Multi-Attribute Supplier
Development of a Holistic Multi-Attribute Supplier
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Since in the construction industry up to 80 per cent of the project value is subcontracted, success or failure of any construction project is essentially dependent on supplier s aptitudes and the nature and quality of the relationship between contractor and subcontractor. Rigid one-off contracts, multiple sourcing and decision-making processes funded solely on competitive price tendering put emphasis on the goal incongruence and create adversarial attitudes and arms-length relationships between the construction parties. With losses primarily due to subcontractors shortfalls the Hochtief Constr...
Since in the construction industry up to 80 per cent of the project value is subcontracted, success or failure of any construction project is essentially dependent on supplier s aptitudes and the nature and quality of the relationship between contractor and subcontractor. Rigid one-off contracts, multiple sourcing and decision-making processes funded solely on competitive price tendering put emphasis on the goal incongruence and create adversarial attitudes and arms-length relationships between the construction parties. With losses primarily due to subcontractors shortfalls the Hochtief Construction AG already had to experience the effects of its supply chain disruptions and the need for a systematic evaluation model. This book introduces current multi-attribute based decision making models in theory and practice and suggests a holistic and inherent concept for the supplier and subcontractor selection process encompassing prequalification, evaluation and the final selection of subcontractors with a special focus on the requirements of the construction industry and the Hochtief Construction AG objectives set.
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