An AHP-Evaluation Models for Ranking Construction Tenders Using Simulation: A Case Study in Kurdistan Region of Iraq

Abstract

In ranking decision alternatives, Analytic Hierarchy Process is regarded as one of themost successful techniques to deal with multiple criteria decision making problems.Recognizing that tender evaluation is a typical multi-criteria decision making problem,this paper introduces an evaluation approach based on AHP methodology for rankingvarious alternative options, each represents a construction project the tender, and thenselecting the best one. The proposed model can guide decision makers in constructionindustry identify contractors with the best potential to deliver satisfactory outcomes in afinal process of tender selection in Kurdistan Region of Iraq. Moreover, in order toreduce the inherent uncertainty within the AHP, which may significantly affect thedecision process, a new methodology is proposed by using simulation. This model istested by a hypothetical scenario where six tenders are evaluated and then, the bestcandidate is selected. Furthermore, the criteria used for the tender selection in the modeland the significance of each criterion had been arrived at by conducting the first surveystudy for public and private organizations in Kurdistan Region of Iraq.