DECISION-MAKING IN SELECTING PRIVATE HOUSING PROJECT IMPLEMENTATION DELIVERY BASED ON CONTRACTOR PRODUCTIVITY MANAGEMENT: AN AHP AND BSC APPROACH
DOI:
https://doi.org/10.11113/aej.v15.23252Keywords:
Analytical Hierarchical Process, Balanced Scorecard, Contractor Productivity Management, Project Implementation Delivery, Private Housing ProjectAbstract
Selecting the correct delivery method is crucial for private housing projects, as it directly affects contractor productivity and overall project success. While various approaches exist, a structured decision-support model that integrates multiple evaluation criteria is still lacking. This study fills that gap using the Analytic Hierarchy Process (AHP) and Balanced Scorecard (BSC) frameworks to assess three standard delivery methods: Turnkey, Design - Tender - Build, and Design - Build. By analysing financial performance, customer satisfaction, internal processes, and learning and growth, the research identifies Turnkey as the most effective approach for maximizing contractor productivity. It offers clear selection guidelines for project owners, helping them make informed, data-driven decisions. However, the findings are context-dependent, as project-specific factors may influence the optimal choice. This study contributes to construction management research by integrating AHP and BSC into a unified model for selecting project delivery methods. Unlike prior studies focusing on isolated aspects, it provides a comprehensive perspective on contractor productivity. The findings hold practical value for project owners, construction managers, and policymakers, offering a systematic approach to enhance decision-making, increase efficiency, and support sustainable development in the construction industry.
References
Chavan, S. S., H. 2016. A Study on Labor Productivity in Construction Industry. International Journal of Engineering Research. 5(1): 247-249. DOI: https://doi.org/10.17950/ijer/v5i1/059
Long, N. L. M., & Van, L. T. 2024. An Empirical Study of Working Conditions on Construction Sites Affecting Productivity and Safety of Equipment Operators in Ho Chi Minh City, Vietnam. In Recent Advances in Structural Health Monitoring and Engineering Structures. 243-257. DOI: https://doi.org/10.1007/978-981-97-0399-9_23
Arditi, D., & Gunaydin, H. M. 1997. Total quality management in the construction process. International Journal of Project Management, 15(4): 235-243. DOI: https://doi.org/10.1016/s0263-7863(96)00076-2
Vigneshwar, R. V. K., & Shanmugapriya, S. 2022. Investigating the factors affecting construction site productivity – a case of India. Engineering, Construction and Architectural Management, 30(2): 963-985. DOI: https://doi.org/10.1108/ecam-06-2022-0529
Arashpour, M., Wakefield, R., Blismas, N., & Lee, E. W. M. 2014. Analysis of Disruptions Caused by Construction Field Rework on Productivity in Residential Projects. Journal of Construction Engineering and Management, 140(2): 04013053. DOI: https://doi.org/10.1061/(asce)co.1943-7862.0000804
Ahmad, I., & El-Sayegh, S. 2021. Digital technology and integration in construction: the UAE context. 11th International Conference on Construction in the 21st Century, London 2019, London. DOI: https://doi.org/10.1007/978-3-030-48465-1_106
Oyegoke, A. S., Awodele, O. A., & Ajayi, S. 2019. Managing construction risks and uncertainties: A management procurement and contracts perspective. Risk Management in Engineering and Construction, 285-305. DOI: https://doi.org/10.4324/9780203887059-16
Angelis, D. I., & Lee, C. Y. (1996). Strategic investment analysis using activity-based costing concepts and analytical hierarchy process techniques. International Journal of Production Research, 34(5): 1331-1345. DOI: https://doi.org/10.1080/00207549608904968
Abdel Aziz, A. M. 2007. Successful Delivery of Public-Private Partnerships for Infrastructure Development. Journal of Construction Engineering and Management, 133(12): 918-931.
DOI: https://doi.org/10.1061/(asce)0733-9364(2007)133:12(918)
Alleman, D., & Tran, D. 2020. Challenges of Implementing Progressive Design-Build in Highway Construction Projects. Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 12(1): 04519036. DOI: https://doi.org/10.1061/(asce)la.1943-4170.0000327
Allmon, E., Haas, C. T., Borcherding, J. D., & Goodrum, P. M. 2000. U.S. Construction Labor Productivity Trends, 1970–1998. Journal of Construction Engineering and Management, 126(2): 97-104. DOI: https://doi.org/10.1061/(asce)0733-9364(2000)126:2(97)
Saaty, T. 1980. The analytical hierarchy process. McGraw-Hill. DOI: https://doi.org/10.21236/ADA214804
Saaty, T. L. 1990. How to make a decision: The analytic hierarchy process. European Journal of Operational Research, 48(1): 9-26. DOI: https://doi.org/10.1016/0377-2217(90)90057-i
Saaty, T. L. 2008. Decision making with the analytic hierarchy process. International Journal of Services Sciences, 1(1): 83-98. DOI: https://doi.org/10.1504/ijssci.2008.017590
Shapira, A., & Goldenberg, M. 2005. AHP-Based Equipment Selection Model for Construction Projects. Journal of Construction Engineering and Management, 131(12): 1263-1273. DOI: https://doi.org/10.1061/(asce)0733-9364(2005)131:12(1263)
Daghouri, A., Mansouri, K., & Qbadou, M. 2018. Information system performance evaluation and optimization using AHP and TOPSIS: Construction industry case 2018 4th International Conference on Optimization and Applications (ICOA), DOI: https://doi.org/10.1109/ICOA.2018.8370589
Kaplan, R. S., & Hoque, Z. 2012. The balanced scorecard: comments on balanced scorecard commentaries. Journal of Accounting & Organizational Change, 8(4): 539-545. DOI: https://doi.org/10.1108/18325911211273527
Malagueño, R., Lopez-Valeiras, E., & Gomez-Conde, J. 2017. Balanced scorecard in SMEs: effects on innovation and financial performance. Small Business Economics, 51(1): 221-244. DOI: https://doi.org/10.1007/s11187-017-9921-3
Setiawan, & Purba, H. H. 2021. A Systematic Literature Review of Malcolm Baldrige National Quality Award (MBNQA). Journal of Technology Management for Growing Economies, 12(1): 1-12. DOI: https://doi.org/10.15415/jtmge.2021.121001
Haktanır, E., & Kahraman, C. 2020. Malcolm Baldrige National Quality Award Assessment Using Interval Valued Pythagorean Fuzzy Sets. International Conference on Intelligent and Fuzzy Systems, DOI: https://doi.org/10.1007/978-3-030-23756-1_129
Kaplan, R. S., & Norton, D. P. 1992. The balance scorecard – measures that drive performance. Harvard Business Review, 70(1): 71-79.
Kaplan, R. S., & Norton, D. P. 1993. Putting the balanced scorecard to work. Harvard Businees Review, 71(5): 134-140.
Inamdar, Noorein, Kaplan, & S., R. (2002). Applying the Balanced Scorecard in Healthcare Provider Organizations. Journal of Healthcare Management, 47(3): 179-195 DOI: https://doi.org/10.1097/00115514-200205000-00008
Arditi, D., & Mochtar, K. 2000. Trends in productivity improvement in the US construction industry. Construction Management and Economics, 18(1): 15-27. DOI: https://doi.org/10.1080/014461900370915
Striteska, M., & Spickova, M. 2012. Review and Comparison of Performance Measurement Systems. The Journal of Organizational Management Studies, 1-13. DOI: https://doi.org/10.5171/2012.114900
Biazzo, S., & Garengo, P. 2012. Performance measurement with the balanced scorecard. A practical approach to implementation within SMEs. In Performance Measurement with the Balanced Scorecard. Springer-Verlag Berlin Heidelberg 2012. DOI: https://doi.org/10.1007/978-3-642-24761-3_1
Malina, M. A., & Selto, F. H. 2001. Communicating and Controlling Strategy: An Empirical Study of the Effectiveness of the Balanced Scorecard. Journal of Management Accounting Research, 13(1): 47-90. DOI: https://doi.org/10.2308/jmar.2001.13.1.47
Gumbus, A., & Lussier, R. N. 2006. Entrepreneurs Use a Balanced Scorecard to Translate Strategy into Performance Measures. Journal of Small Business Management, 44(3): 407-425. DOI: https://doi.org/10.1111/j.1540-627X.2006.00179.x
Fachrodiani, W. 2005. Measuring Management Performance Using Balanced Scorecard: The Case of Small Manufacturing Company (A Case Study in PT Aseli Dagadu Djogja, Yogyakarta).
Dyer, R. F., & Forman, E. H. 1992. Group decision support with the Analytic Hierarchy Process. Decision Support Systems, 8(2): 99-124.
DOI: https://doi.org/10.1016/0167-9236(92)90003-8
Darko, A., Chan, A. P. C., Ameyaw, E. E., Owusu, E. K., Pärn, E., & Edwards, D. J. 2018. Review of the application of analytic hierarchy process (AHP) in construction. International Journal of Construction Management, 19(5): 436-452. DOI: https://doi.org/10.1080/15623599.2018.1452098
Poon, C. S., Yu, A. T. W., & Ng, L. H. 2003. Comparison of low‐waste building technologies adopted in public and private housing projects in Hong Kong. Engineering, Construction and Architectural Management, 10(2): 88-98. DOI: https://doi.org/10.1108/09699980310466578
Yip, N. M., & Forrest, R. 2010. Property Owning Democracies? Home Owner Corporations in Hong Kong. Housing Studies, 17(5): 703-720.
DOI: https://doi.org/10.1080/0267303022000009763
Hyun, C., Cho, K., Koo, K., Hong, T., & Moon, H. 2008. Effect of Delivery Methods on Design Performance in Multifamily Housing Projects. Journal of Construction Engineering and Management, 134(7): 468-482. DOI: https://doi.org/10.1061/(asce)0733-9364(2008)134:7(468)
Islam, M. S., & Suhariadi, B. T. (2018). Construction delays in privately funded large building projects in Bangladesh. Asian Journal of Civil Engineering, 19(4): 415-429. DOI: https://doi.org/10.1007/s42107-018-0034-3
Khodeir, L. M., & El Ghandour, A. (2019). Examining the role of value management in controlling cost overrun [application on residential construction projects in Egypt]. Ain Shams Engineering Journal, 10(3), 471-479.
DOI: https://doi.org/10.1016/j.asej.2018.11.008
Faraji, A., Rashidi, M., & Sorooshnia, E. (2020). An Integrated Organizational System for Project Source Selection in the Major Iranian Construction Companies. Buildings, 10(12). DOI: https://doi.org/10.3390/buildings10120251
LawInsider. (2015). Definition of Construction Contractor. https://www.lawinsider.com/dictionary/construction-contractor
Holt, G. D. (1997). Classifying construction contractors. Building Research & Information, 25(6): 374-382. DOI: https://doi.org/10.1080/096132197370200
Saad, I. M. H. (2020). Construction contracts: From zero-sum to win-win. Annual Conference-Canadian Society for Civil Engineering,
Luo, L., Zhong, Z., Zheng, J., Bo, Q., & Yang, D. (2023). Using Fuzzy Cognitive Maps to Explore the Dynamic Impact of Megaproject Governance on Performance. Journal of Infrastructure Systems, 29(2). DOI: https://doi.org/10.1061/jitse4.Iseng-2195
Owusu-Manu, D.-G., Kukah, A. S., Boateng, F., Asumadu, G., & Edwards, D. J. (2020). Exploring strategies to reduce moral hazard and adverse selection of Ghanaian public-private partnership (PPP) construction projects. Journal of Engineering, Design and Technology, 19(2), 358-372. DOI: https://doi.org/10.1108/jedt-05-2020-0195
Zhang, L., Cao, T., & Wang, Y. (2018). The mediation role of leadership styles in integrated project collaboration: An emotional intelligence perspective. International Journal of Project Management, 36(2): 317-330. DOI: https://doi.org/10.1016/j.ijproman.2017.08.014
Klerk, M. d., & Villiers, C. d. (2012). The value relevance of corporate responsibility reporting: South African evidence. Meditari Accountancy Research, 20(1): 21-38. DOI: https://doi.org/10.1108/10222521211234200
Krishna Rao, M. V., Kumar, V. S. S., & Rathish Kumar, P. 2018. Optimal Contractor Selection in Construction Industry: The Fuzzy Way. Journal of The Institution of Engineers (India): Series A, 99(1): 67-78. DOI: https://doi.org/10.1007/s40030-018-0271-1
Acheamfour, V. K., Adjei-Kumi, T., & Kissi, E. 2021. Contractor selection: a review of qualification and pre-qualification systems. International Journal of Construction Management, 23(2): 338-348.
DOI: https://doi.org/10.1080/15623599.2020.1868092
Khoso, A. R., Yusof, A. M., Chen, Z.-S., Skibniewski, M. J., Chin, K.-S., Khahro, S. H., & Sohu, S. (2022). Comprehensive analysis of state-of-the-art contractor selection models in construction environment-A critical review and future call. Socio-Economic Planning Sciences, 79.
DOI: https://doi.org/10.1016/j.seps.2021.101137
Pornthepkasemsant, P., & Charoenpornpattana, S. (2019). Identification of factors affecting productivity in Thailand’s construction industry and proposed maturity model for improvement of the productivity. Journal of Engineering, Design and Technology, 17(5), 849-861.
DOI: https://doi.org/10.1108/jedt-10-2017-0109
Williams, T. P. 2010. Construction Management: Emerging Trends and Technologies.
Pekuri, A., Haapasalo, H., & Herrala, M. 2011. Productivity and performance management–managerial practices in the construction industry. International Journal of Performance Measurement, 1(1): 39-58.
Doloi, H., Sawhney, A., Iyer, K. C., & Rentala, S. 2012. Analysing factors affecting delays in Indian construction projects. International Journal of Project Management, 30(4): 479-489. DOI: https://doi.org/10.1016/j.ijproman.2011.10.004
Halligan, D. W., Demsetz, L. A., Brown, J. D., & Pace, C. B. 1994. Action‐Response Model and Loss of Productivity in Construction. Journal of Construction Engineering and Management, 120(1): 47-64. DOI: https://doi.org/10.1061/(asce)0733-9364(1994)120:1(47)
Bou-Llusar, J. C., Escrig-Tena, A. B., Roca-Puig, V., & Beltrán-Martín, I. 2009. An empirical assessment of the EFQM Excellence Model: Evaluation as a TQM framework relative to the MBNQA Model. Journal of Operations Management, 27(1): 1-22. DOI: https://doi.org/10.1016/j.jom.2008.04.001
Chinda, T. 2008. A System Dynamics Approach to Construction Safety Culture https://research-repository.griffith.edu.au retrieved date: December 25, 2024
Sadegh Amalnick, M., & Zarrin, M. 2017. Performance assessment of human resource by integration of HSE and ergonomics and EFQM management system. International Journal of Health Care Quality Assurance 30(2): 160-174. DOI: https://doi.org/10.1108/IJHCQA-06-2016-0089
Kavishe, N., & Chileshe, N. 2019. Critical success factors in public-private partnerships (PPPs) on affordable housing schemes delivery in Tanzania. Journal of Facilities Management, 17(2): 188-207. DOI: https://doi.org/10.1108/jfm-05-2018-0033
Wang, D., Liu, J., Wang, X., & Chen, Y. 2017. Cost-effectiveness analysis and evaluation of a ‘three-old’ reconstruction project based on smart system. Cluster Computing, 22(S4): 7895-7905. DOI: https://doi.org/10.1007/s10586-017-1490-3
Li, W., Zhang, Z., Peng, Y., & Xiao, J. 2022. Research on the Construction of Performance Evaluation System of Financial Shared Service Center of Enterprise Group under ‘Big Intelligence Moving Cloud’ 2022 International Conference on Machine Learning and Knowledge Engineering (MLKE), DOI: https://doi.org/10.1109/MLKE55170.2022.00063
Naji, K., Gunduz, M., & Salat, F. 2020. Assessment of preconstruction factors in sustainable project management performance. Engineering, Construction and Architectural Management, 28(10): 3060-3077. DOI: https://doi.org/10.1108/ecam-05-2020-0333
Malik, S., Fatima, F., Imran, A., Chuah, L. F., Klemeš, J. J., Khaliq, I. H., Asif, S., Aslam, M., Jamil, F., Durrani, A. K., Akbar, M. M., Shahbaz, M., Usman, M., Atabani, A. E., Naqvi, S. R., Yusup, S., & Bokhari, A. 2019. Improved project control for sustainable development of construction sector to reduce environment risks. Journal of Cleaner Production, 240 . Article number: 118214 DOI: https://doi.org/10.1016/j.jclepro.2019.118214
Cebeci, U. 2009. Fuzzy AHP-based decision support system for selecting ERP systems in textile industry by using balanced scorecard. Expert Systems with Applications, 36(5), 8900-8909. DOI: https://doi.org/10.1016/j.eswa.2008.11.046
Jahangoshai Rezaee, M., Yousefi, S., Baghery, M., & K. Chakrabortty, R. 2021. An intelligent strategy map to evaluate improvement projects of auto industry using fuzzy cognitive map and fuzzy slack-based efficiency model. Computers & Industrial Engineering, 151. DOI: https://doi.org/10.1016/j.cie.2020.106920
Torgautov, B., Zhanabayev, A., Tleuken, A., Turkyilmaz, A., Borucki, C., & Karaca, F. 2022. Performance assessment of construction companies for the circular economy: A balanced scorecard approach. Sustainable Production and Consumption, 33: 991-1004. DOI: https://doi.org/10.1016/j.spc.2022.08.021
Gunduz, M., & Al-Naimi, N. H. 2021. Construction projects delay mitigation using integrated balanced scorecard and quality function deployment. Engineering, Construction and Architectural Management, 29(5): 2073-2105. DOI: https://doi.org/10.1108/ecam-12-2020-1082
Harris, F., McCaffer, R., Baldwin, A., & Edum-Fotwe, F. 2021. Modern construction management. John Wiley & Sons.
Goshu, Y. Y., & Kitaw, D. 2017. Performance measurement and its recent challenge: a literature review. International Journal of Business Performance Management, 18(4): DOI: https://doi.org/10.1504/ijbpm.2017.087103
Muntu, D., Setyawati, R., Riantini, L. S., & Ichsan, M. (2021). Effect of human resources management and advances to improve construction project performance. Physics and Chemistry of the Earth, Parts A/B/C, 122. DOI: https://doi.org/10.1016/j.pce.2021.103000
Athapaththu, K. I., & Karunasena, G. 2018. Framework for sustainable construction practices in Sri Lanka. Built Environment Project and Asset Management, 8(1): 51-63. DOI: https://doi.org/10.1108/bepam-11-2016-0060













