Hybrid fuzzy MADM project-selection model for diversified construction companies

Abstract

Projects are the life blood of construction companies. Appropriate project selection is a crucial multicriteria decision that influences the future of such organizations. This paper presents a construction project-selection model that notes the influences of the current projects of a company or what is called the portfolio effect. The model applies a multistage fuzzy multi-attribute decision making (MADM) method to determine whether one should offer or not offer a tender. The final output of the model is the decision to be made about selecting a project for bidding considering three probable policies: (1) diversification, (2) concentration, or (3) neutral policy. The model has been applied in a case study. Practitioners perceived the model as a useful tool for their project-selection decisions. The results of a statistical experiment indicate significant results in accordance with the model’s comprehensiveness, applicability, reliability, and user-friendliness.

Developing a Decision-Making Model for Reinforced Concrete Columns Strengthening

“…Dikmen et al [5] presented project selection model that was based on quantitative and qualitative criteria. Ravanshadnia et al [6] proposed a construction project selection model that used a fuzzy multi-attribute decision making method to identify whether a tender should be offered and to select a project by considering probable policies. Other studies have used decision-making systems in construction projects, such as Ning et al [7], who used a decisionmaking system to plan a dynamic multi-objective and unequal-area construction site layout.…”

A New Decision Making Model for Subcontractor Selection and Its Order Allocation

“…Owing to the highlighted role of experts’ ideas in the decision‐making process in the construction industry, the fuzzy simple additive weighting (FSAW) was applied for estimating the risk of each subcontractor. The SAW method is probably the best known and most widely used multi‐criteria decision‐making method (Ravanshadnia et al, ). SAW can be transferred into fuzzy SAW by inserting the expert's judgments and working with linguistic terms.…”

“…The linguistic terms presented in Table are transferred to the fuzzy numbers and after different fuzzy calculations; the final fuzzy number of each subcontractor and contractor will be generated. This fuzzy number will be diffuzzified to the crisp number for being applied in other steps with the use of Equation 8 (for more information, refer to Ravanshadnia et al, ): …”

Estimating Future Bidding Performance of Competitor Bidders in Capped Tenders

“…Numerous competitive bidding strategy models have been developed that predict the probability of a bidder winning an auction (Näykki 1976;Engelbrecht-Wiggans 1980), or being awarded a project (Vergara 1977;Ravanshadnia et al 2010). Most of these models are based on games theory, decision analysis, and operational research concepts whose application to real-world business is difficult given the complex mathematical formulations required by the models and/or because the models do not suit the actual practices (EngelbrechtWiggans 1980;Rothkopf, Harstad 1994;Harstad, SašaPekec 2008).…”