Using the ISM Method to Analyze the Relationships between Various Contractor Prequalification Criteria

Abstract

Construction contractors significantly contribute to the progress and success of projects. Contractor prequalification grants tendering rights only to competent contractors. The bidding process is one of the most critical phases in the construction industry. The project leader must assess the general, technical, and financial information of the contractors to prepare an accurate proposal and select the best contractor. In this study, contractor prequalification is considered, along with the complex relationships between various criteria. ISM is a computational method that involves a qualitative and interpretive approach to solving complex problems based on structural mapping of the connections between attributes and their subsequent transformation into a multilevel structural model. Using ISM, we establish a seven-level hierarchy for various contractor prequalification criteria, which are then grouped into four clusters based on their driving power and dependence power. The result of this study shows that ISM can be used to rank complex contractor prequalification criteria and help managers select a qualified contractor in the construction project bidding process during the strategic planning phase.