Case Study of Bidding Strategic Decision Based on Cost-Balance

Abstract:

Government agencies and private sector clients typically use competitive bidding in order to award a contract to the lowest price qualified bidder. Bid price usually includes cost of construction and a markup, the scale of which is typically determined as a percentage of construction costs. Bidding strategy influences markup scale significantly and impacts contractor profit and the probability of winning the competitive contract. Further, this study is intend to compare Carr expected profit and cost-balance oriented screening under bid-to-win probability, considering to bid for new work and implementations in progress in a series of bidding states for bidding strategic decision to find out which one is the best choice in competitive bidding states for the contractor.

• Periodical: Advanced Materials Research (Volumes 838-841)
• Pages: 3083-3086
• DOI: https://doi.org/10.4028/www.scientific.net/AMR.838-841.3083
• Online since: November 2013
• Authors: Min Tai Cheng
• Keywords: Bid-to-Win Probability, Carr Expected Profit, Cost-Balance

References

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