W9_Afra_Contractor Selection

1.      Problem Recognition

A contractor is an individual or in many cases a business that signs a contract to perform part or all of the obligations of another's contract. Selecting the right contractor fundamentally contributes to the project’s success. 

The Company adopt a multi criteria for contractor selection process. Technical aspect and experience is one of the most important selection criterion, followed by another defined criterion based on the price and other aspects.

Let’s assume that the Company in the bid process for evaluation the best alternative contractor. We have four quotations from four contractors with various terms and conditions to their proposed price (lump sum) and bid documents and technical aspects. 

In this week blog, I will work out on the contractor selecting analysis and the output is deciding the contractor winner for this project.

2.      Feasible alternatives

Multi attribute decision making techniques (methodology) will be used for evaluating and analysis the contractor for the project.  From the contractor bids (proposal), Company have prepared Technical Bid Evaluation (TBE) and Commercial Bid Evaluation (CBE) as a comparison sheets against Company requirements.

We have four proposals in this case study A, B, C and D.

3.      Development of the outcome of Alternative

The outcomes of the four proposals are described in the table below (the technical aspects along with the commercial aspects).

Table 1: Proposals Output

4.      Selection Criteria

Table 2 below shows the selection criteria list that will be used in developing the bid result and awarding the best alternative.

Table 2: Set of Criteria

5.      Analysis and comparison of the Alternative

No, the outputs in table 1 will be converted into three categories: good, fair and poor according to the complying with the requirement in the RfP. Table 2 below shows the categories.

Table 3: Evaluation of Proposals Output

Next step is to evaluate the best alternative according to the importance of the criteria (Rank a shows the ranking of 14’s criteria according to the importance of each one), and use the normalized weight to give score for each alternative.

The alternative ranking in the table below (alterative ranking b) shows the ranking according to three categorizes in the table above for each contractor.

Table 4: Evaluation for the best Alternative

6.      Selection of the preferred Alternative

From the above contractor comparison vs selection of criteria, Company will choose contractor D as a winner for the Project.  From the total score, subcontractor “D” have higher score (0.61) than others subcontractor.

7.      Performance Monitoring and the Post Evaluation of result

In order to monitor the contractor performance, contractor need to:

-     Keep monitor subcontractor performance during project execution, especially on contractor selection criteria items as mentioned above.

-     Conduct subcontract assessment for next project consideration and recommendation.

References: 

1.       What is a contractor? definition and meaning. (2018). BusinessDictionary.com. Retrieved 2 January 2018, from http://www.businessdictionary.com/definition/contractor.html

2.       Construction Contractor Selection Criteria -. (2018). Mccormickpcs.com. Retrieved 2 January 2018, from http://www.mccormickpcs.com/images/Construction_Contractor_Selection_Criteria.pdf

3.       How to Normalize in Excel. (2018). Smallbusiness.chron.com. Retrieved 2 January 2018, from http://smallbusiness.chron.com/normalize-excel-36009.html