Multiple‐objective bidding strategy using goal programming technique

Abstract

PurposeThis paper aims to provide a solution that allows a contractor to present its maximum competitiveness in meeting the multiple objectives defined by a project client in bidding for a contract.Design/methodology/approachBy applying goal programming (GP) technique, this paper presents an alternative quantitative method for assisting a contractor to find out its own most competitive strategy in bidding for construction contracts where multiple selection criteria are adopted. A goal programming optimal bidding strategy (GP‐OBS) model is introduced to help a contractor generate an optimal resources allocation solution. A hypothetical example is used to show the procedures of using the model GP‐OBS.FindingsThis paper demonstrates that the GP technique can help contractors in producing an optimal bidding strategy which enables the contractor to present his/her maximum competitiveness in implementing project multiple objectives.Originality/valueThe solution from the model helps contractors to decide the optimal level of resources to be consumed within the resource limitations. The model GP‐OBS provides a new approach in assessing contractor overall competitiveness.