Methodology of decision-making for the selection of subcontracts in the construction industry

Abstract

A poor selection of subcontractors in the construction industry causes critical problems such as: delays in projects, poor quality of work and additional costs. This paper provides a tool for selection of subcontracts, which translates into a decision-making methodology to select the most suitable subcontract for each project. To achieve this objective, first the current subcontracting practices are determined through a survey that was answered by fifty companies of the sector. Subsequently, the decision making methods (WRC and CBA) are analyzed in a decision-making simulation that was carried out to ten companies in the field. The results were conclusive, in twelve of the fifteen simulations, WRC method highlighted when contrasting with the CBA method, so the WRC method is defined as the most appropriate for this type of selection. Finally, the decision-making methodology is presented as an optimization tool for the selection process of subcontractors, which includes aspects such as: recommendations before the selection process and structure in detail to correctly develop the WRC method.