CONTRACTOR SELECTION BY A HOSPITAL

Abstract

Contractor selection is the critical part of a construction project. Traditionally, the ABC hospital selection criterion was the lowest bid price, which often turned out to mean an incapable contractor who caused major construction delays which hugely damaged the hospital, including lost revenue opportunities and loss of customer satisfaction. Instead, this research identifies a value judgment selection method. It has four main steps: capability evaluation, motivation evaluation, combining these two results to assess overall performance, and comparing the performance with the bidding price. Thus, the hospital selects the contractor who offers the best combination of performance and price. Validation of the proposed method was tested by examining two previous hospital construction projects.