Improving construction contract administration utilizing multiattribute statistical analysis on bid stage information

Al-Tubayyeb, S A (1989) Improving construction contract administration utilizing multiattribute statistical analysis on bid stage information. PhD thesis, University of California, Berkeley, USA.

Abstract

This study focuses on basic construction engineering management techniques used in handling construction projects. Its ultimate goal is to investigate trends in the fields of contracting, contract administration and claims, to reduce the overall cost of engineering projects, and to minimize conflicts and confrontation between parties involved This work moves toward accomplishing this goal by making logical steps toward more effective evaluation of the construction management environment. This dissertation has explored different concepts of quantitative measures relating to performance of construction contracts. It was possible to create an integrated mathematical model that links statistical findings of projects' past performances with decision criteria in order to benefit future projects. This integrated model employs many different sub-models, i.e. , statistical hypotheses testing, multi-variate statistical analysis and multicriterion decision theories. This integration assists in reducing the subjectivity involved in some decision-making processes by quantifying issues impacting contract performance and assists analytically in predicting acceptable judgments. More specifically, the study allows the investigation of the determinants of construction contract performance in a quantitative manner to predict and then improve overall performance. Proceeding from this statement of intent, we developed logical quantitative approaches to deal with both the number of bidders and the owner's bid evaluation policies. Utilizing Order Statistics, we derived an analytical technique that recommends an acceptable number of bidders to be invited based on a given set of different contracting environments. The procedure provides consistent choice of number of bidders to be invited based on expressed preferences for a set of relevant decision attributes. To deal with the issue of owner's bid evaluation policy, a multi-variate regression analysis was also developed to investigate the performance of construction projects with respect to changes in a set of operational variables. The significance of each operational variable can then be verified to determine its level of importance to the success of construction contracts. Operational variables that are found to have conclusive impact on project performance were collectively integrated into an interactive multicriterion decision sub-model. The implemented concepts of multicriterion decision making and interactive methods for decision support, instead of absolutely satisfying all the constraints as done in linear programming, attempt to obtain a solution which satisfies as close as possible a set of objectives or goals. This is achieved by minimizing the linear function of the deviation variables within different priorities. These concepts of interactive methods for decision supports, such as those introduced in the literature, have the potential to contribute both conceptually and practically to improved contract performances and claims mitigation.

Item Type: Thesis (Doctoral)
Thesis advisor: Crandall, K
Uncontrolled Keywords: conflicts; construction engineering; construction project; contract administration; decision making; integration; owner; decision support; subjectivity; linear programming; project performance; regression analysis; statistical analysis
Index terms: contract administration, integrated model, judgment, hypotheses testing, linear programming, deviation, decision-making process, owner, bid evaluation, statistical analysis, construction engineering, project performance, investigation, construction contract, decision criteria, statistics, dissertation, determinant, regression analysis, number of bidders, decision support, mathematical model, subjectivity, construction project, decision-making, integration, mitigation, decision theory, preference, construction engineering management
Subjects: analytical methods, financial and cost management, bidding, data science, mathematical modelling, contract type, risk assessment, research dissemination and communication, data collection methods, dispute resolution, human factors and perception, sociology, decision analysis, quantitative and statistical methods, organizational analysis, statistical analysis, tendering, engineering methods, algorithms, decision-making and reasoning, contract management, financial risk, project management theory and practice, production management
Topics: Stakeholder Management, Risk Management, Procurement, Cost Management, Engineering Principles, Information Management, Project Management, Research Practice, Organizational Design, Contract Administration, Digital Applications, Legal Issues
Descriptive scope: 4 PCTA

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