vault backup: 2025-10-13 16:32:45

bid-process-strategy.md

@@ -11,19 +11,25 @@ title: Bid Process Strategy
 ---
 # Bid Process Strategy
 
-This note is intended to describe
-...
-particularly [[strategy#Auction Theory]],
+This note is intended to describe bid process strategy
+especially in terms of [[strategy#Auction Theory]],
 which specifically addresses the competitive bid format
 typical of construction project award.
 
-**Executives** inform **Risk Tolerance**,
-**Risk Tolerance** informs **Minimum Estimate Certainty**
+### Outside Factors Influencing Bid Price
 
-### Bid Strategy
+#### Expected Competition $\downarrow$
 
-Project cost certainty
+Predictably, competition drives price down.
 
-#### Expected Competition
+Bidders will accept a lower payout
+for a greater chance of reward.
 
-### Estimation Strategy
+**Competition** drives down **Probability of award**
+
+#### Backlog Deficit $\downarrow$
+
+Bidders will accept a lower payout or even a loss
+in order to retain employees.
+
+**Backlog Deficit** drives up **Utility of award**