An Analytical Hierarchy Process (AHP) Based Prequalification System for Gaza Strip Construction Contractors

Abstract

Prequalification is an essential process in developing the construction industry in Gaza Strip. In the prequalification process, the clients save the time, efforts by selecting competent contractors to implement their projects upon their requirements as well as protecting contractors from being awarded work they are incapable of doing it. Most of the implementing agencies in Gaza Strip depend on the Palestinian Contractors Union (PCU) classification and consider it as a prequalification process. Some agencies adopt specific levels of classification; other has a short list classification of prequalified contractors. However, these procedures have not prevented the continuous failure of firms to complete the projects and achieve the client's goals. This study aims at investigating the existing prequalification practices in Gaza Strip, setting prequalification criteria, applying the Analytical Hierarchy Process (AHP) to determine its weights, conducting case study by AHP, and developing computerized software based on AHP. This research has been conducted through literature review of the topics related to prequalification process, followed by a field survey. The field survey consisted of two questionnaires. In the first questionnaire, eighty managers, experts, and engineers were asked to fill in the questionnaire that covers topics related to the prequalification of the contractors in Gaza Strip. In the second questionnaire, a group of experts was asked to fill in the questionnaire that based on AHP to determine the weights of the prequalification criteria and subcriteria. The results indicated that PCU classification is significant for most implementing agencies in Gaza Strip. In addition, the results showed the high importance of the adopted prequalification criteria of the contractors. Based on AHP, it was found that the financial stability of the company is the most important criterion with respect to its weight. Moreover, technical ability, past performance, management capability, experience and reputation of the company have considerable weights. On the other hand, claims and contractual disputes, health and safety procedures and current workload of the company have relatively low weights. The study also showed that AHP approach is an effective and flexible tool to determine the weights of prequalification criteria as well as the selection of the competent contractors in the prequalification phase.