A novel approach towards decision-making in the valuation of variations

The valuations of variations in construction projects are prone to conflicts and disputes. This research is focused on eliminating or at least minimising the conflicts and disputes by developing a robust mechanism for valuing variations. Previous research has identified one particular process as the source of disagreement in the valuation of variations. This being whether the varied works have similar work characteristics and/or are executed under similar conditions to the ones listed in the bill of quantities. Since this determines the valuation method to be applied, it is very important to develop a decision-making mechanism that represents fairness to both employers and contractors. However as this decision-making is highly dependent on the subjectivity of the decision-makers, a tool is needed to help make this process more objective. The proposed decision-making mechanism intends to extract the knowledge from the decision-makers and utilises basic principles of fuzzy logic. Uncertainties in the interpretation of the expressed rules in the contract by the decision-makers are accommodated in the system to derive a decision as to which valuation method should be applied. A questionnaire has been developed to extract the knowledge and subjectivities from experts in order to develop the fuzzy sets and to model the decision making process.