An Application of Analytic Hierarchy Process (AHP) for Sustainable Procurement of Construction Equipment: Multicriteria-Based Decision Framework for Malaysia

Abstract

Sustainable procurement is an emerging theme in the construction industry across the globe. However, organizations in the construction industry often encounter impediments in improving environmental performance in construction projects, especially in procurement. Besides its other facets, procurement of construction equipment is inherited to be capital-intensive and vital for managing environmental concerns associated with built environment projects. In this regard, selection criteria in such procurement processes are generally supportive of considering cost and engineering specifications as key parameters. However, sustainability apprehensions in today’s Malaysian construction industry have mounted pressure on industry professionals to rethink their equipment acquisition strategies. The notion of green or sustainable procurement is still infancy for the Malaysian construction industry and facing challenges for embedding it in the current procurement practices. This research aims to address these apprehensions by considering six main criteria, namely, life cycle cost (LCC), performance (P), system capability (SC), operational convenience (OC), environmental impact (EI), and social benefits (SBs), and their 38 subcriteria towards procurement of sustainable construction equipment. A multicriteria-based equipment selection framework on the triple bottom line of sustainability in the context of the Malaysian construction industry has been developed and tested. The application of analytical hierarchy process (AHP) established the sustainable procurement index with a consistent sensitivity analysis results. As such, the proposed procurement index shall help decision-makers in the process of the acquisition of sustainable construction equipment in Malaysia.