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Project portfolio selection for construction contractors by MCDM–GIS approach

  • A. HashemizadehEmail author
  • Y. Ju
Original Paper
  • 167 Downloads

Abstract

In this paper, project portfolio selection (PPS) is considered as one of the main steps in project portfolio management (PPM). PPS which depends on different criteria such as strategic, financial, as well as project specifications is also suggested for construction contractors. Although it is difficult to consider all these criteria, the decision will be inaccurate when some of them are ignored. The most common multi-criteria decision-making (MCDM) methodologies and geographic information system (GIS) are combined as a method, by which the potential projects obtain a strategic score by the analytical hierarchy process (AHP). Then, they are ranked according to technical criteria by the technique for order preference by similarity to ideal solution (TOPSIS). The proposed approach includes three ordinal phases. First, scoring potential projects due to the company strategy is conducted by the AHP to determine strategic-aligned projects (SAPs). Then, SAPs are ranked by TOPSIS. Finally, the final GIS sheet is prepared by the obtained technical score and communal criteria. This paper provides a clear and comprehensive insight to accept or reject SAPs by form a weighted sheet in GIS. It suggests that CCs select project portfolio according to all the financial and non-financial criteria. This approach can satisfy the PPM principals and resolve some of the shortcomings related to MCDM methods by GIS capacities to reduce complexity so that the decision-makers form project portfolios easily and effectively. This approach is described in a case study.

Keywords

Project portfolio Portfolio management Strategy–project orientation Multi-criteria decision-making Analytic hierarchy process (AHP) Effective decision-making 

Notes

Acknowledgements

The authors wish to extend their full gratitude to all who assisted in conducting this research.

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Copyright information

© Islamic Azad University (IAU) 2019

Authors and Affiliations

  1. 1.School of Management and EconomicsBeijing Institute of TechnologyBeijingChina

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