Analytical Hierarchy Process Model for Selecting Road Contractors: A Case of Ethiopian Roads Administration

Abstract

In the construction industry, the successful completion of a project mainly depends on the performance and capability of the contractor. It is therefore understood that the success of a project may be compromised without an appropriate and reliable process for identifying the most suitable contractor. Commonly, many organizations select contractors primarily on the lowest bid offer, as it is simple and emphasizes cost efficiency. However, this approach often undermines other important factors. Hence, incorporating a multi criteria decision making approach ensures a more balanced evaluation that considers both bid price and other key criteria. This study explores the application of the Analytical Hierarchy Process as a decision-making model for contractor’s selection. A combination of descriptive and case study research design was employed to identify and prioritize the contractor selection criteria. An extensive literature review identified 23 contractor selection criteria, which were categorized into four main groups. A structured questionnaire was then used to collect primary data based on these criteria. Once the data is gathered, the criteria are ranked in order of significance and prioritized for use in the analytical hierarchy process model. The analysis revealed that past performance competency had the highest weight (38.56%) with a consistency ratio of 0.088, followed by technical competency (24.16%) and financial competency (20.42%). Management competency ranked lowest at 16.84%, with a consistency ratio of 0.0529. In summary,the proposed model enhances the contractor selection process by integrating multiple key competencies to evaluate contractors across broader criteria.