A risk-oriented tender evaluation system for construction projects in Malaysia

Mohd Razali Ismail, Ming Sun, Graeme Bowles

Research output: Contribution to journalArticle

Abstract

Purpose: This paper presents results of an empirical investigation involving private construction clients in Malaysia, which seeks to establish appropriate tender evaluation criteria and weightings for a risk-oriented tender evaluation system.

Design/methodology/approach: At the initial stage of this study, a list of significant risks is identified and gathered through literature review. These risks are then mapped onto tender evaluation criteria. Following this, the identified risks and their mappings are validated through a questionnaire survey to determine appropriate criteria for tender evaluation. Weightings for the selected evaluation criteria are established through an analytic hierarchy process (AHP) group decision-making (GDM) method.

Findings: In practice, different lists of criteria, covering tender's technical capability and financial performance, are often used by different client organisations. However, there is a paucity of research behind the selection of these criteria and the weighting being attributed to different criteria.

Originality/value: This study provides an important and a valuable insight into the actual criteria used during tender evaluation practice based on an analysis of documentary evidence. Both current practice and existing tender evaluation studies failed to address the risk element adequately. There is a lack of an explicit link between evaluation criteria and project risks. This study fills this knowledge gap by identifying tender evaluation criteria through reviewing criteria used in practice and examining their links to risk factors.

Original languageEnglish
JournalEngineering, Construction and Architectural Management
Early online date28 Sep 2020
DOIs
Publication statusE-pub ahead of print - 28 Sep 2020

Keywords

  • Analytic hierarchy process
  • Construction
  • Group decision-making
  • Risk management
  • Tender evaluation criteria

ASJC Scopus subject areas

  • Civil and Structural Engineering
  • Architecture
  • Building and Construction
  • Business, Management and Accounting(all)

Fingerprint Dive into the research topics of 'A risk-oriented tender evaluation system for construction projects in Malaysia'. Together they form a unique fingerprint.

  • Cite this