A Novel Model for Contractor Selection Decision

Abstract

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.