Skip to main content
SpringerLink
Log in
Book cover

Proceedings of the Eighth International Conference on Management Science and Engineering Management pp 1165–1177Cite as

Risk-Oriented Assessment Model for Project Bidding Selection in Construction Industry of Pakistan Based on Fuzzy AHP and TOPSIS Methods

Part of the Advances in Intelligent Systems and Computing book series (AISC,volume 281)

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

This is a preview of subscription content, access via your institution.

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   169.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   219.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD   219.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

References

  1. Chauhan A, Vanish R (2012) Magnetic material selection using multiple attribute decision making approach. Mater Des 36:1–5

    Google Scholar 

  2. Chen TY, Tsao CY (2008) The interval-valued fuzzy TOPSIS method and experimental analysis. Fuzzy Sets Syst 159:1410–1428

    CrossRef  Google Scholar 

  3. Deng XD, Wang CY (2007) The Grey Fuzzy theory appraises the risk of the project. J China Three Gorges Univ (Natural Sciences) 29:12

    Google Scholar 

  4. Ebrahimnejad S, Mousavi SM, Moghaddam T (2012) A novel two phase gruoup decision making approach for construction project selection in a fuzzy environment. Appl Math Model 36:4197–4217

    CrossRef  Google Scholar 

  5. El-Sayegh SM (2008) Risk assessment and allocation in the UAE construction industry. Int J Project Manage 26(4):31–38

    CrossRef  Google Scholar 

  6. Hassan Y, Eiichiro T (2002) Decision making using hybrid rough sets and neural networks. Int J Neural Syst 12:35–46

    CrossRef  Google Scholar 

  7. Ngai EWT, Wat FKT (2005) Fuzzy decision support system for risk analysis in e-commerce development. Decis Support Syst 40:235–255

    CrossRef  Google Scholar 

  8. Reza KA, Mousavi N (2011) Risk assessment model selection in construction industry. Expert Syst Appl 38:105–111

    Google Scholar 

  9. Shi KB, Zhang LX, Shi GQ (2005) Study on risk index system and comprehensive evaluation in construction project. J Xinjiang Agriculture Univ 28:76–80

    Google Scholar 

  10. Tamosaitien J, Zavadskas EK (2013) Multi-criteria risk assessment of a construction project. Procedia Comput Sci 17:129–133

    CrossRef  Google Scholar 

  11. Tah JHM, Carr V (2000) A proposal for construction project risk assessment using fuzzy logic. J Constr Manage Econ 18:491–500

    CrossRef  Google Scholar 

  12. Wang KC (2007) Modelling risk allocation decision in construction contracts. Int J Project Manage 25(4):85–93

    Google Scholar 

  13. Xu TJ, Tiong LK (2001) Risk assessment on contractors pricing stratigies. J Constr Manage Econ 19:77–84

    CrossRef  Google Scholar 

  14. Zadeh LA (1965) Fuzzy sets. Inf Control 8:338–353

    CrossRef  Google Scholar 

Download references

Acknowledgments

The authors wish to thank the anonymous referees for their helpful and constructive comments and suggestions. The work is supported by the National Natural Science Foundation of China (Grant No. 71301109), the Western and Frontier Region Project of Humanity and Social Sciences Research, Ministry of Education of China (Grant No. 13XJC630018), the Philosophy and Social Sciences Planning Project of Sichuan province (Grant No. SC12BJ05), and the Initial Funding for Young Teachers of Sichuan University (Grant No. 2013SCU11014).

Author information

Authors and Affiliations

  1. Uncertainty Decision-Making Laboratory, Sichuan University, Chengdu, 610064, People’s Republic of China

    Muhammad Nazam, Jamil Ahmad, Muhammad Kashif Javed, Muhammad Hashim & Liming Yao

Authors
  1. Muhammad Nazam
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Jamil Ahmad
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Muhammad Kashif Javed
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Muhammad Hashim
    View author publications

    You can also search for this author in PubMed Google Scholar

  5. Liming Yao
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Muhammad Nazam .

Editor information

Editors and Affiliations

  1. Business School, Sichuan University, Chengdu, China

    Jiuping Xu

  2. Depart de Enge Mecânica e Industrial, Faculdade de Ciências e Tecnologia - Universidade Nova de Lisboa (FCT/UNL), Caparica, Portugal

    Virgílio António Cruz-Machado

  3. LeBow College of Business Department of Decision Sciences, Drexel University, Philadelphia, Pennsylvania, USA

    Benjamin Lev

  4. Institute of Operations Research, Karlsruhe Institute ofTechnology (KIT), Karlsruhe, Germany

    Stefan Nickel

Rights and permissions

Reprints and Permissions

Copyright information

© 2014 Springer-Verlag Berlin Heidelberg

About this paper

Cite this paper

Nazam, M., Ahmad, J., Javed, M.K., Hashim, M., Yao, L. (2014). Risk-Oriented Assessment Model for Project Bidding Selection in Construction Industry of Pakistan Based on Fuzzy AHP and TOPSIS Methods. In: Xu, J., Cruz-Machado, V., Lev, B., Nickel, S. (eds) Proceedings of the Eighth International Conference on Management Science and Engineering Management. Advances in Intelligent Systems and Computing, vol 281. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-55122-2_101

Download citation

  • DOI: https://doi.org/10.1007/978-3-642-55122-2_101

  • Published:

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-55121-5

  • Online ISBN: 978-3-642-55122-2

  • eBook Packages: EngineeringEngineering (R0)

search

Navigation