CRITERIA ANALYSIS FOR HEAVY EQUIPMENT PROCUREMENT POLICY IN SMALL AND MEDIUM-SIZED ROAD CONSTRUCTION CONTRACTORS
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Abstract
The success of local road construction contractors greatly depends on establishing an efficient heavy equipment procurement policy. Negligence in policy planning can pose risks related to equipment availability, project execution delays, and cost overruns. This research aims to examine the criteria that influence the decision-making process for heavy machinery procurement policies. The methodology employed hierarchical analysis and group decision-making for local contractors. The research process commenced with the following steps: (1) dividing local contractors based on registered capital size and ability to repair, (2) investigating relevant factors to establish criteria for selecting an equipment procurement policy,(3) establish hierarchical structures which encompassed six main criteria and three policies, (4) performing a hierarchical analysis process and conducting a project risk assessment in parallel. The findings of the study revealed that medium-sized contractors placed the highest priority on the main criterion " Total project cost" (priority score = 0.309) and the sub-criterion "Delay cost" (0.405). Conversely, small-sized contractors prioritized the main criterion "Efficiency of maintenance team" (0.419) and the sub-criterion "Procurement cost" (0.226). (4) Both groups of contractors' risk assessment to select appropriate policies. According to the risk assessment results, medium-sized contractors opt for policies that involve purchasing new equipment or renting machinery when they anticipate potential fines due to work delays. On the other hand, small contractors focus on repairing their existing equipment for fear of incurring the high costs of acquiring machinery.
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The published articles are copyright of the Engineering Journal of Research and Development, The Engineering Institute of Thailand Under H.M. The King's Patronage (EIT).
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