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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Availability:
- Find a library where document is available. Order URL: http://worldcat.org/issn/10939687
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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
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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