Evaluating Contractor Selection Using the Analytical Hierarchy Process

This report explores the application of the Analytical Hierarchy Process (AHP) as a decision-making model for contractor selection in construction projects. It begins with an introduction highlighting the importance of selecting the right contractor. The literature review discusses the AHP method, developed by Saaty, as a tool for measuring priorities based on a scaling form and the significance of intuitive judgment and consistency. The report outlines six criteria for contractor selection: financial capacity, past performance, experience, resources, workload, and safety performance. The conclusion emphasizes the importance of a multi-criteria selection process to ensure projects are completed on time, within budget, and with high quality, avoiding risks associated with less capable contractors. The report references key studies on the AHP method and its applications in project management.

RUNNING HEAD: AHP 1
ANALYTICAL HIERARCHY PROCESS
Student Name
Institute Name

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Contents
Introduction......................................................................................................................................3
Literature review..............................................................................................................................3
Conclusion.......................................................................................................................................4
Reference.........................................................................................................................................5

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Introduction
One of the most important functions of any customer is based on selection of contractor while
constructing the building. It goes without saying that right method to focus on the best man in the
industry will impact the finish line of the project (Al-Harbi, 2001). The study will help in
evaluating the usage of the concept called Analytical hierarchy process also called as AHP as
main decision making model for selection of contractor.
Literature review
The selection of contractor as per many authors is based on so many categories of decision
making issues. There are number of models along with utility based theory and performance
modeling that has been developed for the qualification of contractor or selection in the end. The
model of AHP can be defined as decision making method that was primarily developed by the
author called Saaty. The tool measures the qualified level of priorities of present set of option.
This is measured on a particular scaling form which relies on the judgment who will take
decision (Aminbakhsh et al, 2013). The process basically focuses on the significance of the
present intuitive systems of judgment of the person who takes decision and high level of
consistency. This is mainly related to the decisions that are made with respect to the other
methods and the procedures (Al-Harbi, 2001). The overall approach of AHP is becoming popular
mainly because of the simple structure and effective executions steps. The AHP technique has
been to focus on the qualifications with the contractors that are for determining the different
details of the project, as a whole. Following are six criteria to choose the structure of hierarchy: -
1. Capacity in terms of finances

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2. Past performance
3. Past experience of contractor
4. Resources used by contractor
5. Present workload
6. Safety based performance
All such kind of criteria can be tested with a goal which is based on selecting the most qualified
and capable contractor for the contract.
Conclusion
The so many criteria based selection procedure that can be executed in project management and
can be selected as the best contractor to accomplish the project goals. The selection of
contractors is challenging job for making sure that the project is finished within target time and
budget and also constructed with high level of quality (Aragonés-Beltrán et al, 2014). The focus
is on handling the different selections which are multi-criteria. Through this, the recognition
process is based on the different sets of alternatives that are able to work on the methods of
assessment with certain selection based goals. The selection of right person for the project is
highly advantageous and further avoids many types of risks that can be faced when a less capable
contractor was awarded with the work.

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Reference
Aminbakhsh, S., Gunduz, M., & Sonmez, R. (2013). Safety risk assessment using analytic
hierarchy process (AHP) during planning and budgeting of construction projects. Journal
of safety research, 46, 99-105.
Aragonés-Beltrán, P., Chaparro-González, F., Pastor-Ferrando, J. P., & Pla-Rubio, A. (2014). An
AHP (Analytic Hierarchy Process)/ANP (Analytic Network Process)-based multi-criteria
decision approach for the selection of solar-thermal power plant investment
projects. Energy, 66, 222-238.
Al-Harbi, K. M. A. S. (2001). Application of the AHP in project management. International
journal of project management, 19(1), 19-27.
Ranasinghe, G., & Warusavitharana, E. (2011). Application of Analytic Hierarchy Process
(AHP) in prequalifying contractors in decision making.