Below-Average Bidding Method
The low-bid method, typically used for competitive bidding in the United States, may result in a contract with a firm that submits either accidentally or deliberately an unrealistically low-bid price. Such an occurrence hurts both the owner and the contractor by promoting disputes, increased costs,...
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| Format: | article |
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2010
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| Online Access: | http://hdl.handle.net/10725/3049 http://dx.doi.org/10.1061/ ASCECO.1943-7862.0000202 http://ascelibrary.org/doi/abs/10.1061/(ASCE)CO.1943-7862.0000202 |
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| _version_ | 1864513459853459456 |
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| author | Awwad, Rita E. |
| author2 | Ioannou, Photios G. |
| author2_role | author |
| author_facet | Awwad, Rita E. Ioannou, Photios G. |
| author_role | author |
| dc.creator.none.fl_str_mv | Awwad, Rita E. Ioannou, Photios G. |
| dc.date.none.fl_str_mv | 2010 2016-02-12T08:33:46Z 2016-02-12T08:33:46Z 2017-04-11 |
| dc.identifier.none.fl_str_mv | 0733-9364 http://hdl.handle.net/10725/3049 http://dx.doi.org/10.1061/ ASCECO.1943-7862.0000202 Ioannou, P. G., & Awwad, R. E. (2010). Below-average bidding method. Journal of Construction Engineering and Management, 136(9), 936-946. http://ascelibrary.org/doi/abs/10.1061/(ASCE)CO.1943-7862.0000202 |
| dc.language.none.fl_str_mv | en |
| dc.relation.none.fl_str_mv | Journal of Construction Engineering and Management |
| dc.rights.*.fl_str_mv | info:eu-repo/semantics/openAccess |
| dc.title.none.fl_str_mv | Below-Average Bidding Method |
| dc.type.none.fl_str_mv | Article info:eu-repo/semantics/publishedVersion info:eu-repo/semantics/article |
| description | The low-bid method, typically used for competitive bidding in the United States, may result in a contract with a firm that submits either accidentally or deliberately an unrealistically low-bid price. Such an occurrence hurts both the owner and the contractor by promoting disputes, increased costs, and schedule delays. To address this problem, other countries have adopted bidding methods based on the average of the bids submitted. One such approach is the below-average method where the winning bid is closest to but below the average of all bids. A competitive bidding model for the below-average-bid method is presented and its merits relative to the average-bid method and the low-bid method are explored. The below-average-bid process is investigated analytically and through Monte Carlo simulation. The results of bidding models for the below-average, the average, and the low-bid methods are presented in four easy-to-use nomograms which allow contractors to determine the optimal lump-sum bid price for each method without the need for complicated analysis. A comparison of the three methods provides information and insights to help owners with the difficult choice of a suitable bidding method for the project at hand |
| eu_rights_str_mv | openAccess |
| format | article |
| id | LAURepo_18a3cb17e04d8ea34f0a6da5e14010a8 |
| identifier_str_mv | 0733-9364 Ioannou, P. G., & Awwad, R. E. (2010). Below-average bidding method. Journal of Construction Engineering and Management, 136(9), 936-946. |
| language_invalid_str_mv | en |
| network_acronym_str | LAURepo |
| network_name_str | Lebanese American University repository |
| oai_identifier_str | oai:laur.lau.edu.lb:10725/3049 |
| publishDate | 2010 |
| repository.mail.fl_str_mv | |
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| spelling | Below-Average Bidding MethodAwwad, Rita E.Ioannou, Photios G.The low-bid method, typically used for competitive bidding in the United States, may result in a contract with a firm that submits either accidentally or deliberately an unrealistically low-bid price. Such an occurrence hurts both the owner and the contractor by promoting disputes, increased costs, and schedule delays. To address this problem, other countries have adopted bidding methods based on the average of the bids submitted. One such approach is the below-average method where the winning bid is closest to but below the average of all bids. A competitive bidding model for the below-average-bid method is presented and its merits relative to the average-bid method and the low-bid method are explored. The below-average-bid process is investigated analytically and through Monte Carlo simulation. The results of bidding models for the below-average, the average, and the low-bid methods are presented in four easy-to-use nomograms which allow contractors to determine the optimal lump-sum bid price for each method without the need for complicated analysis. A comparison of the three methods provides information and insights to help owners with the difficult choice of a suitable bidding method for the project at handPublishedN/A2016-02-12T08:33:46Z2016-02-12T08:33:46Z20102017-04-11Articleinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/article0733-9364http://hdl.handle.net/10725/3049http://dx.doi.org/10.1061/ ASCECO.1943-7862.0000202Ioannou, P. G., & Awwad, R. E. (2010). Below-average bidding method. Journal of Construction Engineering and Management, 136(9), 936-946.http://ascelibrary.org/doi/abs/10.1061/(ASCE)CO.1943-7862.0000202enJournal of Construction Engineering and Managementinfo:eu-repo/semantics/openAccessoai:laur.lau.edu.lb:10725/30492021-03-19T09:59:50Z |
| spellingShingle | Below-Average Bidding Method Awwad, Rita E. |
| status_str | publishedVersion |
| title | Below-Average Bidding Method |
| title_full | Below-Average Bidding Method |
| title_fullStr | Below-Average Bidding Method |
| title_full_unstemmed | Below-Average Bidding Method |
| title_short | Below-Average Bidding Method |
| title_sort | Below-Average Bidding Method |
| url | http://hdl.handle.net/10725/3049 http://dx.doi.org/10.1061/ ASCECO.1943-7862.0000202 http://ascelibrary.org/doi/abs/10.1061/(ASCE)CO.1943-7862.0000202 |