A multi‐criteria approach to contractor selection

Abstract

This paper describes a multiple‐criteria decision support system (MCDSS) for the selection of the most appropriate contractor. The system can accommodate the unique characteristics of a project in addition to the qualifications and capabilities of those contractors assessed. The system first evaluates the list of contractors by matching their qualifications with specific project conditions. A short list of eligible contractors is thus selected and further the MCDSS compares the current capabilities of the short listed contractors and their plans for the project under consideration, to select the most appropriate contractor. The Delphi method was used to evoke expertise and obtain reliable assessment values for all criteria related to the contractor qualification, while the analytic hierarchy process (AHP) was used to assess the specific project conditions. The system can be easily modified to adopt specific conditions of the proposed project and also to facilitate the decision maker in explaining the reasons for the elimination of excluded contractor.