Bidding-Evaluation of Construction Projects Based on VIKOR Method
Multiple criteria decision modeling is proposed for determining the most preferred bidding markup in a competitive bidding situation. This paper presents a new evaluation approach - VIKOR method - to solve the MCDM (multiple criteria decision making) problems with conflicting criteria or criteria of different units. Since this method provides a maximum "group utility" of the "majority" and a minimum of the individual regret of the "opponent", the obtained compromise solution could be readily accepted by the decision makers. The weights' value is determined by analytic hierarchy process based on experts' knowledge to capture qualitative as well as quantitative information in the proposed model. A numerical example is presented to illustrate the methodological issues in construction project bidding-evaluation. The numerical results show that the proposed approach is right and effective. This method can precisely demonstrate the bidding units' technological and economical characteristic.