Comparative Analysis of AHP Method and Applied ON/OFF Method in Choosing Engineering, Procurement, and Construction Contractors

The current condition of oil and gas reserves in Indonesia requires the development or refinement of oil refineries to meet the needs of oil and gas. The refinery development process is included in the EPC project and it included as large-scale projects whose project value can reach US$ 1,122,700.00. Recognizing the vital importance of this project, the EPC contractor has to pay attention to many criteria. In this research, multi-criteria decision-making method is AHP method compared with the process of selecting EPC contractor in a national-scale oil and gas company using ON/OFF method to see whether there is a difference of contractor company that won or not. The main purpose of this research is giving suggestions to the company is the most appropriate method to be applied in the selection of EPC contractors. The results of this study indicate that in each method have the same alternative winning result that is Consortium A. From the results of this research the most appropriate method is to keep using the ON / OFF method which has been applied, with a slight adjustment in the final stages of not only looking at the lowest bid price but also considering the value of each company from the technical qualification stage.