37 lines
851 B
Markdown
37 lines
851 B
Markdown
---
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id: risk-oriented-estimating
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aliases: []
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tags:
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- destiny/permanent
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- status/incomplete
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- topic/estimating
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- topic/risk
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- type/philosophy
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- authorship/original
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title: Bid Process Strategy
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---
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# Bid Process Strategy
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This note is intended to describe bid process strategy
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especially in terms of [[strategy#Auction Theory]],
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which specifically addresses the competitive bid format
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typical of construction project award.
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### Outside Factors Influencing Bid Price
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#### Expected Competition $\downarrow$
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Predictably, competition drives price down.
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Bidders will accept a lower payout
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for a greater chance of reward.
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**Competition** drives down **Probability of award**
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#### Backlog Deficit $\downarrow$
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Bidders will accept a lower payout or even a loss
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in order to retain employees.
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**Backlog Deficit** drives up **Utility of award**
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