Risk-Oriented Assessment Model for Project Bidding Selection in Construction Industry of Pakistan Based on Fuzzy AHP and
Risk management for the selection of complex multiple projects during the bidding process is one of the most significant problem in construction industries all over the world. This article develops an evaluation model based on fuzzy set theory, analytical
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Risk-Oriented Assessment Model for Project Bidding Selection in Construction Industry of Pakistan Based on Fuzzy AHP and TOPSIS Methods Muhammad Nazam, Jamil Ahmad, Muhammad Kashif Javed, Muhammad Hashim and Liming Yao
Abstract Risk management for the selection of complex multiple projects during the bidding process is one of the most significant problem in construction industries all over the world. This article develops an evaluation model based on fuzzy set theory, analytical hierarchy process (AHP) and the technique for order performance by similarity to ideal solution (TOPSIS) methods. The criteria weight is achieved by adopting Fuzzy set theory and Analytical Hierarchy Process (AHP). Then, with the minimized risk as the objective, the technique for order performance by similarity to ideal solution (TOPSIS) is applied to determine the final ranking level of the bidding projects according to their closeness coefficient. Finally, a real world application of National Construction Limited (NCL), a largest government oriented company of Pakistan, is conducted to demonstrate the utilization of the proposed model. The results indicate that the proposed model is feasible for risk assessment of project bidding selection in construction industry. Keywords Risk management · Multi-projects selection · Criteria weights · Fuzzy set · Fuzzy TOPSIS
101.1 Introduction Construction project is plagued by risk and often suffers poor performance as a result. Risk evaluation of the bidding project is of great significance for construction enterprizes. Tamosaitien and Zavadskas proposed that Risk assessment of the construction project is the major challenge task for the public sectors corporations throughout the world, particularly in developing countries [10]. Ebrahimnejad et M. Nazam (B) · J. Ahmad · M. K. Javed · M. Hashim · L. Yao Uncertainty Decision-Making Laboratory, Sichuan University, Chengdu 610064, People’s Republic of China e-mail: [email protected]
J. Xu et al. (eds.), Proceedings of the Eighth International Conference on Management Science and Engineering Management, Advances in Intelligent Systems and Computing 281, DOI: 10.1007/978-3-642-55122-2_101, © Springer-Verlag Berlin Heidelberg 2014
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al. put forward a novel two phase group decision making approach for a fuzzy environment and applied it to the risk control in construction project selection [4]. Chauhan proposed the multiple criteria decision making approach as the underlying concept of risk management is to manage risks effectively, risk management is a critical part of project management [1]. Reza and Mousavi supposed that risk assessment is the critical procedure of risk management in construction industries. Many risk factors affect the selection process of the suitable risk assessment model [8]. El-Sayegh defined that One of the major steps in project risk management is to identify and assess the potential risks [5]. Xu and Tiong supposed quantities as random variables and proposed a general method of risk evaluation of
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