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Analytical Hierarchical Process 2017 Assignment on Construction Management Contents
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Added on 2019-11-26
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In the research paper, we are focusing on the methodology of selecting the contractor for completing the project activities according to the objective criteria used in the construction field. The AHP methodology is used on the basis of the contractor choosing the project activities according to the objective criteria used in the construction field. In the research paper, we are focusing on the methodology of selecting the contractor for completing the project activities according to the objective criteria used in the construction field.
Analytical Hierarchical Process 2017 Assignment on Construction Management Contents
Added on 2019-11-26
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2017Assignment on construction managementAssignment on construction management
Analytical Hierarchical processContents1.Introduction:........................................................................................................................2Research Aim:........................................................................................................................3Research objective:.................................................................................................................3Problem Statement..................................................................................................................3Background.............................................................................................................................42.Literature Review:..............................................................................................................6Impact of selection procedure undertaken for the contractor on the performance of the project:..................................................................................................................................123.Research methodology:.....................................................................................................14Application of AHP on the Hypothetical case.....................................................................174.Results and findings:.........................................................................................................275.Conclusion and Recommendation:...................................................................................386.References:........................................................................................................................391
Analytical Hierarchical processTitle: Application of the AHP in prequalifying contractors to deliver construction project1.Introduction:The successful construction of the project depends on the expertize contractor for completing the activities. The competitive advantage can be gained with the effective selection of the contractors which helps in bringing proficiency in the developed projects. The failure of the construction project is due to the unawareness of the risks associated with the project activities. The good quality construction output can be achieved with the implementation of the selection criteria for contractor to complete the construction project undertaken. It has been seen that the selection criteria is mostly based on the lowest bid encountered by the contractor but this affect the quality of the construction project in meeting the requirement proposed by the user. The Alternative hierarchical process is the methodology which works best in selecting the contractor for providing good quality outcome. This system designed the alternative action plan for encouraging the decision making quality of the project manager by providing relevant information about the different contractors to him in the synchronized manner. The effectiveness of the AHP methodology can be improved by setting the relative priorities to the techniques used. The aim of this methodology is the quantification of the priorities for setting the ratio scale to enhance the decision making capabilities of the project manager. The systematic arrangement of the tangible and intangible components associated with the project helps in taking the right decision for the betterment of the construction project. The comparison in the contractors helps in identifying the criteria which helps in selecting the best suitable contractor for undertaking the construction activities within the baseline of the project (Lin, 2004). The development of the multiple decision criteria helps in resolving the issues associated with the complexity of the project. The AHP methodology helps in resolving the prequalification problem associated with the criteria used for selection of the contractor. The hierarchical structure is prepared for resolving the issues associated with the overall complexity of the project. The sub-criteria are developed of the decision making criteria undertaken for selecting the best contractor for the effectiveness of the work. The judgement process can be easily enhanced with the delivery of relevant information about the selected contractor which are taken in the study. The setting of the priority is the major step of the AHP methodology which helps in development of the comparison matrix for predicting the highest value provided to the contractor (Nikolic, 2015). The pairwise methodology helps in clear demonstration of the facts and figures associated with the 2
Analytical Hierarchical processworking culture of the contractor. The non-linear approach should be undertaken for resolving the proportionality and changes associate with the relationship between the elements chosen for preparing research study of the contractor (Pandit, 2012). The project can be effectively completed with the efficient and expert contractor chosen for completing the construction activities to give the desired output as asked by the consumer in their requirement specification plan. The AHP methodology is useful for the project manager to take accurate decision in selecting the right contractor for continuing the project activities. The facts and figures of different contractors are collected for developing the comparison table to make easy selection of the contractor. The data collected about the contractor in the sector of past performance measurement, bidding, experience in the field of contract, efficientutilization of the resources from the past history, distribution of the work load among the participating units, and safety procedures utilized for completing the construction activities ofthe project to deliver the quality outcome to the user. In this paper we are going to focus on the application of the AHP methodology in the selection of the contractor. Research Aim: The aim of the research is to focus on the criteria for selecting the contractor to carry out the related construction activities by using the methodology of Analytical hierarchy process.Research objective:The purpose of this paper is to present clear perspective view of Analytical hierarchy process and how it is used in the construction field. We are going to focus on the procedure used for implementing the AHP method and how it is conveniently used for setting the criteria for prequalification and associated priority. The objective of the paper is to suggest use of AHP methodology in different areas of construction field. Problem StatementThe final selection of the contractor is the difficult job for the project manager for the smoothflowing of the construction activities. The prequalification model helps in reviewing the existing practices undertaken for making the selection on the basis of hierarchical process. The AHP process is used for resolving the tender price and quality of the selected contractor. The research is focusing on the AHP methodology for taking the decision to improve the existing condition of the construction project. 3
Analytical Hierarchical processBackgroundIn the previous work, we have analysed the advantage of using AHP methodology in developing the selection criteria for the contractor to plan the activities according to the requirement of the construction project. The decision making issues and challenges can be resolved with the use of AHP model for making right choice of the contractor for successfully completing the project. The scaling tools are used for managing the priority to the qualified level of the contractor. The significance of the AHP process is to provide structuring to the decision making process undertaken by the project manager. The criteria should be developed for comparing the excellence of the contractor associated with the working process of the construction project. The criteria which should be followed for managing the hierarchy structure is based on financial capability, performance of the past history, contractor past experience portfolio, resources and material required by the contractor, management and distribution of the workload, and safety procedure used for the development of performance. The high quality of the project construction outcome can be achieved for fetching the goal of the project. The job of constructing the project should be given in the right hand for completing the project with efficiency. The investigation and the assessment are the basic techniques which are used for management of the prequalification criteria. The examination of the processes helps in examining the performance of the supplier. The suitability and the sustainability are the pillar of the selection procedure undertaken for making the choice of the contractor. The tender is the basic platform for knowing the position of the contractor. The capability of managing the resource is prior important for the performance mesasurement of the contractor. The use of equipment helps indetermining the flow of construction activities to provide desired output to the customers. The tender should be filled by the approved contractor for the bidding process. The decision making process for selecting the right contractor according to the requirement of the construction project is depends upon the analysis of the multiple option available for definingthe activities. Problem statement: The project manager should be clear about the requirement of the undertaken project by analysing the requirement specification plan specified by the stakeholders. The objective should be clearly defined to the project manager for the selection of the contractor. The problem statement should be defined in brief to take the clear advantage of the previous work done. The selection of the contractor depends on the development of the action plan. 4
Analytical Hierarchical processData collection: The relevant information about the contractor should be collected on the basis of criteria set for the effective selection of the contractor. The analysis of theresearch result and the data collected should be done accurately. The selection of the contractor is depends upon the information associated with the working procedure andmethodologies used in carrying over the construction activities. The areas which should be covered for managing the relevant information associated with the work done, position of the job criteria, previous work done by the contractor, and assessment of the interview. Planning of the alternatives: The alternatives are the basic need for determining the efficiency of the construction project. The project manager should take active decisionin providing the better alternatives in the emergency situation. The hierarchy of the decision is based on the coordination between the working activities. The differentiation helps in maintaining the hypothesized relationship between the participating units. The criteria and sub-criteria are used for selecting the right choice for the working construction project. Weightage associated with the alternative processes: The list of alternatives should be create for assigning the weightage to the alternatives for determining the efficiency of the project processes. The pair wise comparison matrix is used for determining the importance of the contractor by taking criteria and sub-criteria under consideration. Selection of the best alternative: The best candidate should be selected for completingthe construction project which is equipped with the high quality tools and technologies expertize workers and labours, availability of good quality material and resources, management of services provided, adequate of funds associated with the completion of the construction project, and others. The consistency of the alternatives can be determined with the calculation of the consistency ratio, calculation of the eigen vector, and determining the consistency index.Solution and selection: The selection of the contractor is associated with the signing of the contract for completing the required project within the approved baseline and cost. The milestone of the project should be made clearly specified in the contract.Monitoring of the progress: The laying down of the construction activities should be monitored periodically for determining the connectivity between the construction activities, availability of resources, and the completion of activities according to the requirement specified in the action plan. 5
Analytical Hierarchical processReviewing of the planning activities: The activities should be changed according to the changing demand of the customer to provide good quality product at the end of the construction activities. The intermediate results should be reviewed periodically for the measurement of the direction in achieving the desired result according to the demand placed by the stakeholder. 2.Literature Review:The process of AHP plays a vital role in the selection procedure used for determining the criteria used for making choice of the appropriate contractor. The development of the analytical hierarchy depends on the data collected through the process of questionnaire and survey. The use of multi attribute value is used in the AHP methodology is used for maintaining the multi criteria alternatives for resolving the complexity of the enterprise (Harbi, 1998). From the research we have analysed that the following steps are followed in the deployment of the AHP methodology for setting the criteria for supplier selection. The first step focuses on the determining the goal of the construction projectThe hierarchy should be developed for maintaining the intermediate result for generating the alternatives for achieving the goal of setting selection criteria. The comparison matrix should be prepared for maintaining the measurement of the relative measurement of the scale (Jiya, 2012).The set of matrix helps in enhancing the decision making capability of the project manager to take an effective decision for selecting the right contractor according to the requirement of the construction project (Vidal, 2013). The weight is allocated to the hierarchical synthesis table for lower down the sum of the criteria.The consistency should be maintained for managing the matrix for pair wise comparison table. The consistency of the judgement helps in checking consistency ratio for the whole scenario (Balubaid, 2015). The reviewing of the processes helps in managing the judgement of the comparison matrix. The following table shows the numerical rating of the AHP preferences used in the development of the pair wise comparison matrix.6
Analytical Hierarchical processNumerical ratingPreference related to the verbal judgement9Mostly preferred8It is in between to very strongly and extremely7Preferred very strongly6It is in between strongly and very strongly5It is mostly preferred strongly4It is in between moderate and strongly3It is moderately preferred2It is in between equally and moderately1It is equally preferredThe manual implementation of the step followed in the AHP process helps in generating numerous alternatives in the benefit of the construction project for selecting the contractor (Tiwari, 2014). The capability of the judgement of the group members helps creating the value chain of hierarchy for enhancing the quality of decision for the betterment of the construction activities (Fong, 2000). The issues associated with the complexity of the processes can be effectively developed for managing chaos in the working structure of the project. The decision of the organization depends on the communication platform undertaken for taking the effective and efficient judgement (Brown, 2008). The strategies should be used for enabling the decision making capabilities for influencing the processes used for determining the pre-qualification of the contractors. The following table shows the criteria and sub-criteria used for analysing the prequalification for the setting the selection proceduresfor the contractor:Activities for pre-qualificationSub-activitiesDescriptionFinancial situation of the contractorFinancial statementFinancial rating of the contractor by utilizing the past historyTurnover of the companyCalculation of the leveraging ratioCalculation of the profitability ratioIt helps in analysing the financial stability of the participating contractor so that the construction activities can be performed efficiently. Ability of managing Organization of activitiesIt focuses on the contractor 7
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