Critical Factors Affecting Construction Price Index: An Integrated Fuzzy Logic and Analytical Hierarchy Process

Phong Nguyen and Quyen Nguyen

MPRA Paper from University Library of Munich, Germany

Abstract: Nowadays, many construction engineering and technology enterprises are evolving to find that prosperity is driven and inspired by an open economy with dynamic markets and fierce multifaceted competition. Besides brand and product uniqueness, the ability to quickly provide customers with quotes are matters of concern. Such a requirement for prompt cost estimation of construction investment projects with the use of a construction price index poses a significant challenge to contractors. This is because the nature of the construction industry is shaped by changes in domestic and foreign economic factors, socio-financial issues, and is under the influence of various micro and macro factors. This paper presents a fuzzy decision-making approach for calculating critical factors that affect the construction price index. A qualitative approach was implemented based on in-depth interviews of experts in the construction industry in Vietnam. A synthetic comparison matrix was calculated using Buckley approach. The CoA approach was applied to defuzzified the fuzzy weights of factors that affect the construction price index. The research results show that the top five critical factors affecting the construction price index in Vietnam are (1) consumer price index, (2) gross domestic product, (3) basic interest rate, (4) foreign exchange rate, and (5) total export and import.

Keywords: Analytical Hierarchy Process; Construction Enterprises; Construction Price Index; Multiple Decision Making; Fuzzy Logic (search for similar items in EconPapers)
JEL-codes: D24 M19 O14 P22 (search for similar items in EconPapers)
Date: 2020-05-24, Revised 2020-05-31
New Economics Papers: this item is included in nep-ppm and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in Journal of Asian Finance, Economics and Business 08.07(2020): pp. 197-204

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