zmVault/bid-process-strategy.md

id, aliases, tags, title

id	aliases	tags	title
risk-oriented-estimating		destiny/permanent status/incomplete topic/estimating topic/risk type/philosophy	Bid Process Strategy

Bid Process Strategy

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.

Outside Factors Influencing Bid Price

Expected Competition \downarrow

Predictably, competition drives price down.

Bidders will accept a lower payout for a greater chance of reward.

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