Below-Average Bidding Method

LAUR Repository

Show simple item record

dc.contributor.author Awwad, Rita E.
dc.contributor.author Ioannou, Photios G.
dc.date.accessioned 2016-02-12T08:33:46Z
dc.date.available 2016-02-12T08:33:46Z
dc.date.copyright 2010
dc.date.issued 2017-04-11
dc.identifier.issn 0733-9364 en_US
dc.identifier.uri http://hdl.handle.net/10725/3049
dc.description.abstract The low-bid method, typically used for competitive bidding in the United States, may result in a contract with a firm that submits either accidentally or deliberately an unrealistically low-bid price. Such an occurrence hurts both the owner and the contractor by promoting disputes, increased costs, and schedule delays. To address this problem, other countries have adopted bidding methods based on the average of the bids submitted. One such approach is the below-average method where the winning bid is closest to but below the average of all bids. A competitive bidding model for the below-average-bid method is presented and its merits relative to the average-bid method and the low-bid method are explored. The below-average-bid process is investigated analytically and through Monte Carlo simulation. The results of bidding models for the below-average, the average, and the low-bid methods are presented in four easy-to-use nomograms which allow contractors to determine the optimal lump-sum bid price for each method without the need for complicated analysis. A comparison of the three methods provides information and insights to help owners with the difficult choice of a suitable bidding method for the project at hand en_US
dc.language.iso en en_US
dc.title Below-Average Bidding Method en_US
dc.type Article en_US
dc.description.version Published en_US
dc.author.school SOE en_US
dc.author.idnumber 199906210 en_US
dc.author.woa N/A en_US
dc.author.department Civil Engineering en_US
dc.description.embargo N/A en_US
dc.relation.journal Journal of Construction Engineering and Management en_US
dc.journal.volume 136 en_US
dc.journal.issue 9 en_US
dc.article.pages 936-946 en_US
dc.keywords Construction en_US
dc.keywords Contracts en_US
dc.keywords Bids en_US
dc.keywords Pricing en_US
dc.keywords Competition en_US
dc.keywords Model en_US
dc.keywords Simulation en_US
dc.keywords Average Bid en_US
dc.keywords Below-average-bid en_US
dc.keywords Low bid en_US
dc.keywords Markup en_US
dc.keywords Contingency en_US
dc.keywords Probability en_US
dc.keywords Innovation en_US
dc.keywords Taiwan en_US
dc.keywords Italy en_US
dc.keywords Peru en_US
dc.keywords Florida en_US
dc.identifier.doi http://dx.doi.org/10.1061/ ASCECO.1943-7862.0000202 en_US
dc.identifier.ctation Ioannou, P. G., & Awwad, R. E. (2010). Below-average bidding method. Journal of Construction Engineering and Management, 136(9), 936-946. en_US
dc.author.email rita.awwad@lau.edu.lb
dc.identifier.url http://ascelibrary.org/doi/abs/10.1061/(ASCE)CO.1943-7862.0000202

Files in this item

Files Size Format View

There are no files associated with this item.

This item appears in the following Collection(s)

Show simple item record

Search LAUR

Advanced Search


My Account