CB-Contract: Case-Based Reasoning Approach to Construction Contract Strategy Formulation

Abstract

The formulation of an appropriate contract strategy is a fundamental yet critical aspect of contractual arrangement for a project. This paper presents a decision support system (DSS) prototype for contract strategy formulation using the case-based reasoning (CBR) approach. The prototype is called CB-Contract. An overview on the scope and formulation process of contract strategy is provided. Contract strategy is regarded as comprising four main substrategies: (1) work packaging; (2) functional grouping; (3) contract type; and (4) award method. The significance of CBR in contract strategy formulation is examined. The overall architecture of CB-Contract is discussed, with particular emphasis on its knowledge component. A case structure for case representation has been suggested taking into account the important factors that need to be considered while formulating a contract strategy, in particular project characteristics, client’s objectives, and client’s comparative advantages. Issues pertaining to case indexing and similarity calculation for efficient retrieval of similar cases are explored. An illustrative example to obtain similar cases for a given set of project information is presented. Case adaptation that considers the robustness of each substrategy, the compatibility of the substrategies, and the expected effectiveness of the contract strategy is also included in the illustrative example.