1.6 KiB
1.6 KiB
id, aliases, title, tags, dg-publish
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| Bid Process Strategy |
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Bid Process Strategy
Scope
This note is intended to describe bid process strategy especially in terms of
- auction-theory, which specifically addresses the competitive bid format typical of construction project award, and
- actuarial-science, ...
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
Factors Brainstorm
This is a list of semi-independent factors relevant to the contractors decision of if and how to bid.
Key
> [!info]--- Fact: an indisputable truth or term definition> [!important]--- Logical Consequence> [!tip]--- Relationship> [!success]--- Desirable Outcome> [!failure]--- Undesirable Outcome
[!info] The exact cost of a construction project is uncertain until it is completed.
[!info] Customers request bids as a
Tip
Spending more time on estimates
Tip
Estimating more projects leads to more opportunities for award. Estimating fewer projects leads to fewer opportunities for award.