Analytic Hierarchy Process In Highway Engineering Contractor In The Application Of Risk Management

The investment of superhighway increases steadily along with the rapid economic growth in China. Competition among contractors for the project engineering tends to be more severe. As a result, the contactors' risk rises during the whole process from biding for and completing the project .The internal and external factors which affect the project and the contractors change continuously during the whole process. Therefore the contractors have to improve their capabilities to identify, manage and control the risks so as to enhance project management . But due to lacking of operational knowledge and the assessment methods, the feasible and operational risk-management approaches are not available . The engineering contractors end with passive acceptance with the policies the insurance companies provide or giving up bidding, or simply sub-contacting-out the engineering contracts, which result in losing profitable project-engineering or bearing excessive risks.Identification and assessment of risk is fundamental for risk management of superhighway engineering. It is troublesome for contractors to identify the degree of several risk factors, because of multi-factor and uncertainty involved in the project engineering. How to use all kinds of analytic methods especially the method of quantitative analysis to process and sort and analyze lots of information or data, how to compare and single out the risk elements in the complex procedure of contracting, these two points are urgent for the risk management.In the process of identification and assessment of contracting risk, few historic data are available for regression analysis. It is only possible to use the investigation of specialist to do quantitative analysis. So it is difficult to get a satisfied result when the matter concerns multi-indicators and multi-factors. By comparing the recognition and assessment of risk, it is argued that Analytic of hierarchy process can use the knowledge of authoritative experience to install the system of index. This way, the accord of authoritative opinions can be judged and the quantity analysis can be combined with qualitative analysis. So the shortcoming of the authoritative investigation can be compensated, further more, the quantitative connection of risk factors can be resulted from the mathematical perception. In a word, analytic of hierarchy process provides a scientific and practical thinking for the risk assessment of multi-goals.This paper analyses the whole process of contracting superhighway engineering and determines its logical connection. Analytic of hierarchy process is used correctly to recognize and assess the risk factors. This provides a practical and efficient mean for contractors to make a bid, define the degree of risk factors and sort all kinds of management.The No. 18 of superhighway from NangYang to DengZhou is used to illustrate the approach the paper discusses. Risk factors which are possibly faced are listed. This laid the foundation for us to deal with risk and improved the chances of success.