Impact of considering need for work and risk on performance of construction contractors

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dc.contributor.author Awwad, Rita
dc.contributor.author Asgari, Sadegh
dc.contributor.author Kandil, Amr
dc.contributor.author Odeh, Ibrahim
dc.date.accessioned 2016-10-10T12:54:21Z
dc.date.available 2016-10-10T12:54:21Z
dc.date.copyright 2016 en_US
dc.date.issued 2016-10-10
dc.identifier.issn 0926-5805 en_US
dc.identifier.uri http://hdl.handle.net/10725/4554
dc.description.abstract Competitive bidding is the main mechanism of allocating projects in the construction market. In the traditional single criterion bidding method, the markup decision has a significant impact on a contractor's business success. Contractors usually take into consideration several factors in the process of determining their markup. This study has reviewed the literature and identified a range of contractors' behaviors when making their markup decision within a competitive bidding environment. An additive markup function consisting of three components, namely competition, risk, and need for work, was developed in order to replicate markup behaviors of contractors. Then, agent-based modeling has been employed for simulating the bidding process within a market formed of a set of heterogeneous contractors with different risk attitudes and defined markup behaviors. This model was used to study the impact of considering need for work and risk allowance in markup determination on financial performance of contractors in various market scenarios. Results suggest that the optimal policy is moderation in both dimensions of risk attitude and need for work. en_US
dc.language.iso en en_US
dc.title Impact of considering need for work and risk on performance of construction contractors en_US
dc.type Article en_US
dc.description.version Published en_US
dc.title.subtitle An agent-based approach en_US
dc.author.school SOE en_US
dc.author.idnumber 199906210 en_US
dc.author.department Civil Engineering en_US
dc.description.embargo N/A en_US
dc.relation.journal Automation in Construction en_US
dc.journal.volume 65 en_US
dc.article.pages 9-20 en_US
dc.keywords Agent-based modeling en_US
dc.keywords Competitive bidding en_US
dc.keywords Computer-aided simulation en_US
dc.keywords Multi-attribute decision making en_US
dc.keywords Markup en_US
dc.keywords Need for work en_US
dc.keywords Risk attitude en_US
dc.identifier.doi http://dx.doi.org/10.1016/j.autcon.2016.01.004 en_US
dc.identifier.ctation Asgari, S., Awwad, R., Kandil, A., & Odeh, I. (2016). Impact of considering need for work and risk on performance of construction contractors: An agent-based approach. Automation in Construction, 65, 9-20. en_US
dc.author.email rita.awwad@lau.edu.lb en_US
dc.identifier.tou http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php en_US
dc.identifier.url http://www.sciencedirect.com/science/article/pii/S0926580516300085 en_US

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