Estimating Damages of Bid-Rigging in Design-Build Contracts Based on Simulation Model

Kim, Kyong Ju; Kim, Eu Wang; Nguyen, Thi Ha Tho

doi:10.1007/s12205-021-1571-y

Cited by 5 publications

(2 citation statements)

References 4 publications

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“…The list also clarified the prioritization of risk factors based on the mean value of RL values and highlighted the risk factors of the high-risk level group. By referencing previous studies on the bidding process [11,17,30,31,39,40], existing research on risk management [3,8,18,19,27,28,36], and a team of consulting experts, this study proposed an RMP for use by GCs during the DB project bidding process. The document package included a working flowchart, member responsibility, and a checklist of risk factor management reports.…”

Section: Methods To Evaluate the Rmpmentioning

confidence: 99%

Developing a Risk Management Process for General Contractors in the Bidding Stage for Design–Build Projects in Vietnam

Pham

Tran³

et al. 2021

Buildings

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Design–build (DB) projects have become increasingly popular for construction projects in developing countries due to the cost and scheduling advantages and their design optimization ability. As a result, much research has been conducted on improving DB efficiency in terms of cost, scheduling, risk management, etc. However, the existing studies have mainly focused on the owner’s roles, whereas general contractors (GCs) must also take many risks on behalf of owners in DB projects. The adequate identification and assessment of risks before engaging a contractor can increase the likelihood of a project’s success, at least from a DB contractor’s perspective. Therefore, this study interviewed procurement experts to conduct a survey at the local level, then analyzed, developed, and proposed an additional risk management process (RMP) for use by GCs during the bidding process of DB projects. A case study was conducted with a large Vietnamese GC to evaluate the effectiveness of the process and find ways to optimize it in the future. The results of the study showed that risk management during a DB project is imperative. Nevertheless, preparing bids is time-consuming and increases the contingency costs, reducing the competitiveness of the bid prices for contractors. Therefore, depending on the specific project and risk management objectives, an RMP is recommended for adjusting the risk management target to reduce the risk, while still maintaining the competitiveness of the bid prices.

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Section: Methods To Evaluate the Rmpmentioning

confidence: 99%

Developing a Risk Management Process for General Contractors in the Bidding Stage for Design–Build Projects in Vietnam

Pham

Tran³

et al. 2021

Buildings

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“…Numerous collusive bidding cases, including price cartel, bid rigging, and bid rotation, are often reported worldwide [3][4][5]. The lack of effective countermeasures has made collusive bidding a stubborn disturbance to market operation [6,7], resulting in economic disruption [8].…”

Section: Introductionmentioning

confidence: 99%

Break the Cycle of Collusion: Simulation to Influence Mechanism of Cognitive Bias on To-Collude Decision Making

Zhengmin

2022

Buildings

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Collusion is an all-pervading illegal market behavior that can undermine the sustainable development of the construction industry. It is acknowledged that collusive bidding decision making is influenced by conspirators’ cognitive bias. Nevertheless, the understanding of such an influence mechanism remains vague in the literature. This study aims to examine the mechanism of conspirators’ to-collude decision making by establishing a system dynamic model. The model development is based on the theories of cognitive biases, collusive bidding, and complex adaptive system. Multiple scenarios were simulated in the context of the Chinese construction industry. Three most influential cognitive bias are overconfidence, the illusion of control, and cognitive dissonance. The simulation results reveal conspirators’ intrinsic mechanisms to decide whether they deserve to participate in collusive bidding. The evolution of to-collude decision making is characterized by nonlinearity, multiplier, and stimulus enhancement effects. Collusion motivation and enterprise network relationships expand conspirators’ to-collude decision making. The increase of government regulation intensity and enterprise performance inhibit conspirators’ to-collude decision making. This study provides an insight into the cycle of collusion emergence from a complex system perspective and implies that antitrust authorities can launch carrot-and-stick measures for better regulation.

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Collusion Suspicion Among Bidders of Construction Supervision Projects in China: Based on Bidding Big Data and Complex Networks

et al. 2022

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Estimating Damages of Bid-Rigging in Design-Build Contracts Based on Simulation Model

Cited by 5 publications

References 4 publications

Developing a Risk Management Process for General Contractors in the Bidding Stage for Design–Build Projects in Vietnam

Developing a Risk Management Process for General Contractors in the Bidding Stage for Design–Build Projects in Vietnam

Break the Cycle of Collusion: Simulation to Influence Mechanism of Cognitive Bias on To-Collude Decision Making

Collusion Suspicion Among Bidders of Construction Supervision Projects in China: Based on Bidding Big Data and Complex Networks

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