Multi-criteria decision making model for the selection of subcontractors in Palestine

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Mueen nashif
Iyad dmaidi
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The construction industry at Palestine is very complex, due to widely varying and several factors influence on projects outcome. As construction projects become larger and more complex, then managing these projects and their challenges become more complicated and core element for success. During the past few years, many of the construction projects at Palestine were completed beyond planned time and budget.   There is no doubt that the construction industry sector represents the locomotive of development at Palestine and it is one of the key economic sectors and one of the main forces that motivate the Palestinian national economy. It activates many other industries and sectors such as the construction materials trading. Also it can accommodate a huge functional and labor staff, as it constitutes an important element in attracting investments.  In addition to that this sector is considered to be one of the most productive sectors,where the Palestinian Central Bureau of Statics (PCBS) shows that the construction sector contribution to the Palestinian Gross Domestic Product (GDP) is increasing since the Palestinian National Authority (PNA) establishment to reach 11.1% in 2010. This is a large proportion covered by this sector, thus positively it is affecting various economic, social, educational and vocational sectors, and other Palestinian aspects.   Statement of problem: The process used in Palestine construction industry in selecting the best subcontractors among bidders is not based upon scientific concepts. The method is based upon subjective factors and criteria which differ from investment group to another. This will lead to different decisions even if it used by the same evaluator or different evaluator. However, we at Palestine are badly in need for a model that based on scientific ground and which takes in to account all the criterias needed in the evaluation process. This model must be simple, easy to use accurate and quick and give the same results if it is used by different evaluators SIGNIFICANCE OF STUDY The significance of this research are represented through the following: To introduce new methods to the Palestinian market to help in reducing the decision making time for selecting subcontractors for large construction projects.Ensuring that the selected subcontractor will deliver the best quality to the project and help in achieving project's goals in minimum time.To make sure that the selected subcontractor is highly valid to the specifications which the project owner had ordered.Minimize the time waste and the drifting from project's plan that could occur if a nonqualified subcontractor was chosen. Analytical Hierarchy Process (AHP) One of these methods is the analytical hierarchy process (AHP), this process is the way to make decisions implemented by its powerful and user-friendly computer software. AHP can implement many types of decision problems such as portfolio management, transportation planning, artificial intelligence and manufacturing system design. The problems which were solved by using AHP in the past are Project procurement system selection model (Al-Hazmi and Caffer 2000), Advanced automation and or conventional construction process (Hastak 1998), and application of AHP in project management Prequalification of contractors (Al-Harbi 2001). Required data: In this research the data required are: 1- The criteria for the subcontractors selection: there are many criteria can be used in the selection of subcontractors and should be determined in order to analyze it and use it in the AHP model. 2- Bidding system used in Palestine which is discussed in chapter 2 . 3- AHP model: the model has been build after the determination of the main goal and the criteria, as we will see in the model development.