Carr, R I (1987) Optimum markup by direct solution. Journal of Construction Engineering and Management, 113(1), pp. 138-150. ISSN 0733-9364
Abstract
A direct solution technique determines optimum markup for competitive construction bids using either lowest opposing bid models or average opposing bid models. A graphical representation helps explain the technique. Lowest competing bids can be standardized, and a table shows standardized optimum markup to fit any normally distributed lowest opposing bids. The paper explains: (1) the effects of differing numbers of competitors on the lowest opposing bids; and (2) the relationship between average and lowest opposing bids for differing numbers of competitors. The direct method provides the same answers as an accurate trial-and-error method, but it is quicker, once the variables of a normal distribution are calculated. Its quickness leads to easy comparisons for numbers of competitors.
| Item Type: | Article |
|---|---|
| Index terms: | graphical representation |
| Subjects: | visualization |
| Topics: | Digital Applications |
| Descriptive scope: | 1 C |
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