Subcontracting Procurement in Engineering, Procurement and Construction (EPC) Projects in Africa

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Journal Title

Journal ISSN

Volume Title

Perustieteiden korkeakoulu | Master's thesis

Date

2016-02-17

Department

Major/Subject

Seminar on Service Management and Engineering

Mcode

IL3007

Degree programme

Master’s Degree Programme in Service Management and Engineering (SME)

Language

en

Pages

112+3 appendices

Series

Abstract

This research focuses on the most important factors considered for pre-qualification and selection of capable subcontractors for construction project which is characterized as a multi-criteria problem with uncertain inputs when procuring subcontracting services. During the procurement process, the criteria used for pre-qualification includes qualitative and quantitative information. Considering the subjective judgments of construction professionals, it has made the process of ascertaining the capabilities and performance of subcontractors for a particular project an art rather than a science. In order to select the most appropriate subcontractor for the project and prepare the most realistic and accurate bid proposal, general contractors have to know all criteria necessary to ascertain their capabilities and performance before awarded the contract. Three distinct and challenged projects in relation to subcontracting were considered for the study. The projects were grouped into three different cases which served the platform for investigations based on an-depth interview with construction professionals and reviews of project documents in relation to subcontracting procurement processes. The results of the study proposes a web-based subcontracting pre-qualification and evaluation system by which subcontractors can be evaluated based on combine criteria. It enables coordination and effective processing of information including the selection of best possible criteria, management of knowledge to facilitate collaboration, speed up the selection process and gain time and cost savings during the procurement process. Furthermore, the results provide the need for strategic formulation into new geographical area in order to create competitive advantages between subcontractors.

Description

Supervisor

Artto, Karlos

Thesis advisor

Mäntysalo, Timo

Keywords

pre-qualification, selection, subcontractor, criteria, evaluation, procurement, service

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