EPC Contractor Selection Using Fuzzy AHP, TOPSIS, Partial Value Function, and Time Decay Correction Methods
DOI:
https://doi.org/10.21070/prozima.v10i1.1786Keywords:
EPC Contractors Selection, Fuzzy AHP, TOPSIS, Partial Value Function, Time Decay CorrectionAbstract
The selection of EPC contractors at PT XZ heavily relies on the lowest-bid method, which focuses on cost-effectiveness but may disregard the contractor's technical expertise, ability to implement projects, and previous track record. This study develops a model for contractor selection based on performance and objectivity by integrating some methods such as fuzzy AHP, TOPSIS, partial value function (PVF), and time decay correction (TDC). Fuzzy AHP is used to assign weight to criteria and TOPSIS is used to rank the contractors, PVF and TDC is used to evaluate the performance of previous projects more proportionally. The results show that Price Bid has the biggest weight at 0.362, with Technical Qualifications second at 0.279 and Previous Project Performance third at 0.234. This result shows that price remains a dominant factor in selecting EPC contractors. However, the price is still combined with technical criteria, project execution capability, project experience, and the contractor’s past performance, so the model provides a more balanced evaluation, where cost efficiency is considered without ignoring the risks of project delays, additional work, lower work quality, and failure to achieve the project target. Based on the TOPSIS results, Contractor E (0.8837) is the most suitable contractor for Project XYZ. However, the difference in preference scores should also be considered as an early signal of project risk, particularly for lower-ranked contractors (A, B, C, and D). PT XZ should therefore set a minimum preference score before awarding the contract. This would help ensure that the selected contractor is not only competitive in price, but also strong in technical capability and past performance. The sensitivity analysis confirms that the ranking is stable, making the model useful for transparent and risk-based contractor selection.
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Copyright (c) 2026 I Nyoman Sudhama Yasa, Suparno Suparno, Ratna Sari Dewi
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