Chua, D K H and Li, D (2000) Key factors in bid reasoning model. Journal of Construction Engineering and Management, 126(5), pp. 349-357. ISSN 0733-9364
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.
| Item Type: | Article |
|---|---|
| Index terms: | decision process, Singapore, construction procurement, unit rate, survey, reasoning, relative importance, competitive bidding, decision support, bidding, practitioner, competition, questionnaire |
| Subjects: | Geography, decision analysis, cognitive psychology, market analysis, practitioner, risk assessment, data collection methods, financial and cost management, contractual arrangements, bidding |
| Topics: | Risk Management, Roles and Professions, Procurement, Cost Management, Research Practice, Geographical Context |
| Descriptive scope: | 4 PCEA |
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