**3. Prototype development**

even completed, the qualities of work done were found to be far below standard. These authors thus believe that the most prudent process of selecting the most qualified contractor for any government or organization project is through contractor prequalification based on some criteria, sub-criteria, and alternatives (choice of the most qualified contractor). Even when the right model for contractor selection is developed, most people find the implementation of such model on the computer difficult to get the desired results on the ratings of the criteria, sub-

298 Applications and Theory of Analytic Hierarchy Process - Decision Making for Strategic Decisions

This chapter addresses how an analytic hierarchy process (AHP) model developed for contractor selection can be implemented on the computer to get the right ratings using some existing computer software programs. Thus, the main objective of this chapter is to illustrate how an AHP model for contractor selection can be implemented on personal computer using

The past literature reveals that there are three types of tender that are practiced in Europe [1],

**•** Restricted/selected tender: where only invited or selected contractors are allowed to bid. Reference [3] reveals that most organizations in the UK and many other countries adopt this

**•** Negotiated tender: where client consults the chosen contractors and negotiates the terms of

According to Ref. [4], the tendering process begins with the analysis to ensure that tender specification meets with end users' needs, followed by contractor selection which starts with tender invitation and ends with contract award and contract monitoring. In Nigeria, contrac‐ tors are invited to submit tender submission through advertisement in major national publications [5]. Thereafter, contractors who have interest in bidding for the tender as per the conditions contained in the advert will purchase the tender documents and provide the information required as stated in the advert. The completed documents are then submitted to the tender board not later than the submission deadline stated in the advert. Information contained in the tender documents includes the instruction to bidders, the conditions under which contract will be awarded, and the necessary technical specifications of the contract. Contractors are also expected to submit the bill of quantities and list of forms that have been submitted. At the end of the closing date of the advert, all tenders are pulled together and opened. Tenders received are then assessed so as to decide on the most eligible contractor to be awarded the contract. Even with this well-laid-down procedure, contracts are often

According to Ref. [6], assessment is the most crucial stage in the tendering processes due to the fact that it contributes to the decision in choosing the most qualified contractor to be

criteria, and alternatives.

**2. Literature review on contractor selection**

**•** Open tender: where all interested contractors submit tenders.

Malaysia, and Nigeria [2]. These are:

existing software.

method.

contract with them.

awarded to unqualified contractor.

In order to illustrate the implementation of a prototype system for contractor selection based on AHP methodology, a case study of the selection of a contractor for the infrastructure

**Figure 1.** Hierarchical structure of the AHP model.

development of the National Centre for Technology Management (NACETEM), an agency of the Federal Ministry of Science and Technology in Nigeria, is used as illustration. NACE‐ TEM is an agency vested with the mandate of training and developing middle- to high-level manpower and conducting policy research in the areas of science, technology, and innova‐ tion management for all tiers of government and the private sector.

To select the most suitable contractor for the infrastructural development of the agency base on AHP methodology, information was gathered from all the departments in the organiza‐ tion on the selection process and later carefully analyzed so that standard criteria and subcriteria could be established and later adjusted with respect to the general goal. Once the problem has been defined as selecting the best contractor, the process starts with the design of the prototype system, which includes designing the system architecture and identifying the implementation and operational framework. The knowledge acquired through the knowl‐ edge acquisition process is represented in the prototype in four main steps:


Judgment of the results by the expert (i.e., tenders board) and evaluation of the prototype are carried out, whereby the effectiveness of the software and hardware is checked. If the results or findings from the evaluation require some improvement, the prototype is modified and redesigned as appropriate.
