Modeling contractors' project selection and markup decisions influenced by eminence

Shafahi, Ali; Haghani, Ali

doi:10.1016/j.ijproman.2014.01.013

Cited by 26 publications

(18 citation statements)

References 25 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Efficient BNB decision helps contractors earn projects and market position. In contrast, poorly thought-out decisions will plague a contractor's profitability and reputation [5]. Due to the complexity of bidding, contractors' BNB decisions have recently attracted close attention in the discipline of construction engineering management.…”

Section: Introductionmentioning

confidence: 99%

Will Bid/No-Bid Decision Factors for Construction Projects Be Different in Economic Downturns? A Chinese Study

Wang

Lin

et al. 2020

Applied Sciences

View full text Add to dashboard Cite

Whether to bid on construction work is a traditional question that is often challenged in different economic situations. What will the decision factors be when contractors have to struggle to achieve growth in economic downturns? Since previous studies have not widely agreed with each other on this issue, this study aims to examine China’s construction engineering contractors in recent “bad” years. The research findings reveal that the cluster related to expected profitability, including terms of payment, reputation of the client regarding his/her commitment to making timely payments, original price estimated by the client, profit track record for similar projects, and contract type, were the most significant determinants. The bid/no-bid decision-making process comprises three modules, including the contractor’s strategies, the contractor’s competency for a project, and expected competition. These results suggest that competing for survival is the dominant position of contractors in making bid/no-bid decisions in economic downturns.

show abstract

Section: Introductionmentioning

confidence: 99%

Will Bid/No-Bid Decision Factors for Construction Projects Be Different in Economic Downturns? A Chinese Study

Wang

Lin

et al. 2020

Applied Sciences

View full text Add to dashboard Cite

show abstract

“…Therefore, this selection problem should be considered as a MADM process. Several studies have been carried out over the past few years to develop a project selection model in the literature [7][8][9][10][11][12][13][14]. However, it is hard to develop a generic model for selecting the most appropriate project because the factors affecting the selection of a construction project may differ depending on the type of the construction project in question.…”

Section: Introductionmentioning

confidence: 99%

A comparative study on selecting urban renewal project via different MADM methods

Polat¹,

Turkoglu²,

Damcı³

et al. 2019

JCEMI

View full text Add to dashboard Cite

"Urban renewal" has emerged as a real alternative to prevent potential earthquake damages. Since Turkey is located in the seismic zone and exposed to severe earthquakes, there has been a great need for urban renewal projects in the last 20 years. As a result of this need, urban renewal projects have constituted an important proportion of the growth in the Turkish construction industry. Selecting the right urban renewal project is one of the vital decisions for contractors as they are taking more risk than the other parties. However, it is a challenging and time-consuming process as there are various compromising and conflicting that need to be considered simultaneously. Therefore, this selection problem should be considered as a multi-attributedecision-making (MADM) process. The main objectives of this study are to propose an integrated approach, which uses the combination of different MADM methods, for selection of urban renewal projects in Turkey, and to compare the findings of these methods with each other. Analytic Hierarchy Process (AHP) method was combined with Technique for Order Preference by Similarity to Ideal Solution (TOPSIS), VlseKriterijuska Optimizacija I Komoromisno Resenje (VIKOR), COmplex PRoportional Assessment (COPRAS), and Evaluation based on Distance from Average Solution (EDAS) methods. In the proposed approach, AHP was used to calculate the weights of the criteria that may affect the urban renewal project selection decision and the other MADM methods were used to rank the alternative projects. A case study was carried out in order to illustrate how the integrated approach can be applied in a real-life problem. The findings of using these methods were compared to each other. Application of the proposed approach revealed that it can be a useful tool in selecting urban renewal projects.

show abstract

“…In general, construction projects are awarded to contractors via competitive bidding. When a new contract is announced, willing contractors mainly have to decide on: (i) Whether they will bid or not bid for the contract, and (ii) How much they will o er as the bid price, which consists of the base estimate (i.e., direct and indirect costs), and bid mark-up (i.e., general overhead cost, pro t, and contingency) [1][2][3]. In a competitive business environment, contractors should prepare their bids wisely in order to be successful [1].…”

Section: Introductionmentioning

confidence: 99%

“…To decide not to bid for a project may bring about losing an opportunity to make a sizable pro t, enhance strength and position in the industry, and develop a good relationship with a client [3,5]. On the other hand, bidding on all projects is not feasible and blindly bidding has several negative e ects [1,5]. A construction company may decide to bid for a great number of contracts in order to increase the chances to win [3].…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Data Envelopment Analysis (DEA) Approach for Making the Bid/No Bid Decision: A Case Study in a Turkish Construction Contracting Company

Polat

Bingol²

2017

Scientia Iranica

View full text Add to dashboard Cite

Construction contracting companies face two critical decisions in competitive bidding environment, which include: the bid/no-bid decision and the markup selection decision. Making the right bid/no-bid decision is critical to the survival, sustainability, and success of the contractors in the industry. There are many factors that a ect this decision. This makes the bidding decisions complex and complicated. Therefore, it is not an easy task for managers to consider the combined impact of all these factors on the bid/no-bid decision within a limited time frame with limited capacity of information they have for every single bidding opportunity. This study proposes a Data Envelopment Analysis (DEA) approach for making the bid/no-bid decision. DEA is a robust non-parametric linear programming approach, which is mostly used for benchmarking, performance measurement, and decision making problems. The applicability of the proposed approach was demonstrated in a real case study conducted in a Turkish construction contracting company. In the case study, 49 bidding opportunities formerly faced by the studied company were evaluated via the developed DEA model. The accuracy rate of the proposed approach was 92%. Company management found the proposed approach satisfactory and implementable in future bid/nobid decision problems.

show abstract

Modeling contractors' project selection and markup decisions influenced by eminence

Cited by 26 publications

References 25 publications

Will Bid/No-Bid Decision Factors for Construction Projects Be Different in Economic Downturns? A Chinese Study

Will Bid/No-Bid Decision Factors for Construction Projects Be Different in Economic Downturns? A Chinese Study

A comparative study on selecting urban renewal project via different MADM methods

Data Envelopment Analysis (DEA) Approach for Making the Bid/No Bid Decision: A Case Study in a Turkish Construction Contracting Company

Contact Info

Product

Resources

About