A Performance-Based Subcontractor Selection Model

Abstract

General contractors outsource increasingly complex and sophisticated specialized tasks to many subcontractors. In doing so, general contractors typically pick the subcontractor that offers the lowest price for the work to be done, but an informed decision can be made only if the general contractor can assess potential subcontractors’ performance before hiring them. The performance of subcontractor candidates is measured in this study by using key performance indicators (KPIs) identified after an extensive review of previous research. These KPIs, the analytic hierarchy process (AHP), and the evidential reasoning (ER) method are combined to create a performance-based subcontractor selection (PBSS) model. The proposed model is generalizable and can help general contractors to assess the performance of subcontractor candidates relative to the general contractor’s critical objectives including subcontractor performance in relation to price, duration, quality, safety, and environmental impact. The model is scalable in that other objectives can be added or can replace existing ones depending on the characteristics of the project and the preferences of the general contractor. A real-world case study was used to show that this model was easily implemented and that it generated practical results. A general contractor can use PBSS confidently to evaluate the overall performance of each subcontractor candidate before they select one for a specific part of the project.