Contractor Prequalification Using Support Vector Machines

Author's Department

Construction Engineering Department

Second Author's Department

Construction Engineering Department

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https://doi.org/10.1007/978-3-031-61499-6_19

All Authors

Salah Elgamal, Ossama Hosny

Document Type

Research Article

Publication Title

Lecture Notes in Civil Engineering

Publication Date

1-1-2025

doi

10.1007/978-3-031-61499-6_19

Abstract

Contractors frequently experience financial difficulties, which has a substantial negative impact on the economy and causes large disruptions and losses to project stakeholders. This paper demonstrates a method for predicting financial distress using support vector machines (SVM). The objective of this work is to increase the forecasting accuracy and examine how macroeconomic factors and financial ratios affect the financial status of the contractor. Eight financial ratios and six macroeconomic factors were chosen as the input variables to this model. Macroeconomic variables and financial ratios are both present in the first dataset, but financial ratios alone are present in the second dataset. Both datasets are compared to determine the significance of macroeconomic variables. In this work, three kernel SVM function techniques—linear, polynomial, and radial basis (RBF)—were employed on both datasets. In comparison with the other techniques, the linear kernel function generated the highest accuracy (87.27%). Additionally, the dataset that included macroeconomic factors and financial ratios produced improved performance measures in comparison with the dataset containing financial ratios only. As a result, this framework is a useful tool for forecasting the financial health of building companies.

First Page

251

Last Page

260

Comments

Conference Paper. Record derived from SCOPUS.

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