Using multivariate techniques for developing contractor classification models

Wong, C H; Nicholas, J and Holt, G D (2003) Using multivariate techniques for developing contractor classification models. Engineering, Construction and Architectural Management, 10(2), pp. 99-116. ISSN 0969-9988

Abstract

Today's growing numbers of contractor selection methodologies reflect the increasing awareness of the construction industry for improving its procurement process and performance. This paper investigates contractor classification methods that link clients' selection aspirations and contractor performance. Multivariate techniques were used to study the intrinsic link between clients' selection preferences, i.e. project-specific criteria (PSC) and their respective levels of importance assigned (LIA), during tender evaluation for modelling contractor classification models in a data set of 68 case studies of UK construction projects. The logistic regression (LR) and multivariate discriminant analysis (MDA) were used. Results revealed that both techniques produced a good prediction on contractor performance and indicated that suitability of the equipment, past performance in cost and time on similar projects, contractor relationship with local authority, and contractor reputation/image are the most predominant PSC in the LR and MDA models among the 34 PSC. Suggests contractor classification models using multivariate techniques could be developed further.

Item Type: Article
Uncontrolled Keywords: classification; construction industry; contracting out; multivariate analysis; United Kingdom
Index terms: local authority, United Kingdom, procurement process, multivariate analysis, suitability, preference, tender evaluation, construction project, methodology, contractor performance, logistic regression, case study, discriminant analysis, contractor selection, construction industry, modelling
Subjects: tendering, decision-making and reasoning, research methods, contract management, Geography, production management, sociology, statistical analysis, design criteria, industry analysis, data collection methods, analytical methods, contractual arrangements
Topics: Design Practice, Contract Administration, Project Management, Geographical Context, Research Practice, Engineering Principles, Stakeholder Management, Procurement
Descriptive scope: 5 PCTEA

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