Uncertainty Factors Affecting Bid Price from Pre-Bid Clarification Document of Transport Construction Projects
Publication: Construction Research Congress 2022
ABSTRACT
This study investigates the influence of the uncertainty factors in the pre-bid clarification document on bid price formation during the project bidding. To this end, civil projects from the California Department of Transportation were used as research data. This study randomly selected 50 sample data from each of 12 counties in 2008–2020: a total of 600. Within the data, this study examined the project uncertainty cases. Based on the analysis, four uncertainty factors: ‘conflict’ (UF1), ‘impossibility’ (UF2), ‘lack’ (UF3), and ‘missing’ (UF4) were extracted. With the project not containing any uncertainty factors as a control group, the project containing these uncertainty factors was designated as an experimental group. After comparing the bidder’s price, the experimental group’s bid price was formed at a higher level than the control group. This result suggests that uncertainty factors in bid documents induce bidders to set a high-bid price as a defense against uncertainty.
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Construction Research Congress 2022
Pages: 219 - 224
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Published online: Mar 7, 2022
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