Please use this identifier to cite or link to this item: http://scholarbank.nus.edu.sg/handle/10635/46391
Title: Bidding model for refurbishment work
Authors: Pin, Teo Ho 
Scott, W.F.
Issue Date: 1994
Source: Pin, Teo Ho,Scott, W.F. (1994). Bidding model for refurbishment work. Journal of Construction Engineering and Management 120 (2) : 257-273. ScholarBank@NUS Repository.
Abstract: This paper develops a simple statistical model for competitive bidding in the building industry. We take a statistical approach, using a large set of actual bids (1,350 renovation contracts) collected by the Builders' Conference in London, United Kingdom. The distribution of bids is fitted to a normal curve, from which one may estimate the distribution of the lowest of n bids (representing a given contractor's competitors). Part of the study involves the estimation of various parameters, such as the coefficient of variation, which is a measure of the relative spread of bids. A simple formula is obtained for the bid that has a specified chance of success (e.g. 20%, 50%, or 90%), and the theory is tested on data from five contractors. A likely consequence of the adoption of the proposed models by the industry in general would be a tendency toward tighter bidding, i.e. the difference between the winning bid and the next lowest (which is, in a sense, a loss to the construction industry caused by variations in bids) would be reduced.
Source Title: Journal of Construction Engineering and Management
URI: http://scholarbank.nus.edu.sg/handle/10635/46391
ISSN: 07339364
Appears in Collections:Staff Publications

Show full item record
Files in This Item:
There are no files associated with this item.

Page view(s)

60
checked on Dec 8, 2017

Google ScholarTM

Check


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.