Shen, L; Drew, D and Zhang, Z (1999) Optimal bid model for price-time biparameter construction contracts. Journal of Construction Engineering and Management, 125(3), pp. 204-209. ISSN 0733-9364
Abstract
Construction clients are increasingly calling for bids that require competing contractors to submit both the bid price and contract time. In such situations contractors are faced with the problem of deciding which combination of bid price and contract time to submit. An important consideration is the cost of time to the client. This varies from contract to contract and is usually expressed in terms of a unit time value such as liquidated damages rate or, for highway contracts, a daily road user cost. The unit time value is normally set out in the contract appendix and often used by the client as a basis for determining the contractor's total combined bid. This kind of procurement method is commonly referred to as the A+B method. To illustrate the mechanism of price-time biparameter procurement, a total combined bid Iso-map is developed in this study. The contractor's price-time performance curve is then incorporated into the map to determine the contractor's optimal bid parameters: tender price and contract time. Also, based on this mechanism, a mathematical optimization bid model is developed for calculating the optimal bid parameters.
| Item Type: | Article |
|---|---|
| Index terms: | liquidated damages, construction client, time performance, tender price, construction contract, procurement method, ISO |
| Subjects: | standards development, contractual remedy, contract type, tendering, contractual arrangements, project controls, practitioner |
| Topics: | Roles and Professions, Contract Administration, Quality Management, Time Control, Procurement |
| Descriptive scope: | 2 PC |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here