Subcontractor Selection Using the Integration of the Ahp and Promrthee Methods

Abstract

Abstract. On many construction projects, especially building projects, 80-90% of the tasks are performed by subcontractors. Since the success of the project highly depends on the performances of the subcontractors, selecting the right subcontractor for the right job is critical. Main contractors generally tend to select the subcontractors that offer the lowest bid price. However, working with unqualified and insufficiently financed subcontractors may result in inefficiencies and failures. Thus, a combination of several compromising and conflicting criteria underpinning financial capacity and competencies of the subcontractors should be considered during the subcontractor selection process. This paper proposes an integrated decision approach, which employs analytic hierarchy process (AHP) and preference ranking organization method for enrichment evaluations (PROMETHEE) together, for the subcontractor selection problem. In the proposed approach, AHP is used to analyze the structure of the subcontractor selection problem and to determine the weights of the criteria, and PROMETHEE is employed to obtain complete ranking and perform sensitivity analysis by changing the weights of criteria. The proposed approach is applied to a problem of selecting the most appropriate subcontractor to be worked with in an international construction project. Company management found the proposed decision approach satisfactory and implementable in future subcontractor selection problems.

Criteria Evaluation for Contractor Selection in Cultural Heritage Projects Using Multiple Criteria Approach

“…AHP approach (Martin, Koyloss, & Welch, 2018;Assaf, Hassanain, Hadidi, & Amman, 2017;Chiang, Yu, & Luarn, 2017;Hadidi & Khater, 2015;Fong & Choi, 2000) was presented for contractor, sub-contractor and supplier selection. Some researchers have suggested AHP method integrated with other multi-criteria decision-making approaches: AHP and ANP (Sarkis, Meade, & Presley, 2012), AHP and PROMETHEE (Polat, 2016), AHP and Fuzzy AHP technique (Plebankiewicz & Kubek, 2016), AHP and Zero one integer linear programming (Rajaprasad, 2018), and AHP and Value Engineering Technique (Aboelmagd, 2018).…”

“…Considering the lowest price is as the singular reward criterion may lead to an unqualified, inexperienced, insufficient, incompetent contractor selection (Polat, 2016).…”

“…Presently, researchers have determined the contractor selection criteria. The most common criteria presented in the studies are financial soundness (Fong & Choi, 2000;Polat, 2016;Gao, 2018;(Vahdami, Meysam Mousavi, Hashemi, Mousakhami, & Tavakkoli-Moghaddam, 2013), technical capability (Niento-Morote & Ruz-Vila, 2012;Zavadskas et al, 2015;Zhang et al, 2018;Vahdami et al, 2013), management ability (Niento-Morote & Ruz-Vila, 2012; Chiang et al, 2017;Kaklauskas et al, 2006), health and safety (Chiang et al, 2017;Taylan et al, 2018;Gao, 2018;Holt, 1998) and reputation (Kaklauskas et al, 2006;Keung & Yiu, 2015;Enshassi, Mohamed, & Modough, 2013;Darvish, Yasaei, & Saeedi, 2009). Furthermore, along these criteria was proposed additional criteria, namely, previous performance (Hadidi & Khater, 2015;Cheng & Li, 2004;Ulubeyli & Kazaz, 2016), quality (Martin et al, 2018;Marzouk, El Kherbawy, & Khalifa, 2013;Juan, Perng, Castro-Lacouture, & Lu, 2009); and experience (Yang, H. Wang, W. Wang, & Ma, 2016;Topcu, 2004).…”

A model of discrete zero-sum two-person matrix games with grey numbers to solve dispute resolution problems in construction

“…In this research, Analytic Hierarchy Process (AHP) (Saaty 1980) has been used for this purpose. It is a widely used method for criteria weighting not only used in construction projects (Lee 2015;Nguyen et al 2015;Plebankiewicz, Kubek 2015;Polat 2015;Wang et al 2016), but also in other branches. It is an easily implemented method that can detect and even unite the inconsistent data assessed by different experts (Wang et al 2016).…”

A Dynamic Fuzzy Approach Based on the EDAS Method for Multi-Criteria Subcontractor Evaluation

“…In many construction projects, the main contractor has usually the role of project coordinator, and a high percentage of work is done by subcontractors [1,2]. The completion time of a construction project (project delivery) and the reputation of the main contractor are heavily dependent on cooperation between a subcontractor and its main contractor [3].…”