The general procedure in K-theory is to assign a K-theory spectrum to a stable (∞,1)-category .
In practice these stable -categories are usually presented by homotopical categories called Waldhausen categories.
The Waldhausen S-construction on a Waldhausen category produces a simplicial set equivalent to the K-theory spectrum (see below) of the simplicial localization of : it is a concrete algorithm for computing K-theory spectra.
Recall from the definition at K-theory that the K-theory spectrum of the (∞,1)-category is the diagonal simplicial set on the bisimplicial set of sequences of morphisms in and equivalences between these (the core of the Segal space induced by ).
The Waldhausen S-construction mimics precisely this: for a Waldhausen category for every integer define a simplicial set to be the nerve of the category whose
objects are sequences of Waldhausen cofibrations;
morphisms are collections of morphisms that commute with all diagrams in sight.
Then one finds that the realization of the bisimplicial set with respect to one variable is itself naturally a topological Waldhausen category. Therefore the above construction can be repeated to yield a sequence of topological categories . The corresponding sequence of thick topological realizations is a spectrum
this is the S-construction of the Waldhausen K-theory spectrum of .
(… roughly at least, need to polish this, see link below meanwhile…)
The Waldhausen S-construction is recalled for instance in section 1 of