Detecting unbalanced bidding to achieve economic sustainability using fuzzy logic approach

Li, H; Su, L; L.V, L and Xia, Q (2021) Detecting unbalanced bidding to achieve economic sustainability using fuzzy logic approach. Construction Innovation, 21(2), pp. 164-181. ISSN 1471-4175

Abstract

To achieve sustainability for a construction project requires the achievement of economic, environmental and social sustainability at the same time. The economic sustainability of a project should be built into the stipulated cost. The unbalanced bidding always contribute cost overrun for a construction project. The purpose of this paper is to develop a method for identifying unbalanced bidding. The problem of identifying unbalanced bidding is a comprehensive evaluation problem. All line items and bidders in bills of quantities are evaluation factors and evaluation objects, respectively, and the engineer's estimated prices are considered as the evaluation benchmarks. The weights of these factors are determined through integrating the entropy weight method and the analytic hierarchy model, which consider subjective and objective factors in the weighting process. The proposed model can be used to quantitatively evaluate unbalanced bids. The identification process can be analyzed within a short period, specifically with the aid of Microsoft Excel, reducing delays in awarding contracts. The results show that the model will support owners as they efficiently and effectively identify unbalanced bids in the bid evaluation stage to mitigate the negative consequences of unbalanced bidding. Practical implications: A case study is given to verify the feasibility and practicability of the proposed method, which not only assists owners in efficiently and effectively identifying unbalanced bidding, but also promotes the economic sustainability of construction projects. The fuzzy comprehensive evaluation method is used to detect unbalanced bidding, allowing owners to be objective as they identify and reduce unbalanced bidding at the procurement stage.

Item Type: Article
Uncontrolled Keywords: economic sustainability; fuzzy comprehensive evaluation; unbalanced bidding; procurement
Index terms: construction project, unbalanced bidding, entropy, economic sustainability, bidder, social sustainability, bills of quantities, fuzzy logic, case study, cost overrun, engineer, owner, bid evaluation, fuzzy comprehensive evaluation
Subjects: sociology, thermal systems, decision-making and optimization, communities and social development, tendering, production management, economic analysis, financial and cost management, data science, bidding, profession, data collection methods
Topics: Digital Applications, Procurement, Sustainability, Stakeholder Management, Roles and Professions, Research Practice, Project Management, Business Strategy, Cost Management
Descriptive scope: 5 PCTEA

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