A MADM based decision support system for international contractor rating

Abstract

Due to the improvements in communication technology, and aspiration for higher profit, in recent years construction companies tend to undertake contracts in international markets. However, there are many risks involved in international construction projects which differ from country to country which might influence the go/no-go decision of the contractors. Not only do the host country conditions play an important role, but also the capabilities and the resources of a company affect this decision process. In this paper, a spreadsheet-based decision support tool which makes use of MADM (Multiple Attribute Decision Making) is developed to rate the countries considering the risks and opportunities offered by these countries which also makes it possible for the decision makers to enter their own criteria using the spreadsheet template. Using different sources, and based on the questionnaires obtained from 21 Turkish decision makers, the possible criteria are determined. The Decision Making Trial and Evaluation Laboratory (DEMATEL) and Analytic Network Process (ANP) methods have been combined to rate the countries under consideration. The system is easy to use and can serve as a practical guiding framework for international contractors to evaluate countries under different criteria.