A comprehensive bid/no-bid decision making framework for construction companies

10.22099/ijstc.2012.659

Abstract

Bidding is a strategic decision that helps contractor firms to survive. Traditionally, bidding behaviors are highly unstructured in construction companies. This paper discusses the issues involved in evaluating a tender to assist the managers of a firm in making reliable and sound decisions. The emphasis of the work is on developing a logical decision making framework that covers organizational, environmental, risky and financial considerations.
The model takes advantage of well-known decision making methods such as the analytical hierarchy process and the simple additive weighting. The model’s input would be the linguistic description of each project’s value with respect to the decision criteria, and the output would be the value of each project proposed to decision makers considering its correlation with existing projects. By means of a case study, the model has been implemented. The proposed decision making model is found to yield substantially improved solutions when large size contractors are concerned

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