Optimum Bid Estimation on Fixed Cost Contracts

Research output: Contribution to journalArticle

8 Citations (Scopus)

Abstract

The paper presents a competitive bidding model which can be readily implemented in a competitive bidding environment within the construction industry. A method of obtaining a fast and accurate approximation of the optimum bid for a class of bidding problems is developed. The Newton Approximation Method is employed in approximating the root of an equation which maximizes the expected monetary value of a contract. A bidding chart and an example application of the technique are presented.

Original languageEnglish (US)
Pages (from-to)949-956
Number of pages8
JournalJournal of the Operational Research Society
Volume33
Issue number10
DOIs
StatePublished - Jan 1 1982

Fingerprint

Construction industry
Costs
Competitive bidding
Fixed costs
Bidding
Bid
Approximation
Charts

ASJC Scopus subject areas

  • Management Information Systems
  • Strategy and Management
  • Management Science and Operations Research
  • Marketing

Cite this

Optimum Bid Estimation on Fixed Cost Contracts. / Sugrue, Paul.

In: Journal of the Operational Research Society, Vol. 33, No. 10, 01.01.1982, p. 949-956.

Research output: Contribution to journalArticle

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