Research Article

Naïve Bayesian Classifier for Selecting Good/Bad Projects during the Early Stage of International Construction Bidding Decisions

Table 1

Risk attributes affecting project profitability.

CategoryRisk codeRisk attributeCronbach’s value

Political and social risksR1High degree of corruption, collusion, and illegal transaction 0.787
R2Lack of familiarity with local cultures, customs, and traditions
R3Frequent policy and postlegislative changes
R4Insufficient legal system

Economic and inflation risksR5High material unit price volatility0.735
R6High equipment unit price volatility
R7High local currency exchange rate volatility

Owner risksR8Unsatisfactory owner management capabilities 0.869
R9Insufficient design information from the owner
R10Lacking specifications and bidding documents provided by the owner
R11Approval and permission delays on documentation and construction
R12Illegal requirements without contracts

Bidding and contract risksR13Insufficient time for bidding and construction quotation preparation 0.834
R14Inadequate consideration of variations in contract duration
R15High-level local content requirements
R16Complex tax and tariff regulations
R17Low-level inflation compensation conditions
R18Inadequate warranty-related conditions
R19Inadequate payment regulations relative to international contracts
R20Ineffective dispute resolution procedures and regulations

Procurement risksR21Inadequate local labor supplies and procurement conditions 0.905
R22Inadequate local labor supplies and demand conditions
R23Inadequate material production supplies and procurement conditions
R24Inadequate material production supplies and demand conditions
R25Inadequate material production from third-world-country supplies and demand conditions
R26Inadequate equipment from local country supplies and procurement conditions
R27Inadequate local equipment supply procurement and demand conditions
R28Inadequate local subcontractor procurement conditions

Geographic risksR29Inadequate geographical conditions of materials and equipment delivery 0.853
R30Inadequate logistical conditions (i.e., electricity, water, gas, and communication)
R31Inadequate business environment and welfare conditions
R32Inadequate weather conditions for construction
R33Inadequate geological site conditions
R34Severe complaints regarding construction throughout project implementation

Construction performance risksR35Lacking design experience 0.917
R36Lacking bid estimation experience
R37Unsatisfactory cash flow management capabilities
R38Unsatisfactory site manager leadership and organization management capabilities
R39Unsatisfactory site manager experience relative to similar construction projects
R40Unsatisfactory international project planning and management capabilities
R41Unsatisfactory quality management capabilities
R42Unsatisfactory resource management capabilities
R43Unsatisfactory conflict management capabilities
R44Unsatisfactory contract management capabilities
R45Lacking connectivity between sites and headquarters
R46Unsatisfactory localization
R47Lacking trust between project participants
R48Poor communication between project participants
R49Poor project management capabilities based on IT
R50Inadequate construction methods for the specific project
R51Insufficient subcontractor project performance