Subcontractors Selection of Building Construction Project Using Analytical Hierarchy Process (AHP) and Technique for Others Reference by Similarity (TOPSIS) Methods
Downloads
Objective: This research aims to identify the most important qualification criteria for selecting subcontractors in the construction supply chain.
Design/Methods/Approach: The criteria calculations were analyzed based on the Analytical Hierarchy Process (AHP) method applied to obtain the weight of the subcontractor selection criteria. The Technique for Order Preference by Similarity to the Ideal Solution (TOPSIS) method was used to evaluate the different subcontractors against 22 sub-criteria indicators. The research sample is the Project Manager and Commercial Manager, who are the decision-makers in selecting subcontractors.
Findings: Quality, Health, Safety, and Environment (HSE) and Price are the highest priority criteria for subcontractor selection, with the most influential sub-criteria being quality work specifications, tender prices, and having an HSE supervisor on the project.
Originality: Selection of the right Subcontractor is very important for the successful completion of the project and the continuity of the contractor's business as most of the construction project work is carried out by subcontractors. This research on subcontractor selection is to reduce errors in the selection of subcontractors in construction projects and to understand multi-criteria decision-making using the AHP and TOPSIS methods.
Adinyira, E., Agyekum, K., Danku, JC, Addison, P., & Kukah, AS (2020). Influence of Subcontractor Risk Management on Quality Performance of Building Construction Projects in Ghana. Journal of Construction in Developing Countries, 25(2), 175–197. https://doi.org/10.21315/jcdc2020.25.2.7
Aditya Dei, K., Dharmayanti, GAPC, & Jaya, NM (2017). Risk Analysis in Supply Chain Flow in Building Construction Projects in Bali. Spectra Journal, 5(1), 36–46. https://doi.org/10.24843/spektran.2017.v05.i01.p05
Akintan, OA, & Morledge, R. (2013). Improving the Collaboration between Main Contractors and Subcontractors within Traditional Construction Procurement. Journal of Construction Engineering, 2013, 1–11. https://doi.org/10.1155/2013/281236
Alitra. (2019). Risk Factors for Cost Impact Using the Analytic Hierarchy Process (AHP) Method on Pile Foundation Work. Mercu Buana University.
Arianie, GP, & Puspitasari, NB (2017). Project Management Planning in Improving the Efficiency and Effectiveness of Company Resources (Case Study: Qiscus Pte Ltd) Project Management Planning in Increasing the Efficiency and Effectiveness of Company Resources (Case Study: Qiscus Pte Ltd). J@ti Undip: Journal of Industrial Engineering, 12(3), 189.
Ayettey, DNA, & Danso, H. (2018). Contractor Selection Criteria in Ghanaian Construction Industry: Benefits and Challenges. Journal of Building Construction and Planning Research, 06(04), 278–297. https://doi.org/10.4236/jbcpr.2018.64019
Bakhtiarizadeh, E., Shahzad, W., & AUBEA, JR (2019). a Process Map for Supply Chain Relationships in Prefabricated Construction. Researchgate.Net, 2000, 112–123. https://www.researchgate.net/profile/Arezoo_Shirazi/publication/337811399_A_cost_benefit_analysis_of_retrofitting_public_policies_on_Atlanta_residential_housing/links/5e33c713458515072d710ada/A-cost-benefit-analysis-of-retrofitting-public-policies
Budiaji, W. (2013). The Measurement Scale and The Number of Responses in Likert Scale (The Measurement Scale and The Number of Responses in Likert Scale). Agricultural and Fisheries Sciences, 2(2), 127–133.
Chaharsooghi, SK, & Ashrafi, M. (2014). No fuzzy TOPSIS Method. International Scholarly Research Notices, 2014, 1–10.
Chakraborty, S., Chatterjee, P., & Das, PP (2019). A DoE–TOPSIS method-based meta-model for parametric optimization of non-traditional machining processes. Journal of Modeling in Management, 14(2), 430–455. https://doi.org/10.1108/JM2-08-2018-0110
Chen, P. (2021). Effects of the entropy weight on TOPSIS. Expert Systems with Applications, 168, 114186. https://doi.org/10.1016/j.eswa.2020.114186
de Oliveira, RAF, Lopes, J., & Abreu, MI (2021). Insights from a project procurement strategy through action research. Procedia Computer Science, 181(2019), 1002–1010. https://doi.org/10.1016/j.procs.2021.01.275
El-khalek, HA, Aziz, RF, & Morgan, ES (2019). Identification of construction subcontractor prequalification evaluation criteria and their impact on project success. Alexandria Engineering Journal, 58(1), 217–223. https://doi.org/10.1016/j.aej.2018.11.010
Fernando, E., & Siagian, P. (2021). Proposal to use the Analytic Hierarchy Process Method Evaluate Bank Credit Submissions. Procedia Computer Science, 179, 232–241. https://doi.org/10.1016/j.procs.2021.01.002
Hatmoko, JUD, & Kistiani, F. (2017). Material Supply Chain Risk Simulation Model for Building Construction Projects. Civil Engineering Communication Media, 23(1), 1. https://doi.org/10.14710/mkts.v23i1.14697
Hutabarat, R. (2019). Analysis of Vendor Selection for Procurement of Diesel Engine Parts (Yanmar & Cummins) Using the Analytica Hierarchy Process Method (Case Study: Asian Pulp and Paper). Mercu Buana University.
Ishak, A., & Parinduri, SK (2019). ( AHP ) AND TECHNIQUE FOR ORDER PREFERENCE BY SIMILARITY TO IDEAL SOLUTION ( TOPSIS ). 173(Icoemis), 321–328.
Kog, F., & Yemen, H. (2014). A meta classification and analysis of contractor selection and prequalification. Procedia Engineering, 85, 302–310. https://doi.org/10.1016/j.proeng.2014.10.555
Kristy, CN, & Zagloel, TY (2020). An Integrated Analytical Hierarchy Process and Monte Carlo Method Approach for Supplier Selection in Construction's Supply Chain. ACM International Conference Proceeding Series, 300–304. https://doi.org/10.1145/3400934.3400989
Kumar, Abhishek, Sah, B., Singh, AR, Deng, Y., He, X., Kumar, P., & Bansal, RC (2017). A review of multi-criteria decision making (MCDM) towards sustainable renewable energy development. Renewable and Sustainable Energy Reviews, 69(June 2016), 596–609. https://doi.org/10.1016/j.rser.2016.11.191
Kumar, Anil, Pal, A., Vohra, A., Gupta, S., Manchanda, S., & Dash, MK (2018). Construction of Capital Procurement Decision Making Models to Optimize Supplier Selection Using Fuzzy Delphi and AHP-DEMATEL. Benchmarking: An International Journal, 25(1), 1–5. https://doi.org/https://doi.org/10.1108/BIJ-01-2017-0005
Kurniawan, R., Hasibuan, S., & Nugroho, RE (2017). Kurniawan At All 252 – 266 MIX: Scientific Journal of Management, Volume VII, No. 2, June 2017. MIX: Scientific Journal of Management, VII(2), 252–266.
Lahdenperä, P. (2015). Project Delivery Systems in Finnish New Building Construction – A Review of the Last Quarter Century. Procedia Economics and Finance, 21(15), 162–169. https://doi.org/10.1016/s2212-5671(15)00163-x
Leal, JE (2020). AHP-express: A simplified version of the analytical hierarchy process method. MethodsX, 7. https://doi.org/10.1016/j.mex.2019.11.021
Lew, YL, Lai, SY, Toh, TC, Tan, OK, Felicia, YYY, & Yow, LP (2020). Quality Performance of Multi-layered Subcontracting Practices in Malaysian Construction Industry. IOP Conference Series: Earth and Environmental Science, 498(1). https://doi.org/10.1088/1755-1315/498/1/012092
Marbun, M., & Sinaga, B. (2019). Decision Support System Textbook: Assessment of Learning Outcomes with TOPSIS Method. Mayang Room.
Marzouk, M., & Sabbah, M. (2021). AHP-TOPSIS social sustainability approach for selecting suppliers in the construction supply chain. Cleaner Environmental Systems, 2(March), 100034. https://doi.org/10.1016/j.cesys.2021.100034
Monyane, TG, & Emuze, F. (2015). Exploring Contractor Selection Process for Public Sector Projects in South Africa: A Provincial Case. November.
Muhendra, H., Hasibuan, S., & Buana, UM (2018). Selection of Fly Over Construction Project Sub-Contractor The Sub-Contractor Selection of Fly Over Construction Project. Journal of Transportation and Logistics Management, 05(01), 43–54. http://ejournal.stmt-trisakti.ac.id/index.php/jmtranslog/article/view/213/138
Nugroho, RE, & Iskandar, MS (2020). Application of AHP for Supplier Selection in Construction Companies. Saudi Journal of Engineering and Technology, 05(04), 179–186. https://doi.org/10.36348/sjet.2020.v05i04.008
Nusraningrum, D., Jaswati, J., & Thamrin, H. (2020). the Quality of It Project Management: the Business Process and the Go Project Lean Application. Business Management, 10(1), 10. https://doi.org/10.22219/jmb.v10i1.10808
Nusraningrum, D., & Priyono, J. (2018). Analysis of Cost Control, Time, and Quality on Construction Project. Journal of Management and Business, 17(1), 19–30. https://doi.org/10.24123/jmb.v17i1.364
Olanrewaju, A., Zhi Xun, MB, & Preece, C. (2021). Establish prequalification criteria for selecting subcontractors by the prime constructors for building projects. Journal of Building Engineering, 45(November 2021), 103644. https://doi.org/10.1016/j.jobe.2021.103644
Padmavati, R. de LE (2015). Measurement of the Consistency Index in the Decision Making Process. National Seminar on Informatics, 2009(semnasIF), 80–84.
Pinamang, PA, Gyamfi, TA, Danso, H., & Kwame, JA (2018). Schedule Delay Analysis of Construction Projects in Ghana: Objectives, Importance, and Effects. Civil and Environmental Research, 10(4), 25–30. www.iiste.org
Ridwan, A., & Ajiono, R. (2017). Integrated Cost And Schedule Control In Construction Projects. Scientific Journal of Civil Engineering, 1, 74–83.
Saaty, TL (1994). How to Make a Decision: The Analytic Hierarchy Process. https://doi.org/https://doi.org/10.1287/inte.24.6.19
Samsu. (2017). Research Methods: Theory and Application of Qualitative, Quantitative Research, Mixed Methods, and Research and Development. In Published by: Center for Religious and Social Studies (PUSAKA).
Sholeh, MN (2020). Construction Supply Chain Management. Publisher of the Link Library.
Sitanggang, N., Simarmata, J., & Luthan, PLA (2019). Introduction to Project Management Concepts for Engineering. Our Writing Foundation.
Sujoko, A. (2019). Subcontracting Problems in Government Construction Works. Administrative Law and Governance Journal, 2(3), 413–435. https://doi.org/10.14710/alj.v2i3.413-435
Sutoyo, P., & Dewi Nusraningrum. (2020). Comparative Study Decision Support System Ahp and Saw Method in Tender Process Tv Transmission Stations. Dynasty International Journal of Digital Business Management, 1(5), 842–856. https://doi.org/10.31933/dijdbm.v1i5.487
Tan, Y., Xue, B., & Cheung, YT (2017). Relationships between Main Contractors and Subcontractors and Their Impacts on Main Contractor Competitiveness: An Empirical Study in Hong Kong. Journal of Construction Engineering and Management, 143(7), 05017007. https://doi.org/10.1061/(ASCE)co.1943-7862.0001311
Tanuwijaya, E., & Tamtana, JS (2018). Analysis of the Factors Influencing the Main Contractor in the Selection of Subcontractors in Implementing Construction Projects. JMS: Journal of Civil Engineering Partners, 1(2), 111. https://doi.org/10.24912/jmts.v1i2.2667
Ulubeyli, S., & Kazaz, A. (2016). Fuzzy multi-criteria decision-making model for subcontractor selection in international construction projects. Technological and Economic Development of Economy, 22(2), 210–234. https://doi.org/10.3846/20294913.2014.984363
Widyanty, W., Daito, A., Riyanto, S., & Nusraningrum, D. (2020). The Indonesian construction industry gains a competitive advantage through strategic human resource management. Management Science Letters, 10(9), 2021–2028. https://doi.org/10.5267/j.msl.2020.2.010
Zheng, Y., Tang, LCM, & Chau, KW (2021). Analysis of improvement of bim-based digitalization in engineering, procurement, and construction (EPC) projects in China. Applied Sciences (Switzerland), 11(24). https://doi.org/10.3390/app112411895
Zulaihah, L. (2016). Selection of PT X Subcontractor Using Analytical Hierarchy Process Method. Bina Teknika, 12(1), 95–102. http://ejournal.upnvj.ac.id/index.php/BinaTeknika/article/download/1212/75
Copyright (c) 2022 Caesarani Gloria Putri, Dewi Nusraningrum
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish with this journal agree to the following terms:
1. The author(s) hold the copyright of the article without restrictions.
2. The author(s) retain publishing rights without restrictions
3. The legal formal aspect of journal publication accessibility refers to Creative Commons Attribution (CC BY).