Application of Multi-Criteria Decision Making in Tender Evaluation: A Study Using ANP Model

Abstract

In the construction industry, clits -especially in large projects- often use tendering as their preferred method for selecting contractors to carry out the work. In most cases, clients choose the lowest bid from the technically approved tenderers, while it is simple; most construction professionals do not recommend this approach. This study aims to identify, analyze, and rank the essential factors to be considered in tendering evaluation. This study was done through different stages that included a literate review, a questionnaire distributed to construction industry professionals, and the use of Analytical Network Process (ANP) as a ranking tool for the factors. After the analysis, it was found that thirty-one essential factors are crucial for the success and performance of construction projects. Finally, the analysis results from the ANP model have shown that financial factors are the most important between the three available categories. Additionally, the ANP rank has shown that some of the factors that are usually considered unimportant have more significance due to the interdependencies and the impact they have on other factors.