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Application of the Analytical Hierarchy Process (AHP) to Multi-Criteria Analysis for Contractor Selection

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DOI: 10.4236/ajibm.2015.59058    3,686 Downloads   5,329 Views   Citations

ABSTRACT

One of the key activities of any client is contractor selection. Without a suitable and precise method for selecting the best contractor, the completion of a project will likely be affected. In this study, we examine the use of the analytical hierarchy process (AHP) as a decision-support model for contractor selection. This model can assist project management teams in identifying contractors who are most likely to deliver satisfactory outcomes in a selection process that is not based simply on the lowest bid. In this study, an AHP-based model is tested using a hypothetical scenario in which candidate contractors are evaluated. Six criteria for the primary objective are evaluated. The criteria used for contractor selection in the model are identified, and the significance of each criterion is determined using a questionnaire. Comparisons are made by ranking the aggregate score of each candidate based on each criterion, and the candidate with the highest score is deemed the best. This study contributes to the construction sector in two ways: first, it extends the understanding of selection criteria to include degrees of importance, and second, it implements a multi-criteria AHP approach, which is a new method for analyzing and selecting the best contractor.

Conflicts of Interest

The authors declare no conflicts of interest.

Cite this paper

Balubaid, M. and Alamoudi, R. (2015) Application of the Analytical Hierarchy Process (AHP) to Multi-Criteria Analysis for Contractor Selection. American Journal of Industrial and Business Management, 5, 581-589. doi: 10.4236/ajibm.2015.59058.

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