Risk-based tender evaluation using multicriteria decision analysis in Trinidad and Tobago

The construction industry in Trinidad and Tobago has been faced with several challenges in procurement – that is, the perceived and actual lack of transparency and accountability in the tendering processes – leading to projects with cost overruns, time overruns and/or defects relating to quality. This paper attempts to add to the existing knowledge base in one area of the procurement process: improving the efficiency of tender evaluations. This research was undertaken to develop an additional method for executing tender evaluations based on risk by using multicriteria decision analysis. The main objective was to design a rapid and user-friendly tender evaluation tool in order to estimate the risks, final price and final duration prior to the award of contract. The achievement of this objective would permit a client to plan, budget and mitigate their risk prior to the award of contract. This is deemed beneficial to the industry in overcoming the challenges of procurement in Trinidad and Tobago.