Multidimensional model for contractor selection in private sector construction projects

Abstract

One of the most difficult decisions taken by the client in this era of construction industry is selecting a most suitable contractor. Since the construction industry is characterized by cost and time overruns, serious quality issues, and an increased number of claims, performance of the selected contractor is highly influential on sustainable construction project. During this oscillating economic circumstance, the construction organizations need to evaluate business performance across a wider range of business success criteria. The aim of this study is therefore to introduce a multidimensional model for contractor selection in private sector construction projects. Comprehensive literature survey was conducted to develop a conceptual Balanced Scorecard (BSC) model and preliminary survey with industry experts was used to refine the model. Questionnaire survey was then conducted among 30 qualified client consultant Quantity Surveyors to find the relative importance of BSC criteria to Sri Lankan private sector construction projects. Data were analyzed and prioritized using Analytic Hierarchy Process (AHP) tool. The study revealed the importance of the modem perspectives such as innovation, learning and growth, rather than traditional organizational management and business relationship and reputation perspectives for the contractor selection. Moreover, perspectives like quality level of past projects and level of innovative construction concepts were also given high priority. The bid amount, which is a traditional financial measure, was given a moderate importance levels. This research therefore proposed a sustainable and multidimensional performance measurement criterion for contractor selection in Sri Lankan private sector construction projects.