Abstract
Analyzing the contractor selection procedures of government departments in various countries and in the Rural Development Department (RDD) in India, this paper bring out several weaknesses of the present contractor selection procedure. It suggests the inclusion of three new selection attributes and the adoption of a centralized contractor evaluation process. The suggested attributes are: time quoted to complete the project, warranty period quoted, and past performance score of the contractor. To obtain the past performance score of a contractor, the paper uses a fuzzy multi-attribute utility scoring technique that allows consideration of qualitative/quantitative and enabling/inhibiting character of the relevant attributes. To solve the resulting multi-attribute–multi-objective decision-making problem, the paper proposes a fuzzy binary goal programming model. When tested with the existing contractor selection procedure for three past projects in RDD, the model yields the same results as those taken by RDD in the past, confirming the credibility of the model. When tested with the suggested procedure, the model yields much superior results.




Similar content being viewed by others
References
Al-Harbi KM (2001) Application of the AHP in project management. Int J Proj Manage 19(1):19–27
Al-Reshaid K, Kartam N (2005) Design-build pre-qualification and tendering approach for public projects. Int J Proj Manage 23(4):309–320
Amin A, Ghodsypour SH, O’Brien C (2007) A weighted additive fuzzy multi-objective model for the supplier selection problem under price breaks in a supply Chain. Int J Prod Econ. doi:10.1016/j.ijpe.2007.02.040
Arslan G, Tuncan M, Birgonul MT, Dikmen I (2006) E-bidding proposal preparation system for construction projects. Build Environ 41(10):1406–1413
Bajari P, Summers G (2002) Detecting collusion in procurement auctions, Stanford University working paper
Beil DR, Wein LM (2003) An inverse optimization-based auction mechanism to support a multi-attribute RFQ process. Manage Sci 49(11):1529–1545
Central Public Works Department Works Manual (2003) Director General (works), J.M. Jaina and Brothers, Delhi, India
Chang C-T (2004) On the mixed binary goal programming problems. Appl Math Comput 159:759–768
Chang C-T (2007) Binary fuzzy goal programming. Eur J Oper Res 180(1):29–37
Chen L-H, Tsai F-C (2001) Fuzzy goal programming with different importance and priorities. Eur J Oper Res 133(3):548–556
Choi TY, Hartley JL (1996) An exploration of supplier selection practices across the supply chain. J Oper Manage 14(4):333–343
Chou S-Y, Chang Y-H (2008) A decision support system for supplier selection based on a strategy-aligned fuzzy SMART approach. Exp Syst Appl 34:2241–2253
David E, Azoulay-Schwartz R, Kraus S (2006) Bidding in sealed-bid and English multi-attribute auctions. Deci Supp Syst 42(2):527–556
Deng H (1999) Multicriteria analysis with fuzzy pairwise comparison. Int J Approx Reason 21:215–231
Dobler DW, Burt DN (1996) Purchasing and supply management, 6th edn. McGraw-Hill, New York
El-Sawalhi N, Eaton D, Rustom R (2007) Contractor pre-qualification model: State-of-the-art. Int J Proj Manage 25:465–474
Erensal YC, Oncan T, Demircan ML (2006) Determining key capabilities in technology management using fuzzy analytic hierarchy process: a case study of Turkey. Inform Sci 176(18):2755–2770
Gallien J, Wein LM (2005) Design and analysis of a smart market for industrial procurement. Manage Sci 51(1):76–91
Haq AN, Kannan G (2006) Fuzzy analytical hierarchy process for evaluating and selecting a vendor in a supply chain model. Int J Adv Manuf Technol 29(7–8):826–835
Hatush Z, Skitmore M (1998) Contractor selection using multicriteria utility theory: an additive model. Build Environ 33(2–3):105–115
Holt GD (1998) Which contractor selection methodology? Int J Proj Manage 16(3):153–164
Holt GD, Olomolaiye PO, Harris FC (1994a) Applying multi-attribute analysis to contractor selection decisions. Eur J Purch Supp Manage 1(3):139–148
Holt GD, Olomolaiye PO, Harris FC (1994b) Factors influencing UK construction clients’ choice of contractor. Build Environ 29(2):241–248
Holt GD, Olomolaiye PO, Harris FC (1995) A review of contractor selection practice in the U.K. construction industry. Build Environ 30(4):553–561
Honert RCVD, Lootsma FA (1996) Group preference aggregation in the multiplicative AHP The model of the group decision process and Pareto optimality. Eur J Oper Res 96:363–370
Kumaraswamy MM (1996) Contractor evaluation and selection: a Hong Kong perspective. Build Environ 31(3):273–282
Lai KK, Liu SL, Wang SY (2004) A method used for evaluating bids in the Chinese construction industry. Int J Proj Manage 22:193–201
Lambropoulos S (2007) The use of time and cost utility for construction contract award under European Union Legislation. Build Environ 42(1):452–463
Missbauer H, Hauber W (2006) Bid calculation for construction projects: regulations and incentive effects of unit price contracts. Eur J Oper Res 171:1005–1019
Özcan U, Toklu B (2009) Multiple-criteria decision-making in two-sided assembly line balancing: a goal programming and a fuzzy goal programming models. Comp Oper Res 36:1955–1965
Padhi SS, Mohapatra PKJ (2009) Contractor selection in government procurement auctions: a case study. Eur J Ind Eng 3(2):170–186
Patil BS (2006) Civil engineering contracts and estimates. University press, New Delhi
Pedrycz W, Gomide F (2005) An introduction to fuzzy sets analysis and design. Prentice-Hall, New Delhi
Satty TL (1980) The analytic hierarchy process. McGraw-Hill, New York
Shyur H, Shih H (2006) A hybrid MCDM model for strategic vendor selection. Math Comp Model 44:749–761
Stein A, Hawking P, Wyld DC (2003) The 20% solution? A case study on the efficiency of reverse auctions. Manage Res News 26(5):1–20
Teich JE, Wallenius H, Wallenius J, Koppius OR (2005) Emerging multiple issue e-auctions. Eur J Oper Res 159:1–16
Topcu YI (2004) A decision model proposal for construction contractor selection in Turkey. Build Environ 39:469–481
Tzeng W, Li JC, Chang T (2006) A study on the effectiveness of the most advantageous tendering method in the public works of Taiwan. Int J Proj Manage 24:431–437
Wang X, Triantaphyllou E (2008) Ranking irregularities when evaluating alternatives by using some ELECTRE methods. Omega 36(1):45–63
Wang W, Wang H, Lai Y, Li JC (2006) Unit-price-based model for evaluating competitive bids. Int J Proj Manage 24:156–166
Yen KK, Ghoshray S, Roig G (1999) A linear regression model using triangular fuzzy number coefficients. Fuzzy Sets Syst 106:167–177
Acknowledgments
The authors are grateful to the editor and anonymous referees for the comprehensive reviews and constructive comments.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Padhi, S.S., Mohapatra, P.K.J. Centralized construction contractor selection considering past performance of contractors: a case of India. Oper Res Int J 9, 199–224 (2009). https://doi.org/10.1007/s12351-009-0044-8
Received:
Revised:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s12351-009-0044-8