Contractor Selection Research Articles

Enterprise risk management for automation in correctional facilities with pandemic and other stressors.

Real-time tracking of tool and equipment inventories is a critical function of many organizations and sectors. For prisons and correctional facilities, tracking and monitoring of assets such as cookware, hardware, keys, janitorial equipment, vocational/technical specialty tools, etc., is essential for safety, security, trust, efficiency, education, etc. The performance of automated systems for this purpose can be diminished by a variety of emergent and future sociotechnical factors alone and in combination. This article introduces a methodology for contractor evaluation and selection in acquisition of innovative asset management systems, with an emphasis on evolving system requirements under uncertainty. The methodology features a scenario-based preferences analysis of emergent and future conditions that are disruptive to the performance of the asset-control system. The conditions are across technologies, operating environments, regulations, workforce behaviors, offender behaviors, prices and markets, organizations, cyber threats, etc. The methodology addresses the influence and interaction of the conditions to disrupt system priorities. Examples include: (i) infectious disease disrupting priorities among requirements and (ii) radio-frequencyidentification(RFID)andwireless-technology innovations disrupting priorities among stakeholders. The combinations of conditions that most and least matter for the system acquisition are characterized. The methodology constitutes a risk register for monitoring sources of risk to project performance, schedule, and cost throughout the system lifecycle. The results will be of interest to both practitioners and scholars engaged in systems acquisition as the pandemic interacts with other factors to affect risk, uncertainty, and resilience of organizational missions and operations.

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.

Contractor selection for green buildings based on the fuzzy Kano model and TOPSIS: a developer satisfaction perspective

PurposeContractor selection is critical in green buildings (GBs) since the preferred contractor has the responsibility to achieve construction sustainability as well as relationship sustainability. The developer satisfaction reflecting requirements can boost the cooperative relationship among stakeholders and act as an evaluation scale for the success of GB projects, which needs to be emphasized in the selection process but little involved in the existing research. This study explores improving GB contractor (GBC) selection by integrating developer satisfaction into selection procedures.Design/methodology/approachA systematic framework of GBC selection including twenty-five criteria from literature review and experts survey is firstly constructed. Both tactical and strategic criteria are further classified into Kano categories (must-be, one-dimensional, and attractive categories) using the fuzzy Kano model (FKM), and weighted by the developer satisfaction index. The model proposed by this study combining FKM and TOPSIS divides the selection process into the filtration phase and selection phase by Kano categories. The proposed model is finally verified through performance comparison among multiple methods in a case.FindingsSelection criteria are measured linearly and nonlinearly, showing criteria having nonlinear satisfaction change accounts for two-thirds of all. Criteria at tactical level tend to be must-be or one-dimensional categories for the developer, and most strategic criteria are classed as the attractive category, indicating that adding strategic criteria is necessary for long-term cooperation. The proposed model, using developer satisfaction to improve the selection process, ensures the selected GBC to be the most satisfactory with requirements of the developer and makes the performance of GBCs easily distinguishable.Originality/valueThis study contributes to the existing body of knowledge for promoting relationship sustainability by supplementing an integrated model with emphasis on developer satisfaction in GBC selection, so as to establish a good initial foundation due to the match between performances of GBCs and needs of developers. It not only helps maximize developer satisfaction in GBC selection by applying satisfaction to pre-construction management, but also instructs GBCs to prioritize performance improvements. The framework is also conducive for developers to classify selection criteria and select other participants (like green suppliers) from the satisfaction perspective in GBs.

Intensified collaborative care: amodel of successful acting in ambulatory cardiology

In the cardiological care of outpatients in Germany, selective contracts have been established in in addition to the usual representation in the collective system, i.e., in the system of the associations of statutory health insurance physicians (Kassenärztliche Vereinigungen, KV). One example is the KardioExpert (Cardioexpert) contract between the Professional Association of Cardiologists in Private Practice (BNK) and the Barmer Ersatzkasse and Ford Betriebskrankenkasse (BKK). This supplementary contract extends regular outpatient care for patients with heart failure; more than 20,000 patients are now included nationwide. Another example is afull care contract in accordance with §73c or §140a of BookV of the German Social Code (SGBV), which in Baden-Württemberg regulates all cardiological care for participating patients as an alternative to the collective contract. The cardiology contract according to §73c, which has been in place in Baden-Württemberg since 2010, was scientifically evaluated and was able to show a24% reduction in mortality within 1year and a16% reduction in the hospitalization rate for patients with heart failure. Furthermore, overall health care costs were reduced in the intervention group. At the same time, participating physicians also benefit through non-budgeted reimbursement, which is approximately 15-20% above KV levels. The Cardioexpert contract also shows similar data and benefits. Overall, these cardiology contracts show in amodel way that better care can be implemented more cost-effectively and with awin-win situation for all sides. Nationwide expansion, especially of the full care contracts, has so far failed due to the reluctance of the cost bearers. Astart could be made here with legal regulations, such as the obligation of health insurance companies to enter into such contracts.

Ranked generic criteria for EPC contractor selection

PurposeThe purpose of this study was to prioritize the appropriate generic contractor selection criteria for Engineering–Procurement–Construction (EPC) projects in the construction industry.Design/methodology/approachProceeding from a review of previous studies and validation by a small group of experts, a preliminary set of 16 criteria was first identified. This was followed by three rounds of Delphi surveys: firstly, with 64 experienced participants confirming the relevance of the 16 criteria; secondly, with a reduced subgroup of 47 more experienced participants scoring the importance of each; and finally, providing the opportunity for these 47 to revise their scores in the light of knowing the aggregated results of the previous round.FindingsThe results show the consensus view, of which the most important criteria are ranked as past performance, project understanding, technical attributes, key personnel, health and safety, past experience, time, management, financial, contractual and legal, quality, cost, relationships, environmental and sustainability, organizational and industrial relations, and geographic location.Originality/valueThe findings are useful for both practitioners and academics in making a significant contribution to the body of knowledge of the EPC process. This will assist in providing a better understanding of criteria importance and pave the way to developing an EPC contractor selection model involving the criteria most needed to objectively identify potential contractors and evaluate tenders.

General practitioner-centered care: a model with potential for improvement?

General practitioner (GP)-centered care was introduced into outpatient care on the basis of the GKV Modernisation Acts (GKV, gesetzliche Krankenversicherung: German statutory health insurance) of 2004 and 2007. These are predominantly selective contracts according to §73b of the German Social Code (Sozialgesetzbuch, SGB) V, which are signed between management companies such as the German GP Contract Association (Hausärztliche Vertragsgemeinschaft, HÄVG ) and the health insurance funds. The latter are obliged to enter into contracts, while participation by contracted physicians and patients is voluntary. The contract landscape of the AOK and the MEDI association in Baden-Württemberg, Germany, is considered a lighthouse project nationwide: here, approximately 5,300 general practitioners and 3,000 specialists participate in general practitioner (GP)-centered care, and about 1.7 million patients are enrolled. In addition to the higher remuneration for medical services, advantages include better control and continuity of care, the avoidance of misallocations, and the strengthening of the GP as a health guide. The increased administrative burden for participating practices and, on closer analysis, the predominantly economic focus of the contract contents, as well as the fact that they are exclusive to general practices, have proven to be disadvantages. Doing business on the basis of selective contracts leads to a division of the entire medical profession, and medical freelancing is at stake. In order to strengthen primary care in the long term, the collective-contract situation must be expanded and improved through special add-on contracts. At the same time, the risk of morbidity must not be unilaterally passed on to the medical profession through budgeting. A forward-thinking and transparently designed primary care can only be ensured with the full participation of internists in close cooperation with specialists.

Assessment of Construction Project Contractor Selection Success Factors considering Their Interconnections

Clients frequently utilize tendering to select contractors in the building business. The goal of this research is to identify, assess, and rank the critical elements in evaluating contact bids for the best-value procurement technique. There is a need to better assess the importance of factors in evaluation of tenders using their linkages between them. It differs from previous studies in considering the connections between these factors, facilitating a robust ranking and tendering evaluation. This study is unique in that it is the first to use an analytical network process (ANP) model to rank evaluation elements while taking into account their interdependencies to the best of authors' knowledge. This study included a literature review, a survey of construction industry specialists, and the application of the ANP as a ranking method for the variables. According to our research, there are 31 criteria that are critical to the success and performance of construction projects. Technical, financial, and qualification variables are divided into three groups, with the ANP model indicating that financial aspects are the most relevant. The findings of the study demonstrated that financial stability was ranked first, followed by offered price, proposed delivery date, experience with similar projects, past history, qualifications of engineers and technical staff, warranty and after sales services. The last five factors included level of innovation, use of new technologies, staff training plans, environmental considerations, and the number of liquid assets. When evaluating their interdependencies and the effects they have on other factors, the ANP ranking revealed that several elements previously thought to be inconsequential are in fact significant.

Supplier selection and contract enforcement: Evidence from performance bonding

AbstractWe analyze an important but little‐studied institution for balancing supply risk in the management of procurement operations: performance bonding. By adding the surety as a third party that guarantees contract fulfillment between supplier and buyer, performance bonding aims to streamline the purchasing process by influencing both contractor selection in the bidding phase and contract enforcement during project execution. Using the data on US government procurement from 2005 to 2015 and exploiting an exogenous variation in the threshold for its application to construction contracts, we find that performance bonding improves contract outcomes by 10.5% and 3.7% in terms of delays and extra costs, respectively. Net of bond premia, which by law are included in the award amounts, this effect translates into savings of about 4% in the budget for federal construction projects and 16% for mid‐size projects. We provide suggestive evidence on the effectiveness of selection and monitoring by sureties as driving channels.

MULTI-CRITERIA DECISION-MAKING METHODS FOR CONTRACTOR SELECTION: A REVIEW

The selection of an appropriate contractor is a prominent decision involving multiple decision-makers, which has a significant impact on the success of a construction project. In this context, considerable number of tools and methods have been proposed in the literature to assist decision-makers. This study aims to review existing literature related to the use of multi-criteria decision-making (MCDM) methods in contractor selection problems. To achieve the study objective, journal articles published between 2000-2021 were investigated by using the Scopus search engine and classified into various categories (year, journal, methods, project type, and country of origin). Findings indicate that many researchers adopted different decision-making methods for contractor selection such as AHP, ANP, PROMETHEE, TOPSIS, VIKOR as well as fuzzy logic-based decision-making approaches. The review of existing studies regarding MCDM methods for contractor selection could present a comparative ground on the applied methodologies. This study is also expected to help researchers identify holistic strategies to implement MCDM methods in various contractor selection problems.

Care and Disease Management: Why Managed Care Organizations (MCOs) Need to have an Inclusive Approach to Patient Care

The health sector increasingly uses the terms "managed care" and "disease management," but few people understand them. Managed care refers to any health care system that pays for and provides treatment. Pressure to keep prices low has helped it flourish in the United States, and improved resource management is lowering costs. US managed care plans vary, but they share several traits. These include restricted doctor providers, secondary care access, selective contracting, financial incentives, quality monitoring, and utilization management. The NHS has all of these aspects, making it a united managed care system. Disease management coordinates resources across the health care system to treat patients throughout their illness. Business organizations have noticed that the NHS lacks a well-established system for disease management. Concerns regarding commercial engagement include the separation of basic medical services, the possibility of becoming a for-profit corporation, and the use of patient-based data. New guidelines may allow NHS disease control to increase.

Identifying the Contractor’s core competencies in post-COVID-19 scenario: developing a survey instrument

PurposeConstruction industry is one of the worst affected sectors due to the impact of the current coronavirus disease 2019 (COVID-19) outbreak. Therefore, the purpose of this study was to identify the key competencies that should be demonstrated by the contractors in the post-COVID-19 scenario to make them resilient to the adverse impact of pandemic outbreaks.Design/methodology/approachA survey instrument was developed using an extensive literature review and was tested using a pilot study. It was then administered online using survey monkey to 900 respondents, out of which 324 complete responses were obtained. The data analysis was performed using exploratory factor analysis and second-order confirmatory factor analysis.FindingsAfter analyzing the data, it was identified that the most critical competence was managing site safety (standard factor loading (SFL) = 0.91), followed by leadership skills (SFL = 0.88), technical competence (SFL = 0.81), managing supply chain disruption (SFL = 0.73) and financial stability (SFL = 0.48) that were found to be less essential from the respondents’ point of view.Originality/valueThe study is first of its kind to identify the core competencies that should be demonstrated by the contractors to cope with COVID-19-induced disruptions. The findings of this article can be used by the practitioners to develop policies and procedures for selection of contractors.

Ranking of Contractor by AHP Method

The construction branch is one of the important branches for achieving the country's economy. So it is obligatory to find out a competent contractor among all, for successfully complete work. Construction bidding is the process of offering a proposal to undertake a construction project. And it is one of the methods for the selection of contractors. bidding strategies vary from contractor to contractor and each contractor has a different view of the factors affecting their bid decisions. This study aims to find an effective strategy for the selection of competent contractors and bid evaluation. There are many factors that influence the bidding strategy. These factors influence depend on the situation when the research is done.

Factors Affecting Selection of an Eligible Contractor

The construction branch is one of the important branches for achieving the economy of the country. So, it is obligatory to find out a competent contractor among all, for the successful completion of the work. Construction bidding is the process of offering a proposal to undertake a construction project. And it is one of the methods for the selection of a contractor. Bidding strategies vary from contractor to contractor and each contractor has a different view of the factors affecting their bid decisions. This study aims to find an effective strategy for the selection of competent contractors and bid evaluation. There are many factors that influence the bidding strategy. These factors influence depend on the situation when the research is done.

Factors Influencing Bidding Strategy

The construction branch is one of the important branches for achieving the country's economy. So it is obligatory to find out a competent contractor among all, for successfully complete work. Construction bidding is the process of offering a proposal to undertake a construction project. And it is one of the methods for the selection of contractors. Bidding strategies vary from contractor to contractor and each contractor has a different view of the factors affecting their bid decisions. This study aims to find an effective strategy for the selection of competent contractors and bid evaluation. There are many factors that influence the bidding strategy. These factors influence depend on the situation when the research is done.

MULTI-CRITERIA DECISION-MAKING METHODS FOR CONTRACTOR SELECTION: A REVIEW

The selection of an appropriate contractor is a prominent decision involving multiple decision-makers, which has a significant impact on the success of a construction project. In this context, considerable number of tools and methods have been proposed in the literature to assist decision-makers. This study aims to review existing literature related to the use of multi-criteria decision-making (MCDM) methods in contractor selection problems. To achieve the study objective, journal articles published between 2000-2021 were investigated by using the Scopus search engine and classified into various categories (year, journal, methods, project type, and country of origin). Findings indicate that many researchers adopted different decision-making methods for contractor selection such as AHP, ANP, PROMETHEE, TOPSIS, VIKOR as well as fuzzy logic-based decision-making approaches. The review of existing studies regarding MCDM methods for contractor selection could present a comparative ground on the applied methodologies. This study is also expected to help researchers identify holistic strategies to implement MCDM methods in various contractor selection problems.

Critical Factors Influencing Early Contract Termination in Public Design–Build Projects in Developing and Emerging Economies

Public projects continually face multiple difficulties for their satisfactory completion. One of the most complex challenges is early contract termination (ECT), which delays social goods delivery and exhausts public resources. This study aimed to determine the root causes of the critical factors that lead to ECT in public building projects. We studied 20 kindergarten construction projects in Chile through a multi-case study. It addressed a pattern-matching analysis of symptoms associated with risks of design–build (DB) contracts and a five whys analysis to determine the root causes of the symptoms identified in the units of analysis. The results show that ECT projects’ most common symptoms are labor force shortage, materials shortage, and non-payment claims. In addition, the root-cause analysis exposed that the main causes of ECT’s symptoms were deficiencies in the bidding evaluation process, which led to an inadequate selection of the general contractor, lack of experience of the owner, and regulatory limitations of the legal framework for public projects. The construction projects faced ECT and cost and time overruns associated with poor risk management due to the owner’s and general contractor’s lack of experience in DB contracts.

Multi-criteria Contractor Selection Framework for Indian Construction Projects.

In this paper contractor selection practice in India has been analyzed in detail to find out the gaps in the prevailing system & also compared with the selection systems outside India. This study aims to develop a multi-criteria contractor selection framework that can incorporate multiple evaluation criteria along with the relative weightage. In this study, it has been identified that in India, as per the guidelines the contractor selection in the case of most popular Design Bid Build (DBB) projects is done based on Least Cost Selection (LCS) only. In LCS, the final selection is based on cost or bid price only. In some cases, Quality & Cost Based Selection (QCBS) is applied for contractor selection. However, QCBS is mainly used for consultant selection or selection of service providers. On the other hand, in many other counties, there are systems that follow multiple criteria for contractor selection to ensure the overall performance of the contractor. Hence, in India, there is a need for a structured, multi-criteria contractor selection system. The system should cater to the objective of contractor selection in the case of DBB projects & also should be responsive to the present need for selection based on multiple criteria.

Health Care Provider Networks: Are Insurers Better Off?

Abstract Certain health insurers offer a free choice of providers and an identical copayment regardless of the provider. Others build networks and use selective contracting and financial incentives to channel policyholders to contracted suppliers. In the case of unregulated prices, we compare these two policies when the off-network medical service is not covered. We show how policy ranking depends on the characteristics of demand. If demand is linear, a for-profit insurer and a not-for-profit insurer obtain a higher profit and utility under selective contracting than under uniform reimbursement. In the constant elasticity case, these results do not hold. Insurers prefer uniform reimbursement while consumers are better off under selective contracting in both cases.

Critical attributes for selecting contractors for long-term collaborative relationships

The construction industry is increasingly embracing long-term collaborative relationships for project delivery. Since it is not all contractors that are suitable for collaboration and long-term relationships, and most clients are familiar with traditional practices of selecting contractors, there is need for an understanding on the critical attributes to consider in selecting contractors for long-term collaborative relationship contracts. The aim of this study is to determine the appropriate attributes required of contractors to successfully perform in long-term collaborative relationship contracts. The qualitative research methodology was adopted in this study, consisting of multiple case studies of organisations employing framework contracts in South Africa. Data for the study were collected via semi-structured interviews with 16 key informants of eight purposively selected organisations. The data were analysed with the aid of Nvivo 11 qualitative data analysis software utilising thematic qualitative data analysis techniques and presented using word clouds and direct quotes from key informants. The findings indicate that the critical attributes to consider when selecting contractors for long-term collaborative relationships are: team working attribute, commitment, innovativeness, and attributes relating to the behaviour and attitude of the contractors, such as openness, honesty, trust, transparency, ethical and being realistic. These critical attributes are add-ons to other general attributes (such as technical capacity, experience, and price) for contractor selection which are already sufficiently articulated in literature. The study result provides knowledge that can aid better decision making in selecting appropriate contractor for long-term collaborative relationship contracts in the construction Industry

The effect of price on the quality of public construction in Japan

We examine whether the price affects the contractor’s choice of quality using the ex-post quality evaluation data of public construction projects conducted by Ise City in Japan. Ise City employs a sealed-bid first-price auction with reserve and minimal prices in the selection of contractors. Upon completion of the project, Ise City evaluates the quality of the work using a 100-point scale score based on items such as administration, safety, time management, external appearance, and functionality. Our results show that the winning price in the auction does not affect the quality of the work. We discuss several reasons behind this finding.