Multi-attribute utility theory for selecting an appropriate procurement method in the construction projects

El Sawalhi, N I and El Agha, O (2017) Multi-attribute utility theory for selecting an appropriate procurement method in the construction projects. Journal of Construction in Developing Countries, 22(1), pp. 75-96. ISSN 1823-6499

Abstract

The selection of an appropriate procurement method is becoming an increasingly important issue due to complex decision making that clients are facing early in the lifecycle of construction projects. The aim of this paper is to improve the procurement system in the construction industry by developing a model using the multi-attribute utility theory (MAUT) as a decision support system for the selection of an appropriate procurement method for construction projects in the Gaza Strip. Factors that influence the selection of an appropriate method for construction projects in the Gaza Strip are identified and the results indicate that the most significant six factors influencing the selection of procurement methods in the Gaza Strip construction projects are price competition, degree of project complexity, time constraints of the project, project size, client financial capability and client experience in procurement methods. The study concludes that there is no variety of procurement methods used in the Gaza Strip construction industry, as a traditional procurement method is preferred. This is because most professionals in the Gaza Strip are not familiar or experienced with alternative procurement methods. A model was developed using the MAUT to select the most appropriate procurement method. The MAUT as a decision support system was successful in identifying the appropriate procurement method.

Item Type: Article
Uncontrolled Keywords: construction project; multi-attribute utility theory; procurement method
Index terms: decision support, project complexity, competition, construction project, decision-making, traditional procurement, multi-attribute utility theory, becoming, procurement method, Gaza Strip, construction industry, procurement system, lifecycle
Subjects: project delivery, contractual arrangements, decision analysis, market analysis, industry analysis, philosophical process, decision-making and optimization, physical geography and landforms, organizational theory, production management
Topics: Risk Management, Procurement, Research Practice, Project Management, Geographical Context
Descriptive scope: 3 PCT

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here