Multicriteria support for construction bidding

While profit maximization is one important objective in this decision domai n, other objectives are important as well. This paper discusses multiple cr iteria and their respective objectives in construction bidding, and present s a bidding framework which recommends a pairwise comparison procedure to g enerate criterion weights and a linear transformation procedure to calculat e relative scores for bidding alternatives. This hybrid multicriteria metho d is illustrated and evaluated using a set of past construction bids. The p roposed bidding system is found to yield substantially improved solutions w hen work volume is highly important relative to expected profit. The corres ponding decrease in the profit function is identified, allowing evaluation of expected profit foregone, in order that improved multiattribute function s might be attained. (C) 2001 Elsevier Science Ltd. All rights reserved.