Subcontractor selection with additive ratio assessment method

Abstract

During the last decades, especially in large-scale construction projects, it is one of the widely applied strategies that the main contractors work with many subcontractors and overtake a large part of the works. This trend brings out the problem of selection of subcontractors. The classical approaches in the construction industry to select the subcontractor are the general practice reference, the lowest bid, and the familiarity. This creates major risks for contractors since the construction sector involves time-limited projects with a large variety of complex works. Putting the subcontractor selection on a scientific basis and minimizing the risks by choosing the most appropriate subcontractor among the bidders for a particular type of work, require for the construction industry to determine not only consistent and efficient but also uncomplicated and plain model. Instead of the widespread conventional application, this study represents a new alternative approach to the subcontractor selection with Additive Ratio Assessment Method, which is one of the multi-criteria decision-making techniques. Additive Ratio Assessment Method is quite practical and convenient to use among the other multi-criteria decision-making methods. This study aimed to demonstrate the use of Additive Ratio Assessment Method on subcontractor selection problems by exemplifying a real case application.