An integrated Delphi and Fuzzy AHP model for contractor selection: a case of Addis Ababa Design and Construction Works Bureau

Contractors fail to meet project objectives for a variety of reasons. One of the major reasons for this has been attributed to the current criteria for awarding contract ineffectiveness in identifying contractors capable of meeting today's demands and challenges. Therefore, there is a need to develop alternative contract-awarding systems for public building construction projects. Thus, the purpose of this study is to develop multiple contractor selection criteria and a selection model by integrating the Delphi and Fuzzy AHP methods. First, this study conducted an extensive literature review of related studies to determine the contractor selection criteria to select contractors for building projects. Thirty sub-criteria were finalized under six major criteria categories, such as Bid Price, Financial Capacity. Technical Capacity. Management Capacity, Experience and Reputation, and Health, Safety and Environment. Two rounds of the Delphi method were then employed to finalize and categorize the contractor selection criteria. Finally, the Fuzzy AHP method was employed to assign weights to the contractor selection criteria and then rank them according to their importance. The study revealed that among all sub-criteria, Bid Price, Projects completed on time and within budget; Experience on Similar types and sizes of projects; and Qualification, Number and Experience of Staff are the most important selection criteria. The last four sub-criteria in the row with slight weight differences are innovative methods, liquidity, credit rating, and organizational structure. The results of this study serve as a benchmark for the application of multiple contractor selection criteria procurement in Ethiopia, and as a basis for future research.