Safe City

Safe City

A hybrid model of risk management and value management based on decision-making Multiple criteria in selecting contractors for civil projects

Authors
Seyed Azim Hossein 1
Mehrnaz Aghajanzadeh Hoshyar 2
1 Islamic Azad University, South Tehran Branch
2 Master of Civil Engineering, Construction Management, Islamic Azad University, South Tehran Branch
10.22034/ispdrc.2021.699912
Abstract
In this study, an integrated approach based on risk management and value engineering has been developed for the selection of contractors in construction projects. This model has been designed based on criteria and sub-criteria derived from the research literature.The importance of which is determined by the best-worst scoring method. The contractors were ranked using the VICOR and Rovabach methods. According to the calculation results, it can be said that the strategic risk criterion with local weight (483.0) has obtained the highest score among these criteria and the other risks criterion with local weight (484.4) has obtained the lowest score among the criteria.In the operational risk dimension, the technical sub-criterion had the highest local weight (48000) and the fraud sub-criterion had the lowest local weight (481.0). In the strategic risk dimension, the social dissatisfaction sub-criterion had the highest local weight (483.4) and the environmental dissatisfaction sub-criterion had the lowest local weight (4813.0).In the human resources risk dimension, the cost risk ratio sub-criterion has the highest local weight (48004), the technical risk sub-criterion has the lowest local weight (48100). In the other risks dimension, the financial risk sub-criterion has the highest local weight (48010) and the external risk sub-criterion has the lowest local weight (4840). In the engineering dimension, the value of the turnover volume sub-criterion has the highest local weight (480.0) and the financial leverage sub-criterion has the lowest local weight (48201).Finally, the prioritization of contractors is reported based on a comparison of the results of the Vicover and Roebach-Khasatry methods. It is worth noting that an innovative approach based on Monte Carlo simulation has been used to compare the performance of these methods.
Keywords
Hybrid Model
Civil Projects
Vicor Method. Best-Worst Method
Risk Management

  1. Arghrizadeh, A., & Nasrollahi, M. (2001). Identification and weighting of criteria affecting contractor selection in construction projects. Management Research Journal.

  2. Baghban, A., Amiri, M., Olfat, L., & Sharafi, A. Z. (2012). Evaluation and ranking of contractors and promotion of inefficient ones using grey data envelopment analysis: Case study of MAPNA Group. Operations Research and Its Applications Journal.

  3. Batouli, S. M., et al. (2001). Contractor selection criteria from the perspective of stakeholders in Iran's construction industry. 6th International Project Management Conference, Tehran: Ariana Research Group.

  4. Jabbari Ameli, S., Radghaei, S. A., & Jalalian Hosseini, S. M. (2002). Preliminary evaluation systems and factors affecting contractor performance in three-factor projects. 3rd International Project Management Conference, Tehran: Ariana Research Group.

  5. Heydari, A., & Heydari, M. (2001). Contractor selection using the AHP method. National Conference on Value Engineering in Industry.

  6. Daramohammadi, A., et al. (2001). A practical model for evaluating HSE performance of construction contractors. Iranian Occupational Health Scientific Journal.

  7. Rajaei, H., et al. (n.d.). Qualification assessment of contractors using fuzzy SAW method. 4th National Congress on Civil Engineering, Tehran: University of Tehran.

  8. Razmi, J., et al. (n.d.). Designing a novel decision support model for evaluating and selecting construction contractors in tenders.

  9. Rostami, M., et al. (2001). A fuzzy-based model for selecting subcontractors in road construction projects. 2nd International Management Conference in the 21st Century, Tehran: Paytakht Management Institute.

  10. Rouzbeh, R., & Joda, K. (n.d.). Practical standard for project risk management. Tehran: Pendar Pars Publications.

  11. Zare Mehrjerdi, Y., et al. (2010). Evaluation and selection model for petrochemical contractors using decision-making techniques (Borda method). Business Management Explorations Journal.

  12. Sabokh, M. H., & Parvareshkaran, E. (2001). Practical application of value engineering in design, construction, operation, and maintenance. Tehran: Amirkabir University of Technology Press.