A Multivariate Approach to Construction Contract Bidding Mark-up Strategies

Abstract

A multivariate approach to contract bidding strategies in the construction industry is presented. This represents a radical departure from previous work in the field by using all available data on competing bidders. ‘Optimal’, ‘no loss’ and ‘break even’ mark-up strategies are derived and methods of parameter estimation proposed. A case study shows how the three strategic mark-up values are calculated against known competitors.

Keywords:

• Bidding Strategy
• Multivariate Analysis
• Construction Contracts

View correction statement:

Erratum :Skitmore M and Pemberton J (1994). A multivariate approach to construction contract bidding mark-up strategies