Contractor selection using the multiattribute utility theory

Hatush, ZA

Abstract

Literature and past research suggests that one of the reasons for the poor performance of
the construction industry is due to the inappropriateness of the awarded contractor. In
order to ensure a successful completion of a project, a comprehensive and careful
assessment of contractors data in a prequalification stage is required. Appointing an
appropriate contractor to carry out the construction work, therefore, becomes one of the
most important tasks to ensure the success of a project.
In this thesis the author has made a preliminary survey to investigate the bidding process
currently used in the construction industry through literature survey, extensive interviews
with the construction professionals and an industry wide questionnaire. The investigation
has focused on the procedures of prequalification and bids evaluation, it also covers the
list of criteria considered for selecting contractors in prequalification and bid evaluation
stages.
The thesis investigated the perceived relationship between contractor selection criteria
(CSC) currently in use and predominant project success factors (PSF) in terms of time,
cost and quality involving a sample of experienced construction professionals. This research is based on the premise that selection should concentrate on determining
contractor potential for achieving project goals in terms of time, cost and quality. The
study presented a quantitative technique to combine the contractor data in terms of these
goals. The study also presented an evaluation strategy that involves the consideration both
of the client goals as ends and contractor data as the means, the strategy based on the
rnultiattribute utility theory for the frnal selection or rank ordering of the contractors. The
selection is ultimately based on the preferences and the attitude of the decision maker
toward risk.
A real case study was used to validate the proposed methodology for contractor
prequalification.
The benefit of this work is that it provides a means using the PERT methodology to
incorporate uncertainty andlor imprecision associated with the assessment of contractors
data, this all in terms of the ultimate project success factors of time, cost, and quality.
The utility technique proposed should help clients in selecting contractors and the
contractors themselves for selecting sub-contractors in offering a means of broadening
their analysis of tenderers beyond that of simply relying on tender values. It also alerts
contractors to the importance of increasing their ability to satisfy the needs of the clients in
terms of their ultimate project goals.

Citation

Hatush, Z. Contractor selection using the multiattribute utility theory. (Thesis). University of Salford

• Thesis Type: Thesis
• Deposit Date: Aug 17, 2011
• Publicly Available Date: Aug 17, 2011
• Award Date: Jan 1, 1996