Hybrid fuzzy MADM project-selection model for diversified construction companies

Abstract

Projects are the life blood of construction companies. Appropriate project selection is a crucial multicriteria decision that influences the future of such organizations. This paper presents a construction project-selection model that notes the influences of the current projects of a company or what is called the portfolio effect. The model applies a multistage fuzzy multi-attribute decision making (MADM) method to determine whether one should offer or not offer a tender. The final output of the model is the decision to be made about selecting a project for bidding considering three probable policies: (1) diversification, (2) concentration, or (3) neutral policy. The model has been applied in a case study. Practitioners perceived the model as a useful tool for their project-selection decisions. The results of a statistical experiment indicate significant results in accordance with the model’s comprehensiveness, applicability, reliability, and user-friendliness.