Contractor management performance evaluation model at prequalification stage

Abstract

The client’s choice of contractor at the project prequalification stage is critical as the selected contractor is responsible for the overall coordination of a project. Although a wide variety of criteria have been employed to develop models for contractor selection, one critical component of their capability – management performance – has historically been among the least addressed but, we argue, most critical elements in a useful selection model. Even in the cases when management performance is considered, it has typically focused only on objective outcome criteria of limited predictive power, such as contractor time and cost performance. This paper reports on the results of a study to develop a comprehensive contractor evaluation model that directly addresses the contractor management capabilities and practices as a critical additional element at the prequalification stage. Using a multi-step research process, including extensive literature review, analysis and synthesis of critical contractor management performance factors, development of an analytic network project (ANP) model, and subsequent case study and field validation, we identified a robust model that enhances the decision support tools for the client organization by creating databases for comparing multiple contractors with respect to management practices. In addition, the evaluation of this prequalification criterion permits the contractors to focus on their efforts to address the critical management practices to improve their project performance.