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Selecting the right supplier for an assignment, as well as evaluating this supplier's performance while the contract is being implemented, plays an important role in ensuring a good project outcome. In this context, this paper presents the results of a systematic literature review of the criteria and the methods used in the phases of selecting and...
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... The designated time frame for the systematic review spans from 2013 to 2023, encompassing a decade of recent studies on public sector PDM decision-making at the time of this paper's preparation. Additionally, the practical time for a public project to complete the full cycle from inception until commissioning can be as much as ten years; therefore, the designated time frame criteria are reliable for the public sector macro-environment analysis (de Araújo et al., 2017). ...
Successful public sector construction project delivery is crucial for public benefit and national economic growth. Project delivery performance typically depends on the appropriateness of the project delivery method (PDM), which plays a significant role in project development. This paper comprehensively reviews the public sector's macro-environment perspective in applying descriptive and structured PDM decision-making for public sector construction projects. Based on a systematic literature review, the public sector macro-environment opportunities and threats in PDM decision-making are assessed using a strategic management tool, the political, economic, social, technological, environmental, and legal (PESTEL) analysis framework. Findings reveal that political direction, consultant and contractor abilities, and public sector personnel culture are significant threats that influence the public sector to uphold prescriptive and authoritarian decision-making in PDM selection. Financial conditions, technology integration, and strict public sector policy, rules, and regulations are significant opportunities for the public sector to improvise if determining to adopt various potential PDMs in public sector construction projects. An adequate understanding of the public sector macro-environment perspective in adopting proliferated PDMs contributes to different philosophical views on public sector PDM decision-making. The findings of this paper are substantial in establishing relevant criteria for developing a workable PDM decision-making framework for the public sector.
... The sourced suppliers should be compared based on qualitative and quantitative criteria (Fayos et al., 2022). It holds great importance in the overall SME supply chain management, allowing for the optimisation of resources, reducing costs, and maintaining an uninterrupted flow of materials, thereby enhancing their operational efficiency (Bienhaus & Haddud, 2018;de Araújo et al., 2017;Hernandez & Garcia, 2006). A key point to consider is cost optimisation since it allows SMEs to negotiate favourable terms with suppliers, securing cost-effective inputs and raw materials (Bevilacqua & Petroni, 2002). ...
Background
Supplier selection has emerged as an important activity regarding strategic purchasing with implications for the operational efficiency of both organisations and supply chains. Given the need to evaluate both qualitative and quantitative criteria for different supply alternatives, the decision-making process became more complex.
Objectives
In the present work, an adapted Analytic Hierarchy Process model is proposed for supplier selection, which is being validated within the context of a textile company. The multi-criteria decision support model was coded in Python and encompasses criteria, cost, quality, delivery time, sustainability, and history.
Methods/Approach
This model allocates weights to individual suppliers based on the diverse criteria considered. Four alternatives were considered as the chemical fabric dyeing pigment suppliers. Two different scenarios were considered to understand the influence of demand on the supplier selection problem.
Results
The cost is the most valued criterion in the supplier selection (0.493 for Scenario 1 and 0.426 for Scenario 2). The second most important criterion for regular demand is quality (0.224), whereas, for the increased demand scenario, delivery time (0.301) is the second most impactful criterion.
Conclusions
The application of the AHP for both tested scenarios resulted in a different priority, highlighting the adjustment capacity of the implemented model to different search parameterisations.
... Other research tended to study the effect of the preventive procedures applied by public sectors on the quality performance of the KSCP. These procedures include 1) considering quality accreditation and past performance rating of the contractor to pass the prequalification assessment on the tendering process; 2) increasing the guarantee free repair services years to 10 or more, which is supposed to change the culture of KSCPs from supervisory mentality to accept full responsibility in order to reduce the repairing cost during guarantee years [82]. Pimentel and Major [83] highlighted the importance of using the principles of total quality management to improve the performance level in the public sector. ...
Public construction projects require significant interactions with Key Supply Chain Partners (KSCPs) among contractors, subcontractors, material suppliers, etc. This article addresses the problem of how collaborations with KSCPs can be established and managed in construction projects with a public buyer. The interesting lens here is the public sector and the fact that the literature on the private sector still has provided limited insights in this regard. The methodology uses social network analysis (SNA) to analyze the role of collaborative networks of KSCPs in public construction projects and the difference in measured quality levels of KSCPs. Through the SNA measures, the article results demonstrated how collaborative networks of KSCPs affect projects and quality levels of KSCPs. There are curial differences between high and lower quality KSCPs in six network measures: direct ties, in-degree, out-degree, betweenness, closeness, and triads. According to the network analysis, main contractors subcontract with more KSCPs to reduce dependency and widen their networks. Moreover, lower quality KSCPs were connected to fewer KSCPs than high-quality KSCPs in the collaboration network, resulting in a weaker knowledge-sharing network. As a result, the possibility of gaining high practices from other KSCPs is restricted. The data analysis revealed a statistically significant decrease in the failure rates of KSCPs by implementing a network of connections with five or more KSCPs on their projects. Considering the pertinent network metrics, this article provides recommendations for KSCPs and public sector managers willing to enhance public construction quality.
... However, outdated document and information management processes heighten the risk of information fraud and undermine accountability [9,10]. Furthermore, the sector struggles with issues in monitoring and controlling procedures, exacerbated by incomplete or ambiguous information, unpredictable stakeholder behavior, a lack of standardized procedures, and non-compliance, all of which increase the risk of delays, cost escalations, and disputes [11][12][13]. This paper aims to bridge these gaps by proposing solutions to improve trust, transparency, and data management, thereby enhancing overall project efficiency and reducing disputes in the construction industry. ...
... Complexity of construction projects [14,20,33,35,45,49,53,58,89,90,102,103,116,142,146,154,190,194] 12 Difficulty in defining unforeseen conditions [14,17,25,36,45,52,58,86,102,111,194,196] 12 13 Irrevocable nature [14,16,17,20,21,31,33,36,40,45,58,62,86,90,95,102,111,116,138,147,149,155,160,180,181,190,194,196] 28 14 Oracles Paradox [29,102,138,142,150,151,153,160] 8 15 Insufficient evidence on industry business cases/ unclear usage advantages [31,49,64,69,108,124,142,149,151,181,196] 11 16 Lack of dispute resolution mechanism [17,23,29,36,45,150,194,196] 8 ...
The construction sector, one of the most ancient industries globally, holds a crucial role in the progress and development of societies. However, it faces persistent productivity and efficiency challenges, rendering it a relative setback when compared to other sectors. In the ever-evolving landscape of the construction industry, characterized by complex projects, numerous stakeholders, and intricate contractual agreements, the integration of emerging technologies presents an unprecedented opportunity for transformation. Smart contracts (SCs), underpinned by blockchain (BC) technology, hold the potential to streamline and revolutionize traditional construction processes. Current literature shows a lack of comprehensive quantitative understanding of how Blockchain-enabled Smart Contracts (BSC) can affect the construction sector. To address this gap, the authors have (1) conducted a systematic keyword analysis of literature on SC in construction from Scopus and Web of Science (WoS) databases; (2) conducted a strengths–weaknesses–opportunities–threats (SWOT) analysis of BSC’s adoption in the construction industry from 174 peer-reviewed papers; (3) identified a holistic list of 72 factors steering BSC adoption in construction, categorized into the 4 aspects of the SWOT framework; (4) performed social network analysis (SNA) to quantitively assess the literature in terms of the identified factors; and (5) conducted clustering analysis to categorize combination of factors frequently highlighted in research publications into common groups. This research offers a comprehensive and methodical evaluation of the potential advantages, applications, and challenges associated with integrating BSC in the construction industry. The findings of SNA and clustering reveal a notable lack of investigation into certain combinations of factors in existing academic research. This disparity and the ensuing knowledge gaps may affect SC’s adoption in the construction sector. To this end, this study equips stakeholders with the insights necessary to make informed decisions in this rapidly evolving sector and contributes to a roadmap for future BSC construction-related research. Doi: 10.28991/CEJ-2024-010-05-020 Full Text: PDF
... Knowing them allows one to choose the most effective procedure, tailored to the conditions of a given order. An inadequate procurement system can result in poor-quality buildings delivered late, at overestimated costs, and by an antagonistic executive team [1,2]. At the same time, research shows that construction practitioners have increasingly become aware of various procurement options [3] and understand that each procurement route contributes to project success to diverse degrees [1,4]. ...
... The results are summarized in Table 2. Table 2. Public procurement for construction work in EU countries. (1) Open procedure; (2) restricted procedure; (3) negotiated procedures with a prior call for competition; (4) competitive dialog; (5) negotiated procedure without a prior call for competition. Table 2 provides the value of public procurement in millions of Euros, and column 4 shows the number of these contracts. ...
... All calculations were performed in the Statistica program. The obtained results are presented in Figure 8 and Table 4. (1) Open procedure; (2) restricted procedure; (3) negotiated procedures with a prior call for competition; (4) competitive dialog; (5) negotiated procedure without a prior call for competition. ...
Choosing a contractor with the best competencies is particularly important, especially in construction contracts. Using data available on the opentender.eu platform, information for 2022 was compiled regarding the size of the public procurement market and the procedures used in public procurement for construction works in European countries. The most common procedure used under the European Union Directive for awarding work contracts, in most countries, is the open procedure. The largest share of this procedure, amounting to over 95% of all proceedings, is in the countries Croatia, Cyprus, Greece, Latvia, and Poland. On the other hand, there are countries where the procedures proposed in the Directive are used to a small extent. In order to distinguish groups of European Union countries characterized by a similar structure of public procurement for work, the joining (tree-clustering) algorithm was used. This will provide insights into the strategies of countries in this area. Knowledge of the advantages and disadvantages of the various procedures may improve the public procurement system.
... Extensive research and practices in the construction industry have focused on multi-criteria decision methods for contractor selection. This includes the application of the ANP technique by Cheng and Li [13], and in addition, detailed analysis on contractor selection has been covered at the pre-qualification and procurement stages by [14][15][16][17][18]. These studies recommend using non-price criteria, such as past performance and experience, in contractor selection instead of low-priced traditional selection. ...
... Another study was carried out in 2017 on the procurement methods of contractors, with a focus on factors considered in the literature. Results reveal that quality is most important at 9.2%, followed by cost, staff features, financials, company management, experience, and time at 8.2%, 7.9%, 7.9%, 7.6%, 6.5%, and 6%, respectively [17]. ...
Selecting the right maintenance contractor is crucial for efficient operation and project success. Traditionally, this selection has been cost-driven, but the ever-growing complexity of projects has led to a shift towards best-value selection. The best value selection criteria evaluate the contractors based on factors like experience and past performance, along with the proposed cost. However, this approach lacks substantiated knowledge of these factors and often includes factors that cannot be validated at the time of procurement. This paper proposes a framework that applies the Analytical Hierarchy Process (AHP) to the maintenance contractor selection process. A detailed literature review was carried out to identify factors involved in maintenance selection. Data were collected from experts through a questionnaire developed based on the identified factors, facilitating AHP implementation. Substantiation strategies were identified using expert judgments. Our findings reveal that past performance criteria hold the maximum weight in the selection process. The proposed framework offers a more comprehensive approach for selecting maintenance contractors, ensuring both value and efficiency.
... [64] "Innovation and public procurement: Terminology, concepts, and applications" [65] "Project procurement management: A structured literature review" [66] Global Public Procurement Theories and Practices [67] "Research perspectives on public procurement: Content analysis of 14 years of publications in the journal of public procurement" Tabla 3.2: Recopilación de la literatura relacionada con los datos en abierto y calidad del dato, la innovación y gestión en la contratación. ...
Este trabajo tiene como objetivo explicar a un lector no técnico la Tesis Doctoral realizada por el autor: aplicar la ciencia de datos a la contratación pública.
... Las diferentes perspectivas de las partes interesadas que deben tenerse en cuenta se pueden dividir en: institucionales (gobierno) y no institucionales (sector privado). Al abordar las necesidades y percepciones de las partes interesadas afectadas por la fase de adquisición, surgen tres amplias categorías [7]. ...
... Otro de los grupos de interés importante en la adquisición de bienes para el desarrollo de proyectos son los proveedores. De acuerdo con [7], debido a la alta competitividad, la subcontratación como estrategia comercial se ha vuelto cada vez más popular. La influencia que tienen los proveedores en el éxito o fracaso de los proyectos es significativa ya que su desempeño afecta los resultados de todo el esfuerzo empresarial. ...
... The aforementioned research points out that the project owner is the main reason for tardiness. Furthermore, earlier research by de Araujo et al. (2017), Martens and Vanchoucke (2018), and Lee & Won (2021) [13][14][15] found additional variables contributing to construction project delays, such as inadequate planning, poor consultant performance, ineffective management, owner-related problems, bureaucracy, and subpar contracts. According to several studies by Korhonen (2020), Liu et al. (2022), and Chou et al. (2023) [16][17][18], the owner's actions have three main implications for the duration of a construction project: delaying payments to subcontractors, interfering with the contractor's cash flow, and having trouble obtaining the necessary materials. ...
The objective of this study is to construct a precise formula for the management and production delay indicators that are integrated into Ms. Project's dashboard. Two simulation techniques, such as the manual formula computation and calculation integrated into the Ms. Project dashboard, were employed. Due to management and the production team's tardiness, the data were obtained through trial-and-error methods. Excel was used to analyze the data, and Ms. Project was used to enter the calculations. The research showed that the Ms. Project dashboard formula gave more detailed information about the construction project, including: (1) contract value; (2) actual progress value during monitoring; (3) value of plan progress during monitoring; (4) progress deviation; (5) cause of delay; and (6) management delay index and production delay index. The novelty of this study is that project delays have traditionally been held against the production party (contractor), whereas implementation delays have never been taken against the management party (consultant). However, using this method makes it evident who is responsible for a project delay, whether it comes from management (a consultant) or the manufacturing side (a contractor). Doi: 10.28991/HIJ-2023-04-04-06 Full Text: PDF
... On the other hand, when the restricted procedure is selected, the process consists of two stages, starting with a prequalification stage which excludes from the bidding process contractors who do not fulfil predetermined financial and technical criteria. Such criteria can include technical competence, management capability, earlier experience, financial stability and staff qualifications (de Araújo, Alencar, & de Miranda Mota, 2017) and unavoidably the process becomes more complicated and time consuming (Lambropoulos, 2007). ...
This chapter presents procurement and design options that can lead to public projects of higher value for money (VfM) within the currently applicable EU legislation. It particularly highlights how the timing and extent of the contractor's involvement in design enables value management/engineering and constructability reviews and maximizes project VfM. Furthermore, this chapter demonstrates how the best VfM can be achieved with the integration of features from the open tender and the Competitive Dialogue (CD). This hybrid approach gives to any contractor the option to submit value-enhancing design variants within the context of an open procedure and processes their submitted proposals as per the main principles of the CD. In this context, the contracting authorities need to select specific VfM-enhancing criteria as well as an efficient and objective method to address the emerging design comparisons, evaluations, and bid rankings. The authors address this gap with a multi-criteria decision-making model and provide a detailed example in line with the EU procurement legislation.
