Multi-criteria Evaluation for Award of Construction Projects in Bangladesh

Abstract

The construction sector in Bangladesh serves as a catalyst for attracting domestic and foreign investment, facilitating infrastructure development, and enhancing the overall quality of life for its citizens. Despite its significant contributions to the economy, the construction industry faces challenges such as regulatory hurdles, environmental concerns, and issues related to safety and quality standards. The best way to reduce uncertainties and maximize the chances of project success is the tender stage in construction projects where project owners evaluate and choose the most suitable contractor for the job. Contrary to Traditional Low Bid (TLB) based solely on cost, multi-criteria procurement considers a broader range of criteria beyond just price when selecting contractors for construction projects. Under this approach, contractors are evaluated based on their qualifications, technical expertise, past performance, proposed methodologies, and overall value proposition. While cost remains an important factor, it is balanced with considerations of quality, innovation, sustainability, contractor’s past performances and risk management. Therefore, this study aimed at finding the most relevant criteria for selection of best contractor at project award stage. Through a thorough literature review, a total of 10 most relevant criteria were retrieved which are consist of a further 29 sub-criteria. A structured questionnaire was distributed to experienced professionals in the construction industry to determine the effect of each sub-criteria on project success on a Likert scale of 1 to 5. Calculations were performed on responses retrieved and data was analyzed using Weighted Average (WA), and Comparative Importance Index (CII). Results show that Project Control, Quality, and Compliance of Regulations and Standards are most significant evaluation criteria. Furthermore, all 29 sub-criteria were rearranged in descending order of severity and were classified into three categories namely Most Critical, Moderately Significant and Least Important sub-criteria with 11, 10 and 8 sub-criteria respectively.