A Comprehensive Bid/No-Bid Decision Making Framework for Construction Companies

Abstract-Bidding is a strategic decision that helps contractor firms to survive. Traditionally, bidding behaviors are highly unstructured in construction companies. This paper discusses the issues involved in evaluating a tender to assist the managers of a firm in making reliable and sound decisions. The emphasis of the work is on developing a logical decision making framework that covers organizational, environmental, risky and financial considerations. The model takes advantage of well-known decision making methods such as the analytical hierarchy process and the simple additive weighting. The model s input would be the linguistic description of each project s value with respect to the decision criteria, and the output would be the value of each project proposed to decision makers considering its correlation with existing projects. By means of a case study, the model has been implemented. The proposed decision making model is found to yield substantially improved solutions when large size contractors are concerned.