Wilson, O D and Sharpe, K (1988) Tenders and estimates: A probabilistic model. Construction Management and Economics, 6(3), pp. 225-245. ISSN 01446193
Abstract
Problems faced by building project procurement agencies have been given only minor attention in the literature. When setting the rules of the tendering competition it is desirable that there be an appropriate balance between reasonable competition and a reasonable cost of competition. This paper examines some 410 projects obtained by a large state government instrumentality and proposes a model to describe the procurement system. It is probable that the lump sum competitive price in advance system of procurement is unsuitable for small renovation-type works. Larger projects having Bills of Quantities performed very well and satisfactory results can be obtained by inviting four tenders per project. Some suggestions are made for improving the quality of the professional estimate.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | bidding; estimates; tenders |
| Index terms: | agency, bills of quantities, competition, procurement system, estimate, project procurement, renovation, bidding |
| Subjects: | contractual arrangements, renovation and retrofit, market analysis, bidding, sociology, financial and cost management |
| Topics: | Cost Management, Research Practice, Engineering Principles, Procurement |
| Descriptive scope: | 3 PCT |
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