Multi-Criteria Decision-Making in Public Procurement: An Empirical Study of Contractor Selection for Landslide Rehabilitation

Abstract

When carrying out construction work, identifying the best contractor is a critical component of the project life cycle in the construction industry. The investor must use effective and efficient strategies to create a competitive bidding environment in public projects. The research presented in this paper was conducted to demonstrate the competitive nature of public procurements, where contractors compete to present the best bid and win the contract. To award the contract, the best offer must be selected. Based on different strategies and multi-criteria decision-making approaches this study proposes a method for identifying the most suitable strategy out of eight bidding strategies on four different lots, resulting in the most suitable one for landslide rehabilitation in the Brčko district. The results reveal the optimal approach to follow to minimize time and financial losses in the case of landslide rehabilitation during periods of market instability. Such research findings validate the efficiency of the bidding strategies-based decision-making support. The proposed method allows for compromise on both the completion date and the lowest bid made by the winning contractor.