Decision support system for selecting optimal construction bid price

Most important construction problems facing building operations are how to choose a contractor specialized in implementing major projects. In addition to that the increasing costs of raw materials, work force leading to the rise of construction costs. Therefore in this paper hierarchy method has been studied and it has been identified for organizations allowing them to minimize common risks of the decision-making process and management. Construction contractor can be prequalification using Analytical Hierarchy Process (AHP) as powerful management technique. Prequalification contractor aims at eliminating in competent contractors in the bidding process. This kind of prequalification helps both of the public and private project owners to successful achieve for required project tasks. The project will be completed with is estimated cost and time because of the contractor's skill, capability and efficiency. Case study gathers a number of contractor's or companies data. After studying Analytical Hierarchy Process (AHP) of a set of criteria, table of contractor's technical evaluation was concluded all experience, financial situation and the contractor's classification in the Union of Contractors. In addition labor's progress, availability equipment for contractor is applied using Value Engineering (VE) to raise the performance level and reducing costs. Hence, value engineering will be demonstrated, where its goal is to raise the performance level and functionality with the ability to reduce costs. The case study of this paper is a construction project of a hospital, administration building, and staff housing building. It was applied the Analytical Hierarchy Process (AHP) and was extracted contractor's evaluation table of a set of criteria (the previous experience, financial situation and the contractor's classification in the Union of Contractors. Also labor's progress, available equipment for the contractor and the contractor applying Value Engineering). The previous data are gathered through the contractor's proposal, while (VE) is applied as process steps on a construction project case study.