Blind involvement in aimless bids may result the loss of bidding bond expenditures, purchased bidding documents, the cost of human resources engaged in mark-up estimation, and detailed project investigation costs such as site visits. In this research, a risk based fuzzy TOPSIS framework is set up to evaluate and prioritize bidding opportunities. This may help contractors to assign their limited resources to near optimal selected projects. The risks inherent in the nature of every tender, makes systematic risk analysis a prerequisite for any construction company. Proposed framework considers key determining risk factors such as corporate considerations, tender environment, contractual issues, and project specific risks. The methodology implementation has been facilitated by developing a graphical user interface that accepts linguistic terms expressed by main decision groups. A case study demonstrates the applicability of the model.
Keywords
- risk,
- bid/no-bid,
- decision making,
- fuzzy TOPSIS,
contractor
Author affiliations
- a Construction Engineering and Management Group, Faculty of Engineering, Islamic Azad University-Science and Research Branch-Tehran, Tehran, Iran
Author biographies
Mehdi RAVANSHADNIA. Dr, an Assistant Professor and the Dean of Construction Engineering and Management at I.A.U. Science and Research branch-Tehran; PhD in Civil Engineering from Amirkabir University of Technology. He is also the reviewer of reputable construction management journals, and has some books and several papers in English and Persian and the reference website of Iranian construction engineering and management addressed: www.ravanshadnia.com. His research area and contributions include bidding strategy, the application of decision making in construction industry, H.S.E., construction equipment management, value engineering, and project portfolio management.
Hossein RAJAIE. Dr, a Professor Emeritus in the Construction Engineering and Management group of Amirkabir University of Technology. His research interests include the field of construction material, pipeline projects, and bidding practices of construction contractors.