Bidding-Evaluation of Construction Projects Based on VIKOR Method

Multiple criteria decision modeling is proposed for determining the most preferred bidding markup in a competitive bidding situation. This paper presents a new evaluation approach - VIKOR method - to solve the MCDM (multiple criteria decision making) problems with conflicting criteria or criteria of different units. Since this method provides a maximum "group utility" of the "majority" and a minimum of the individual regret of the "opponent", the obtained compromise solution could be readily accepted by the decision makers. The weights\´ value is determined by analytic hierarchy process based on experts\´ knowledge to capture qualitative as well as quantitative information in the proposed model. A numerical example is presented to illustrate the methodological issues in construction project bidding-evaluation. The numerical results show that the proposed approach is right and effective. This method can precisely demonstrate the bidding units\´ technological and economical characteristic.