Business Management Dynamics

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ISSN: 2047-7031

bmd Business and Management Dynamics bmd
ISSN: 2047-7031  
Volume  5   Issue 4  2015  
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Article Abstract
A combined AHP-GP model for selecting and awarding design-build construction contracts
Keywords:  analytic hierarchy process; goal programming; design-build
Patrick Lin , Hamid Pourmohammadi * and Ahmad R. Sarfaraz
In public works or government construction contracting, as well as in private sector construction contracting, selection of a winning design for contract award in design-build contracts involves ranking and determining the design and contractor combination that yields the best value for the government. Currently, these decisions are made subjectively, where the contracting authority analyzes each received proposal in terms of price and technical design, while also attempting to incorporate harder-to-analyze factors such as a contractor's risk level through their history of past performance or other methods. Attempting to mentally combine all of these factors and produce an objective ranking is very challenging. This paper presents a mathematical model that combines the analytic hierarchy process (AHP) with goal programming (GP) to select the contractor whose proposal is truly the best value given the priorities of the project. The developed model is also flexible and is able to adapt to different project requirements.
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