Contractor Prequalification Research Articles

Enhancing Contractor Selection through Fuzzy TOPSIS and Fuzzy SAW Techniques

Contractors play an integral role in construction projects, and their qualifications directly impact various aspects of a project’s success. The unbiased selection of contractors is a challenge in the construction industry worldwide, particularly in public projects where impartiality in the final selection is essential. Numerous factors must be considered when evaluating contractors, making the selection process challenging for the human brain. This paper introduces and compares two methods for assessing contractor prequalification by applying the fuzzy theory. The idea is to facilitate using human judgments in a mathematical system for decision-making with regard to selecting contractors. The method is based on identifying a fuzzy weight for the selection criteria using the Buckley method. Fuzzy TOPSIS and Fuzzy SAW methods are then used for the qualification ranking of the contractors. The proposed models are assessed using a case study. A sensitivity analysis was also conducted to compare the two models. The introduced method is expected to improve the quality of the qualification-based selection of contractors and prevent possible losses from hiring unsuitable contractors.

Contractor selection by using multi-criteria decision-making for Egyptian road maintenance

Egypt has witnessed a revolution in all fields and the establishment of giant projects, which require the selection of the appropriate contractor for their implementation. The major factor for evaluating contractors is the tender price of the project. The lowest price is not always a guarantee of the quality or time of a building project. Recently, there has been a shift away from the “lowest-price-wins” concept and a subjective judgment towards multi-criteria decision-making of selecting the project's contractors aiming to help owners in making decisions. The manuscript presents a multi-criteria decision-making strategy to optimize the selection of contractors for construction projects. The calculation of this strategy is divided into two phases. The first phase is designed to identify contractor prequalification criteria and utilize the AHP approach based on current Egyptian practice to calculate their weight. The second phase provides two techniques: (1) technique for order preference by similarity to ideal solution (TOPSIS) and (2) vlsekriterijumska optimization I kompromisno resenje (VIKOR) to optimize the selection of the available contractors for construction projects. Contractor 2 has the highest prices and lower values in technical capability, economic status, and management capability, it emerges as the top-ranked contractor in both methods due to its exceptional expertise and safety standards. These elevated levels of expertise and safety, coupled with the higher weights assigned by decision-makers to these criteria, contribute significantly to Contractor 2's superior ranking. A real-life case study improvement and refurbishment project is examined to demonstrate the value and highlight capabilities.

Development of a pre-qualification and selection framework for construction projects’ contractors in Saudi Arabia

ABSTRACT In the kingdom of Saudi Arabia almost 60% of the construction projects were delayed in the recent decade. Contractor selection is the critical decision for the success of any construction project. The typical method of contractor selection in Saudi Arabian projects is generally based on prioritizing the lowest bid price, irrespective of experience, quality, and other factors without investigating in-depth the pre-qualification of contractors. This often leads to disputes and project delays. In this regard, the main goal of the presented research work is the development of a framework that can help decision-makers in both government and private sector to investigate the pre-qualification, and then to select the most suitable contractors for the proposed projects. The presented framework was developed based on a detailed literature review, market analysis, information collection from stakeholders and decision-makers along with collaboration with industry-academia experts. Forty criterion-based selection framework was developed in the presented research work with each criterion possessing a relative weightage developed in comparison with ones obtained using smart techniques. The main categories of the selection criteria are project value, financial capability, reputation, management structure, technical capability and performance, organizational culture, along with safety and environmental health. Through detailed survey and analysis, the main criterion for contractor selection was identified as quality assurance and control with the least important being the Current/Past Joint Venture(s). The presented framework model was validated using a case study where three construction contractors were evaluated using Multi-Attribute Utility Theory Score (MAUT). The framework was deemed reliable and valuable for contractor selection in construction projects for adding the increased selection criterion and insight into the selection evaluation.

Using the ISM Method to Analyze the Relationships between Various Contractor Prequalification Criteria

Construction contractors significantly contribute to the progress and success of projects. Contractor prequalification grants tendering rights only to competent contractors. The bidding process is one of the most critical phases in the construction industry. The project leader must assess the general, technical, and financial information of the contractors to prepare an accurate proposal and select the best contractor. In this study, contractor prequalification is considered, along with the complex relationships between various criteria. ISM is a computational method that involves a qualitative and interpretive approach to solving complex problems based on structural mapping of the connections between attributes and their subsequent transformation into a multilevel structural model. Using ISM, we establish a seven-level hierarchy for various contractor prequalification criteria, which are then grouped into four clusters based on their driving power and dependence power. The result of this study shows that ISM can be used to rank complex contractor prequalification criteria and help managers select a qualified contractor in the construction project bidding process during the strategic planning phase.

Multi-criteria decision-making model for EPC contractor prequalification: a hybrid approach

PurposeNowadays, engineering, procurement and construction (EPC) contracts are being widely used to perform industrial and infrastructure projects because of several reasons like high speed of implementation. However, these contracts are always accompanied by high risks and uncertainties. Thus, selection of the right EPC contractor has significant importance. This paper aims to present a fuzzy multi-criteria decision-making (MCDM) model for EPC contractor prequalification.Design/methodology/approachFirst, the EPC contractor prequalification criteria are defined by using literature review and interviewing experts. Second, the weights of criteria are determined by interviewing experts. Then, each EPC contractor is evaluated in each criterion. Finally, fuzzy weighted average (FWA) approach is employed to select the right contractor among potential EPC contractors.FindingsThe proposed model is prepared as an applicable model for clients to select the right EPC contractors among contractors who want to conduct the project.Originality/valueAs a lack of applicable model does exist to assign the prequalification of EPC contractors, this study is one of the first research studies which proposed a fuzzy MCDM model for evaluation of EPC contractors. To cope with the uncertainty of the prequalification problem, fuzzy logic has been used. Using fuzzy sets leads to reaching more reliable results. Also, a real case study is provided to explain the proposed model.

Modeling a Multi-Criteria Decision Support System for Prequalification Assessment of Construction Contractors using CRITIC and EDAS Models

Contractor prequalification assessment in the construction industry is an essential part of the project development process because contractors play a pivotal role in the extension of projects and resources. The main objective of the present study is comprised prequalification assessment for classifying contractors by applied the EDAS method for recognizing the contractors' potential before competitive tendering and obtaining bids. First, an inclusive, detailed list of 56 sub-factors under 5 main factors for project prequalification was compiled following a thorough literature review, and review of contractors by experts of Bandar Imam Khomeini municipality who already have done projects with contractors. Second, used the CRITIC method for obtained the weighing and importance of each factor. Third, classified the contractors by applied the EDAS system for recognizing the contractors' potential before competitive tendering and obtaining bids. Finally, the prequalification assessment process was developed to obtaining the rank of each contractor and help the stakeholders to select the right contractors. The effectiveness of the present approach was tested by applying it to a case study of the prequalification assessment of four construction companies' in Bandar Imam Khomeini municipality, Khuzestan, Iran. It is worth mentioning that the prequalification assessment by the proposed approach is approved by the project stakeholders and is consistent with their expectations. It can be concluded that based on relevant ranking and weighing of companies that procedure can be extended to the same studies in this regard, and the contribution of the present study is to propose a support system for prequalification and identification of contractors' ability, before assigning projects to companies for success in projects.

Pre-Qualification of Selecting Construction Project Contractors Using Health and Safety Criteria

Abstract Contractors, among other construction stakeholders, are vital in achieving the set goals of a project. Adequately engaging a capable contractor is an important task for a client. This study aims at determining the reasons for clients contending with contractors that are not committed to health and safety (H&S). The study was conducted through a literature review, a questionnaire was developed and distributed to 286 construction stakeholders in the Nigerian construction industry. Cronbach alpha was used to test the reliability of the questionnaire used for data collection. Mean scores (MSs) were adopted to determine the major factors that influence clients’ selections and factor analysis was used to cluster variables of high inter-correlations. Findings from the survey reveal that H&S is not a clients’ goal or a project value hence, H&S is not viewed as a vital pre-qualification criterion for contractor selection. This results in a poor checklist concerning contractors’ quality assurance and inadequate verification of contractors’ H&S history. Therefore, appointing non-compliant H&S contractors. The findings provide information on the influence clients have respecting H&S as a prequalification criterion and towards construction workers’ H&S. This will enable construction stakeholders to make the right decision in the pre-qualification of contractors.

Performance analysis of fuzzy analytic hierarchy process multi-criteria decision support models for contractor selection

Multi-Criteria Decision Making (MCDM) is a discipline aimed at supporting decision-makers to settle on an ideal choice within the sight of different and clashing criteria. MCDM strategies have developed to oblige different kinds of utilizations. One comprehensively utilized MCDM strategy is the Analytic Hierarchy Process (AHP). AHP, in spite of its simplicity in idea, it can't consider imprecise input. Throughout the years, fuzzy logic has demonstrated its effectiveness as a MCDM technique. It includes a few preferences inside uncertain, imprecise and obscure settings than AHP and other MCDM strategies. Consolidating Fuzzy strategies with AHP is one methodology for taking care of the entangled issues of AHP. The significance of this study is to provide baseline information to the construction clients and consultants on the importance of contractor's prequalification decision criteria to be adopted, which will eventually translate to a better decision making and increase project performance. Taking into account our past research, this paper proposed a Feedback Integrated Fuzzy Analytic Hierarchy Process (FAHP) model for ranking decision criteria for contractual worker determination by combining the selection process and consistency control module. This consistency control module contains a feedback module that generates advice to decision makers so as to check the irregularity in their decisions' during pairwise comparisons. In this paper, the performance investigation of the proposed FAHP model is validated on datasets from three diverse FAHP models. The proposed model accuracy obtained when tested with three distinctive datasets were 98.2%, 99.99%, and 98.24% respectively. The results established the adequacy and uselfulness of the proposed FAHP model in ranking contractor decision criteria. The research additionally guide decision-makers on picking distinctive FAHP algorithms in assessing and ranking decision criteria utilized in contractors selection.

Evaluating Contractors’ Production Performance in Highway Projects Using Historical Daily Work Report Data

AbstractOne of the most crucial tasks that a project owner has to undertake is choosing the most competent contractor for the project. The current body of knowledge on contractor prequalification a...

Contractor prequalification for green buildings—evidence from Turkey

PurposeCompetent contractors are one of the critical stakeholders to achieve targeted sustainability objectives in green building (GB) projects. Prior to contractor selection, prequalification is an important step, which requires contractors with certain capabilities in addition to traditional features. This study aims to develop a systematic and practical model for prequalification in GB projects using a multi-criteria decision-making (MCDM) approach by adopting the analytical hierarchy process (AHP).Design/methodology/approachThe AHP model with 8 main criteria groups and 25 sub-criteria is structured based on literature review and professional opinions accompanied by a pilot study. Then, interviews with experts, who are experienced in the development and application phases of GB projects in Turkey, are arranged to collect judgements. The agreement levels between different groups of experts are analysed via Pearson's and Spearman's rank correlation coefficient. Model applicability is tested on six hypothetical contractors for practicality.FindingsThe results show that i) financial capabilities, ii) legal status and iii) sustainability groups are the top three main criteria, while i) compliance with schedule requirements of the client, ii) current legal status including suits, iii) negative litigation history records, iv) contractor's compliance capacity to client's sustainability checklist for the proposed project and v) sustainability with lower life cycle cost (durability, maintenance, constructability) are the top five sub-criteria.Originality/valueThere is a gap in the literature analysing contractor prequalification phase in GB projects. This study attempts to fill this lack provided with a practical evaluation tool.

Review of empirical arguments on contractor pre-qualification criteria

PurposeThe studies on contractor prequalification focus more on the review of models and algorithms rather than review of the criteria for contractor prequalification. However, the basis of every prequalification model primarily relates to the measurement and judgement of prospective contractors based on a set of decision criteria. This paper aims to address the gap by reviewing academic papers on contractor prequalification criteria.Design/methodology/approachA desktop search was conducted under the “T/A/K (title/abstract/keyword)” field of the Scopus search engine. A total of 49 papers were initially identified; however, only peer reviewed journals were selected for the study; therefore, a sample of 36 was subsequently used. Further filtering was done in which 26 papers were found valid for further analysis as it was realized that, not all the identified papers presented empirical arguments about the issue of contractor pre-qualification criteria. The selected 26 papers were subjected to content analysis to identify the key contractor pre-qualification criteria.FindingsA total of 41 criteria were identified which were subsequently classified into six main categories, namely, technical considerations, management considerations, financial considerations, reputation considerations, general experience considerations and health, safety and environmental considerations. There was an indication that, the involvement of health, safety and environmental considerations in contractor prequalification proceedings is limited.Research limitations/implicationsThe major limitation of this research was the limited number of papers selected for further analysis based on the Scopus search engine. The identified criteria serve as a basis for further empirical studies on contractor prequalification criteria.Practical implicationsThe outcome of this study broadens the understanding of practitioners and researchers on the various criteria for contractor prequalification.Originality/valueBy critically reviewing available literature on contractor prequalification, the study sets the tone for further empirical studies on contractor prequalification.

Understanding the role of contractor capability in risk management: a comparative case study of two similar projects

In the construction industry, contractor prequalification is used for measuring contractor capability and selecting capable contractors for the successful execution of projects. Research emphasizes that contractor capability and risk management are critical for project success and have a correlation. However, observations suggest that risks are not considered during prequalification and even prequalified contractors perform poorly causing project failures. Such observations indicate a research gap for which this research explores the role of contractor capability in risk management at the project level. The analysis uses a comparative case study of risk management in two similar ongoing projects having different contractors. It reveals that the contractor capability assessed during prequalification is an attribute of an organization; while the capability required to mitigate risks and execute work is an attribute of a project. When risks materialize, the capability of a contractor may reduce and the capability required to mitigate risks in a project may increase. This will create a deficit of resources resulting in poor performance by the contractor. Therefore, criteria for prequalification must be decided considering risks scenarios for projects and contractors to screen out marginally qualified contractors and increase chances of project success.

Cohesion between Cost, Time and Quality Performance of Civil Engineering Project: Evidence from Contractor Prequalification Criteria

<p><em>Setting cost, time and quality targets for civil engineering project is motivated by the need to have an instrument that would dictate and control activities of the contractor towards delivery of product that meets client’s expectations. This study, which examines the relationship between cost, time and quality performance of civil engineering project, is premised on the importance of showing whether cost, time and quality performance of civil engineering project demonstrates different correlation patterns on one part or exhibit different significance relative to contractor prequalification criteria on the other part. It uses questionnaire to obtain the needed data and analysis achieved through spearman’s rank correlation and regression methods. It establishes the nature of the cohesion between these three parameters. Consequently, both strong and weak positive relationship exists between contractor prequalification criteria and cost, time and quality performance of civil engineering project at p?1%. In spite of this, interconnectivity between these three variables is demonstrated by contractor prequalification criteria. Cohesion also exists between cost, time and quality performance of civil engineering project at p?5%. Therefore, criteria for contractor prequalification firmly bind cost, time and quality performance of civil engineering project. Also, the firmness of cost time and quality performance of civil engineering project depends of contractor prequalification criteria. Hence, client and representatives should take the cohesiveness of cost, time and quality performance into consideration when determining the choice of contractor prequalification criteria for civil engineering project.</em><em></em></p>

Analysing contractor prequalification criteria in construction: new insights through interpretive structural modelling

Previous research has established the importance of selecting suitable prequalification criteria to shortlist competent contractors and the role of these criteria in project success. However, very few studies have dealt with establishing hierarchy and investigating interrelationship among prequalification criteria. The rationale of this research is to unearth this seemingly unapparent relationship among these criteria through interpretive structural modelling (ISM). The analysis reveals that financial capability and past performance of contractor, two of the most commonly used criteria for contractor prequalification, are inadequate for competent contractor short-listing due to their strong dependence on other criteria. Based on the hierarchy developed in the model, it is suggested that criteria like environmental policy, litigation/blacklisting history and bid capacity of the contractor should be given higher importance by the clients. The findings may improve the prequalification process by assisting the clients in making informed decision regarding selection of prequalification criteria based on the hierarchy and classification established in the model.

Analysing contractor prequalification criteria in construction: new insights through interpretive structural modelling

Previous research has established the importance of selecting suitable prequalification criteria to shortlist competent contractors and the role of these criteria in project success. However, very few studies have dealt with establishing hierarchy and investigating interrelationship among prequalification criteria. The rationale of this research is to unearth this seemingly unapparent relationship among these criteria through interpretive structural modelling (ISM). The analysis reveals that financial capability and past performance of contractor, two of the most commonly used criteria for contractor prequalification, are inadequate for competent contractor short-listing due to their strong dependence on other criteria. Based on the hierarchy developed in the model, it is suggested that criteria like environmental policy, litigation/blacklisting history and bid capacity of the contractor should be given higher importance by the clients. The findings may improve the prequalification process by assisting the clients in making informed decision regarding selection of prequalification criteria based on the hierarchy and classification established in the model.

A type-2 fuzzy set model for contractor prequalification

Abstract Prequalification helps decision makers find the right contractor for the job, which is key to the successful delivery of a construction project. The procedure involves judging the suitability, capability and competency of the contractor on various criteria, using both anecdotal and empirical evidence. The evidence used is often imprecise and subjective, and so is the evaluation and decision making procedure. Type-1 fuzzy sets have been used in the prequalification procedure to handle uncertain information. However, type-1 fuzzy sets are unable to reflect the differences in opinion among experts involved in group decision making. The purpose of this paper is to propose a practical prequalification procedure that uses interval type-2 fuzzy sets to address both linguistic imprecision and differences of opinion. A numerical example shows how the proposed procedure is carried out and the benefits that result compared to a similar procedure using type-1 fuzzy sets.

Examination the Usefulness of Selected Classification Methods in the Pre-Qualification of Construction Contractors

For most of projects, including major infrastructure enterprises a key success factor is an appropriately selected general contractor. In addition to technical and organizational criteria the assessment of its financial capacity is strongly important to provide liquidity to the cash flows of the project. Unfortunately, the practical experience of the construction market during the economic downturn shows that many projects have been delayed or suspended as a result of the bankruptcy of general contractors. The purpose of this paper is to present the results of studies on the use of Partial Least Square, Fisher Linear Discriminant, Support Vector Machine methods, and the authors' proprietary approach to the Extraction by Applying Weighted Criterion of Difference Scatter Matrices (EWCDSM) for the pre-qualification of potential contractors. The study included an ex post evaluation of selected large construction companies, operated in Poland by reference the fact of their bankruptcy or maintain the market to historical financial data for the prior year period. Then, for the same set of data the authors performed the identification of companies at risk of bankruptcy. The results obtained are confronted with the actual condition of the surveyed companies. Proposed operating models have been validated on publicly available financial data of construction companies listed on the Polish Stock Exchange.

A multi-agent systems-based contractor pre-qualification model

Purpose The selection of the contractor, as a main participant of a construction project, is the most important and challenging decision process for a client. The purpose of this paper is to propose a multi-agent systems (MAS)-based contractor pre-qualification (CP) model for the construction sector in the frame of the tender management system. Design/methodology/approach The meta-classification and analysis study of the existing literature on CP, contractor selection and criteria weighting issues, which examines the current and important CP criteria, other than price, is introduced structurally. A quantitative survey, which is carried out to estimate initial weightings of the identified criteria, is overviewed. MAS are used to model the pre-qualification process and workflows are shown in Petri nets formalism. A user-friendly prototype program is created in order to simulate the tendering process. In addition, a real case regarding the construction work in Turkey is analyzed. Findings There is a lack of non-human-driven solutions and automation in CP and in the selection problem. The proposed model simulates the pre-qualification process and provides consistent results. Research limitations/implications The meta-classification study consists of only peer-reviewed papers between 1992 and 2013 and the quantitative survey initiates the perspectives of the actors of Turkish construction sector. Only the traditional project delivery method is selected for the proposed model, that is other delivery methods such as design/build, project management, etc., are not considered. Open, selective limited and negotiated tendering processes are examined in the study and the direct supply is not considered in the scope. Practical implications The implications will help to provide an objective CP and selection process and to prevent the delays, costs and other troubles, which are caused by the false selection of a contractor. Originality/value Automation and simulation in the pre-qualification and the selection of the contractor with a non-human-driven intelligent solution ease the decision processes of clients in terms of cost, time and quality.

English

English

THE EVALUATION OF THE IMPLEMENTATION OF CONTRACTOR SAFETY MANAGEMENT SYSTEM (CSMS) PROGRAM ON TURNAROUND PROJECT (TA) AT PT. PUPUK SRIWIDJAJA (PUSRI) PALEMBANG 2015

Background : Turnaround is one of the done by contractor in which if it is not managed well, it could cause work accident. The purpose of this study was to evaluate the implementation of contractor safety management system (CSMS) program on turnaround project at PT. Pupuk Sriwidjaja Palembang. Method : This study was a qualitative study. The information was obtained from deep interview, observation and the study of document. The data was analyzed by using content analysis. The validity of the instruments was tested through triangulation of sources, method and data Result : T he program implementation Contractor Safety Management System (CSMS) on a turnaround project is already well underway only on projects in addition to departments turnaround K3 & LH less involved in the risk assessment stage, pre-qualification and selection of contractors. Conclusion : T he implementation of the program Contractor Safety Management System (CSMS) on a turnaround project at PT. Pupuk Sriwidjaja Palembang are in accordance with the Code of Labor Management Health, Safety and Environmental Protection Contractor BPMIGAS. It is advisable to PT. Pupuk Sriwidjaja Palembang in order to improve communication between departments procure goods and services with K3 and LH-related departments work tendered as the risk assessment stage, pre-qualification and selection on work tendered. Need sanctions against contractors who do not regularly report performance data K3. Keywords : Turnaround, Evaluation Program DOI: https://doi.org/10.26553/jikm.2016.7.1.14-21