Contractor selection at prequalification stage: Current evaluation and shortcomings

Abstract

The selection of a suitable contractor for a construction project is one of the most important decisions a client can make for the development of the project. Prequalification is a procedure to examine and gauge the competency and skills of contractors to successfully complete a project if it is given to them. However, the evaluation employed for some prequalification is still ambiguous or highly subjective. This study aims to investigate the shortcoming of the current prequalification evaluation for contractor selection. The methodology of the study is based on a comprehensive literature review and expert survey whereby the criticality of data, obtained from the literature was analysed using expert in the field. Among the prequalification criteria, the current evaluation that employed for management capability is highly ambiguous. Two important shortcomings of current prequalification models regarding the evaluation of management capability were identified. First, the models are not comprehensive since all the variables related to the management capability are not included. Secondly, the models focused almost exclusively on time and cost performance as outcome variables, which may not be enough to evaluate the management capability of contractors. Better evaluation methods have to be developed to assess the management capability prequalification as it has a major impact on time and cost performance of contractors. Therefor future study must be conducted to develop a model that evaluates the management capability of contractors based on the relative variables for the purpose of improving current prequalification selection.