Project Bidding Research Articles

Research on Multi-round First-price Sealed Bidding Strategy Based on Bidders' Incomplete Information Game

Bidding mechanisms are essential for the market and policies because bidding patterns have an impact on economic rationality and are crucial for the functioning of the construction industry. Thus, this paper consolidates the findings from the multiple rounds of combinatorial auctions, the winners curse in incomplete information auctions, and game theory. There is no doubt that bidding mechanisms play an important role in markets and policies in economic activities. This paper's related topics of interest would be multi-round combinatorial auctions, winners curses in project bidding, and game theory in incompletely informed auctions. This paper reviews the literature and employs the models based on the Nash equilibrium. There are many types of bidding strategies such as first, second, and successive bid bidding strategies, cooperative bidding, non-cooperative bidding, and how information asymmetry plays a critical role in these strategies. As mentioned before, criterion-based adaptive bidding strategies are not sensitive to market conditions and can provide near-optimal solutions. In the same way, iterative learning also prevents the occurrence of the winners curse in the multi-stage bidding context. UK auctions are seen as more efficient relative to other locations because information costs are lower, while game-theory-based strategies improve mechanisms for obtaining tasks and cost optimization in mobile crowdsourcing tasks. The use of electronic auctions can help a market become more fully rational and efficient. The methodology of game theory helps explain the outcomes of auctioning and emphasizes innovations in automation as well as policies. Therefore, this paper's implications are significant to the current and ongoing literature on efficiency, strategic behaviour, and policy in bidding mechanisms across different markets.

Ranking of factors affecting pricing in construction projects by intuitionistic fuzzy analytic hierarchy process with ordered pairs

The construction industry faces various challenges related to uncertainties in project bids and unstable pricing. These challenges include situations where uncertainties in bid documents can affect project pricing and performance. In order to resolve these uncertainties and clarify project requirements, risks and uncertainties within the document need to be identified early in the project life cycle. This study aims to rank the factors affecting project pricing. For this purpose, firstly, the parameters that have an impact on pricing are defined and then these factors are weighted by using Intuitionistic Fuzzy Analytic Hierarchy Process with Ordered Pairs. The analysis of factors affecting construction pricing reveals some important insights. Environmental uncertainties and uncertainties in prices and labor costs are the most important factors influencing pricing, while past project experience is the least important factor. Overall, these findings shed light on the multifaceted nature of construction pricing, which is shaped by the complex interaction of environmental, economic and market factors.

Tokyo as an Olympic city across modern history: planning culture as the intangible heritage from a century of hosting the Olympic and Paralympic Games

ABSTRACT Chosen three times as the host city for the Summer Olympic Games (1940, 1964 and 2020), Tokyo's city layout is historically linked to the Olympics. Including the bid project for the 1960 and the 2016 Games, Tokyo has presented five Olympic projects, each time with five different urban visions which enlighten the nature of the past and present political Japanese regimes. The recurrence of the Olympic Games in the planning and growth of Tokyo leads to the idea of a major influence of the Olympics both on the physical evolution of the urban structure but also on that, immaterial, of its planning culture – or, in other words, on the representations, imaginary and practices of the institutional stakeholders of Tokyo's urban fabric. The aim of the paper is therefore double. First, it analyses each urban vision of the Games of 1940, 1964 and 2020. Secondly, it analyses the influence of each Olympic project on greater Tokyo's urban planning and regional development, as well as the influence of each Olympiad on the following ones. Doing that, the paper discusses the formalization of a planning culture through organizing the Olympics on the long run in Tokyo.

Study on the Synergistic Effect of Primary Support and Surrounding Rock of Large Buried Depth Tunnel in Soft and Fractured Strata

The soft and fractured strata can cause significant deformation of surrounding rock during tunnel excavation. This study analyzes field monitoring test results and compares numerical simulations from the third bid project of the Dali I section construction within the water diversion project in central Yunnan to address the issue of significant deformation following tunnel excavation in soft and fractured strata. It proposes an optimized support scheme consisting of a densified steel arch and enhanced initial support strength and stiffness. In addition, the research investigates support effectiveness considering varying support strengths and steel arch ring spacing. The study findings indicated the following: (1) The tunnel traverses soft and fractured strata, causing unevenly distributed vertical convergence deformation around the cavern. The maximum settlement occurs at the crown, showing pronounced nonlinearity. (2) The maximum stress in the steel arch is concentrated at the arch crown, measuring −19.02 MPa. The arch remains compressed, with stress decreasing from the crown to the waist. (3) The axial force in the anchor bolt reduces from the crown to the arch’s waist on both sides. As the depth of the rock mass increases, the axial force in each anchor bolt decreases and the tension state is maintained. The maximum axial force reaches 46.57 kN. (4) The maximum displacement decreases from 4.21 to 0.15 cm after the optimized support structure is implemented, demonstrating the optimization scheme’s effectiveness. Future constructions can refer to this scheme and make necessary adjustments based on various terrain conditions to ensure safety.

International Journal of Scientific Research in Civil Engineering

Project bidding management is an important part of the engineering and building industries because it ensures that resources are used well, costs are kept low, and projects are finished on time. This process involves the solicitation of biddings from various contractors and vendors for a specific project and the subsequent evaluation and selection of the most suitable bidding. This article provides a comprehensive overview of project bidding management, encompassing key principles, methodologies, and best practices. It also highlights the significance of the integration of modern technologies and innovative approaches to enhance the efficiency and transparency of bidding processes. The paper also discusses challenges associated with project bidding and suggests potential solutions to mitigate risks and improve overall project outcomes. By delving into the intricacies of project bidding management, this research contributes valuable insights to practitioners, researchers, and stakeholders in the construction industry, fostering a deeper understanding of the critical factors that influence successful project bidding.

Public Procurement Crisis of Iraq and its Impact on Construction Projects

The public procurement crisis in Iraq plays a fundamental role in the delay in the implementation of construction projects at different stages of project bidding (pre, during, and after). The procurement system of any country plays an important role in economic growth and revival. The paper aims to use the fuzzy logic inference model to predict the impact of the public procurement crisis (relative importance index and Likert scale) was carried out at the beginning to determine the most important parameters that affect construction projects, the fuzzy analytical hierarchy process (FAHP) to set up, and finally, the fuzzy decision maker's (FDM) verification of the parameter for comparison with reality. Sixty-five construction projects in Iraq have been selected, and the most crucial crisis variables were used for calculating the weights and their importance, using the fuzzy logic inference model to verify the crisis parameters and the extent of their impact in preparation for predicting the mathematical model of public procurement parameters. After the algorithm had been completed, it was noted that the fast, messy genetic algorithm produced a little difference between training and testing (0.012% and 0.0057%), which is more reliable for predicting mean results from models. The paper’s major conclusion is that 18 crisis factors in public procurement through different stages affect construction projects in Iraq.

An exploratory study of the concept of social procurement in the construction industry in Botswana: contractor's perspective

PurposeGovernments worldwide seek to optimize value in public project bids. Social procurement (SP) has become a global tool for achieving project goals. The purpose of this study is to assess the understanding of SP among contractors and identify its drivers to optimize the value associated with public projects.Design/methodology/approachA total of 15 major contractors were interviewed to obtain their views on SP, appreciate their current practices and identify the main drivers of SP in projects. A semistructured interview was used to gather relevant data. Neo-institutional theory is the lens of the study used to provide the focus of the research. The collected data were analyzed using the thematic data analysis technique.FindingsThe study found that SP is understood as corporate social responsibility and is not handled in a structured manner guided by policies or clearly defined procedures. Additionally, research has shown that compliance requirements, rather than value and goodwill, are the main inspiration for SP practices.Research limitations/implicationsThe study’s limitation is the fact that it was conducted in the context of Botswana and only used the interview technique as the solo data collection method. The other limitation is the lack of empirical literature on SP concerning the lack of SP policy in Botswana.Originality/valueThis study raises awareness of the concept of SP among contractors in Botswana and eases its implementation within the industry.

Research on the construction of MEM “project bidding and contract management” teaching case library

Case teaching is an important way to strengthen the training of practical ability of professional degree graduate students. With the rapid development of Master of Engineering Management (MEM) in China in recent years, the cases for the teaching of MEM curriculum need constantly renewed, further excavation, more collection and application, to form a systematic case library. Pushing forward the construction of case library in teaching of MEM professional degree graduate students help case teaching play full advantage. Taking the case library of “Project bidding and contract management” course for example, the paper expounds the relevant theoretical basis of teaching case library construction of professional degree postgraduate courses. And the paper puts forward some design principles and strategies of the construction of case library. Finally, the paper presents the application effects of “Project bidding and contract management” case library. It is hoped that the paper can provide some reference for improving the training quality of MEM professional degree graduate students.

Research on the Problems and Risks of the Lowest Bid in the Project Bidding Process

Research on the Problems and Risks of the Lowest Bid in the Project Bidding Process

A Matching Model for Construction Subcontractor Selection in Engineering Bid Decisions Using Ordinal Priority Approach

ABSTRACT In recent years, the two-sided matching theory has been applied in various fields. Its influence in the engineering field is becoming more and more significant. In the construction engineering context, from the contractor’s perspective as the decision-maker, the mutual matching between project bidding and subcontractors is a complex and uncertain process. A suitable matching method needs to be selected according to the particular situation. Since this study requires considering both the highest satisfaction of parties and the weight of individual fulfillment, we use the two-sided matching theory to address the mutual matching between the engineering project bidding and subcontractor. At the same time, the Ordinal Priority Approach (OPA) is employed to determine the weights and evaluate the indicators of both parties and then determine the preference between the two parties, effectively avoiding the deviation caused by subjective influence in the process. As a result, a bilateral matching model is proposed with the highest satisfaction and considering individual satisfaction. Finally, an example is presented to verify the feasibility and effectiveness of the proposed model.

Application Research of the Project Bid Evaluation Model Based on MATLAB

Bid evaluation, an important part of bidding activities, is the most critical part to determine the quality of bidding. For large volume and complex technology projects, the comprehensive evaluation method is usually used in China. It is known that the selection of bid evaluation method has a great influence on the quality of bidding. In the face of the basic situation of China, although the comprehensive evaluation method is basically competent for the bidding work, it still has the defects of human factors in the evaluation of the bid. Therefore, it is essential to improve the bidding evaluation method. This paper mainly evaluates the bid evaluation activities of construction projects based on the comprehensive weighted evaluation method. Through the accumulation of relevant theoretical and practical research results, the author sorts out the advantages and disadvantages of various evaluation methods and analyzes the scientificity, fairness, and practicability of the established project bidding as well as the evaluation model in the evaluation of bidders through the actual project bidding and evaluation case. Combined with the mathematical model and case analysis, the bid evaluation activity is solved by the computer program, and the conventional bid evaluation results and the mathematical model evaluation results are compared to get more accurate bid evaluation results.

ANN-based estimation model for the preconstruction cost of pavement rehabilitation projects

To combat prevalent roadway aging, the California Department of Transportation (Caltrans) implements routine rehabilitation projects, which require cost estimation models for better management. Several models have been developed to estimate the construction costs of new highway projects; however, few have targeted the cost of pavement rehabilitation, and, of these, most have focused primarily on the construction phase. This study presents an artificial neural network (ANN) estimation model that predicts the cost of the preconstruction phases (predesign, design, and bidding) of pavement rehabilitation projects. The model was developed using 139 projects maintained by Caltrans over the past five years. Pareto principle and sensitivity analysis were used to identify five project items that contributed significantly to the model’s high estimation performance, which was demonstrated by a coefficient of multiple determination value (R 2) of 76.9%. Thus, the proposed model will allow Caltrans to properly estimate its budget and manage its performance during the preconstruction phases of pavement rehabilitation projects. Moreover, it overcomes many limitations of conventional preconstruction cost estimation models and will allow Caltrans to better manage up to $80B that may be spent on its preconstruction activities. Finally, the model provides a benchmarking tool for tracking and controlling expenses.

Study on the Conditions for setting Target Prices in Japanese Grant Aid Projects

Japan has been implementing grant aid projects for developing countries for many years, but in recent years, many projects have experienced unsuccessful bidding (i.e., all bid prices are higher than the target price), due to a gap between the project target price and the bid price. For public works contracts in Japan, contracts may not be signed for more than the target price under any circumstances. Therefore, if the bid price exceeds the target price, a tender cannot be completed. The estimation method used for Japanese grant aid projects uses estimation standards developed for domestic construction projects in Japan with some modifications for overseas projects, but it is not possible to fully include the cost of the following risks in the target price; therefore, the difference between the target price and the bid price is assumed to occur. The target price is used as the reference price so that the final contract price may exceed the target price; instead, the price, including the upfront cost, is used as the maximum price for the project. In this way, the rate of unsuccessful bids for Japanese grant aid projects in bilateral contracts may decrease and the discrepancy between the target price and the bid price may disappear.

Political Economy of Elite Capture and Clientelism in Public Resource Distribution: Theory and Evidence from Balochistan, Pakistan

The article critically examines the presence of political and bureaucratic capture in public sector resource allocation in the province of Balochistan, Pakistan. The article applies robust empirical techniques to evaluate how the political and bureaucratic elite indiscriminately and disproportionally allocate public sector funds to meet two overarching ends: (a) to allow maximum misappropriation of public funds for their benefits and (b) to make constituency/district-specific allocations to buy political allegiance and promote pork barrel and patronage politics (political clientelism). For the empirical purpose, the article uses an unbalanced panel technique using data for districts from provincial-level sources. The empirical results show a strong capture and clientelism in the process of budget making and the allocations of resources/projects to districts/constituencies for incumbent politicians and senior career officials who are at the helm of affairs, making disproportionate budgetary allocations of public resources to their home districts or constituencies or the projects with much leverage of extraction (read bribes) in the process of project allocations, bidding and execution. The evidence suggests that districts, which are neither represented by the incumbency of provincial government nor by senior bureaucrats in ministries that make public policy, receive far lesser budgetary allocations than their proportionate share despite the prevailing poor social and economic landscape. Such capture suffices personal interests, supports clientelism in resource sharing and creates an inter-regional and inter-district/constituency disparity in terms of economic and social development within the province.

Cost Overruns, Winner's Curse, Wisdom of the Crowd, and a Pendulum Effect in Public Construction Tenders

The “wisdom of the crowd” is a concept that argues that collective opinion is better than any single (even expert) opinion. The wisdom of the crowd has a particularly important implication in tenders. Consider the scenario of project bidding, where multiple contractors bid for a contract and the winner is the bidder committing for the lowest cost. If the collective bid, i.e., the average bid, is the most accurate in assessing the true value of the contract, then the winning bid is underestimating the contract and therefore is expected to end up with a loss, a result known as the “winner's curse”. While this outcome predicts that project owners will save costs it is hardly so, as cost overruns are ubiquitous in the construction industry. In this paper, we analyzed the cost estimates, contractors' bids and total payments of 148 government tenders of construction projects. We identified and quantified the three aforementioned phenomena: the wisdom of the crowd, the winner's curse and cost overruns. Considered together, these phenomena manifest a pendulum effect in which the auction winning contractor pendulates from a cursed to a blessed state, at the expense of the public's interest.

“Estimating the recoverable value of in-situ building materials”

Construction, renovation and demolition of buildings in our cities is driving substantial material consumption and waste streams. They can be reduced by recovering in-situ materials from buildings with controlled demolition, disassembly, and deconstruction of components and materials. To do this, a decision support tool that can be used to estimate current recoverable environmental and market values from the owner's perspective of in-situ construction materials in a specific facility must be developed. Here, a linear programming optimization methodology is used that considers cost, value, duration, environmental impacts, and building component precedence in demolition and deconstruction activities. It helps choose the optimal combination of reuse, recycling and disposal options for those materials. The resulting decision support tool is functionally demonstrated on an institutional building to find the building components’ optimal end-of-life alternatives to maximize the recovered value from the in-situ materials. Sensitivity analyses add further validation. Thus, this research supports the transition to a more circular economy in cities by making it easier to realize the full value of in-situ materials for planning, asset management, and demolition project bids.

Assessing the Factors Influencing Cashflow Management in Project Delivery in Kaduna Metropolis, Nigeria

The aim of the study is to Assess the state of contractors’ cash flow and its drivers influencing on construction project delivery in Kaduna, Nigeria with a view towards improving contractors’ cash flow. The study’s objectives are: to identify the factors influencing cash flow management on construction projects delivery and to examine the influence of contractors’ cash flow management on Construction project delivery. A questionnaire was prepared to identify the above-mentioned factors. A total of 35 responses were collected from contractors and desired results were obtained and conclusions were made. The results of the questionnaire indicated that the majority of the contractors who encountered failures in their annual project contracts, attributable to poor cash flow management and forecasting, are those contractors who did not perform cash flow analysis prior to submitting bids for projects. The survey showed that in construction industry, material management plays an important role in cash flow management followed by procurement and inventory. The survey also showed that the major sources of capital are the credit, the company assets, the advance payment and the progress payment. Inventory management is the best suited example for cash flow management in a project.

Exploration of Ideological and Political Education in the Course of Project Bidding and Contract Management

Exploration of Ideological and Political Education in the Course of Project Bidding and Contract Management

Internet-Based Procurement: An Analysis of the Malpractices and Errors in the use of PHilGEPS Website of the Philippine Center for Postharvest Development and Mechanization

The strict implementation of the use of PHilGEPS has been a major practice in government agencies, going to lengths such as moving the dates of procurement activities or cancelling bidding projects due to errors in the posting of advertisements. Moreover, it is in no discreet information that PHilGEPS experienced major errors and technical difficulties last year, even opting to use a temporary facility for revamping and improvement of the old PHilGEPS Website. However, despite the strict implementation of the use of the website, errors and malpractices are still a major problem for some government agencies leading up to disallowances and even show-cause orders. This descriptive study aimed to determine the cause of the transgressions and errors in the use of the PHilGEPS Website and the possible solutions to avoid such malpractice in the Philippine Center for Postharvest Development and Mechanization. To obtain the needed information, a survey questionnaire in the form of Google Forms was undertaken for this aim. The participants of the study are employees of the agency that uses and manages the PHilGEPS account of the procurement unit. Findings show the lack of training related to the use of the website contributes to the errors in the transactions. Also, strengthening and continuous improvement of PHilGEPs must be prioritized to avoid errors and transgressions in required postings.

Cost Prediction for Roads Construction using Machine Learning Models

Predicting conceptual costs is among the essential criteria in project decision-making at the early stages of civil engineering disciplines. The cost estimation model availability that may help in the early stages of a project could be incredibly advantageous in respect of cost alternatives and more extraordinary cost-effective solutions periodically. There is a lack of case datasets. Most of the proposed dataset was inefficient. This study offers a new data set that includes the elements of road construction and economic advantages in the year of project construction. Real project data for rural roads in the State of Iraq / Diyala Governorate for the years 2012 to 2021 have use to train a predictive model with a high rate of accuracy based on machine learning (ML) methods. Ridge and Least Absolute Shrinkage and Selection Operator (LASSO) Regressions, K Nearest Neighbors (k-NN), and Random Forest (RF) algorithms have employ to create models for estimating road construction costs based on real-world data. The Root Mean Square Error (RMSE), Mean Absolute Percentage Error (MAPE), and R-squared (R2) coefficient of determination are utilize to assess the models' performance. The analysis indicated that the RR is the best model for road construction costs, with results R2 = 1.0, MAPE =0.00, and RMSE=0.00. The results showed that the cost estimates were accurate and aligned with the project bids.