Multiple criteria models for evaluation of competitive bids

In this paper, two general bidding systems are proposed to aid an owner to select one contractor based on multiple-attribute decision making models. They are named the general multiple-attribute lower-bidder system and the general multiple-attribute average-bid system and are an extension (and refreshment) of the multiparameter bidding system and the average-bid method, respectively. The preference of the owner over the criteria (or attributes) relevant to construction work award is incorporated into the two new systems if necessary and required by the owner. The values of the attributes (excluding the cost) required to be determined by the owner in the multiparameter bidding system are not necessarily determined in the general multiple-attribute lower-bidder system. This reduces the burden to the owner. The two new bidding systems are demonstrated via an example, and are compared with the multiparameter bidding system and the average-bid method. The comparisons show that the preference of the owner in regard to the attributes relevant to selection of contractors has a significant effect on bid evaluation. The two new systems preserve the form of the competitive bidding concept and can easily be applied to practice.