Handling Unbalanced Pricing in Bidding Regulations for Public Construction Projects

Unbalanced pricing is a common strategy adopted by contractors who participate in competitive bidding for construction contracts. This strategy exposes owners to several risks, and therefore bidding regulations of a number of contracting authorities include provisions that address this practice. Suc...

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محفوظ في:
التفاصيل البيبلوغرافية
المؤلف الرئيسي: Alhyari, Omar (author)
مؤلفون آخرون: Hesham Hyari, Khaled (author)
منشور في: 2022
الوصول للمادة أونلاين:https://bspace.buid.ac.ae/handle/1234/3555
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author Alhyari, Omar
author2 Hesham Hyari, Khaled
author2_role author
author_facet Alhyari, Omar
Hesham Hyari, Khaled
author_role author
dc.creator.none.fl_str_mv Alhyari, Omar
Hesham Hyari, Khaled
dc.date.none.fl_str_mv 2022
2026-01-22T07:59:13Z
dc.identifier.none.fl_str_mv https://bspace.buid.ac.ae/handle/1234/3555
dc.language.none.fl_str_mv en_US
dc.title.none.fl_str_mv Handling Unbalanced Pricing in Bidding Regulations for Public Construction Projects
dc.type.none.fl_str_mv Article
description Unbalanced pricing is a common strategy adopted by contractors who participate in competitive bidding for construction contracts. This strategy exposes owners to several risks, and therefore bidding regulations of a number of contracting authorities include provisions that address this practice. Such provisions vary and range from restraining excessive utilization of unbalanced pricing up to the rejection of unbalanced bid offers as irregular and nonresponsive bids. This paper presents an analysis of the bidding regulations of state DOTs that address the unbalanced pricing of competitive bids in order to evaluate the adequacy of the current provisions in protecting the owner’s interests. The paper includes the standpoints of these regulations toward unbalanced pricing and their adopted procedures and guide lines to detect and combat this practice. The paper presents an evaluation of the effectiveness of specific measures used by some state DOTs against unbalanced pricing. The evaluation indicates that available measures are somehow effective in handling overpricing early items in the contract performance, while they are less effective in handling the greater risks associated with pricing manipulations that exploit errors in estimated quantities of line items. The paper concludes with proposed rules that can be used by owners to handle unbalanced pricing more effectively, and can help in promoting fair competition among contractors.
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spelling Handling Unbalanced Pricing in Bidding Regulations for Public Construction ProjectsAlhyari, OmarHesham Hyari, KhaledUnbalanced pricing is a common strategy adopted by contractors who participate in competitive bidding for construction contracts. This strategy exposes owners to several risks, and therefore bidding regulations of a number of contracting authorities include provisions that address this practice. Such provisions vary and range from restraining excessive utilization of unbalanced pricing up to the rejection of unbalanced bid offers as irregular and nonresponsive bids. This paper presents an analysis of the bidding regulations of state DOTs that address the unbalanced pricing of competitive bids in order to evaluate the adequacy of the current provisions in protecting the owner’s interests. The paper includes the standpoints of these regulations toward unbalanced pricing and their adopted procedures and guide lines to detect and combat this practice. The paper presents an evaluation of the effectiveness of specific measures used by some state DOTs against unbalanced pricing. The evaluation indicates that available measures are somehow effective in handling overpricing early items in the contract performance, while they are less effective in handling the greater risks associated with pricing manipulations that exploit errors in estimated quantities of line items. The paper concludes with proposed rules that can be used by owners to handle unbalanced pricing more effectively, and can help in promoting fair competition among contractors.2026-01-22T07:59:13Z2022Articlehttps://bspace.buid.ac.ae/handle/1234/3555en_USoai:bspace.buid.ac.ae:1234/35552026-01-29T17:04:40Z
spellingShingle Handling Unbalanced Pricing in Bidding Regulations for Public Construction Projects
Alhyari, Omar
title Handling Unbalanced Pricing in Bidding Regulations for Public Construction Projects
title_full Handling Unbalanced Pricing in Bidding Regulations for Public Construction Projects
title_fullStr Handling Unbalanced Pricing in Bidding Regulations for Public Construction Projects
title_full_unstemmed Handling Unbalanced Pricing in Bidding Regulations for Public Construction Projects
title_short Handling Unbalanced Pricing in Bidding Regulations for Public Construction Projects
title_sort Handling Unbalanced Pricing in Bidding Regulations for Public Construction Projects
url https://bspace.buid.ac.ae/handle/1234/3555