Analytic Hierarchy Process Decision-Making Framework for Procurement Strategy Selection in Building Maintenance Work Downloaded from ascelibrary.org by DALHOUSIE UNIVERSITY on 05/13/15. Copyright ASCE. For personal use only; all rights reserved. Shirley Chua Jin Lin 1; Azlan Shah Ali 2; and Anuar Bin Alias 3 Abstract: This paper presents a study of selection of procurement method in building maintenance management for public universities in Malaysia through the use of multiple criteria decision making (MCDM), particularly the analytic hierarchy process (AHP). There are many different types of procurement methods that have been developed to overcome the weaknesses of the existing procurement method and to meet the range of service requirement. The decision makers are faced with challenges when it comes to selecting the most appropriate procurement method for a specific building as different types of procurement methods suit different types of projects. This research seeks to investigate the current practices of the available procurement methods for building maintenance work in public universities and identify the procurement selection criteria to develop an effective decision-making framework. A questionnaire survey was conducted among 20 public universities in Malaysia with 85% response rate to identify and validate two important components for the development of a decision-making framework: the possible assessment criteria and the alternatives available for selection. The finding of this research proves that the selection of procurement methods by university organizations is neither strategic nor systematic as there is no guidance available for the decision maker to rely on in order to select the most appropriate procurement strategy. It is vital to develop a systematic approach that can assist maintenance personnel in making a decision on selecting procurement methods for a particular building. DOI: 10.1061/(ASCE)CF.1943-5509.0000529. © 2014 American Society of Civil Engineers. Author keywords: Analytic hierarchy process; Building maintenance management; Procurement strategy alternative; Procurement selection criteria; Public university. Introduction This paper presents research on developing a preference framework for the selection of procurement methods in building maintenance management through the use of multiple criteria decision making (MCDM), particularly the analytic hierarchy process (AHP). Lateef et al. (2011) claimed that the size and scope of university building maintenance in Malaysia is huge and the potential is increasing. The annual government allocation for the maintenance of university buildings is only 1% of the total allocation for the entire education sector (Lateef et al. 2011). This amount of allocation is inadequate to provide a high-quality maintenance service. However, an increase in the allocation without improvement of the management systems is also not a strategic solution in optimizing the given allocation. Asset and facilities management has been successfully developed and established in many western countries such as Japan, Australia, New Zealand, Hong Kong, and Singapore (Kamaruzzaman 1 Ph.D. Candidate, Faculty of Built Environment, Univ. of Malaya, 50603 Kuala Lumpur, Malaysia (corresponding author). E-mail: [email protected] 2 Associate Professor, Faculty of Built Environment, Univ. of Malaya, 50603 Kuala Lumpur, Malaysia. E-mail: [email protected] 3 Associate Professor, Faculty of Built Environment, Univ. of Malaya, 50603 Kuala Lumpur, Malaysia. E-mail: [email protected] Note. This manuscript was submitted on April 6, 2013; approved on October 24, 2013; published online on July 17, 2014. Discussion period open until December 17, 2014; separate discussions must be submitted for individual papers. This paper is part of the Journal of Performance of Constructed Facilities, © ASCE, ISSN 0887-3828/04014050(13)/ $25.00. © ASCE and Zawawi 2010). However, Moore and Finch (2004) emphasized that the definition of asset and facilities management is not well understood and not being practiced appropriately in Malaysia. Mustapa et al. (2008) supported that the definition of asset and facilities management is poorly understood in Malaysia which caused it to not be practiced in an appropriate way. They further stated that asset and facilities management is relatively new in Malaysia, and the wider concept of asset and facilities management of building management is still in the process of improving its maintenance management structure. Nik-Mat et al. (2011) noted that the Public Works Department (PWD) is the government body responsible for introducing asset and facilities management to Malaysian industry in 1974, but it has not been readily adopted or encouraged by the Malaysian government in any organized way. In addition, Lateef et al. (2011) highlighted that the maintenance management systems of universities in Malaysia are not IT based, which requires the work to be computed manually which wastes time, energy, and resources. They also perceived that the current maintenance management systems of universities in Malaysia are mainly corrective and cyclical and have not been scrutinized for inefficiencies which has led to backlogged maintenance work that results in poor user satisfaction. Public universities are very important to the nation as they are where future leaders, captains of industry, entrepreneurs, scientists, engineers, and managers are produced (Lateef et al. 2010). Thus, university buildings became a factor of production. The objective of the university might not be met without proper infrastructure. Lateef et al. (2011) highlighted that there have been many complaints voiced in the media. Research literature also points out that many of the university buildings are not in optimal operable condition. Lateef et al. (2010) pointed out that a major reason why the 04014050-1 J. Perform. Constr. Facil. 2015.29. J. Perform. Constr. Facil. Downloaded from ascelibrary.org by DALHOUSIE UNIVERSITY on 05/13/15. Copyright ASCE. For personal use only; all rights reserved. universities focus more on corrective maintenance was because of budget constraints and the lack of a competent workforce. In fact, the maintenance of the buildings in universities which is supposed to be a core activity is considered by the university management as a noncore activity. Lateef et al. (2011) also mentioned that it is essential to select an appropriate procurement method in the management of building maintenance to provide better service to the occupants of the building and increase productivity of the management. Selection of the most appropriate procurement strategy is significant if the universities wish to provide a conducive learning environment and research centers for university organizations, students, faculty members, parents, and other users. Alhazmi and McCaffer (2000) mentioned that the nature of the procurement system selection requires an effective decision-making technique to systematically evaluate the procurement systems against a number of criteria. Thus, this study aims to develop a systematic decision-making framework by identifying the available procurement method for building maintenance and the criteria that is to be considered when selecting a procurement method. Several researchers have developed models for procurement selection in other industries, adapting AHP as a development tool, but none of the research found is related to the building maintenance industry and university building. Cheung et al. (2001) adapted AHP while Musa (2011) integrated AHP techniques and principles as well as adapted Expert Choice 11 software (Arlington, Virginia) as a development tool in selecting the most appropriate service delivery system. This research by Cheung et al. and Musa received good comments and is accepted by respondents during the implementation and validation stage. Masterman (1992) mentioned that many clients have been selecting procurement systems in a cursory manner simply based upon biased past experience and conservative decisions, and some clients even use a specific procurement system by default without making a deliberated choice. Although past experiences may be an essential factor that influences the selection of procurement strategy, experiences and solutions to problems retrieved from previous projects may not be applicable to current projects because each building has its own distinct characteristics. In addition, Love et al. (1998) highlighted that owners of a similar nature do not necessarily have similar needs. In fact, the needs depend on many factors and are usually specific to the particular project. The application of AHP is a decision-making process based on multiple criteria that enables the decision maker to derive his own set of important criteria for the selection according to the characteristics of the building. The findings of this study will act as a tool to guide the university organization to select the most suitable and appropriate procurement method that will then improve the maintenance management of universities in Malaysia. Background Public University The Ministry of Higher Education (MOHE) is the government ministry that has the authority to determine the policies and direction of higher education in Malaysia. According to MOHE, the higher education system is designed to ensure that public institutions of higher education (PIHEs) have the ability to build a reputation with dynamic capabilities, competitive as well as able to anticipate future challenges and be prepared to respond effectively in line with global trends. Efforts to enhance the capacity of PIHEs will be continuous to ensure that the PIHEs perform their © ASCE functions and responsibilities in a more efficient, transparent, and effective way to create an excellent higher education system. In accordance with this, the public universities in Malaysia are categorized into three groups: research universities; focused universities (technical, education, management, and defense); and comprehensive universities. So far, there are 20 public universities in Malaysia, including 5 research universities, 4 comprehensive universities, and 11 focused universities. Research universities are public universities recognized by the cabinet on October 11, 2006, to become a leading research and educational hub; comprehensive universities offer various courses without focusing on any one area; and focused universities emphasize specific fields such as technical, education, management, and defense (Department of Higher Education 2011). Table 1 shows the categorization of public universities in Malaysia. The maintenance of public universities is managed and carried out by the Department of Development and Maintenance. However, it must be noted that the maintenance department of each university is named differently. The names of maintenance departments are shown in Table 2. Most of the Departments of Development and Maintenance in the universities are divided into divisions: administrative, maintenance and upgrading, development, contract, and services. Maintenance works are the responsibility of the maintenance and upgrading division which usually consists of five units that are responsible for the management and maintenance of facilities and buildings in the campus, landscaping and infrastructure for the entire campus, and any upgrading or renovation. The five units are the civil, electrical, mechanical, landscape, and renovation units. The electrical unit is responsible for maintenance of closedcircuit televisions (CCTVs), telecommunication and automation systems, and low-tension (LT) switchboard; the replacement of light fittings, light tubes, and bulbs; rewiring; servicing of the building automation system (BAS); and many other electrical and electronic systems. The mechanical unit is responsible for installation and maintenance of the air-conditioning system, fire-fighting system, lift system, transport system, and water-cooler system. The civil unit is responsible for maintenance, repair, and replacement of building components and finishes; external works such as roads, pavements, rivers, and walkways; civil infrastructure works such as water tank, reservoir, and sewerage system; cleaning of buildings and toilets; pest control; and painting work. Furthermore, the landscape unit is responsible for road sweeping and roadside drains cleaning, grass cutting, landscaped-area weeding and trimming, as well as pressure-jet cleaning of the footpaths, covered walkways, and bus stops. The renovation unit is responsible for planning and carrying out renovation work in the university. Procurement Strategy Alternative According to Love et al. (2002) and Adekunle et al. (2009, p. 343), procurement is defined as “an organizational system that assigns specific responsibilities and authorities to people and organizations.” Wordsworth (2001, p. 218) defined maintenance procurement as “the process by which required maintenance works are carried out.” The procurement process is concerned with the form of procurement whether by contract or direct labor and the quality of delivery of both the work carried out as well as the level of service provided (Wordsworth 2001). The Royal Institution of Chartered Surveyors (RICS 2009) highlighted that under a comprehensive maintenance procurement plan, all of the elements of building maintenance need to be addressed through some form of contract strategy. Maintenance work ranges from very large maintenance projects to very small maintenance tasks. Subsequently, many different 04014050-2 J. Perform. Constr. Facil. 2015.29. J. Perform. Constr. Facil. Table 1. Categorization of Public Universities in Malaysia Downloaded from ascelibrary.org by DALHOUSIE UNIVERSITY on 05/13/15. Copyright ASCE. For personal use only; all rights reserved. Number University Research universities 1 2 3 4 5 Comprehensive universities 1 2 3 4 Focused universities 1 2 3 4 5 6 7 8 9 10 11 Characteristics University of Malaya (UM) University of Science, Malaysia (USM) National University of Malaysia (UKM) Putra University, Malaysia (UPM) University of Technology, Malaysia (UTM) • • • • Fields of study: focus is on research Competitive entries Quality lecturers Ratio of undergraduates to postgraduates is 50:50 MARA University of Technology (UiTM) International Islamic University of Malaysia (UIA) University of Malaysia, Sabah (UMS) University of Malaysia, Sarawak (UNIMAS) • • • • Various fields of study Competitive entries Quality lecturers Ratio of undergraduates to postgraduates is 70:30 Northern University of Malaysia (UUM) Sultan Idris University of Education (UPSI) Tun Hussein Onn University of Malaysia (UTHM) Technical University of Malaysia, Melaka (UTeM) University of Malaysia, Perlis (UniMAP) University of Malaysia, Terengganu (UMT) University of Malaysia, Pahang (UMP) Islamic Science University of Malaysia (USIM) Sultan Zainal Abidin University (UniSZA) University of Malaysia, Kelantan (UMK) National Defense University of Malaysia (UPNM) • • • • Fields of study: focus is on research Competitive entries Quality lecturers Ratio of undergraduates to postgraduates is 50:50 Note: Data from Ministry of Higher Education (MOHE), Malaysia. types of procurement methods have been developed to overcome the weaknesses of the existing procurement method and meet the range of services requirement. The main differences between the various types of procurement strategies lie in the methods of evaluating the work and the degree of financial risk borne by the contractor and the client, respectively (Wordsworth 2001). The types of procurement methods identified through literature review for building maintenance are discussed below (Wordsworth 2001; Sheng 2012; RICS 2009; Hui and Tsang 2004; Ancarani and Capaldo 2005; Atkin and Brooks 2005). Direct or in-house labor includes operatives within the maintenance management organization employed to maintain the building in an acceptable standard (Wordsworth 2001). Wordsworth (2001, p. 223) defined in-house as “a service provided by a dedicated resource directly employed by the organization, monitoring and control of performance is normally conducted under the terms of conventional employer or employee relationships, although internal service-level agreements may be employed as regulating mechanisms.” Outsourcing is defined as the “contracting-out” of services that were previously executed in house (Ancarani and Capaldo 2005). In addition, outsourcing means the “service is commissioned from an external supply organization which is usually under the terms of a formal contractual arrangement based upon terms and conditions derived from a service level agreement, there may be several of these contractual relationships operating in parallel for a range of services from a variety of suppliers” (Ancarani and Capaldo 2005, p. 234; Atkin and Brooks 2005). Outsourcing can be a trade of service under several types of contract which include Table 2. Public Universities’ Maintenance Department Name Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 © ASCE University Maintenance department University of Malaya (UM) University of Science, Malaysia (USM) National University of Malaysia (UKM) Putra University, Malaysia (UPM) University of Technology, Malaysia (UTM) MARA University of Technology (UiTM) International Islamic University of Malaysia (UIA) University of Malaysia, Sabah (UMS) University of Malaysia, Sarawak (UNIMAS) Northern University of Malaysia (UUM) Sultan Idris University of Education (UPSI) Tun Hussein Onn University of Malaysia (UTHM) Technical University of Malaysia, Melaka (UTeM) University of Malaysia, Perlis (UniMAP) University of Malaysia, Terengganu (UMT) University of Malaysia, Pahang (UMP) Islamic Science University of Malaysia (USIM) Sultan Zainal Abidin University (UniSZA) University of Malaysia, Kelantan (UMK) National Defense University of Malaysia (UPNM) Department of development and estate maintenance Development department Department of development and maintenance Department of development and asset management Office of asset and development Department of facilities management Development division Department of development and maintenance Asset management division Department of development and maintenance Department of development and estate maintenance Development and property management office Development office Department of development Office of asset and development Property management and development Department of development and facilities management Development and maintenance department Department of development, infrastructure, and services Development and maintenance department 04014050-3 J. Perform. Constr. Facil. 2015.29. J. Perform. Constr. Facil. Procurement Selection Criteria Downloaded from ascelibrary.org by DALHOUSIE UNIVERSITY on 05/13/15. Copyright ASCE. For personal use only; all rights reserved. • • • • • • • • Outsourcing by lump sum contract, Outsourcing by measured term contract, Outsourcing by specialist term contract, Outsourcing by day work term contract, Outsourcing by tendered schedule term contract, Outsourcing by repair and maintenance contract, Outsourcing by cost reimbursement contract, and Outsourcing by service-level agreement. Out-tasking is “a management process whereby specific tasks, as opposed to a whole package of support function in the case of outsourcing are performed by a contractor” (Hui and Tsang 2004, p. 86; Kleeman 1994). A public-private partnership (PPP) occurs between the organization and service provider to share the responsibility of delivery and performance of the service whereby the benefits gained in terms of cost saving and efficiency are shared as well (Ancarani and Capaldo 2005; Atkin and Brooks 2005). In total facilities management (TFM), a supplier is totally responsible for a whole range of services such as delivery, monitoring, controlling, and attainment of performance objectives that relate to operational benefit (Ancarani and Capaldo 2005; Atkin and Brooks 2005). Straub (2007) stated that the majority of maintenance projects adopted the traditional procurement method where three to five competitive bids are solicited and the lowest tender price is chosen. “Partnering,” according to the Construction Industry Institute, “is a long-term commitment between two or more organizations for the purpose of achieving specific business objectives by maximizing the effectiveness of each participant’s resources” (RICS 2009, p. 44). As this research mainly focuses on assisting the university organizations that wish to outsource services, direct labor, which is also known as in-house, was not included in the present study. Luu et al. (2003a) confirmed that it is essential to establish a list of procurement selection criteria (PSC) before various procurement options can be evaluated. Through the analysis of procurement selection criteria of previous research, it can be seen that there are similarities which can be seen in Table 3. In addition, the criteria were usually divided under some main criteria or factors such as clients’ requirements which are known as clients’ characteristics and objectives (owner’s needs and preferences), project characteristics, and external environment. The grouping of procurement selection criteria had similarities through the analysis of previous research that can be seen in Table 4. In this research, the 26 criteria identified from literature review were divided into three main categories that were clients’ requirements, project characteristics, and external environment or factor that can be referred to Table 5. Analytic Hierarchy Process In this study, the selection of procurement method for building maintenance management adapted MCDM, particularly AHP. Pirdashti et al. (2009, p. 55) stated that MCDM is “an analytic method to evaluate the advantages and disadvantages of alternatives based on multiple criteria.” Saaty (2008, p. 83) explained that AHP is “a theory of measurement through pairwise comparisons and relies on the judgments of experts to derive priority scales.” The comparisons are made using a scale of absolute judgments that indicate how much one element dominates another in respect to a given attribute (Saaty 2008). There are three basic principles of the AHP which include the following (Saaty 1982): First is the principle of constructing hierarchies. A complex system was structured hierarchically by decomposing the elements into constituent parts according to essential relationships toward Table 3. Procurement Selection Criteria Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 © ASCE Criteria Speed Time certainty Price/cost certainty Degree of complexity Degree of flexibility Responsibility Risk allocation/avoidance Quality level Price competition Public accountability Political issues/constraint Intuition and past experience of the decision maker Dissatisfaction with previous process used Knowledge of the strategy Culture Objective or policy of organization Working relationship Government policy Clarity of scope Existing building condition Involvement of owner in the project Disputes and arbitration Experience contractor availability Client’s in-house technical capability Client’s financial capability Project size Luu Cheung Ng Hibberd and Hashim Alhazmi and Love Luu et al. et al. et al. Djebarni et al. Al Khalil McCaffer et al. et al. (2003a) (2001) (2002) (1996) (2006) (2002) (2000) (1998) (2003b) — X X — X — X — X — — X — — — — — X — — — — — — — — X — X X X X X X X — — — — — — — — — — — — — — — — — X X X X X X X X X X X X — — — X — — — — — X — — — — 04014050-4 J. Perform. Constr. Facil. 2015.29. X X X — — — X — — — — — X X — — X — — — — — — — — — — X X X — X X X X — — — — — — — — X — — — — — — — — — X X X X X — — — — — — — — — — — — X X — — — — — — — X X X X X — — — — — — — — — — — — — X — — — — — — X X X X X X X X X — — — — — — — — — — — — X — — — — — — — — X — X X X — X X — — X — — — — — X — X X X X J. Perform. Constr. Facil. Table 4. Main Procurement Selection Criteria Main criteria Clients’ requirements and characteristics Project characteristic External environment or factor Luu et al. (2003b) Ratnasabapathy and Rameezdeen (2007) Al Khalil (2002) X X X X X X X X — reflects the degree to which the intensity of relationships between elements can be discriminated. Third is the principle of logical consistency. Logical consistency ensures that elements are grouped logically and ranked consistently according to a logical criterion (Saaty 1982). The consistency of the comparison matrix is monitored by an inconsistency ratio (IR) or consistency ratio (CR) calculated by the formula below (Cheung et al. 2001; Saaty 1982): Downloaded from ascelibrary.org by DALHOUSIE UNIVERSITY on 05/13/15. Copyright ASCE. For personal use only; all rights reserved. Consistency ratio ðCRÞ a desired goal which can make the whole system well understood (Saaty 1982). Second is the principle of establishing priorities. The first step in establishing the priorities of elements in a decision problem is to make a pairwise comparison that is to compare the elements in pairs against a given criterion (Saaty 1982). Table 6 shows the scale for a pairwise comparison matrix. Saaty (1982) pointed out that past experience has confirmed that a scale of nine units is reasonable and ¼ Consistency index ðCIÞ=Random index ðRIÞ where CI ¼ ðλmax − nÞ=ðn − 1Þ, with n the number of elements; λ max = maximum eigenvalue of the comparison matrix; and RI = consistency index of a randomly generated reciprocal matrix within a scale of 1 to 9. The consistency ratio (CR) is acceptable if it does not exceed 0.10. Repeat and review the judgment if the CR is greater than Table 5. Procurement Method Selection Criteria Criteria C C C C C C C C C C C 1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 C2 C 2.1 C C C C 3 3.1 3.2 3.3 Experienced contractor availability Quality level Knowledge of the strategy Degree of responsibility Client’s financial capability Price competition Time certainty Speed Public accountability Clarity of scope Client requirement and characteristics C 1.11 C 1.12 C 1.13 C 1.14 C 1.15 C 1.16 C 1.17 C 1.18 C 1.19 — Involvement of owner in the project Working relationship Intuition and past experience Client in-house technical capability Price or cost certainty Risk allocation or avoidance Dissatisfaction with previous process Degree of complexity Degree of flexibility — Existing building condition Project characteristic C 2.2 Project size Objective or policy of organization Government policy Dispute and arbitration External environment/factor C 3.4 C 3.5 — Political issue/constraint Cultural differences — Note: Data from Hibberd and Djebarni (1996), Love et al. (1998), Alhazmi and McCaffer (2000), Cheung et al. (2001), Al Khalil (2002), Ng et al. (2002), Luu et al. (2003a, 2003b), and Hashim et al. (2006). Table 6. Scale for Pairwise Comparison Matrix Intensity of importance Definition Explanation 1 Equal importance of both elements 3 Weak importance of one over another 5 Essential or strong importance of one element over another Very strong and demonstrated importance of one element over another Absolute importance of one element over another 7 9 2, 4, 6, 8 Reciprocals of above nonzero Rational Intermediate values between adjacent scale values If activity i has one of the above nonzero numbers assigned to it when compared with activity j, then j has the reciprocal value when compared with i Ratios arising from the scale Two criteria are of equal importance and equally contribute to the property or objectives Experience and judgment slightly favor one criterion or element over another Experience and judgment strongly favor one criterion or element over another A criterion or element is strongly more important or favored and its dominance is demonstrated in practice more than the other The evidence favoring one criterion over another is of the highest possible order of affirmation When compromise is needed between two judgments A reasonable assumption If consistency were to be forced by obtaining n numerical values to span the matrix Note: Data from Cheung et al. (2001), Saaty (1980, 1982, 1990). © ASCE 04014050-5 J. Perform. Constr. Facil. 2015.29. J. Perform. Constr. Facil. Table 7. Consistency Index (RI) of a Randomly Generated Reciprocal Matrix within a Scale of 1 to 9 Size of matrix 1 2 3 4 5 6 7 8 9 10 Random 0.00 0.00 0.58 0.90 1.12 1.24 1.32 1.41 1.45 1.49 consistency Note: Data from Cheung et al. (2001), Saaty (1980, 1982, 1990). Downloaded from ascelibrary.org by DALHOUSIE UNIVERSITY on 05/13/15. Copyright ASCE. For personal use only; all rights reserved. 0.10. Table 7 shows the random index (RI) for a consistency index of a randomly generated reciprocal matrix within a scale of 1 to 9. Research Design and Methodology Generally, there are two types of data collected: primary and secondary. According to McNabb (2008), primary data are researcher generated, and secondary data are collected by other parties but are used by the researcher to have more understanding for the research. The present study starts with identification of secondary data collected through an extensive literature review. The literature review for the development of a decision-making framework is mainly focused on two important components: the possible assessment criteria and the alternatives available for selection. The assessment criteria and alternatives for selection are evaluated by the maintenance personnel in public universities in Malaysia in order to determine and shortlist the assessment criteria and alternatives that are considered important to select the most appropriate procurement method for building maintenance management specifically for public universities in Malaysia. Before the questionnaire survey was conducted, a pilot study was conducted to assure that the questionnaires achieve the objectives of the survey and to test the ease of understanding of the questions. It was also taken into consideration whether the time allocated to complete the survey is appropriate, and any ambiguities arising from the wording of the questions was also addressed. Once the questionnaire was completed, an official cover letter from the faculty of Built Environment, University of Malaya, and a cover letter that contained the objectives of the research, the importance of the information requested, and when the respondents are expected to return the completed questionnaire were attached as well. The respondents were promised a summary report of the findings of the survey for their corporation, requiring them to provide their name and e-mail address at the end of the questionnaire. This contact information will then be used to forward to them the findings of the survey. A set of questionnaires with the letter was posted to all respondents on the same day together with a self-addressed prepaid envelope that was provided in order to expedite and facilitate return. However, the respondents were also allowed to return their completed questionnaire by e-mail. All the questionnaire were sent using the Faculty of Built Environment, University Malaya, address as the return address to reflect the importance of the work and to indicate that the survey is official in nature. Data collection and collation commenced on September 15, 2012, and lasted until the end of December 2012. Feedback from the questionnaires was analyzed using computer packages, namely Statistical Package for Social Science (SPSS) version 17.0. Table 8. Distribution of Respondents’ Position Job title Facilities manager Maintenance manager Maintenance executive Director or deputy director of development Others Total 17.6 11.8 17.6 29.4 23.5 100.0 survey. Sekaran and Bougie (2009) claimed that 30% is the common response rate for a postal survey. However, this high response rate is possible because of the long survey duration of time given and the numerous reminders that were sent to the respondents. Analysis of the data shows that a majority (29.4%) of the respondents are directors or deputy directors of development as shown in Table 8. Director of development is the highest managerial position in the Department of Development and Maintenance. The director of development is responsible for planning, executing, and monitoring development projects, maintenance works, and building and infrastructure upgrading work in the university. In addition, they need to manage the administration and operations of the department and assist the university’s vice chancellor in planning the strategy and direction of development in and around the vicinity of the university as well as plan and implement development initiatives. Thus, the directors or deputy directors of development and maintenance are the most appropriate people to respond to the questionnaire because they are involved in the decision-making process and are relied upon to provide valid, factual, and unbiased information. In addition, Table 9 shows that 35.3% of the respondents have more than 15 years of experience in building maintenance works, and 76.4% of the respondents have more than five years of experience in the said field. Hence, there is no doubt that the respondents have sufficient experience to provide valid feedback. An analysis was also carried out on the number of university buildings that had been managed by the respondents prior to the current university that they are managing to study the respondents’ experience in managing university buildings. It can be seen in Table 10 that nearly half of the respondents (41.2%) managed more than 15 buildings. With this, there is no doubt as to the respondents’ experience in managing university buildings. An analysis on academic qualification of the respondents reveals that 64.7% of respondents Table 9. Distribution of Respondents’ Working Experience in Building Maintenance Works Experience in building maintenance works Less than 5 years 5–10 years 10–15 years More than 15 years Total Percentage (N ¼ 17) 23.5 23.5 17.6 35.3 100.0 Table 10. Distribution of Number of University Buildings Managed by the Respondents before This University Results and Discussion Number of university buildings have been managed before this university From the 20 public universities surveyed, 17 questionnaires were returned and were subsequently analyzed for this study. This marks the response rate at 85%. This is considered satisfactory for a postal Less than five buildings More than 15 buildings Total © ASCE Percentage (N ¼ 17) 04014050-6 J. Perform. Constr. Facil. 2015.29. Percentage (N ¼ 17) 58.8 41.2 100.0 J. Perform. Constr. Facil. Table 11. Distribution of Respondents’ Highest Academic Background Percentage (N ¼ 17) Highest academic qualification Downloaded from ascelibrary.org by DALHOUSIE UNIVERSITY on 05/13/15. Copyright ASCE. For personal use only; all rights reserved. Bachelor degree Master degree Ph.D. Total 64.7 23.5 11.8 100.0 who have obtained their bachelor’s degree, 23.5% of them have obtained their master’s degree. A total of 11.8% of the respondents have a doctorate degree. From Table 11, the results revealed that all (100%) of the respondents have at least a bachelor’s degree. Therefore, it can be deduced that the majority of the respondents have satisfactory working experience and knowledge in providing required information. This indicated that the respondents’ role, knowledge, and extensive background provide valid, factual, and unbiased information that contribute to the high reliability and validity of the conclusion which has been drawn from the research findings. Table 12 shows that most (70.6%) of the universities that participated in this research occupied more than 100,001 m2 build area. Only one university occupied 40,000–50,000 m2 , one university occupied 50,001–60,000 m2 , one university occupied 60,001– 70,000 m2 , while two universities occupied 70,001–80,000 m2 built area. This indicated that the universities that participated in this survey were large. Ali (2009) claimed that the level of maintenance work required depends on the age of building. He further explained that the older the building, the more attention and focus is needed. Lateef (2009) agreed that a building’s age is one of the most important elements that needs to be considered in the allocation of maintenance resources. Cross tabulation is performed to determine whether age of building influences the allocation of the annual maintenance budget of the university. The age of the building refers to the years of establishment of that particular university. There are two universities that are more than 50 years old and the buildings have been listed under the National Heritage Act 2005 and recorded as heritage buildings. The buildings that have been recorded are Suluh Budiman Building which is known as Bangunan Suluh Budiman in Malay located in Sultan Idris University of Education (UPSI) and Chancellery building as well as Table 12. Distribution of Size of the University Built Area Size of the university built area Percentage (N ¼ 17) 2 40,000–50,000 m 50,001–60,000 m2 60,001–70,000 m2 70,001–80,000 m2 100,001 m2 and above Total 5.9 5.9 5.9 11.8 70.6 100.0 Tunku Chancellor Hall which is known as Dewan Tunku Chancellor (DTC) in Malay located in University of Malaya. Suluh Budiman Building was built in August 1919 and completed in June 1922, while Chancellery building and Tunku Chancellor Hall were completed and officiated in 1966. The buildings have historical value, cultural heritage significance, and represent the nature of the universities. The results in Table 13 reveal that only 11.8% of the universities that are more than 50 years old are allocated the most annual maintenance budget (at more than RM40 million). It also revealed that the universities that have been in existence for at least 31 years were allocated more than RM10 million for their annual maintenance budget. This proves that the older the building, the higher is the allocation of annual maintenance budget for the university. Likert scale and ranking analysis were employed to rate the importance of procurement selection criteria. As mentioned earlier, there are 26 criteria to be considered in this study. The respondents were asked to rate the degree of importance of criteria to be considered for procurement method selection for universities’ building maintenance. Likert scales of 5, from which 1 indicates “least important” to 5 which indicates “very important” were employed. Ranking of the importance of procurement selection criteria uses the mean score to indicate the degree of importance of the criteria. The mean, standard deviation, mode, and ranking can be referred to in Table 14. The Likert scale was also used to rate the importance of each type of procurement method identified from the literature review. Ranking analysis was performed to indicate the degree of importance of the building maintenance procurement method. The mean, standard deviation, mode, and ranking can be referred to in Table 15. Furthermore, a multiple-response analysis was performed on the procurement methods currently employed in Malaysia’s public universities. The results are shown in Table 16 and Fig. 1 for reference. Outsourcing by repair and maintenance contracts is the most popular procurement method adapted in public universities. Out of 17 universities that participated in this survey, 14 universities employed this type of procurement method as opposed to only 3 universities that do not. In addition, outsourcing by specialist term contracts (14.3%) is also popular among the procurement methods. On the other hand, out-tasking (1.1%) and total facilities management (1.1%) are the least used in public universities in Malaysia. The ranking of the procurement method used in public universities in Malaysia can be referred to in Fig. 1. There are some methods that the decision maker applied to select the most appropriate procurement method. Some respondents may choose the procurement method based on previous experiences, on the maintenance budget allocation, on the age of the building, or on government policies. Some may think the best way is to select a procurement method that carries the least risk and will deliver optimum efficiency. Based on the data collected from 17 universities that participated in this survey, some universities Table 13. Cross Tabulation between Age of University and Annual Maintenance Budget of University Annual maintenance budget of university Age of university Less than 10 years 10–20 years 21–30 years 31–40 years 41–50 years More than 50 years Total © ASCE Less than RM10 million RM11–20 million RM21–30 million 11.8 29.4 5.9 0 0 5.9 52.9 5.9 5.9 5.9 5.9 0 0 23.5 0 0 0 0 5.9 0 5.9 04014050-7 J. Perform. Constr. Facil. 2015.29. RM31–40 million More than RM40 million Total percentage (N ¼ 17) 0 0 0 5.9 0 0 5.9 0 0 0 0 0 11.8 11.8 17.6 35.3 11.8 11.8 5.9 17.6 100.0 J. Perform. Constr. Facil. Downloaded from ascelibrary.org by DALHOUSIE UNIVERSITY on 05/13/15. Copyright ASCE. For personal use only; all rights reserved. Table 14. Ranking of Procurement Selection Criteria Procurement selection criteria Standard Mean Mean deviation ranking Mode Experience contractor availability Existing building condition Objective or policy of organization Quality level Government policy Knowledge of the strategy Degree of responsibility Client’s financial capability Price competition Time certainty Speed Public accountability Clarity of scope Involvement of owner in the project Working relationship Project size Intuition and past experience Client in-house technical capability Price or cost certainty Risk allocation or avoidance Dispute and arbitration Dissatisfaction with previous process Degree of complexity Degree of flexibility Political issue/constraint Culture 4.71 4.59 4.53 4.47 4.41 4.41 4.41 4.41 4.35 4.35 4.35 4.29 4.29 4.24 4.24 4.18 4.12 4.06 4.00 3.94 3.88 3.76 3.71 3.59 3.53 3.47 0.470 0.618 0.514 0.717 0.618 0.712 0.712 0.795 0.606 0.493 0.493 0.686 0.686 0.752 0.831 0.636 0.781 0.827 1.061 0.748 0.697 0.903 0.985 1.004 0.717 0.800 1 2 3 4 5 6 6 7 8 9 9 10 10 11 12 13 14 15 16 17 18 19 20 21 22 23 5 5 4 5 4 5 5 5 4 4 4 4 4 4 5 4 4 4 4 4 4 4 4 3 3 3 Table 16. Distribution on Procurement Methods Currently Employed in Malaysia’s Public Universities Responses Procurement method used in universities N Percentage Percent of cases Outsourcing by repair and maintenance contract Outsourcing by specialist term contract Outsourcing by tendered schedule term contract Outsourcing by measured term contract Outsourcing by lump sum contract Traditional Outsourcing by day work contract Outsourcing by service-level agreement Public-private partnership (PPP) Outsourcing by cost reimbursement contract Out-tasking Total facilities management Partnering Total 14 18.2 82.4 13 12 16.9 15.6 76.5 70.6 11 6 6 5 4 2 2 14.3 7.8 7.8 6.5 5.2 2.6 2.6 64.7 35.3 35.3 29.4 23.5 11.8 11.8 1 1 0 77 1.3 1.3 0 100.0 5.9 5.9 0 452.9 depend on more than one method in choosing a suitable procurement method. Thus, a multiple-response analysis was performed on this analysis. From the results obtained in Table 17, the majority of universities choose their procurement method based on maintenance budget allocation (45.7%) and on previous experiences (31.4%). The minority of universities consider government policies (2.9%) and select the procurement method that provides lower risk and optimizes efficiency (2.9%). In addition, some universities consider the age of the building (17.1%) in selecting their procurement method. Lateef et al. (2011) pointed out that university organizations prefer to outsource the larger part of maintenance services, and it seems that outsourcing is the most commonly used procurement method for universities in Malaysia. It also can be seen from Fig. 1. Ranking of procurement methods currently employed in Malaysia’s public universities Table 15. Ranking of Building Maintenance Procurement Method Procurement method Outsourcing by specialist term contract Outsourcing by tendered schedule term contract Outsourcing by repair and maintenance contract Outsourcing by measured term contract Outsourcing by service-level agreement Total facilities management Outsourcing by lump sum contract Outsourcing by day work contract Traditional Outsourcing by cost reimbursement contract Public-private partnership (PPP) Out-tasking Partnering © ASCE Standard Mean Mean deviation ranking Mode 4.18 4.12 0.728 0.781 1 2 4 4 4.06 0.659 3 4 3.94 3.47 3.24 3.24 3.06 3.00 2.88 0.966 1.007 1.200 1.251 0.899 1.000 0.928 4 5 6 7 8 9 10 4 3 4 3 3 3 3 2.82 2.82 2.71 0.809 0.809 1.263 11 11 12 3 3 3 Table 17. Distribution on Ways to Select Procurement Method Responses Ways to select procurement method N Percentage Percent of cases Based on previous experiences Based on the maintenance budget allocation Based on the age of the building Based on government policies Select a procurement method that carries the least risk and will deliver optimum efficiency Total 11 16 31.4 45.7 64.7 94.1 6 1 1 17.1 2.9 2.9 35.3 5.9 5.9 35 100.0 205.9 04014050-8 J. Perform. Constr. Facil. 2015.29. J. Perform. Constr. Facil. Table 18. Distribution on Reason to Outsource Building Maintenance Services Responses Downloaded from ascelibrary.org by DALHOUSIE UNIVERSITY on 05/13/15. Copyright ASCE. For personal use only; all rights reserved. Reasons to outsource building maintenance N Percentage Reduce maintenance task to corrective 10 maintenance In-house staff less competent and inactive 5 Number of in-house staff is not adequate 14 It can reduce maintenance cost 4 University management consider the 5 management of building as noncore activity Complexity of the maintenance work 1 Total 39 Table 16 and Fig. 1 that most of the universities prefer to outsource their building maintenance services to contractors. The reasons for this are identified in Table 18. Table 18 shows that the main reason that the universities outsourced their maintenance services was because of the inadequacy of in-house staff. Fourteen out of the 17 universities that participated in this survey claimed that the number of in-house staff is not adequate which means that the number of maintenance personnel in the university organization is not sufficient to carry out all the maintenance work in the university. Thus, the university organizations prefer to outsource the maintenance services to contractors to carry out the maintenance task, and the in-house maintenance team focuses only on monitoring and planning the building maintenance task. The universities also Percent of cases 25.6 58.8 12.8 35.9 10.3 12.8 29.4 82.4 23.5 29.4 2.6 100.0 5.9 229.4 Consider constraints Market condition Procurement Selection Criteria Experience contractor availability Existing building condition Objective or policy of organisation Quality level Government policy Knowledge of the strategy Degree of responsibility Client's financial capability Price competition Time Certainty Speed Public accountability Clarity of scope Involvement of owner in the project Working relationship Project size Intuition and pass experience Client in house technical capability Price or cost certainty University organization policies i.e safety Regulatory constraints Identify problem The decision problem is decomposed by structuring the hierarchy based on AHP technique and principles Perform pairwise comparisons using the relative measurement scale Synthesizing the pairwise comparison Employ the shortlisted criteria and alternatives using Expert Choice Software as development tool to develop the hierarchy framework Evaluate the consistency for the entire hierarchy. The consistency ratio (CR) is acceptable if it does not exceed 0.10. Repeat and review the judgement if the CR is greater than 0.10. Development Stage Evaluation Stage Procurement method used in universities Outsourcing by Repair and Maintenance Contract Outsourcing by Specialist Term Contract Outsourcing by Tendered Schedule Term Contract Outsourcing by Measured Term Contract The most appropriate procurement method is selected Fig. 2. Decision-making framework for procurement method selection of building maintenance management for public universities Table 19. Selected Procurement Selection Criteria and Procurement Options for the Proposed Decision-Making Framework Procurement selection criteria Mean Mode Procurement method used in universities Mean Mode Percent of cases Experience contractor availability Existing building condition Objective or policy of organization Quality level Government policy Knowledge of the strategy Degree of responsibility Client’s financial capability Price competition Time certainty Speed Public accountability Clarity of scope Involvement of owner in the project Working relationship Project size Intuition and past experience Client in-house technical capability Price or cost certainty 4.71 4.59 4.53 4.47 4.41 4.41 4.41 4.41 4.35 4.35 4.35 4.29 4.29 4.24 4.24 4.18 4.12 4.06 4.00 5 5 4 5 4 5 5 5 4 4 4 4 4 4 5 4 4 4 4 Outsourcing by repair and maintenance contract Outsourcing by specialist term contract Outsourcing by tendered schedule term contract Outsourcing by measured term contract 4.06 4.18 4.12 3.94 4 4 4 4 82.4 76.5 70.6 64.7 © ASCE 04014050-9 J. Perform. Constr. Facil. 2015.29. J. Perform. Constr. Facil. Select the most appropriate procurement method of building maintenance management services for public university Level 1: Goal C1 Level 2: Main Criteria Downloaded from ascelibrary.org by DALHOUSIE UNIVERSITY on 05/13/15. Copyright ASCE. For personal use only; all rights reserved. Level3: Sub Criteria Level 4: Alternatives • • • • • • • • • • • • • • • C3 C2 • • C1.1 C1.2 C1.3 C1.4 C1.5 C1.6 C1.7 C1.8 C1.9 C1.10 C1.11 C1.12 C1.13 C1.14 C1.15 A1 • • C2.1 C2.2 A2 A3 C3.1 C3.2 A4 Fig. 3. Hierarchy structure for selecting the most appropriate procurement method for building maintenance management of public universities in Malaysia claimed that outsourcing reduces the maintenance task to corrective maintenance (25.6%) because the maintenance task will be carried out by a trained and experienced team for better-quality service. This is supported by Sheng (2012) who found that external specialists are engaged to provide certain specialized trade of service that can improve the quality of maintenance work, reduce corrective Table 20. List of Final Procurement Selection Criteria Abbreviation used C1 C1.1 C1.2 C1.3 C1.4 C1.5 C1.6 C1.7 C1.8 C1.9 C1.10 C1.11 C1.12 C1.13 C1.14 C1.15 C2 C2.1 C2.2 C3 C3.1 C3.2 © ASCE Criteria Clients’ requirements Experienced contractor availability Quality level Knowledge of the strategy Degree of responsibility Client’s financial capability Price competition Time certainty Speed Public accountability Clarity of scope Involvement of owner in the project Working relationship Intuition and pass experience Client in house technical capability Price or cost certainty Project characteristic Existing building condition Project size External environment/factor Objective or policy of organization Government policy maintenance, and reduce maintenance cost. The universities also claimed that in-house staff are less competent and inactive (12.8%), and university management considers the management of the building as a noncore activity (12.8%), thus the services are outsourced. However, some universities argued that outsourcing can reduce maintenance cost (10.3%) as it can eliminate the cost of training provision for internal employees, while other universities claimed that the complexity of the work (2.6%) caused them to outsource the work to the experts. From the survey, 58.8% (N ¼ 10) of the respondents opined that there was no proper guidance available to select the most appropriate procurement method. This result provides an impetus for this research. However, 41.2% (N ¼ 7) of the respondents stated that some guidance is available such as government policies that were produced by the ministry of finance and public works department, also known as Jabatan Kerja Raya (JKR). Furthermore, a majority (52.9%) of the respondents opined that there is no decision-making theory or tool available in helping them to select a procurement strategy for the university. However, the analysis reveals that 47.1% of the respondents stated that there were some tools available to help them in selecting procurement methods such as problem solving and priority selection (Pareto Ishikawa 80:20), cut-off statistic, appointment of procurement committee members, Table 21. List of Final Alternative Abbreviation used Alternative A1 A2 A3 A4 Outsourcing by repair and maintenance contract Outsourcing by specialist term contract Outsourcing by tendered schedule term contract Outsourcing by measured term contract 04014050-10 J. Perform. Constr. Facil. J. Perform. Constr. Facil. 2015.29. Proposed Decision-Making Framework Define the problem and determine its goal Structure the hierarchy Construct a set of n × n pair-wise comparison matrices. Establish priorities by making pairwise comparison Downloaded from ascelibrary.org by DALHOUSIE UNIVERSITY on 05/13/15. Copyright ASCE. For personal use only; all rights reserved. Synthesis the pairwise comparison and obtain the overall priority ranking Evaluate the consistency for the entire hierarchy. The consistency ratio (CR) is acceptable if it does not exceed 0.10. Repeat and review the judgments if the CR is greater than 0.10 Select the most suitable alternative Fig. 4. Steps for adapting AHP urgency level, total asset management, evaluation criteria based on Quantity Surveyor and JKR, as well as strategic planning. The finding of this research has proven that the selection of procurement method by university organization is not strategic or systematic, as there is no guidance available for the decision maker to select the most appropriate procurement strategy. It is vital to develop a systematic approach that can assist the maintenance personnel in the decision-making process of selecting the most suitable procurement method in building maintenance management for the public university. The development of the framework includes the employment of procurement selection criteria and procurement method option, integration of AHP technique and principles, as well as the adaption of Expert Choice 11 software as development tool. The proposed decision-making framework is shown in Fig. 2. In order to derive a set of procurement selection criteria that were considered essential, only those criteria that obtained both mean rating and mode equivalent to or above four were considered as important and very important according to Likert scales of 5 (1 indicates “least important” to 5 indicating “very important”) and are included in this study for the proposed decision-making framework. This method of criteria elimination using the mean rating value was employed by Cheung et al. (2001) in developing a model for the selection of construction procurement. Thus, only 19 criteria will be considered in the development of a decision-making framework in this study. The procurement methods that were considered as most commonly used (percentage of cases more than 50%) and categorized as important and very important with both mean rating and mode equal to or above 4 will be considered for the proposed decision-making framework. The procurement selection criteria and procurement option that were selected are provided in summary in Table 19. The hierarchy structure for the present study that is constructed manually can be referred to in Fig. 3 and the abbreviation used in the figure can be referred to in Tables 20 and 21. The procedure and step for adapting AHP are illustrated in Fig. 4. The AHP implementation steps will be simplified by using the Expert Choice 11 professional software that is available commercially and designed for the implementation of AHP (Al-Harbi 2001). Expert Choice 11 software is employed as a development Fig. 5. A model tree view of the decision hierarchy in Expert Choice 11 software © ASCE 04014050-11 J. Perform. Constr. Facil. 2015.29. J. Perform. Constr. Facil. Downloaded from ascelibrary.org by DALHOUSIE UNIVERSITY on 05/13/15. Copyright ASCE. For personal use only; all rights reserved. tool to assist in development of the decision-making framework. Expert Choice 11 software offers a model view containing either a tree view or cluster view of the decision hierarchy. Fig. 5 illustrates a model tree view of the decision hierarchy of the proposed framework in Expert Choice 11 software. In addition, one of the AHP’s strengths is the possibility to evaluate qualitatively as well as qualitatively the criteria and alternatives on the same preference scale of nine levels (Ishizaka and Labib 2009). The judgments can be performed in three ways in Expert Choice 11: numerical, verbal, and graphical. Furthermore, this software works by examining judgments made by the decision makers and measuring the consistency of those judgments. Expert Choice 11 allows the decision maker to reexamine and revise the judgments for all levels of the hierarchy, and it shows where the inconsistency exists and how to minimize it in order to improve the decision. Another feature of Expert Choice 11 is that it provides tools for performing a sensitivity analysis which helps the decision maker to see how different weights assigned to each criterion could affect the outcome of the model. In the sensitivity analysis, the input data are slightly modified in order to observe the impact on the result (Ishizaka and Labib 2009). The main purpose of the sensitivity analysis is graphically seen by how the alternative changes in respect to the importance of the criteria. Generally, there are five types of sensitivity analysis that can be performed in Expert Choice 11 which include performance sensitivity, dynamic sensitivity, gradient sensitivity, head-to-head sensitivity, and twodimensional sensitivity. Conclusion The finding of the present research has proven that the selection of procurement method by university organization is not strategic. The study also shows that there is no proper guidance available; thus, it is essential to develop a systematic approach that can assist the maintenance personnel in selecting the most suitable procurement method. The development of a decision-making framework using AHP and Expert Choice 11 software mainly focused on two important components that are the possible assessment criteria and the alternatives available for selection. The assessment criteria are used to evaluate the alternatives. The framework integrates AHP techniques and principles as well as adapts Expert Choice 11 software as a development tool. The application of AHP and Expert Choice 11 which enable calculation of the judgment consistency assure that the decision maker’s judgments are consistent and the final decision is made well. The proposed decision-making framework is expected to be a useful tool for the maintenance organizations that provide alternatives and procurement selection criteria. This is critical during the decision-making process of selecting the most appropriate procurement strategy. Nonetheless, the final phase of the research that includes implementation and validation of the proposed framework through structured interviews with a number of public universities selected is ongoing. During the structured interview, the framework produced is demonstrated to the interviewees. Then, the interviewees are asked to run the framework in the Expert Choice 11 software and evaluate the framework in terms of capability, applicability, and validity in an evaluation form. The results of the interviews will be reported as soon as they are completed. The framework is created to be flexible in which the decision makers are recommended to assert or eliminate the procurement selection criteria that they think are appropriate for a particular project. © ASCE Acknowledgments The authors gratefully acknowledge the financial support of the University of Malaya Research Grant (UMRG), No. RG183/ 12SUS established at the University of Malaya, Sustainability Science Research Cluster. 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