An Alternative Low-Bid Awarding System Based on Multi-Criteria Decision Making for Public Building Construction Projects

Abstract

Construction industry is a large industry that is expanding all over the world. Most public building construction projects located in Ethiopia are awarding using lowest bidder bid awarding system. However, selection of the lowest bidder and less performance of contrac tor may be considered as the major causes of many problems which need improvement for better contractor selection and to deliver better service for community. This research was conducted with the aim of alternative multi-criteria decision making based low-bid award ing system for public building construction project, through analyzing the effect, assessing the selection criteria and develop low-bid awarding system using fuzzy Techniques for Order Preference by Similarity to Ideal Solution Multi- Criteria Decision-Making approach. For this purpose, questionnaire and case study was conducted to analyze the effect in public building construction project which is awarded on the basis of lowest bidder bid awarding system and to assess the selection criteria. Case study was conducted to develop low-bid awarding system using Techniques for Order Preference by Similarity to Ideal Solution Multi- Criteria Decision Making. In addition, the finding was analyzed using Microsoft excel and Techniques for Order Preference by Similarity to Ideal Solution model. From consid ered effects, relatively five high negative effect of lowest bidder bid awarding system in pub lic construction projects were identified. These are; delay on project completion, increase claims and disputes between contracting parties, Selection of inefficient contractors, unsat isfactory quality of work and cost overrun. The selection main criteria for contractors’ bid evaluation were ranked as technical qualification, financial qualification, legal qualifica tion, and other required qualification respectively. Therefore; from the study findings, it can be concluded that the issue of Ethiopia being a developing country has a significant effect on selecting contractors based on a mindset of saving money, all partiers in the construction sector should realize selecting contractor based on only the least bid method is causing problems such as delay, claim and dispute, inefficient contractor, poor quality and cost over run. So, focusing on project objectives parallel with money is required by using Techniques for Order Preference by Similarity to Ideal Solution method to select qualified contractors, optimizes the decision and to achieve the stated project objectives of the lowest bidder bid awarding system.