Unbalanced bidding strategy for highway construction projects | |
| Author | Gunawan, Hendra |
| Call Number | AIT Thesis no. ST-80-07 |
| Subject(s) | Road construction Letting of Contracts |
| Note | A thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering, School of Engineering and Technology |
| Publisher | Asian Institute of Technology |
| Abstract | Balanced bidding models optimize expected profit without considering cash flows, while existing unbalanced bidding models optimize present worth profits with a certain total bids. To compensate the drawbacks of the models, the proposed model in this study optimizes the present worth profit with an optimum mark-up to obtain an optimum expected present worth profit. In highway projects, which commonly use unit price bids, client's quantity misestimates may affect the actual prices of the projects significantly. A contractor may sustain a heavy loss if the quantity misestimate is not considered. The proposed model, like other unbalanced bidding models, takes advantage from this quantity mis-estimate, while balanced bidding models do not take it into account. Since a very large sum of money is involved in a highway project, an improved cash flow obtained from using an unbalanced strategy is beneficial for a contractor. By using the minimum attractive rate of return, the profit obtained from using the proposed model reflects the net present worth profit. The computer program set-up can be used for optimizing the expected present worth profit as well as. for determining the minimum total bid to achieve a certain desired rate of return. |
| Year | 1980 |
| Type | Thesis |
| School | School of Engineering and Technology |
| Department | Department of Civil and Infrastucture Engineering (DCIE) |
| Academic Program/FoS | Structural Engineering (STE) /Former Name = Structural Engineering and Construction (ST) |
| Chairperson(s) | Kawaguchi, Masahiro ;Ping Kunawatsatit |
| Examination Committee(s) | Yamamoto, Yasuhiko |
| Scholarship Donor(s) | The Government of Canada |
| Degree | Thesis (M.Eng.) - Asian Institute of Technology, 1980 |