Optimum Bid Prices Model for Allocation Rates to Unit Price Contract
Ain Shams Journal of Civil Engineering • 2010
Publication Information
Authors
Metwally, Fikry
Keywords
bidding strategies, unbalanced bidding, unit price contract, genetic algorithms, operations research.
Journal
Ain Shams Journal of Civil Engineering
Publisher
Scientific Bulletin, Faculty of Engineering, Ain Shams University
Volume
Vol. No. 1
Issue
March, 2010
Pages
401 – 410
publication.type
International
Paper Link
Not Available
Supplementary Materials
Not Available
Abstract
The unit price contract prepared by the client indicates contract items and estimated quantities deemed necessary to accomplish the proposal objective. Moreover, the bidder is required to allocate unit prices for these unit bids. This paper presents a model concerning the formulation of tendering unit bids for unit price contract. The proposed model attempts to objectively exploit variation trends in client-provided quantities for the allocation of rates to unit bids in attempt to achieve the maximum benefit for bidder. Often the unbalance in distributing the items markup of the tender would result unreasonable unit prices. The proposed model has been devised to determine the unit bids of the unit price proposals in order to give reasonable unit prices and also maximize the expected profit. The model is especially useful for mega and complicated projects of many items. Finally, the developed model has the remarkable feature that, for given project information, no other means of unbalancing will yield a greater expected profit under the given constraints.
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