Solution Proposals based on Fuzzy AHP-TOPSIS Hybrid Model to the Problems in Public Works Procurement in Turkey

Abstract

In the transition from price-based bid evaluation to multi-criteria bid evaluation process in public procurements pioneered by academic research, the aim is to ensure the delivery of the project at the desired quality without exceeding the time and budget of the contract process. In the tenders made according to the Public Procurement Law (PPL), while the lowest price principle was used in the bid evaluation stage, non-price elements began to be used in time. In this study, solutions to current problems such as the evaluation of extremely low bids in the tenders made within the scope of the law, the long duration of the bid evaluation process, and the high number of conflicts are proposed through the model created by Fuzzy AHP-TOPSIS methods.

Keywords

• Tender
• MCDM
• TOPSIS
• contractor selection

References

1. K. T. Cho, "Multicriteria decision methods: An attempt to evaluate and unify," Mathematical and Computer Modelling, vol. 37, no. 9-10, pp. 1099-1119, 2003.
2. E. W. L. Cheng and H. Li, "Contractor selection using the analytic network process," Construction Management and Economics, vol. 22, no. 10, pp. 1021-2032, 2004.
3. M. Marzouk, "An Application of ELECTRE III to Contractor Selection," in Construction Research Congress: Innovation for Reshaping Construction Practice, Banff, Alberta, Canada, 2010.
4. S. Lambropoulos, "The use of time and cost utility for construction contract award under European Union Legislation," Building and Environment, vol. 42, no. 1, pp. 452-463, 2007.
5. M. Araújo, L. H. Alencar and C. Mota, "Contractor Selection in Construction Industry: a Multicriteria Model," in 2015 IEEE International Conference on Industrial Engineering and Engineering Management (IEEM), Singapore, 2015.
6. D. Putra and P. Pratama, "Decision support system selection of tender winners project development building of STMIK STIKOM Indonesia with TOPSIS method," Journal of Physics: Conference Series, vol. 1469, pp. 12-26, 2020.
7. M.-Y. Cheng, S.-H. Yeh and W.-C. Chang, "Multi-Criteria Decision Making of Contractor Selection in Mass Rapid Transit Station Development Using Bayesian Fuzzy Prospect Model," Sustainability, vol. 12, no. 11, p. 4606, 2020.
8. İ. Özyürek, "An Alternative Method Proposal For Selection Of Contractor In Public Works Procurement," PhD Thesis, Graduate School of Natural and Applied Sciences, Gazi University, Ankara, 2018.

9. A. P. Gurgun and K. Koc, "Contractor prequalification for green buildings—evidence from Turkey," Engineering, Construction and Architectural Management, vol. 27, no. 6, pp. 1377-1400, 2020.
10. İ. ÖZYÜREK and M. ERDAL, "Assessment of Qualification Criteria Described in Public Procurement Law Code 4734 in Construction Works by Analytic Hierarchy Process (AHP)," Gazi University Journal of Science, vol. 31, no. 2, pp. 437-454, 2018.
11. H. a. Yoon, Multiple Objective Decision Making: Methods and Application, Berlin/Heidelberg/New-York: Springer Verlag, 1981.
12. M. Amiri-Aref, N. Javadian and M. Kazemi, "A new fuzzy positive and negative ideal solution for fuzzy TOPSIS," WSEAS Transactions on Circuits and Systems, vol. 11, no. 3, pp. 92-103, 2012.