Analysis of Criteria for Contractors’ Qualification Evaluation

Abstract

Selecting a construction contractor is a major decision which may influence the progress and success of any construction project. The paper analyses criteria used to evaluate qualification of contractors in Lithuania and abroad. Both in Lithuania and abroad, the bid price of construction works is the main criterion for evaluation of con‐tractors. The lowest price often cannot guarantee commitments on quality and duration of a construction project. Therefore, when selecting a contractor, a client must not only compare bid prices but also set other criteria for evalua‐tion of qualification and determine their weight. A contractor must be selected according to both quantitative and qualitative criteria, and bids should be compared. Only on the basis of quantitative and qualitative evaluation criteria and by comparing bids of contractors it is possible to select a qualified, competent and reliable contractor, to evaluate its qualification, economic and financial condition and technical capability and skills and to achieve relevant results in a construction project. The paper provides an investigation of Lithuanian companies, which analyses issues related to evaluation of contractors’ qualification. The paper is completed with a discussion of the investigation results and delivery of proposals based on expert estimations of the weight of criteria for evaluation of contractors.

Assessing contractor selection criteria weights with fuzzy AHP method application in group decision environment

“…Using bid prices as the sole criterion in contractor selection, a common practice in many countries, is often criticized [7]. Lowest price does not automatically mean advantage for the client as the quality and duration of a construction project may be compromised [8]. In many countries, e.g.…”

“…Correct significance of criteria and selection of an appropriate method of analysis are equally important [8].…”

PreQTender: Web-based prequalification for tender management system in construction projects

“…From simple choice, the decision become process AHP is most powerful and flexible weighted scoring decision making process to help people set priorities and make the best selection when both qualitative and quantitative aspects of a decision need to be considered [17]. AHP allows group decision making where group members can use their experience, values and knowledge to break down the contractor prequalification problem into a hierarchy and solve it by the AHP steps [18].…”

“…In the construction project, the selection of an appropriate contractor is the most critical for project success [18]. To choose the right person for the right project requires a right decision making selection of main contractors for construction work.…”

Multi-attribute group decision making model under the condition of uncertain information

“…Then, their evaluation results and rank alternatives by their integration evaluations are aggregated. Due to its good operationality and effectiveness, quite a few methods for MDGAM has been practically applied in construction, for example, the contractor or subcontractor selection [1][2][3][4][5], the technique alternative evaluation [6], the supplier assessment and human resource arrangement, etc.…”