Development of supplier performance evaluation tool in project procurement

Abstract

The thesis work aimed to develop the contractor performance evaluation process and the tool in the case the company, which didn’t have the systematic approach of measurement. The theoretical framework was formed based on professional literature review about the best practices of supplier evaluation. The study was defined as action research and used qualitative research methods. Data collection included three rounds: current state analysis approached by the company's documentation review and first round of interviews as well as professional literature. The second step focused on building up the framework where another round of interviews was held with stakeholders.The third round concentrated on validation of the framework based on feedback and improvement ideas from the stakeholders. Using the framework, the case company can start to measure the contractor performance in the projects. It gives the possibility to plan the development actions with certain suppliers and bring transparency for giving feedback.