Abstract
For managers and decision-makers, selecting the contractor is a key decision given this fact that the contractor plays a fundamental role in any outsourced project. So, identifying and evaluating the contractors selection criteria will result in eliminating inefficient contractors from the tender process. It is needed to collect and process these criteria in order to maximize the performance of selected contractors, and to minimize the errors and mistakes in fulfilling the society needs and organization standards. Obviously, many quantitative and qualitative indicators of different importance are involved in determining the contractors' eligibility. In this paper, we are to identify the factors affecting the selection of contractors, and then, to determine the importance levels of the factors and prioritize the contractors by combining the multi-criteria methods of fuzzy AHP and fuzzy PROMETHEE. This is the first time to implement this hybrid method for solving the contractor selection problem. In this regard, first, the criteria are identified and their weights are calculated using the fuzzy AHP technique, then premier contractor is selected using the fuzzy PROMETHEE method. A real application to select finance projects' contractor in the Water and Wastewater Company of Mashhad city is considered as the base problem.
Highlights
Problem Statement Given the high cost of wastewater collection systems and the key role of these facilities in providing services for citizens and protecting the environment, the appropriate selection of an organ for creating and implementing the wastewater collection systems plays a fundamental role in doing further and faster projects throughout the country
The stages for identifying and evaluating the indices affecting the selection of contractors for finance projects of Mashhad Water and Wastewater Company and evaluating the contractors using the hybrid method of Fuzzy AHP and Fuzzy PROMETHEE is summarized in the following flowchart: In decision-making that is associated with selecting a single solution amongst the available solutions and/or prioritizing the solutions, multiattribute decision-making methods are more considered in recent years
Computational Results In this paper, we are to answer these three fundamental questions: “what are the affecting qualitative and quantitative criteria for investigating the contractors’ competency of finance projects?” and “how important are these indices for evaluating and selecting the appropriate contractor?” since the evaluating criteria of each system are different depending on its objectives, desired tasks, affecting factors, and type of costs, the following steps were made in order to identify the affecting factors of selecting the contractors
Summary
Problem Statement Given the high cost of wastewater collection systems and the key role of these facilities in providing services for citizens and protecting the environment, the appropriate selection of an organ for creating and implementing the wastewater collection systems plays a fundamental role in doing further and faster projects throughout the country. The proposed AHP model of (Fong and Choi, 2000) divides the process of contractor selection into two stages: pre-evaluation and final selection Since their proposed hierarchy consists of 15 criteria, at least 540 (36*15) judges should be made if the number of tenders is nine. Based on the applied and empirical methods of contractor selection implemented by the managers of public projects in different countries, (Palaneeswaran and Kumaranwamy, 2001) developed a model for pre-evaluating the contractors consisting three types of criteria: accountability, responsibility, and competency. (Anagnostopoulos, 2004) proposed an AHP method for selecting the contractor in an open tender in which the contractors are evaluated using a 7-points scoring scale (not acceptable, very weak, weak, moderate, good, very good, and excellent) and the competent contractor is selected This scale dramatically reduces the number of paired comparisons, does not guarantee the neutrality of judges
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