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.

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  • Authors:
    • Wang, Wei-Chih
    • Dzeng, Ren-Jye
    • Lu, Yu-Huang
  • Publication Date: 2007

Language

  • English

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Filing Info

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