Integration of Simulation-Based Cost Model and Multi-Criteria Evaluation Model for Bid Price Decisions

Bidding decisions are affected by several criteria. Current bidding models determine a markup based on a fixed project construction cost. This work presents a novel bid price determination procedure built by integrating a simulation-based cost model and a multi-criteria evaluation model. The cost model is used to consider cost uncertainties and generate a bid price cumulative distribution, whereas the multi-criteria evaluation model applies pairwise comparisons and fuzzy integrals to reflect bidder preferences regarding decision criteria. The relationship between the 2 models is based on a practical phenomenon in that a bidder has a high probability of winning when criteria evaluations favor his bid, and, consequently, the bidder would bid a low price, and vice versa. The merits of the proposed procedure are demonstrated by its application to 2 construction projects in Taiwan.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/10939687
• Authors:
  • Wang, Wei-Chih
  • Dzeng, Ren-Jye
  • Lu, Yu-Huang
• Publication Date: 2007

Language

• English

Media Info

• Media Type: Print
• Features: Figures; References; Tables;
• Pagination: pp 223-235
• Serial:
  • Computer-Aided Civil and Infrastructure Engineering
  • Volume: 22
  • Issue Number: 3
  • Publisher: Blackwell Publishing
  • ISSN: 1093-9687
  • Serial URL: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1467-8667

Subject/Index Terms

• TRT Terms: Bids; Business practices; Competitive bidding; Construction projects; Cost control; Costs; Decision making; Project management; Simulation
• Uncontrolled Terms: Cost models
• Geographic Terms: Taiwan
• Subject Areas: Administration and Management; Construction; Finance; Highways; I10: Economics and Administration;

Filing Info

• Accession Number: 01045134
• Record Type: Publication
• Files: TRIS
• Created Date: Mar 28 2007 4:57PM