Contractor Selection Criteria: A Benefit-Cost Analysis

Ng, S. Thomas & Skitmore, Martin (2001) Contractor Selection Criteria: A Benefit-Cost Analysis. IEEE Transactions in Engineering Management, 48(1), pp. 96-106.

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This paper describes an empirical study aimed at ranking prequalification criteria on the basis of perceived total benefit-cost to stakeholders. A postal questionnaire was distributed to 100 client and contractor organizations in Australia in 1997. 48 responses were analyzed for scores on 38 categories of contractor information in terms of ‘value to client’, ‘contractor costs’, ‘client costs’ and ‘value for money’. The client and contractor responses for ‘value to client’ and ‘client costs’ of processing were found to be homogeneous. Those for ‘contractor costs’ and ‘value for money’ differed significantly between the clients and contractors. A simple linear regression analysis was used to model the responses and an index of benefit-cost was derived for each of the categories. This was found to be superior to all the non-linear alternatives examined. The model was also found to have greater intuitive value than the equivalent raw ‘value for money’ responses.

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12 citations in Scopus
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7 citations in Web of Science®

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ID Code: 4128
Item Type: Journal Article
Refereed: Yes
Keywords: Contractor selection, prequalification, criteria, benefit, cost analysis, postal questionnaire survey
DOI: 10.1109/17.913169
ISSN: 0018-9391
Divisions: Past > QUT Faculties & Divisions > Faculty of Built Environment and Engineering
Copyright Owner: Copyright 2001 IEEE
Copyright Statement: Personal use of this material is permitted. However, permission to reprint/republish this material for advertising or promotional purposes or for creating new collective works for resale or redistribution to servers or lists, or to reuse any copyrighted component of this work in other works must be obtained from the IEEE.
Deposited On: 20 Jul 2006 00:00
Last Modified: 09 Jun 2010 12:32

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