Ballesteros-Pérez, P; González-Cruz, M C; Fuentes-Bargues, J L and Skitmore, M (2015) Analysis of the distribution of the number of bidders in construction contract auctions. Construction Management and Economics, 33(9), pp. 752-770. ISSN 01446193
Abstract
The number of bidders, N, involved in a construction procurement auction is known to have an important effect on the value of the lowest bid and the mark-up applied by bidders. In practice, for example, it is important for a bidder to have a good estimate of N when bidding for a current contract. One approach, instigated by Friedman in 1956, is to make such an estimate by statistical analysis and modelling. Since then, however, finding a suitable model for N has been an enduring problem for researchers and, despite intensive research activity in the subsequent 30 years, little progress has been made, due principally to the absence of new ideas and perspectives. The debate is resumed by checking old assumptions, providing new evidence relating to concomitant variables and proposing a new model. In doing this and in order to ensure universality, a novel approach is developed and tested by using a unique set of 12 construction tender databases from four continents. This shows the new model provides a significant advancement on previous versions. Several new research questions are also posed and other approaches identified for future study.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | bidding; international comparison; number of bidders; modelling; tendering |
| Index terms: | evidence, bidding, number of bidders, mark-up, international comparison, bidder, construction procurement, construction contract, modelling, estimate, future study, database, statistical analysis |
| Subjects: | data management, price determination, bidding, data science, contractual arrangements, data analysis and analytics, analytical methods, financial and cost management, evaluation and assessment methods, contract type, research design and methodology |
| Topics: | Digital Applications, Procurement, Cost Management, Research Practice, Engineering Principles |
| Descriptive scope: | 3 PCA |
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