Key Factors in Bid Reasoning Model
Publication: Journal of Construction Engineering and Management
Volume 126, Issue 5
Abstract
The bidding decision is a complex problem affected by numerous factors. The current study collected a list of determining factors from the results of past research and opinions of six experienced practitioners in competitive bidding. Based on these factors, a bid reasoning model was established to go deeply into the bid decision process. Differing from other earlier work, this model-oriented study focuses on the effects of the determining factors on four reasoning subgoals: competition, risk, company's position in bidding, and need for work. Their different contributions to each reasoning subgoal were reviewed under three main construction procurement methods, namely, unit rate contract, lump sum contract, and design/build contract. The Analytic Hierarchy Process technique was applied in this study. A survey questionnaire was developed with four hierarchies being formulated respectively for the four reasoning subgoals. The survey was conducted in two steps, the pilot survey among the six experienced practitioners and the subsequent one among 153 top contractors in Singapore. From this survey, a set of top key factors and their relative importance weights were identified. This result together with the bid reasoning model can serve as the framework for the further development of the bid decision support system.
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Information & Authors
Information
Published In
Journal of Construction Engineering and Management
Volume 126 • Issue 5 • October 2000
Pages: 349 - 357
History
Received: Apr 20, 1999
Published online: Oct 1, 2000
Published in print: Oct 2000
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