stock companies in the Czech Republic during 2005-2010, the study shows that tender value manipulation has been incentivized by the 2006 procurement reform, which established several discontinuities in the anticipated value of tenders. After the reform, manipulation increased much more for tenders awarded to contractors with anonymous owners as opposed to traceable owners. Contractors in manipulated tenders needed to underbid fewer firms in order to win procurements and their winning bids for comparable contracts were, on average, higher than before reform. The results imply disrupted optimality of contractor choice and reduced efficiency of procurement. The results are strongest for contracts on services and construction works, which traditionally conceal rent-extraction more easily.

Alternatives to lifting concrete masonry blocks onto rebar: biomechanical and perceptual evaluations

This study examined the use of and barriers to H-block and high lift grouting, two alternatives to lifting concrete masonry blocks onto vertical rebar. Peak and cumulative shoulder motions were evaluated, as well as adoption barriers: H-block cost and stakeholder perceptions. Results indicated that using the alternatives significantly decreased peak shoulder flexion (p < 0.001). A case study indicated that building cost was higher with H-block, but the difference was less than 2% of the total cost. Contractors and specifiers reported important differences in perceptions, work norms, and material use and practices. For example, 48% of specifiers reported that use of high lift grouting was the contractor's choice, while 28% of contractors thought it must be specified. Use of H-block or high-lift grouting should be considered as methods to reduce awkward upper extremity postures. Cost and stakeholders’ other perceptions present barriers that are important considerations when developing diffusion strategies for these alternatives. Practitioner Summary: This study provides information from several perspectives about ergonomic controls for a high risk bricklaying task, which will benefit occupational safety experts, health professionals and ergonomists. It adds to the understanding of shoulder stresses, material cost and stakeholder perceptions that will contribute to developing effective diffusion strategies.

EKONOMİK AÇIDAN EN AVANTAJLI TEKLİFİN BELİRLENMESİNDE 2004/18/EC AB KAMU İHALE DİREKTİFİ İLE 4734 SAYILI KAMU İHALE KANUNUNUN KARŞILAŞTIRILMASI

According to EU Directives and the Public Procurement Law No. 4734 which is implemented in our country, in tenders; transparency, introduce competition, equal treatment, reliability, ensure the control of public opinion, at the appropriate time and under suitable conditions, needs, come to the fore elements of efficient use of resources. Construction work projects, the realization of the required quality by keeping within the budget provided for a specified period, the specified criteria in mind, this consciousness, it is possible to have the choice of contractor. Accordingly, when analyzed the procurement decision-making systematic, the most important factor is playing an active role in decision-making process, to determine of most economically advantageous bid. Aforementioned bid in question is a two-alternative: (a) The most economically advantageous bid on the basis of determining the lowest price, (b) Economically most advantageous bid taking into account the determination of non-price factors. In this study, the EU Public Procurement Directive 2004/18/EC and the Public Procurement Law No. 4734 which is implemented in our country, and specified under the two alternatives was examined by determination of most economically advantageous bid and in this scope, presented models are being implemented by EU member states and our country.

COMPARISON WITH EU PUBLIC PROCUREMENT DIRECTIVE 2004/18/EC AND PUBLIC PROCUREMENT LAW NO.4734 IN DETERMINATION OF ECONOMICALLY MOST ADVANTAGEOUS BID

According to EU Directives and the Public Procurement Law No. 4734 which is implemented in our country, in tenders; transparency, introduce competition, equal treatment, reliability, ensure the control of public opinion, at the appropriate time and under suitable conditions, needs, come to the fore elements of efficient use of resources. Construction work projects, the realization of the required quality by keeping within the budget provided for a specified period, the specified criteria in mind, this consciousness, it is possible to have the choice of contractor. Accordingly, when analyzed the procurement decision-making systematic, the most important factor is playing an active role in decision-making process, to determine of most economically advantageous bid. Aforementioned bid in question is a two-alternative: (a) The most economically advantageous bid on the basis of determining the lowest price, (b) Economically most advantageous bid taking into account the determination of non-price factors. In this study, the EU Public Procurement Directive 2004/18/EC and the Public Procurement Law No. 4734 which is implemented in our country, and specified under the two alternatives was examined by determination of most economically advantageous bid and in this scope, presented models are being implemented by EU member states and our country.

Regulating a Health Insurance Exchange: Implications for Individuals With Mental Illness

Under the newly enacted health reform law, millions of lower- and middle-income Americans will purchase individual or family health insurance through state-based markets for private health insurance called insurance "exchanges," which consolidate and regulate the market for individual and small-group health insurance. The authors consider options for structuring choice and pricing of health insurance in an exchange from the perspective of efficiently and fairly serving persons with mental illness. Exchanges are intended to foster choice and competition. However, certain features-open enrollment, individual choice, and imperfect risk adjusters-create incentives for "adverse selection," especially in providing coverage for persons with mental illness, who have higher overall health care costs. The authors review the experience of persons with mental illness in insurance markets similar to the exchanges, such as the Massachusetts Connector and the Federal Employees Health Benefit Program, and note that competition among health plans for enrollees who are "good risks" can undermine coverage and efficiency. They review the possible approaches for contending with selection-related incentives, such as carving out all or part of mental health benefits, providing reinsurance for some mental health care costs, or their preferred option, running the exchange in the same way that an employer runs its employee benefits and addressing selection and cost control issues by choice of contractor. The authors also consider approaches an exchange could use to promote effective consumer choice, such as passive and active roles for the exchange authority. Regulation will be necessary to establish a foundation for success of the exchanges.

The relative importance of tender evaluation and contractor selection criteria

Research in identifying the relative importance of criteria used to select a preferred supplier has, for the most part, relied on subjective lists of criteria being presented to respondents. The research reported here uses an experimental design approach to quantify the importance of nine common criteria used in an actual evaluation and selection of a contractor/supplier. Unique choice sets were constructed, each comprising three tender evaluation outcomes (alternatives) described in terms of all criteria, but with varying levels. Respondents simultaneously evaluated all three alternatives within each choice set and selected the most preferred. Utility estimates for each criterion level were determined as was the overall contribution made by the individual criterion. Results indicate Past Project Performance, Technical Expertise and Cost are the most important criteria in an actual choice of contractor with Organisational Experience, Workload, and Reputation being the least important.