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http://www.iaeme.com/IJCIET/index.asp 595 [email protected]
International Journal of Civil Engineering and Technology (IJCIET) Volume 8, Issue 6, June 2017, pp. 595–604, Article ID: IJCIET_08_06_065
Available online at http://www.iaeme.com/IJCIET/issues.asp?JType=IJCIET&VType=8&IType=6 ISSN Print: 0976-6308 and ISSN Online: 0976-6316
© IAEME Publication Scopus Indexed
A CONDORCET VOTING THEORY BASED AHP
METHOD FOR CONTRACTOR SELECTION IN
CIVIL ENGINEERING PROJECTS
Sweta Bhattacharya
School of Information Technology & Engineering,
VIT University, Vellore, India
V. Raju
Institute of Industry and International Programme,
VIT University, Vellore, India
ABSTRACT
Contractor selection is an extremely important activity for successful completion
of civil engineering construction projects. The quality criteria for contractor selection
are extremely vague and majorly depend on lowest tender bids submitted by
contractors leading to quality compromises in construction projects. The paper
presents five major quality criteria expected from good contractors and derives pair
wise comparison of these quality criteria using subject matter based opinion
calibrated to standard importance scale in AHP method. The calibration to
importance scale point has chances of dilemmatic errors in deciding on scale points
causing erroneous results. This weakness is eliminated by using a Condorcet voting
method to derive the importance of the contractors over another for each quality
criteria followed by a quantitative ratio method to frame the comparison matrix. The
accuracy in framing of comparison matrix helps to get better ranking of the
contractors using the regular method of priority vector calculation of AHP. The
Condorcet Voting Theory based AHP framework thus helps to select the most suitable
contractor having capability to deliver successful civil engineering project abiding all
quality criteria.
Keywords: AHP, MCDM, Condorcet Voting Theory, Contractor Selection, Civil
Engineering Project
Cite this Article: Bhattacharya. S, and Raju V, A Condorcet Voting Theory based
AHP method for Contractor Selection in Civil Engineering Industry. International
Journal of Civil Engineering and Technology, 8(6), 2017, pp. 595–604.
http://www.iaeme.com/IJCIET/issues.asp?JType=IJCIET&VType=8&IType=6
1. INTRODUCTION
The construction industry is the second largest industry in India after agriculture holding first
position. The construction industry accounts for 11% of the total GDP in India making
Bhattacharya S and Raju V.
http://www.iaeme.com/IJCIET/index.asp 596 [email protected]
immense contribution towards the overall economic growth of the country. The construction
industry can be categorized into three main sectors which are real estate construction,
infrastructure construction and industrial construction [1]. The construction industry being
one of the most significant contributors in the country’s growth and infrastructure
development is a sub-practice area of civil engineering which is dependent on tools and
resources of various other inter-related industries. Thus construction industry significantly
affects employments of various other related industries in the country. Any civil engineering
project activity is highly dependent on resources supplied and work conducted by contractors
and suppliers. The job of the contractors and suppliers ensures that the project is completed
successfully meeting all quality and reliability parameters. Most of the time, project
management teams end up choosing non-performing contractors focusing more on the lowest
bid offered in the tender giving less importance on the contractor’s quality parameters. In civil
engineering, the quality parameters of good contractors are multiple and decision making
becomes dilemmatic. Hence most of the time choice of contractors gets inclined towards
tender quotations which end up being disastrous. The present paper discusses the good
qualities of contractors expected for successful project completions and uses a Condorcet
Voting method based Analytical Hierarchy Process (AHP) framework for contractor
selection. This approach would benefit the civil and construction engineering community to
select contractors without biased judgement with more satisfactory project outcomes.
1.1. The quality criteria of good contractor
Choosing an appropriate contractor can often become tedious as the preferred qualities are too
many. The following section discusses the list of qualities expected from a good contractor.
The most important qualities are [2]:
• Past experience: Civil engineering construction workers deal with architectural design
and hence past experience helps to understand their competence level in the field and
also their history of professional partnership and commitment with various companies
that they have worked in the past. A highly experienced contractor would always be
preferred for larger dimension projects in compared with the less experienced
contractors who could be given smaller assignments. Also as an example, a contractor
with experience to work in the rural areas might find it difficult to handle specialized
urban construction buildings.
• Technical Knowledge: The contractors should be technically knowledgeable with
required qualification. The qualifications should always be commensurate with the
preferred credentials expected in the tender invited.
• Financial and Technical resources: The contractor’s financial and technical resources
would help the contractor use latest technology tools and techniques necessary for
construction yielding higher quality work at faster pace. This would reduce chances of
suicidal financial bids and quality compromises in building construction using poor
quality resources leading to hazardous results.
• Present Workload: The present workload of the contractor helps to get two
perspectives of the contractor. Firstly it helps to understand the value of the contractor
in the civil engineering sector wherein if there is high workload, it could be assumed
that the contractors work is appreciated in the market. On the it would also help to
understand the level of attention and time the contractor would be able to render to the
prospective assignments keeping his financial capability and resource factor into
account.
A Condorcet Voting Theory based AHP method for Contractor Selection in Civil Engineering
Industry
http://www.iaeme.com/IJCIET/index.asp 597 [email protected]
• Safety Performance: The adherence of the contractor to safety measurements plays a
major role. There should be no room for compromises in the sector if the contractor
fails to perform well in safety measurement criteria.
In this paper a contractor selection method is proposed emphasizing on the above
mentioned five factors. A Condorcet Voting Theory based AHP method is used to select the
best contractor out of three contractors keeping all the five factors into consideration. The
next section provides detailed description of the two methodologies – Condorcet Voting
Method and AHP being used for the selection process.
2. RESEARCH METHOD
2.1. Analytical Hierarchy Process (AHP)
Analytical Hierarchy Process is a method developed originally by Thomal L Saaty in 1980 at
the Wharton School of Business. This method aims to solve multi-criteria decision making
(MCDM) problems based on subjective evaluation measurements [3-5]. The analytical
process method provides a framework for quantifying various criteria in a MCDM problem
and relates them to the overall goal. It evaluates the criterion against each other in order to
identify the most suitable and prioritized criteria among the alternatives concerned. It has a
hierarchical approach which enables decision makers to organize their subjective judgement
in order to achieve the most suitable decision for a dilemmatic problem [4-5]. The AHP
technique is based on “measurement through pair wise comparisons relying on the
judgements of experts to derive priority scales” [6-7].It helps to simplify the complexities of a
problem by combining various factors related to the problem to arrive at the final decision [8].
The AHP method consists of seven major steps which are mentioned below [9-10]:
Step 1: Definition of the Problem
Step 2: Define objective or outcome of the problem
Step 3: Identify the contributing factors that influence a certain affect or behavior
Step 4: Arrange the problem into a hierarchical structure based on Goal, Criteria, Sub-
Criteria/Alternatives
Step 5: Compare each factor with the other and derive at the standard importance scale
point as given by Thomas Saaty (Table 1) through proper calibration
Step 6: Calculate the Priority vector values, maximum Eigen value (Lamda-max),
Consistency Index and Consistency Ratio value.
Step 7: Calculate the value of CR and decide on the accuracy of the calculation and
judgment. If the CR value fails to meet the satisfactory criteria repeat the procedure until
desired value is achieved. The consistency ratio (CR) is calculated as shown in Equation 1, 2
and 3 [10]:
CR = CI/RI = Consistency Index (CI) / Relative Index (RI) (1)
CI = (Lamda-max – n) / (n-1) (2)
RI = 1.98(n – 2) / n (3)
Bhattacharya S and Raju V.
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The value of the Consistency Ratio (CR) evaluates the accuracy of the judgement made
when deciding on the importance scale point of the criteria. If the Consistency Ratio (CR)
value is less than 0.10, the judgement is considered to be consistent and acceptable. If not, the
revision of the process is required [11].
Table 1 Standard Importance Scale with description
Importance Scale Importance Description
1 Equal importance of “i” and “j”
3 Moderate importance of “i” over “j”
5 Strong importance of “i” over “j”
7 Very Strong importance of “i” over “j”
9 Absolute Importance of “i” over “j”
2, 4 and 6 are used for intermediate values of importance
Analytical Hierarchical Process (AHP) has been popularly used to resolve multi-criteria
decision making problems in various sectors. As an example, AHP has been used to select
suppliers focusing on three main criteria and six sub-criteria in Carglass Turkey to improve
productivity [12]. AHP method has been successfully used in contract selection based on six
criteria where ratings and aggregate based scores were used to frame the comparison matrix
[13]. Supplier selection is an area where AHP has been used extensively and one such
implementation has been in the small scale manufacturing industry sector where global
weight age and local weight age of the criterion were used to derive at the importance scale
points [14]. AHP method was also used in effective team selection process for a project which
later gave better results than the traditional selection system [15]. Choosing the best insurance
provider is often dilemmatic and AHP method was used to rank insurance provides based on
certain criteria which helped customer choose the insurance company in Turkey [16]. A
unique and uncommon use of AHP method has been in the improvisation of polygraph results
used for lie detection. The accuracy of lie detection was enhanced using AHP using actual
survey results where more authenticity was obtained [17]. AHP has been widely used in the
manufacturing industry where design plays a major role. Application of AHP in this sector
has in layout selection where the best layout is selected from various layout options [18]. The
paper uses the traditional AHP method to rank the quality criteria for the contractors.
2.2. Research gap and problem Definition
Although AHP has been used to resolve various MCDM problems but the method relies
solemnly on its ability to subjectively analyze the importance of a criteria over the other and
calibrate the importance to the standard scale.The artificial constraint in the use of 9 – point
scale makes it difficult for decision makers to differentiate between scale points and conclude
to the fact that an alternative is 6 or 7 times more important than the other. Hence there exist
chances of biased judgement making the derivations erroneous. The Condorcet voting theory
is hence used in this paper along with the traditional AHP based method to resolve chances of
error and enhance accuracy of the system. The traditional AHP based method is used to rank
the five quality criteria of the contractor and then Condorcet voting theory based AHP
approach is used to compare suppliers for a given criteria using Condorcet voting and
quantitative ratio based method. The detailed framework is discussed in the next section.
2.3. Condorcet Voting Theory
Condorcet voting theory is a method of pairwise comparison developed by philosopher and
mathematician Marquis de Condorcet. The theory is predominantly used in voting systems
A Condorcet Voting Theory based AHP method for Contractor Selection in Civil Engineering
Industry
http://www.iaeme.com/IJCIET/index.asp 599 [email protected]
where one candidate is compared with the other based on the preference of the voter’s
preference as given in the ballot. The candidate is considered winner if it is able to win over
all the other candidates in the system following the majoritarian rule [19-20]. The algorithm
used for Condorcet voting method is:
Step 1: count = 0
Step 2: for each of the P respondents’ Tido
Step 3: If Ti ranks C1 above C2, count ++
Step 4: If Tii ranks C2 above C1, count - -
Step 5: If count > 0, rank C1 better than C2
Step 6: Else rank C2 better than C1
In this paper, the same approach is used for the pairwise comparison of the contractors
from the perspective of five quality factors mentioned earlier. Similar to the Condorcet
approach, a voting is conducted on 100 civil engineering stake holders who have provided
their preference of one constructor over the other for all the five quality factors. If a contractor
is preferred over the other, then it wins 1 point over the non-preferred contractor. The total
scores of all the voters are considered to derive the quantitative ratio based importance of one
contractor over the other. This ratio is used to frame the comparison matrix in the traditional
AHP method. Hence, Condorcet theory is used in the present paper only to derive the
importance of the contractors and framing of the comparison matrix for the contractors. The
detailed framework of the Condorcet Voting theory based AHP approach for contractor
selection is shown in Figure 1.
Figure 1 Framework for the Condorcet Voting Theory based AHP method for contract selection.
Bhattacharya S and Raju V.
http://www.iaeme.com/IJCIET/index.asp 600 [email protected]
3. RESULTS AND DISCUSSION
As already mentioned the objective is to select the most appropriate contractor for a civil
engineering construction project. The quality criteria for contractor selection is already
described in the previous section and experts’ opinion in the organization was considered for
deciding the importance of one quality criteria over the other to frame the pairwise
comparison matrix following the standard importance scale point. The Table 2 represents the
pair wise comparison matrix for the five quality criteria.
Table 2 Pair wise Comparison Matrix for the Quality Criteria for Contractors
Past Experience Technical
Knowledge
Financial &
Technical
Resources
Present
Workload
Safety
Performance
Past Experience 1.000 0.333 0.500 2.000 3.000
Technical
Knowledge 3.000 1.000 2.000 3.000 2.000
Financial &
Technical
Resources 0.200 0.500 1.000 0.500 0.500
Present Workload 0.500 0.333 2.000 1.000 0.250
Safety
Performance 0.333 0.500 2.000 4.000 1.000
Once the pair wise comparison matrix was framed, the priority vectors for the criteria
were computed using the traditional steps of AHP process. The results of AHP computation
are shown in Table 3.
Table 3 Derivation of Priority Vector and CR using traditional AHP method
Past
Experience
Technical
Knowledge
Financial
& Tech.
Resources
Present
Workload
Safety
Performance
5th
Root
of
Product
Priority
Vector
(PV)
Past
Experience 1.000 0.333 0.500 2.000 3.000 1.000 0.193
Technical
Knowledge 3.000 1.000 2.000 3.000 2.000 2.048 0.394
Financial &
Tech.
Resources 0.200 0.500 1.000 0.500 0.500 0.478 0.092
Present
Workload 0.500 0.333 2.000 1.000 0.250 0.608 0.117
Safety
Performance 0.333 0.500 2.000 4.000 1.000 1.059 0.204
SUM 5.033 2.667 7.500 10.500 6.750 5.193 1.000
SUM*PV 0.969 1.051 0.691 1.230 1.377
Lamda-max
(∑Sum*PV) 5.318
CI 0.079452
CR = CI/RI,
RI for 5 =
1.12 0.070939
The weights of criteria are derived by multiplying the values in each row together and
calculating the nth
root of said product and then normalizing the aforementioned nth root of
products to get the appropriate weights termed as priority vector. The priority vector values
are multiplied to sum of each column in the comparison matrix and the total of all the
“SUM*PV” values is calculated to derive the Lamda-max. Finally the Consistency Ratio (CR)
is calculated which shows that the pairwise comparison’s made are consistent. Also from the
priority vector value it can be concluded that the Technical Knowledge of the contractor is
A Condorcet Voting Theory based AHP method for Contractor Selection in Civil Engineering
Industry
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most important in contractor selection followed by Safety Performance, Past Experience,
Present Workload and lastly Financial and Technical Resources of the Contractor.
Once the consistency of the quality criteria is established, the next step involves selecting
the best contractor. As part of the study, three contactor’s data are used with the objective to
select the best out of the three contractors. In order to perform the selection process
effectively, a poll was conducted among stake holders in civil construction domain to provide
their preferences for the three contractors. From the perspective of each quality criteria, voters
were asked to provide their preferences for one contractor over the other. For ease of
presentation Contractor 1, Contractor 2 and Contractor 2 are represented as C1, C2 and C3 in
the paper. As an example, from the perspective of safety performance a voter preferred
“C1>C2>C3”, which meant that C1 was preferred more than C2 and C3 in terms of safety
performance. If a contractor is preferred over the other, then it wins 1 point over the non-
preferred contractor. The total scores of all the voters are considered similarly for quantitative
ratio derivation to frame comparison matrix. The voting results, comparison matrix and
priority vectors of contractor 1, contractor 2 and Contractor 3 are shown in the following
Table 4 and Figure 2 for the five quality criteria.
Table 4 Total scores of Contractors and Quantitative Ratios for five quality criteria.
For Past Experience Votes
For Technical
Knowledge Votes
For Fin. & Tech
Resources Votes
C1 preferred over C2 37.000 C1 preferred over C2 67.000 C1 preferred over C2 36
C2 preferred over C1 63.000 C2 preferred over C1 33.000 C2 preferred over C1 64
Quantitative Ratio
(C1/C2) 0.587
Quantitative Ratio
(C1/C2) 2.030
Quantitative Ratio
(C1/C2) 0.531
Quantitative Ratio
(C2/C1) 1.703
Quantitative Ratio
(C2/C1) 0.493
Quantitative Ratio
(C2/C1) 1.777
C1 preferred over C3 40.000 C1 preferred over C3 37.000 C1 preferred over C3 37
C3 preferred over C1 60.000 C3 preferred over C1 63.000 C3 preferred over C1 63
Quantitative Ratio
(C1/C3) 0.667
Quantitative Ratio
(C1/C3) 0.587
Quantitative Ratio
(C1/C3) 0.587
Quantitative Ratio
(C3/C1) 1.500
Quantitative Ratio
(C3/C1) 1.703
Quantitative Ratio
(C3/C1) 1.702
C2 preferred over C3 73.000 C2 preferred over C3 70.000 C2 preferred over C3 71
C3 preferred over C2 27.000 C3 preferred over C2 30.000 C3 preferred over C2 29
Quantitative Ratio
(C2/C3) 2.704
Quantitative Ratio
(C2/C3) 2.333
Quantitative Ratio
(C2/C3) 2.448
Quantitative Ratio
(C3/C2) 0.370
Quantitative Ratio
(C3/C2) 0.429
Quantitative Ratio
(C3/C2) 0.408
For Present Workload Votes For Safety Performance Votes
C1 preferred over C2 35.000 C1 preferred over C2 41.000
C2 preferred over C1 65.000 C2 preferred over C1 59.000
Quantitative Ratio
(C1/C2) 0.538
Quantitative Ratio
(C1/C2) 0.695
Quantitative Ratio
(C2/C1) 1.857
Quantitative Ratio
(C2/C1) 1.439
C1 preferred over C3 42.000 C1 preferred over C3 36.000
C3 preferred over C1 58.000 C3 preferred over C1 64.000
Quantitative Ratio
(C1/C3) 0.724
Quantitative Ratio
(C1/C3) 0.563
Quantitative Ratio
(C3/C1) 1.381
Quantitative Ratio
(C3/C1) 1.778
C2 preferred over C3 39.000 C2 preferred over C3 68.000
C3 preferred over C2 61.000 C3 preferred over C2 32.000
Quantitative Ratio
(C2/C3) 0.639
Quantitative Ratio
(C2/C3) 2.125
Quantitative Ratio
(C3/C2) 1.564
Quantitative Ratio
(C3/C2) 0.471
Bhattacharya S and Raju V.
http://www.iaeme.com/IJCIET/index.asp 602 [email protected]
Figure 2 Calculation of Priority Vector and CR for Contractor 1, 2 and 3 for each quality criteria
The final ranking of the Contractors are computed following the traditional AHP based
approach using the above derived priority vectors for each quality criteria for the three
contractor options. The detailed derivation of the rankings is shown in Figure 2.
Figure 3 Final Ranking of Contractors in the Civil Engineering Project considering five quality
criteria.
A Condorcet Voting Theory based AHP method for Contractor Selection in Civil Engineering
Industry
http://www.iaeme.com/IJCIET/index.asp 603 [email protected]
The final scores are calculated by multiplying the priority vectors of each quality criteria
with priority vectors of the contractor. The scores revealed Contractor 2 as the highest ranked
and most suitable option for construction engineering projects abiding all quality criterion of a
good contractor. Also the consistency Ratio values for all the five criteria factors are less than
0.10 which established the consistency of the judgement.
4. CONCLUSION
The proposed Condorcet voting theory based AHP in the paper successfully resolves the
weakness of the traditional AHP method due to use of standard importance scale based
derivation with chances of biased result. Selection of suitable contractor in a civil and
construction engineering domain is extremely critical considering multiple criteria for
contractor selection leading to dilemma and confusion. The use of Condorcet voting technique
for contractor preferences for each quality criteria followed by the quantitative ratio based
approach eliminates chances of such bias and anomaly in converting subjective judgement to
standard importance scale point. The final rankings of the contractor using the proposed
method could be considered more trust worthy in comparison to the traditional AHP based
approach. The same approach can be used to resolve multi-criteria decision making problems
in various other domains pertaining to selection and ranking of alternatives. As an extension
to the study, deep learning methods could be combined with the proposed approach to provide
more insight and reveal patterns and predictions on the same.
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