Modelling the influence of periodic prequalification criteria on project performance

The process of contractor selection, such as contractor prequalification, is an important part of a project procurement life cycle in order to reduce risks from irresponsible or incompetent contractors and find appropriate and responsible contractors that can perform project tasks to the expected project performance requirements and client satisfaction. Periodic prequalification, a type of prequalification system, is commonly used to assess contractors' competence in the construction industry in order to develop a standing list of contractors relevant for a certain periodic time frame including a certain project size, range and type, which can be used by a client for short listing or invitation to bid. In order to investigate the relationship between periodic prequalification criteria and project performance, a literature review and two questionnaire surveys in the UK construction industry, followed by statistical analyses, were undertaken. The first stage is to identify the characteristics of periodic and project prequalification in order to develop appropriate periodic prequalification criteria for the next stage of the identification of periodic prequalification factors influencing project performance. Data obtained from the first questionnaire survey were obtained from client firms/organisations and construction firms in the UK construction industry, while the second survey elicited data from UK local authorities. Through the application of Factor Analysis and Logistic Regression techniques, it was found that the past experience factor in relation to contractual experience with similar project value and type, as well business age, and the managerial and technical strength factor in respect of subcontractor relationships and competence, and also training schemes, are the periodic prequalification factors, along with sources of variation factor, namely, client and neither party factors, which may influence project time performance. In this case, additional work/cost due to unforeseen circumstances and changes with regards to design, contract or specification are causal factors of variation with regards to the client factor, while unforeseen circumstances and inclement weather are sources of variation factors under the neither party category. Moreover, client satisfaction is influenced by both past experience and client factors as a source of time variation.