The Study of Bidding Making-Decision based on Integrated Bidding Strategy Model (IBSM)

• Main Authors: Chih-Hsien Lin, 林志憲
• Other Authors: 陳耀光
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/29786613234976025058

碩士 === 國立成功大學 === 建築學系碩士在職專班 === 102 === Government agencies and private sector clients typically use competitive bidding in order to award a contract to the lowest price qualified bidder. To survive in such a bidding situation by a rush and price-cutting decision makes contractors not only give up their reasonable profit but also risk losing money. Two critical decisions faced by bidders in competitive bidding are 1) whether or not to submit a bid and, when a decision is taken to submit, 2) what bid price to set in order to optimize both profit and likelihood of winning the bid. Bid price usually includes cost of construction and a markup, the scale of which is typically determined as a percentage of construction costs. Bidding strategy influences markup scale significantly and impacts contractor profit and the probability of winning the competitive contract. Primary decision-makers typically decide markup size and factor anticipated project risk and the risk preferences of competitor bidders into their final price determination. Many variables affect contractor decisions regarding markup scale, which complicate the bidding decision process. Thus, developing a model to set up the model of bidding price considered various risk is necessary. The Integrated Bidding Strategy Model (IBSM) as a calculating model, based on the theories of statistic method and the engineering economic for analysis evaluation with the concept of difference bidding combinations to low down the level of the risk and also objectively use the economic analysis of financial management and subjectively evaluate the utility function to analysis the best of the bidding price. Further, to find out the best choice for the contractor by cost-balancing oriented screening. Due to the economic environment variables (Costs shared equally, interest rates, return on investment and the rate of inflation), the duration variables, payment terms variables, the correlation coefficient between variables in the engineering case, the utility function variables and confidence intervals for variables change bound to affect the decision-making involved in the bid for the project, IBSM quickly assist to apply the lowest bid-cost ratio (the estimated lowest ratio of bid price and direct costs in bidding project, LBC) under effective markup and bidding probability by statistics and economic theory, considering to bid for new work and implementations in progress with no cost-lossing and cost-balancing probability in a series of bidding strategies and further estimate optimum markup scale (OMS) and then feedback calculate the cost of the project to bidding price to find out which one is the best choice for the contractor. However, the assessment process will require a lot of repetitive mathematics calculation and matrix data, to consider the application for popular use in future, Excel-VBA in Microsoft Window system is designed as module program to perform IBSM computing tasks in this study.