Procurement is a key stage affecting the successful delivery of a sustainable project. Previous project procurement practice employed either the Lowest Tender (LT) method for homogeneous projects or the Best Value (BV) method for heterogeneous projects. Recently, a new type of procurement method for moderately heterogeneous project, the Heterogeneous Lowest Tender (HLT), was introduced and it has proven to be more beneficial and sustainable to clients in terms of both cost-effectiveness and the delivery performance of project products/results. However, statistics also showed that only 0.33% of public works adopt HLT for project procurement in Taiwan due to the lack of a useful method selection model. To solve this problem, this paper proposes an enhanced graphical method that is based on a previously defined Price Elasticity of Performance (PEP) measure, namely the Graphical Analysis Method for Price Elasticity of Performance (GAM-PEP), to select a more appropriate method from among the three prevailing project procurement methods: LT, BV, and HLT, so that the sustainability objectives of a project can be better realized. Finally, a real-world case construction procurement project was selected to demonstrate the feasibility of the proposed model. It is concluded that the proposed GAM-PEP outperforms the previous models in determining the most sustainable project procurement method.
The prevailing practice on the owner's decision of contractor selection method for a procurement project has been determined by the top manager of the procurement agency via her/his comprehensive consideration of all affecting factors. Although previous researchers have proposed some analytic models to assist the decision of contractor selection method, the procurement personnel usually tend to adopt Lowest Tender (LT) for contractor selection to avoid violation of the regulation for 'Abuse of Public Power for Private Profit' without a no clear evidence to support the adoption heterogeneous procurement method (HPM), e.g., Best Value (BV) or Heterogeneous Lowest Tender (HLT). Moreover, all previous contractor selection analytic models employ the posttendering data, it is impossible to be applied for pre-tendering decision making. To improve this drawback, the current paper proposes a Pre-tendering Graphic Analytic Model (Pre-GAM) that builds the required graphical analytic model for decision of contractor selection method using a special standardization method for historical bidding data. A real-world building construction project is adopted to demonstrate practical application and to show that the proposed Pre-GAM is able to improve the problem of post-tendering analysis and determine the correct contractor selection method.
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