Construction procurement strategy selection using analytical hierarchy process

Procurement is the framework within which construction is brought about, acquired or obtained. The need to identify a suitable procurement strategy within the construction industry is a challenge to the owner. Besides the traditional General Contracting (GC) approach, different procurement strategies have emerged with the development of the construction industry to suit different projects, with each strategy having its own set of assumptions. These strategies include Design and Build (DB), Construction Management at risk (CM-R), Agency Construction Management (ACM) and Program Management (PM). Further, the selection process is characterized by a large number of project variables and complex project outcomes. The client has to define his/her project characteristics accurately and should recognize his/her requirements before deciding on the type of procurement system to be selected. The paper introduces a powerful selection method called "Analytical Hierarchy Process" (AHP) to aid the project managers in selecting the best procurement strategy by providing greater insights into selection reasoning. The methodology can assist the client to evaluate available options and to decide about a suitable procurement strategy based on the choice of the client. By using the AHP, the decision problems are delineated in hierarchies in the form of goals, criteria, and alternatives fro pair-wise comparisons. The judgements are further synthesized to provide ranking of the criteria, and alternatives for the best choice. A case study is presented to illustrate the proposed AHP based selection process.