Abstract:
Research in identifying the relative importance of criteria used to select a preferred supplier has, for the most part, relied on subjective lists of criteria being presented to respondents. This paper is a summary of the research conducted by the authors to quantify the importance of nine common criteria used in an actual evaluation and selection of a contractor/supplier. Unique choice sets were constructed, each comprising 3 tender evaluation outcomes (alternatives) described in terms of all criteria, but with varying levels. Respondents simultaneously evaluated all three alternatives within each choice set and selected the most preferred. Utility estimates for each criterion level were determined as was the overall contribution made by the individual criterion. Results indicate past project performance, technical expertise and cost are the most important criteria in an actual choice of contractor with organisational experience, workload, and reputation being the least important.
