Impact of considering need for work and risk on performance of construction contractors
Competitive bidding is the main mechanism of allocating projects in the construction market. In the traditional single criterion bidding method, the markup decision has a significant impact on a contractor's business success. Contractors usually take into consideration several factors in the pr...
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2016
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| Online Access: | http://hdl.handle.net/10725/4554 http://dx.doi.org/10.1016/j.autcon.2016.01.004 http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php http://www.sciencedirect.com/science/article/pii/S0926580516300085 |
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| _version_ | 1864513463997431808 |
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| author | Awwad, Rita |
| author2 | Asgari, Sadegh Kandil, Amr Odeh, Ibrahim |
| author2_role | author author author |
| author_facet | Awwad, Rita Asgari, Sadegh Kandil, Amr Odeh, Ibrahim |
| author_role | author |
| dc.creator.none.fl_str_mv | Awwad, Rita Asgari, Sadegh Kandil, Amr Odeh, Ibrahim |
| dc.date.none.fl_str_mv | 2016-10-10T12:54:21Z 2016-10-10T12:54:21Z 2016 2016-10-10 |
| dc.identifier.none.fl_str_mv | 0926-5805 http://hdl.handle.net/10725/4554 http://dx.doi.org/10.1016/j.autcon.2016.01.004 Asgari, S., Awwad, R., Kandil, A., & Odeh, I. (2016). Impact of considering need for work and risk on performance of construction contractors: An agent-based approach. Automation in Construction, 65, 9-20. http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php http://www.sciencedirect.com/science/article/pii/S0926580516300085 |
| dc.language.none.fl_str_mv | en |
| dc.relation.none.fl_str_mv | Automation in Construction |
| dc.rights.*.fl_str_mv | info:eu-repo/semantics/openAccess |
| dc.title.none.fl_str_mv | Impact of considering need for work and risk on performance of construction contractors An agent-based approach |
| dc.type.none.fl_str_mv | Article info:eu-repo/semantics/publishedVersion info:eu-repo/semantics/article |
| description | Competitive bidding is the main mechanism of allocating projects in the construction market. In the traditional single criterion bidding method, the markup decision has a significant impact on a contractor's business success. Contractors usually take into consideration several factors in the process of determining their markup. This study has reviewed the literature and identified a range of contractors' behaviors when making their markup decision within a competitive bidding environment. An additive markup function consisting of three components, namely competition, risk, and need for work, was developed in order to replicate markup behaviors of contractors. Then, agent-based modeling has been employed for simulating the bidding process within a market formed of a set of heterogeneous contractors with different risk attitudes and defined markup behaviors. This model was used to study the impact of considering need for work and risk allowance in markup determination on financial performance of contractors in various market scenarios. Results suggest that the optimal policy is moderation in both dimensions of risk attitude and need for work. |
| eu_rights_str_mv | openAccess |
| format | article |
| id | LAURepo_fd3beeee429e66c258a3d1c7417359a2 |
| identifier_str_mv | 0926-5805 Asgari, S., Awwad, R., Kandil, A., & Odeh, I. (2016). Impact of considering need for work and risk on performance of construction contractors: An agent-based approach. Automation in Construction, 65, 9-20. |
| language_invalid_str_mv | en |
| network_acronym_str | LAURepo |
| network_name_str | Lebanese American University repository |
| oai_identifier_str | oai:laur.lau.edu.lb:10725/4554 |
| publishDate | 2016 |
| repository.mail.fl_str_mv | |
| repository.name.fl_str_mv | |
| repository_id_str | |
| spelling | Impact of considering need for work and risk on performance of construction contractorsAn agent-based approachAwwad, RitaAsgari, SadeghKandil, AmrOdeh, IbrahimCompetitive bidding is the main mechanism of allocating projects in the construction market. In the traditional single criterion bidding method, the markup decision has a significant impact on a contractor's business success. Contractors usually take into consideration several factors in the process of determining their markup. This study has reviewed the literature and identified a range of contractors' behaviors when making their markup decision within a competitive bidding environment. An additive markup function consisting of three components, namely competition, risk, and need for work, was developed in order to replicate markup behaviors of contractors. Then, agent-based modeling has been employed for simulating the bidding process within a market formed of a set of heterogeneous contractors with different risk attitudes and defined markup behaviors. This model was used to study the impact of considering need for work and risk allowance in markup determination on financial performance of contractors in various market scenarios. Results suggest that the optimal policy is moderation in both dimensions of risk attitude and need for work.PublishedN/A2016-10-10T12:54:21Z2016-10-10T12:54:21Z20162016-10-10Articleinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/article0926-5805http://hdl.handle.net/10725/4554http://dx.doi.org/10.1016/j.autcon.2016.01.004Asgari, S., Awwad, R., Kandil, A., & Odeh, I. (2016). Impact of considering need for work and risk on performance of construction contractors: An agent-based approach. Automation in Construction, 65, 9-20.http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.phphttp://www.sciencedirect.com/science/article/pii/S0926580516300085enAutomation in Constructioninfo:eu-repo/semantics/openAccessoai:laur.lau.edu.lb:10725/45542021-03-19T10:03:18Z |
| spellingShingle | Impact of considering need for work and risk on performance of construction contractors Awwad, Rita |
| status_str | publishedVersion |
| title | Impact of considering need for work and risk on performance of construction contractors |
| title_full | Impact of considering need for work and risk on performance of construction contractors |
| title_fullStr | Impact of considering need for work and risk on performance of construction contractors |
| title_full_unstemmed | Impact of considering need for work and risk on performance of construction contractors |
| title_short | Impact of considering need for work and risk on performance of construction contractors |
| title_sort | Impact of considering need for work and risk on performance of construction contractors |
| url | http://hdl.handle.net/10725/4554 http://dx.doi.org/10.1016/j.autcon.2016.01.004 http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php http://www.sciencedirect.com/science/article/pii/S0926580516300085 |