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TenSeM: a multicriteria and multidecision-makers' model in tender evaluation

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  • Jakrapong Pongpeng
  • John Liston

Abstract

In tender evaluation, there appears to be a lack of a realistic working models capable of simultaneously (1) compiling multiple decision-makers' inputs, (2) incorporating risk and uncertainty, and (3) offering computer interaction that makes a model flexible to any change in situation. Thus, the research has developed a more realistic working model including the necessary capabilities mentioned. The vital theory behind the model was a combination of a utility function and a social welfare function. The model was divided into two main steps (step1: evaluating contractor ability and step2: evaluating tenders) consisting of three main processes: (1) the contractor ability criteria selection process; (2) the contractor ability criteria balancing/measuring process; and (3) bid price and contractor ability balancing/measuring process. The model incorporated computer interaction in which Microsoft Excel performed calculation tasks while Visual Basic for Application (VBA) was coded for user interaction. To obtain a realistic working product, the model was tested for user friendliness, verification, sensitivity analysis, and validation. The test has shown that the multicriteria and multidecision-makers' model, TenSeM, is a rational and realistic approach in solving a tender evaluation problem.

Suggested Citation

  • Jakrapong Pongpeng & John Liston, 2003. "TenSeM: a multicriteria and multidecision-makers' model in tender evaluation," Construction Management and Economics, Taylor & Francis Journals, vol. 21(1), pages 21-30.
  • Handle: RePEc:taf:conmgt:v:21:y:2003:i:1:p:21-30
    DOI: 10.1080/0144619032000065090
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    References listed on IDEAS

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    1. Zedan Hatush & Martin Skitmore, 1997. "Assessment and evaluation of contractor data against client goals using PERT approach," Construction Management and Economics, Taylor & Francis Journals, vol. 15(4), pages 327-340.
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    Cited by:

    1. Pablo Ballesteros-P�rez & Martin Skitmore & Eugenio Pellicer & M. Carmen Gonz�lez-Cruz, 2015. "Scoring rules and abnormally low bids criteria in construction tenders: a taxonomic review," Construction Management and Economics, Taylor & Francis Journals, vol. 33(4), pages 259-278, April.
    2. Nadeera Abdul Razak & Obuks Ejohwomu & Peter Fenn & Kamil Okedara & Babatunde Dosumu & Firdaus Muhammad-Sukki, 2021. "Identification of Health and Safety Prequalification Criteria for Contractor Selection in Construction Projects: A Systematic Review," Energies, MDPI, vol. 14(21), pages 1-17, November.
    3. Lorentziadis, Panos L., 2010. "Post-objective determination of weights of the evaluation factors in public procurement tenders," European Journal of Operational Research, Elsevier, vol. 200(1), pages 261-267, January.
    4. Bana e Costa, Carlos A. & Lourenço, João C. & Chagas, Manuel P. & Bana e Costa, João C., 2007. "Development of reusable bid evaluation models for the Portugese Electric Transmission Company," LSE Research Online Documents on Economics 22697, London School of Economics and Political Science, LSE Library.
    5. Štěpán Veselý & Mirko Dohnal, 2012. "Decision making in goverment tenders: A formalized qualitative model," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 60(4), pages 397-406.
    6. Carlos A. Bana e Costa & João C. Lourenço & Manuel P. Chagas & João C. Bana e Costa, 2008. "Development of Reusable Bid Evaluation Models for the Portuguese Electric Transmission Company," Decision Analysis, INFORMS, vol. 5(1), pages 22-42, March.
    7. J P Pastor-Ferrando & P Aragonés-Beltrán & A Hospitaler-Pérez & M García-Melón, 2010. "An ANP- and AHP-based approach for weighting criteria in public works bidding," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(6), pages 905-916, June.

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