Hybrid Prequalification-Based, Innovative Contracting Model Using AHP

Abstract

Design-build, cost-plus-time, and warranty are three innovative contracting methods used by the Federal Highway Administration (FHwA). Because of the challenges inherent in the nature of these approaches, contractors need to be capable and experienced to successfully deliver projects. It is then necessary to prequalify contractors to reduce the inherent risk of a project. Therefore, the objective of the research project described in this paper is to provide a methodology that will help public owners prequalify and select contractors within the context of the three delivery methods mentioned above. As a result, a hybrid prequalification and selection model to screen contractors who want to submit bids on public projects using any of the three innovative contracting methods above was developed. The analytical hierarchy process (AHP) was used to make prequalification decisions when multiple criteria are used. In addition, three case studies were developed to evaluate the application of AHP to the prequalification criteria in the three innovative contracting methods. AHP was utilized as an effective prequalification decision-making tool that eliminates subjectivity and produces decisions built on consistent judgments.