Decision model for a construction contractor to develop or buy a cost control software

Abstract

Construction contractors are increasingly using computer data processing on their projects. The practice of purchasing or leasing software and the alternative of in-house development of suitable software exists concurrently among construction contractors. Adequate attention is not given to the selection of the most beneficial mode for acquiring software. This project develops a systematic decision approach to select the mode of software acquisition. -- This systematic decision approach delineates the controllable variables and the states of nature. Relative weightage is assigned to the variables, and importance rating is assigned to the states of nature. From the outcomes of the interactions between controllable variables and the states of nature, the expected value of each alternative is determined, and the one with maximum expected value is selected. This gives the most economical acquisition mode of software required by a construction contractor. -- The decision process can be ·used either as a rigorous methodology or to improve the quality of intuitive decisions by ensuring that all the variables are given due consideration.